Permissible investment activities.

CFR · 2024-01-01 · US · Title 12

(a) (b) (c) (1) Any securities the Federal credit union receives are permissible investments for Federal credit unions, the Federal credit union, or its agent, either takes physical possession or control of the repurchase securities or is recorded as owner of them through the Federal Reserve Book Entry Securities Transfer System, the Federal credit union, or its agent, receives a daily assessment of their market value, including accrued interest, and the Federal credit union maintains adequate margins that reflect a risk assessment of the securities and the term of the transaction; and (2) The Federal credit union has entered into signed contracts with all approved counterparties. (d) (1) The transaction meets the requirements of paragraph (c) of this section; (2) Any cash the Federal credit union receives is subject to the borrowing limit specified in Section 107(9) of the Act, and any investments the Federal credit union purchases with that cash are permissible for Federal credit unions; and (3) The investments referenced in paragraph (d)(2) of this section must mature under the following conditions: (i) No later than the maturity of the borrowing repurchase transaction; (ii) No later than thirty days after the borrowing repurchase transaction, unless authorized under § 703.20, provided the value of all investments purchased with maturities later than borrowing repurchase transactions does not exceed 100 percent of the federal credit union's net worth; or (iii) At any time

official document · source cfr-2024 · id 12:§ 703.13