§412:10-502  Permitted investments.  (a) 
To the extent specified herein, a credit union may invest its own assets in:



(1)  Securities and obligations of the United States
government and any agency of the United States government whose debt
obligations are fully and explicitly guaranteed as to the timely payment of
principal and interest by the full faith and credit of the United States,
including without limitation Federal Reserve Banks, the Government National
Mortgage Association, the Veterans Administration, the Federal Housing
Administration, the United States Department of Agriculture, the Export-Import
Bank, the Overseas Private Investment Corporation, the Commodity Credit
Corporation, and the Small Business Administration;



(2)  Bonds, notes, mortgage backed securities, and
other debt obligations of the Federal Home Loan Mortgage Corporation, the
Federal National Mortgage Association, and the Federal Home Loan Banks;



(3)  Securities and obligations of United States
government-sponsored agencies which are originally established or chartered by
the United States government to serve public purposes specified by the Congress
but whose debt obligations are not explicitly guaranteed by the full faith and
credit of the United States, including without limitation Banks for
Cooperatives, Federal Agricultural Mortgage Corporation, Federal Farm Credit
Banks, Federal Intermediate Credit Banks, Federal Land Banks, Resolution
Funding Corporation, Student Loan Marketing Association, Tennessee Valley
Authority, the United States Postal Service, and securities and obligations of
the Federal Home Loan Mortgage Corporation, the Federal National Mortgage
Association, and the Federal Home Loan Banks that are not bonds, notes,
mortgage backed securities, or other debt obligations of the Federal Home Loan
Mortgage Corporation, the Federal National Mortgage Association, and the
Federal Home Loan Banks; provided that the total amount invested in obligations
of any one issuer shall not exceed ten per cent of the credit union's capital;
and



(4)  Securities and obligations of quasi-United States
governmental institutions, including without limitation the International Bank
for Reconstruction and Development (World Bank), the Inter-American Development
Bank, the Asian Development Bank, the African Development Bank, the European
Investment Bank, and other multilateral lending institutions or regional
development institutions in which the United States government is a shareholder
or contributing member; provided that the total amount invested in any one
issuer shall not exceed ten per cent of the credit union's capital.



(b)  A credit union may invest its own assets
in bonds, securities, or similar obligations issued by this State or any county
of this State, through an appropriate agency or instrumentality.



(c)  To the extent specified herein, a credit
union may invest its own assets in bonds or similar obligations issued by any
state of the United States other than this State, the District of Columbia, or
any territory or possession of the United States, by municipal governments of
such states, territories or possessions, or by any foreign country or political
subdivision of such country; provided, that:



(1)  The bond, note, or warrant has been issued in
compliance with the constitution and laws of any such government;



(2)  There has been no default in payment of either
principal or interest on any of the general obligations of such government for
a period of five years immediately preceding the date of the investment; and



(3)  The total amount invested in such obligations of
any one issuer by a credit union shall not exceed ten per cent of the credit
union's capital.



(d)  To the extent specified, a credit union
may invest its own assets in credit union service organizations pursuant to section
412:10-202.



(e)  To the extent specified herein, a credit
union may invest its own assets in securities that are rated within the four
highest grades by a nationally-recognized rating service and which represent
ownership of one or more promissory notes, certificates of interest, or
participation in such notes, or which are secured by one or more promissory
notes, certificates of interest, or participation in such notes, which notes:



(1)  Are directly secured by a first lien on
residential real estate or a residential manufactured home as defined under
Title 42 of the United States Code, whether or not such manufactured home is
considered real or personal property under state law; and



(2)  Were originated by a credit union, insurance
company, or similar institution which is supervised and examined by a federal
or state authority, or by a mortgagee approved by the Secretary of Housing and
Urban Development.  Notes secured by a lien on a manufactured home may also
originate from a credit union approved for insurance by the Secretary of
Housing and Urban Development.  The total amount invested in such securities by
a credit union shall not exceed twenty per cent of its capital and surplus.



The term "securities" in this subsection
shall have the same meaning as given in chapter 485A.



(f)  To the extent specified herein, a credit
union may invest its own assets in mortgage related securities that:



(1)  Are offered and sold pursuant to section 4(5) of
the Securities Act of 1933 (15 U.S.C. §77D(5)); or



(2)  Are mortgage related securities (as that term is
defined in section 3(a)(41) of the Securities Exchange Act of 1934 (15 U.S.C.
§78C(a)(41)), subject to such rules as the commissioner may adopt, including
rules prescribing minimum size of issue (at the time of initial distribution)
or minimum aggregate sales prices, or both.



(g)  To the extent specified herein, a credit
union may purchase, hold, convey, sell or lease real or personal property as
follows:



(1)  The real property in or on which the business of the
credit union is carried on, other space in the same property to rent as a
source of income, other real property necessary to the accommodation of the
credit union's business, including but not limited to parking facilities, data
processing centers, and real property held for future use where the credit
union in good faith expects to utilize the property as credit union premises;
provided, if the credit union ceases to use any real property and improvements
thereon for one of the foregoing purposes, it shall, within five years
thereafter, sell the real property or cease to carry it or them as an asset;
provided further, such property shall not, without the approval of the
commissioner, exceed five per cent of the credit union's capital;



(2)  Personal property used in or necessary to the
accommodation of the credit union's business, including but not limited to
furniture, fixtures, equipment, vaults and safety deposit boxes.  The credit
union's investment in furniture and fixtures shall not, without the approval of
the commissioner, exceed five per cent of the credit union's capital;



(3)  Such real property or tangible personal property
as may come into the credit union's possession as security for loans or in the
collection of debts; or as may be purchased by or conveyed to the credit union
in satisfaction of or on account of debts previously contracted in the course
of the credit union's business, when such property was held as security by the
credit union; and



(4)  The seller's interest under an agreement of sale,
as that term is defined in sections 501-101.5 and 502-85, including without
limitation the reversionary interest in the real property and the right to
income under the agreement of sale, with or without recourse to the seller.



Except as otherwise authorized in this section
any tangible personal property coming into the possession of any credit union
pursuant to paragraph (3) shall be disposed of as soon as practicable and shall
not, without the written consent of the commissioner, be considered a part of
the assets of the credit union after the expiration of two years from the date
of acquisition.



Except as otherwise authorized in this section
any real property acquired by a credit union pursuant to paragraph (3) shall be
sold or exchanged for other real property by the credit union within five years
after title thereto has vested in it by purchase or otherwise, or within such
further time as may be granted by the commissioner.



Any credit union acquiring any real property in
any manner other than provided by this section shall immediately, upon
receiving notice from the commissioner, charge the same to profit and loss, or
otherwise remove the same from assets, and when any loss impairs the capital of
the credit union the impairment shall be made good in the manner provided in
this chapter. [L 1993, c 350, pt of §1; am L 1997, c 258, §19; am L 2001, c
170, §13; am L 2006, c 229, §8; am L 2009, c 107, §7]