{"data":{"id":"us/12-cfr-7.1017","jurisdiction":"us","citation":"12 CFR 7.1017","heading":"National bank as guarantor or surety on indemnity bond.","body":"(a) A national bank may lend its credit, bind itself as a surety to indemnify another, or otherwise become a guarantor (including, pursuant to 12 CFR 28.4, guaranteeing the deposits and other liabilities of its Edge corporations and Agreement corporations and of its corporate instrumentalities in foreign countries), if:\n(1) The bank has a substantial interest in the performance of the transaction involved (for example, a bank, as fiduciary, has a sufficient interest in the faithful performance by a cofiduciary of its duties to act as surety on the bond of such cofiduciary); or\n(2) The transaction is for the benefit of a customer and the bank obtains from the customer a segregated deposit that is sufficient in amount to cover the bank's total potential liability. A segregated deposit under this section includes collateral:\n(i) In which the bank has perfected its security interest (for example, if the collateral is a printed security, the bank must have obtained physical control of the security, and, if the collateral is a book entry security, the bank must have properly recorded its security interest); and\n(ii) That has a market value, at the close of each business day, equal to the bank's total potential liability and is composed of:\n(A) Cash;\n(B) Obligations of the United States or its agencies;\n(C) Obligations fully guaranteed by the United States or its agencies as to principal and interest; or\n(D) Notes, drafts, or bills of exchange or bankers' acceptances that are eligible for rediscount or purchase by a Federal Reserve Bank; or\n(iii) That has a market value, at the close of each business day, equal to 110 percent of the bank's total potential liability and is composed of obligations of a State or political subdivision of a State.\n(b) In addition to paragraph (a) of this section, a national bank may guarantee obligations of a customer, subsidiary or affiliate that are financial in character, provided the amount of the bank's financial obligation is reasonably ascertainable and otherwise consistent with applicable law.","path":["Title 12—Banks and Banking","CHAPTER I—COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY","PART 7—ACTIVITIES AND OPERATIONS","Subpart A—National Bank and Federal Savings Association Powers"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-12.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:16Z","sha256":"1f8909b9bd4494c8ab0e5a88cd7c3ab7912c9a6fcf0cc7610333b1922f229867","source_id":"us-cfr","stale":true,"prev":"us/12-cfr-7.1016","next":"us/12-cfr-7.1018"},"notice":"GroundRules: Original legal text. Not legal advice."}