[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: 12CFR703.1] [Page 394-395] TITLE 12--BANKS AND BANKING CHAPTER VII--NATIONAL CREDIT UNION ADMINISTRATION PART 703_INVESTMENT AND DEPOSIT ACTIVITIES--Table of Contents Sec. 703.1 Purpose and scope. Sec. 703.1 Purpose and scope. 703.2 Definitions. 703.3 Investment policies. 703.4 Recordkeeping and documentation requirements. 703.5 Discretionary control over investments and investment advisers. 703.6 Credit analysis. 703.7 Notice of non-compliant investments. 703.8 Broker-dealers. 703.9 Safekeeping of investments. 703.10 Monitoring non-security investments. 703.11 Valuing securities. 703.12 Monitoring securities. 703.13 Permissible investment activities. 703.14 Permissible investments. 703.15 Prohibited investment activities. 703.16 Prohibited investments. 703.17 Conflicts of interest. 703.18 Grandfathered investments. 703.19 Investment pilot program. Authority: 12 U.S.C. 1757(7), 1757(8), 1757(15). Source: 68 FR 32960, June 3, 2003, unless otherwise noted. (a) This part interprets several of the provisions of Sections 107(7), 107(8), and 107(15) of the Federal Credit Union Act (Act), 12 U.S.C. 1757(7), 1757(8), 1757(15), which list those securities, deposits, and other obligations in which a Federal credit union may invest. Part 703 identifies certain investments and deposit activities permissible under the Act and prescribes regulations governing those investments and deposit activities on the basis of safety and soundness concerns. Additionally, part 703 identifies and prohibits certain investments and deposit activities. Investments and deposit activities that are permissible under the Act and not prohibited or otherwise regulated by part 703 remain permissible for Federal credit unions. (b) This part does not apply to: (1) Investment in loans to members and related activities, which is governed by Sec. Sec. 701.21, 701.22, 701.23, and part 723 of this chapter; (2) The purchase of real estate-secured loans pursuant to Section 107(15)(A) of the Act, which is governed by Sec. 701.23 of this chapter; (3) Investment in credit union service organizations, which is governed by part 712 of this chapter; (4) Investment in fixed assets, which is governed by Sec. 701.36 of this chapter; (5) Investment by corporate credit unions, which is governed by part 704 of this chapter; or [[Page 395]] (6) Investment activity by State-chartered credit unions, except as provided in Sec. 741.3(a)(2) and Sec. 741.219 of this chapter. [68 FR 32960, June 3, 2003, as amended at 69 FR 27828, May 17, 2004]