Permissible investments.

CFR · 2024-01-01 · US · Title 12

(a) (b) (c) (d) (e) (f) (1) Yankee dollar deposits; (2) Eurodollar deposits; (3) Banker's acceptances; (4) Deposit notes; and (5) Bank notes with weighted average maturities of less than 5 years. (g) (1) The option and dividend rate are based on a domestic equity index; (2) Proceeds from the options are used only to fund dividends on the equity-linked share certificates; (3) Dividends on the share certificates are derived solely from the change in the domestic equity index over a specified period; (4) The options' expiration dates are no later than the maturity date of the share certificate. (5) The certificate may be redeemed prior to the maturity date only upon the member's death or termination of the corresponding option; (6) The total costs associated with the purchase of the option is known by the Federal credit union prior to effecting the transaction; (7) The options are purchased at the same time the certificate is issued to the member. (8) The counterparty to the transaction is a domestic counterparty and has been approved by the Federal credit union's board of directors; (9) The counterparty to the transaction meets the minimum credit quality standards as approved by the Federal credit union's board of directors. (10) Any collateral posted by the counterparty is a permissible investment for Federal credit unions and is valued daily by an independent third party along with the value of the option; (11) The aggregate amount of equity-linked member share certificates d

official document · source cfr-2024 · id 12:§ 703.14