Illinois Administrative Code
Title 38 - FINANCIAL INSTITUTIONS
Part 190 - ILLINOIS CREDIT UNION ACT
Subpart A - GENERAL PROVISIONS
Section 190.180 - Investments
Current through Register Vol. 48, No. 12, March 22, 2024
The board of directors of a credit union shall use the following procedures in managing and investing funds not being used for loans to members.
a) The board must develop a written investment policy that includes, at a minimum:
b) All investments are to be recorded on the books and records in accordance with GAAP and so as to enable the Division to readily ascertain the financial condition of the credit union.
c) Investments are limited to the direct purchase of securities listed in Section 59 of the Act, and common trust or mutual funds whose investment authority is limited solely to securities and investments listed in Section 59.
d) Credit unions may invest in privately issued collateralized mortgage obligations (CMOs). A CMO is a corporate bond secured by mortgage pass-through certificates of the Government National Mortgage Association or the Federal National Mortgage Association (FNMA), provided the obligations receive the highest rating (either AAA or AA) by Standard and Poors or another comparable rating service.
e) Credit unions are not authorized to engage in speculative investment activities or transactions, including but not limited to: