[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: 12CFR703.6]



[Page 399]

 

                       TITLE 12--BANKS AND BANKING

 

            CHAPTER VII--NATIONAL CREDIT UNION ADMINISTRATION

 

PART 703_INVESTMENT AND DEPOSIT ACTIVITIES--Table of Contents

 

Sec. 703.6  Credit analysis.



    A Federal credit union must conduct and document a credit analysis 

on an investment and the issuing entity before purchasing it, except for 

investments issued or fully guaranteed as to principal and interest by 

the U.S. government or its agencies, enterprises, or corporations or 

fully insured (including accumulated interest) by the National Credit 

Union Administration or the Federal Deposit Insurance Corporation. A 

Federal credit union must update this analysis at least annually for as 

long as it holds the investment.