Code of Maryland Regulations
Title 09 - MARYLAND DEPARTMENT OF LABOR
Subtitle 03 - COMMISSIONER OF FINANCIAL REGULATION
Chapter 09.03.01 - Credit Unions
09.03.01.10 - Investments

Universal Citation: MD Code Reg 09.03.01.10

09.03.01.10. Investments

A. In this regulation, the following terms have the meanings indicated.

B. Terms Defined.

(1) "Adjusted trading" means any method or transaction used to defer a loss whereby a credit union sells a security to a vendor at a price above its current market price, and simultaneously purchases or commits to purchase from the vendor another security at a price above its current market price.

(2) Options or Futures Contracts.

(a) "Option or futures contracts" means commitment to either buy or sell a security, on or before a future date, at a predetermined price.

(b) "Option or future contract" does not include the subscription for the purchase of initial offering of an investment permitted by Financial Institutions Article ยง 6-705, Annotated Code of Maryland.

(3) "Short sale" means the sale of a security not owned by the seller.

C. A credit union may not engage in adjusted trading.

D. A credit union may not invest in options or futures contracts or engage in short sales.

(Regulations .10 adopted as an emergency provision effective July 19, 1988 (15:18 Md. R. 2143); emergency status extended at 15:27 Md. R. 3123
Regulations .10 adopted effective August 6, 1990 (17:15 Md. R. 1855)
Regulations .10 and new Regulation .10 adopted effective October 1, 2001 (28:19 Md. R. 1683))
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