§ 19-5-15 Investment of funds –Powers. – The capital, deposits, and surplus of the credit union shall be lent to themembers for the purposes and upon the security and terms as the creditcommittee shall approve, as authorized by a written loan policy, duly adoptedby the board of directors. Funds not used in loans to members may be depositedin authorized reserve agents, or invested in the same manner as allowed by thenational credit union administration rules and regulations, or in the followingmanner:
(1) Without limitation, in securities issued as directobligations of the United States government and in securities guaranteed by theUnited States government or an agency thereof, as to principal and interest,and in any trust or trusts established for investing directly or collectivelyin these securities only;
(2) An amount not exceeding one third (1/3) of the assets maybe invested in:
(i) Investments other than those described above but whichare legal for the investment of funds of financial institutions of this state,subject to the same limitations and restrictions by which financialinstitutions are governed, provided that credit unions with assets of less thanten million dollars ($10,000,000) may not invest pursuant to the "prudentperson" provisions.
(ii) Deposits in financial institutions incorporated underthe laws of this state or under federal law and doing business in this state orin those other institutions that may be approved by the director or thedirector's designee.
(iii) Any corporation incorporated by CUNA International,Inc. or its successor, or any associated or subsidiary corporation, for thepurpose of providing investment opportunity for credit unions, or anyinvestment or interlending program managed or sponsored by any of thesecorporations; provided that deposit or investment under this subsection shallbe made only after the director or the director's designee has approved thecorporation for investment, or the investment or interlending program.
(iv) Common or preferred stocks other than those permittedabove to the extent of not over five percent (5%) of the assets of investingcredit unions with assets less than ten million dollars ($10,000,000) and tothe extent of not over ten percent (10%) of the assets of investing creditunions with assets of ten million dollars ($10,000,000) or more; provided,however, that any of these securities shall be listed on a national stockexchange or on the National Market System of the NASDAQ stock market; thatdividends have been paid by the corporation issuing the security and anypredecessor corporation or corporations for at least four (4) of the last five(5) years; that the issuing corporation has, as shown by its last auditedstatement, total assets of at least one hundred million dollars ($100,000,000),and a stockholders' equity of not less than forty percent (40%) of the amountof its total assets; and provided, further, that the security shall have beenapproved for investment by the director or the director's designee. Thedirector or the director's designee shall have absolute discretion in approvingindividual securities, provided they meet the requirements set forth above. Nocredit union shall invest in securities under the terms of this subdivisionunless it shall have at least one million dollars ($1,000,000) in total assetsas shown by its last annual report. No credit union shall invest more than onepercent (1%) of its assets in any one security under the terms of this section.
(v) Funds not used in loans to members may be invested incapital shares, obligations, preferred stock issues of any agency orassociation organized either as a stock company, mutual association, ormembership corporation, provided the membership or stockholding, as the casemay be, of the agency or association is confined or restricted to credit unionsor organizations of credit unions, and provided the purposes for which theagency or association is organized are designed to serve or otherwise assistcredit union operations and provided the director or the director's designeehas approved this investment.
In applying the limitations and restrictions as topercentages prescribed in the law governing investments by financialinstitutions, percentages shall be computed based on the total assets of thecredit union.
(3) Every credit union shall have the power to exercise, byits board of directors or duly authorized officers or agents, all incidentalpowers necessary to carry on the business of a credit union including, but notlimited to, the power:
(i) To receive, upon deposit and for safekeeping, property ofevery description, upon terms prescribed by the credit union and to construct,own, lease, and maintain safe deposit vaults, with suitable boxes and placesfor the reception and deposit of the property, and lease the use of theseplaces and boxes to individuals and corporations, upon those terms that thecredit union may prescribe. The credit union shall in no case incur anyliability on account of the deposit of any property so made with it, or byreason of the leasing of any place of deposit, other than that liability as thecredit union shall expressly assume in each case by the terms of the contractor receipt under which it shall accept the deposit or shall have let the placeof deposit;
(ii) To act as a depositary of public money or a financialagent; and
(iii) To exercise additional powers, not inconsistent withthe carrying on of a credit union business, with the approval of the directoror the director's designee.
