[Code of Federal Regulations]

[Title 12, Volume 6]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR721.2]



[Page 571]

 

                       TITLE 12--BANKS AND BANKING

 

            CHAPTER VII--NATIONAL CREDIT UNION ADMINISTRATION

 

PART 721_INCIDENTAL POWERS--Table of Contents

 

Sec. 721.2  What is an incidental powers activity?



    An incidental powers activity is one that is necessary or requisite 

to enable you to carry on effectively the business for which you are 

incorporated. An activity meets the definition of an incidental power 

activity if the activity:

    (a) Is convenient or useful in carrying out the mission or business 

of credit unions consistent with the Federal Credit Union Act;

    (b) Is the functional equivalent or logical outgrowth of activities 

that are part of the mission or business of credit unions; and

    (c) Involves risks similar in nature to those already assumed as 

part of the business of credit unions.