[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]