§ 19-5-15 Investment of funds –Powers. – The capital, deposits, and surplus of the credit union shall be lent to themembers for the purposes and upon the security and terms as the creditcommittee shall approve, as authorized by a written loan policy, duly adoptedby the board of directors. Funds not used in loans to members may be depositedin authorized reserve agents, or invested in the same manner as allowed by thenational credit union administration rules and regulations, or in the followingmanner:
(1) Without limitation, in securities issued as directobligations of the United States government and in securities guaranteed by theUnited States government or an agency thereof, as to principal and interest,and in any trust or trusts established for investing directly or collectivelyin these securities only;
(2) An amount not exceeding one third (1/3) of the assets maybe invested in:
(i) Investments other than those described above but whichare legal for the investment of funds of financial institutions of this state,subject to the same limitations and restrictions by which financialinstitutions are governed, provided that credit unions with assets of less thanten million dollars ($10,000,000) may not invest pursuant to the "prudentperson" provisions.
(ii) Deposits in financial institutions incorporated underthe laws of this state or under federal law and doing business in this state orin those other institutions that may be approved by the director or thedirector's designee.
(iii) Any corporation incorporated by CUNA International,Inc. or its successor, or any associated or subsidiary corporation, for thepurpose of providing investment opportunity for credit unions, or anyinvestment or interlending program managed or sponsored by any of thesecorporations; provided that deposit or investment under this subsection shallbe made only after the director or the director's designee has approved thecorporation for investment, or the investment or interlending program.
(iv) Common or preferred stocks other than those permittedabove to the extent of not over five percent (5%) of the assets of investingcredit unions with assets less than ten million dollars ($10,000,000) and tothe extent of not over ten percent (10%) of the assets of investing creditunions with assets of ten million dollars ($10,000,000) or more; provided,however, that any of these securities shall be listed on a national stockexchange or on the National Market System of the NASDAQ stock market; thatdividends have been paid by the corporation issuing the security and anypredecessor corporation or corporations for at least four (4) of the last five(5) years; that the issuing corporation has, as shown by its last auditedstatement, total assets of at least one hundred million dollars ($100,000,000),and a stockholders' equity of not less than forty percent (40%) of the amountof its total assets; and provided, further, that the security shall have beenapproved for investment by the director or the director's designee. Thedirector or the director's designee shall have absolute discretion in approvingindividual securities, provided they meet the requirements set forth above. Nocredit union shall invest in securities under the terms of this subdivisionunless it shall have at least one million dollars ($1,000,000) in total assetsas shown by its last annual report. No credit union shall invest more than onepercent (1%) of its assets in any one security under the terms of this section.
(v) Funds not used in loans to members may be invested incapital shares, obligations, preferred stock issues of any agency orassociation organized either as a stock company, mutual association, ormembership corporation, provided the membership or stockholding, as the casemay be, of the agency or association is confined or restricted to credit unionsor organizations of credit unions, and provided the purposes for which theagency or association is organized are designed to serve or otherwise assistcredit union operations and provided the director or the director's designeehas approved this investment.
In applying the limitations and restrictions as topercentages prescribed in the law governing investments by financialinstitutions, percentages shall be computed based on the total assets of thecredit union.
(3) Every credit union shall have the power to exercise, byits board of directors or duly authorized officers or agents, all incidentalpowers necessary to carry on the business of a credit union including, but notlimited to, the power:
(i) To receive, upon deposit and for safekeeping, property ofevery description, upon terms prescribed by the credit union and to construct,own, lease, and maintain safe deposit vaults, with suitable boxes and placesfor the reception and deposit of the property, and lease the use of theseplaces and boxes to individuals and corporations, upon those terms that thecredit union may prescribe. The credit union shall in no case incur anyliability on account of the deposit of any property so made with it, or byreason of the leasing of any place of deposit, other than that liability as thecredit union shall expressly assume in each case by the terms of the contractor receipt under which it shall accept the deposit or shall have let the placeof deposit;
(ii) To act as a depositary of public money or a financialagent; and
(iii) To exercise additional powers, not inconsistent withthe carrying on of a credit union business, with the approval of the directoror the director's designee.
