Michael P. Malloy, Esq.
Drinker Biddle & Reath
Broad and Chestnut Streets
Philadelphia, PA 19107

Re: Delegation of Investment Authority (Your October 2, 1992, Letter)

Dear Mr. Malloy:

You have asked whether an investment management arrangement proposed by The Glenmede Trust Company is permissible for federal credit unions (FCUs). Please be advised that the National Credit Union Administration does not render opinions on specific agreements between FCUs and third parties. The determination as to the permissibility of a particular investment program, as well as its suitability for a particular FCU, should only be made by the board of directors of the FCU, with the advice of counsel. We refer you to the March 25, 1992, letter to Mr. Bruce Jolly for a more complete description of the issues raised by FCU involvement in investment programs.

Sincerely,

Hattie M. Ulan
Associate General Counsel

GC/LH:sg
SSIC 4660
92-1006