17-2204a.   Investments; limitations; definition ofcredit unionservices corporation.(a) Notwithstanding any other provision contained in the laws of this stateproviding for investments by credit unions, such credit unions may invest,through their board of directors and under written investment policiesestablished by the board, in the bonds, debentures or othersimilar obligations issued under the authority of and pursuant to the actof congress known as the farm credit act of 1971, as amended. The totalamount of such bonds, debentures or other similarobligations of any one obligor or maker shall at no time exceed 15%of the shares, undividedearnings and reserves of the credit union.

      (b)   Subject to rules and regulations of the administrator, credit unionsmay invest in a credit union services organization, through their boardof directors andunder written investment policies established by the board, if the creditunion services organizationis structured as a corporation, limited liability company or limitedpartnership. Subject to rules and regulations of the administrator, creditunions may make loans to such credit union services organization, exceptthatany such investment in or loans to such credit union servicesorganization shall not exceed, inthe aggregate, 2% of the credit union's unimpaired shares, reserves andundivided earnings."Credit unionservices organization" means an organization established to provideoperational and financial services primarily to credit unions.

      (c)   Subject to written guidelines issued by the administrator, acredit union may invest its funds, through its board of directors and underwritten investment policies established by the board, in investmentsecurities defined by the administrator. Except for obligations of whollyowned government corporations, or obligations which provide a return ofprincipal andinterest which is guaranteed by an agency of the federal government, thetotal amount of such investment securities of any one obligor or maker heldby the credit union shall at no time exceed 15% of the shares, undividedearnings and reserves of the credit union.

      (d)   Except as provided in subsection (g) of K.S.A. 17-2204, andamendments thereto, a credit union is prohibited from participatingdirectly or indirectly in: (1) The purchase or sale of a standbycommitment; (2) a futures contract; (3) in adjusted trading; or (4) in a shortsale of a security. A credit union's directors, officials, committeemembers and employees, and immediate family members of such individuals, maynot receive pecuniary consideration in connection with the making of aninvestment or deposit by the credit union.

      (e)   Nothing contained in this sectionshall be construed to prohibit any funds of a credit union from beinginvested as now provided by law.

      History:   L. 1957, ch. 153, § 1;L. 1971, ch. 76, § 1;L. 1973, ch. 93, § 1;L. 1987, ch. 85, § 2;L. 1995, ch. 128, § 1;L. 1996, ch. 72, § 1;L. 2007, ch. 71, § 1; July 1.