Loans to credit unions.

CFR · 2024-01-01 · US · Title 12

(a) (1) (2) (b) (1) How the Federal credit union will manage the credit risk of loans to other credit unions; and (2) The limits on the aggregate principal amount of loans the Federal credit union can make to other credit unions. The policies must specify the limits on the aggregate principal amount of loans the Federal credit union can make to all other credit unions and the aggregate principal amount of loans the Federal credit union can make to any single credit union; provided that any limits included in such policies do not exceed the limits in this section. (c) (i) Has at the time of the investment, a capital classification of “well capitalized,” as defined in part 702 of this chapter; (ii) Does not have any outstanding Subordinated Debt or Grandfathered Secondary Capital, in each case with respect to which it was the Issuing Credit Union (as defined in part 702 of this chapter); and (iii) Is not eligible to issue Subordinated Debt or Grandfathered Secondary Capital pursuant to an unexpired approval from the NCUA under subpart D of part 702 of this chapter. (2) (A) 25 percent of the investing Federal credit union's net worth at the time of the investment; and (B) Any amount of net worth in excess of seven percent (7%) of total assets. (ii) (A) Investment in Subordinated Debt; (B) Investment in Grandfathered Secondary Capital; (C) Investment in loans or obligations issued by a privately insured credit union that are subordinate to the private insurer; and (D) Loans or po

official document · source cfr-2024 · id 12:§ 701.25