§ 19-5-15 Investment of funds –Powers. – The capital, deposits, and surplus of the credit union shall be lent to themembers for the purposes and upon the security and terms as the creditcommittee shall approve, as authorized by a written loan policy, duly adoptedby the board of directors. Funds not used in loans to members may be depositedin authorized reserve agents, or invested in the same manner as allowed by thenational credit union administration rules and regulations, or in the followingmanner:
(1) Without limitation, in securities issued as directobligations of the United States government and in securities guaranteed by theUnited States government or an agency thereof, as to principal and interest,and in any trust or trusts established for investing directly or collectivelyin these securities only;
(2) An amount not exceeding one third (1/3) of the assets maybe invested in:
(i) Investments other than those described above but whichare legal for the investment of funds of financial institutions of this state,subject to the same limitations and restrictions by which financialinstitutions are governed, provided that credit unions with assets of less thanten million dollars ($10,000,000) may not invest pursuant to the "prudentperson" provisions.
(ii) Deposits in financial institutions incorporated underthe laws of this state or under federal law and doing business in this state orin those other institutions that may be approved by the director or thedirector's designee.
(iii) Any corporation incorporated by CUNA International,Inc. or its successor, or any associated or subsidiary corporation, for thepurpose of providing investment opportunity for credit unions, or anyinvestment or interlending program managed or sponsored by any of thesecorporations; provided that deposit or investment under this subsection shallbe made only after the director or the director's designee has approved thecorporation for investment, or the investment or interlending program.
(iv) Common or preferred stocks other than those permittedabove to the extent of not over five percent (5%) of the assets of investingcredit unions with assets less than ten million dollars ($10,000,000) and tothe extent of not over ten percent (10%) of the assets of investing creditunions with assets of ten million dollars ($10,000,000) or more; provided,however, that any of these securities shall be listed on a national stockexchange or on the National Market System of the NASDAQ stock market; thatdividends have been paid by the corporation issuing the security and anypredecessor corporation or corporations for at least four (4) of the last five(5) years; that the issuing corporation has, as shown by its last auditedstatement, total assets of at least one hundred million dollars ($100,000,000),and a stockholders' equity of not less than forty percent (40%) of the amountof its total assets; and provided, further, that the security shall have beenapproved for investment by the director or the director's designee. Thedirector or the director's designee shall have absolute discretion in approvingindividual securities, provided they meet the requirements set forth above. Nocredit union shall invest in securities under the terms of this subdivisionunless it shall have at least one million dollars ($1,000,000) in total assetsas shown by its last annual report. No credit union shall invest more than onepercent (1%) of its assets in any one security under the terms of this section.
(v) Funds not used in loans to members may be invested incapital shares, obligations, preferred stock issues of any agency orassociation organized either as a stock company, mutual association, ormembership corporation, provided the membership or stockholding, as the casemay be, of the agency or association is confined or restricted to credit unionsor organizations of credit unions, and provided the purposes for which theagency or association is organized are designed to serve or otherwise assistcredit union operations and provided the director or the director's designeehas approved this investment.
In applying the limitations and restrictions as topercentages prescribed in the law governing investments by financialinstitutions, percentages shall be computed based on the total assets of thecredit union.
(3) Every credit union shall have the power to exercise, byits board of directors or duly authorized officers or agents, all incidentalpowers necessary to carry on the business of a credit union including, but notlimited to, the power:
(i) To receive, upon deposit and for safekeeping, property ofevery description, upon terms prescribed by the credit union and to construct,own, lease, and maintain safe deposit vaults, with suitable boxes and placesfor the reception and deposit of the property, and lease the use of theseplaces and boxes to individuals and corporations, upon those terms that thecredit union may prescribe. The credit union shall in no case incur anyliability on account of the deposit of any property so made with it, or byreason of the leasing of any place of deposit, other than that liability as thecredit union shall expressly assume in each case by the terms of the contractor receipt under which it shall accept the deposit or shall have let the placeof deposit;
(ii) To act as a depositary of public money or a financialagent; and
(iii) To exercise additional powers, not inconsistent withthe carrying on of a credit union business, with the approval of the directoror the director's designee.
