[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: 12CFR703.4]



[Page 398]

 

                       TITLE 12--BANKS AND BANKING

 

            CHAPTER VII--NATIONAL CREDIT UNION ADMINISTRATION

 

PART 703_INVESTMENT AND DEPOSIT ACTIVITIES--Table of Contents

 

Sec. 703.4  Recordkeeping and documentation requirements.



    (a) Federal credit unions with assets of $10,000,000 or greater must 

comply with all generally accepted accounting principles applicable to 

reports or statements required to be filed with NCUA. Federal credit 

unions with assets less than $10,000,000 are encouraged to do the same, 

but are not required to do so.

    (b) A Federal credit union must maintain documentation for each 

investment transaction for as long as it holds the investment and until 

the documentation has been audited in accordance with Sec. 701.12 of 

this chapter and examined by NCUA. The documentation should include, 

where applicable, bids and prices at purchase and sale and for periodic 

updates, relevant disclosure documents or a description of the security 

from an industry-recognized information provider, financial data, and 

tests and reports required by the Federal credit union's investment 

policy and this part.

    (c) A Federal credit union must maintain documentation its board of 

directors used to approve a broker-dealer or a safekeeper for as long as 

the broker-dealer or safekeeper is approved and until the documentation 

has been audited in accordance with Sec. 701.12 of this chapter and 

examined by NCUA.

    (d) A Federal credit union must obtain an individual confirmation 

statement from each broker-dealer for each investment purchased or sold.



[68 FR 32960, June 3, 2003, as amended at 69 FR 27828, May 17, 2004]