Investments.

CFR · 2024-01-01 · US · Title 12

(a) (1) Appropriate tests and criteria for evaluating investments and investment transactions before purchase; and (2) Reasonable and supportable concentration limits for limited liquidity investments in relation to capital. (b) (c) (1) Securities, deposits, and obligations set forth in Sections 107(7), 107(8), and 107(15) of the Federal Credit Union Act, 12 U.S.C. 1757(7), 1757(8), and 1757(15), except as provided in this section; (2) Deposits in, the sale of federal funds to, and debt obligations of corporate credit unions, Section 107(8) institutions, and state banks, trust companies, and mutual savings banks not domiciled in the state in which the corporate credit union does business; (3) CUSOs, subject to the limitations of § 704.11; (4) Marketable debt obligations of corporations chartered in the United States. This authority does not apply to debt obligations that are convertible into the stock of the corporation; and (5) Domestically-issued asset-backed securities. (d) (1) The corporate credit union, directly or through its agent, receives written confirmation of the transaction, and either takes physical possession or control of the repurchase securities or is recorded as owner of the repurchase securities through the Federal Reserve Book-Entry Securities Transfer System; (2) The repurchase securities are legal investments for that corporate credit union; (3) The corporate credit union, directly or through its agent, receives daily assessment of the market value of t

official document · source cfr-2024 · id 12:§ 704.5