CUSIP is properly known as the Committee on Uniform Security Identification Procedures, the standards for the alphanumeric security identification number that appears on all securities that are issued in North America are set up by CUSIP. 
American Bankers Association owns the process of creating CUSIP numbers
The process of creation and formation of CUSIP numbers is owned by the American Bankers Association. The administration of CUSIP numbers is handled by Standard & Poor’s.
The CUSIP Services Bureau under the direction of these two organizations, handles the process of numbering securities that are assigned to products that are produced in the United States and Canada.
Each section of the CUSIP has specific meaning
There are specific meanings for each of the sections of the CUSIP. The first six characters of the CUSIP are referred to as the base of the number, and these numbers are used to identify a specific issuer. Any characters that are used in the seventh and eighth positions have to deal with the nature of the security that is being issued. If the security has to do with equity then in these positions the characters may be numbers, while they are letters if they are used to designate fixed income.
Check digit
Ending the series in the ninth position is what is the number that is referred to as the check digit. This digit is determined by taking the second character in the CUSIP and multiplying it by two. If in case the second character is a letter, then the value is determined by figuring the ordinal position of the letter in the alphabet to 9. In case if there are multiple digits being the sum of the multiplication, then the digits are added until a single digit sum is arrived.
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