§ 30.300. Investments.
10 CA ADC § 30.300Barclays Official California Code of RegulationsEffective: April 1, 2022
Effective: April 1, 2022
10 CCR § 30.300
§ 30.300. Investments.
(1) The board of directors of a credit union shall adopt and review at least annually, and the credit union shall comply with, a written investment policy which sets out the goals of the credit union's investment portfolio with respect to the yield, maturity, liquidity and diversification, and risk management for its investments.
(b) Pursuant to Section 14653.5 of the Financial Code, a credit union is authorized to invest in the securities issued by any person, as that term is defined in Section 14001.1 of the Financial Code, subject to the limitation that the credit union's total investments in the securities issued by any one person shall not exceed 10 percent of the credit union's equity capital, as that term is defined in Section 14400 of the Financial Code. In addition, the following investments are authorized and not subject to the 10-percent limit:
(ii) Investments in an “investment company” (commonly known as a “mutual fund”) as defined in the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.) or trusts, provided all investments and investment practices of the investment company or trust would be permissible if made directly by federal credit unions;
(iv) Funds sold to authorized financial institutions, provided that the interest or other consideration received from the authorized financial institution is the market value of federal funds transactions and that the transaction has a maturity of one or more business days or the credit union is able to require repayment at any time.
(2) “Authorized financial institution” means a national bank, state bank, trust company, savings association, credit union, or other financial institution which is organized under the laws of the State of California, or which is insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund.
(9) “Standby commitment” means a commitment to either buy or sell a security, on or before a future date, at a predetermined price. The seller of the commitment is the party receiving payment for assuming the risk associated with committing either to purchase a security in the future at a predetermined price, or to sell a security in the future at a predetermined price. The seller of the commitment is required to either accept delivery of a security (in the case of a commitment to buy) or make delivery of a security (in the case of a commitment to sell), in either case at the option of the buyer of the commitment.
Credits
Note: Authority cited: Section 14201, Financial Code. Reference: Sections 14652, 14653 and 14653.5, Financial Code.
History
1. Change without regulatory effect adding new article 3 (sections 30.300-30.307) and renumbering and amending former section 922 to new section 30.300 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).
2. Amendment of section and Note filed 2-27-2003; operative 3-29-2003 (Register 2003, No. 9).
3. Amendment filed 1-6-2022; operative 4-1-2022 (Register 2022, No. 1).
This database is current through 4/26/24 Register 2024, No. 17.
Cal. Admin. Code tit. 10, § 30.300, 10 CA ADC § 30.300
End of Document |