---
kind: "section"
citation: "12 C.F.R. § 712.11"
title: "12"
number: "712.11"
heading: "What requirements apply to subsidiary CUSOs?"
url: "https://uscodex.org/cfr/12/712.11"
---

# §712.11. What requirements apply to subsidiary CUSOs?

- (a) **FCUs investing in a CUSO with a subsidiary CUSO.** FCUs may only invest in or loan to a CUSO, which has a subsidiary CUSO, if the subsidiary CUSO satisfies all of the requirements of this part. The requirements of this part apply to all tiers or levels of a CUSO's structure.
- (b) **FISCUs investing in a CUSO with a subsidiary CUSO.** FISCUs may only invest in or loan to a CUSO which has a subsidiary CUSO, if the subsidiary CUSO complies with the following:
  - (1) All applicable state laws and rules regarding CUSOs; and
  - (2) All of the requirements of this part that apply to FISCUs, which are listed in [§ 712.1](/cfr/12/712.1.md). The requirements of this part that apply to FISCUs apply to all tiers or levels of a CUSO's structure.
- (c) For purposes of this section, a subsidiary CUSO is any entity in which a CUSO has an ownership interest of any amount, if that entity is engaged primarily in providing products or services to credit unions or credit union members.

## Notes

### Amendments

[78 FR 72549, Dec. 3, 2013]

### Authority

Authority: 12 U.S.C. 1756, 1757(5)(D) and (7)(I), 1766, 1782, 1784, 1785, 1786, and 1789(a)(11).

### Source

Source: 63 FR 10756, Mar. 5, 1998, unless otherwise noted.

### Amendments

[78 FR 72549, Dec. 3, 2013]