Oregon Administrative Rules
Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION
Division 720 - CREDIT UNIONS
Section 441-720-0220 - Investments in Investment and Borrowing Repurchase Agreements, Bankers Acceptances, Participation in Federal Funds Authorized; Adoption of Federal Statutes, Regulations on Such Investments

Universal Citation: OR Admin Rules 441-720-0220

Current through Register Vol. 63, No. 9, September 1, 2024

A state credit union is authorized to invest in investment and borrowing repurchase agreements, bankers acceptances and federal funds permissible for federal credit unions as described in the following provisions.

(1) A credit union may sell Federal funds to a financial institution defined in ORS 706.008, as long as the interest or other consideration received from the financial institution is at the market rate for Federal funds transactions.

(2) A credit union may enter into an investment repurchase transaction so long as:

(a) Any securities the credit union receives are permissible investments for federal credit unions;

(b) The credit union, or its agent, either:
(A) Takes physical possession or control of the repurchase securities; or

(B) Is recorded as owner of them through the Federal Reserve Book Entry Securities Transfer System.

(c) The credit union, or its agent, receives a daily assessment of their market value, including accrued interest;

(d) The credit union maintains adequate margins that reflect a risk assessment of the securities and the term of the transaction; and

(e) The credit union has entered into signed contracts with all approved counterparties.

(3) A credit union may enter into a borrowing repurchase transaction so long as:

(a) The transaction meets the requirements of section (2) of this rule;

(b) Any cash the credit union receives is subject to a borrowing limit of 50% of paid-in and unimpaired capital and surplus;

(c) Any investments the credit union purchases with that cash are permissible for credit unions; and

(d) The investments purchased with that cash mature no later than the maturity of the borrowing repurchase transaction.

(4) A credit union may invest in banker's acceptances issued by a financial institution defined in ORS 706.008.

Stat. Auth.: ORS 723.102

Stats. Implemented: ORS 723.156 & 723.602

Disclaimer: These regulations may not be the most recent version. Oregon may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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