Rules & Regulations of the State of Tennessee
Title 0180 - Financial Institutions
Chapter 0180-10 - Investments by State-Chartered Credit Unions
Section 0180-10-1-.03 - EXCEPTIONS; PROHIBITION AGAINST PAIR-OFF ARRANGEMENTS

Universal Citation: TN Comp Rules and Regs 0180-10-1-.03

Current through April 3, 2024

(1) A credit union may enter into a cash forward agreement to purchase a security; provided that the period from the trade date to the settlement date does not exceed one hundred twenty (120) days, and the credit union has written cash flow projections evidencing its ability to purchase the underlying security.

(2) A credit union may not enter into a cash forward agreement to sell a security unless it owns the security at the time of the trade date, and the settlement date is not more than thirty (30) days from the trade date. All cash forward agreements must be settled on a cash basis at the settlement date.

(3) A credit union may not engage in pair-off transactions involving cash forward agreements whereby a credit union agrees to purchase a security and subsequently agrees to sell the same security on the same settlement date.

Authority: T.C.A. §§ 45-4-1001 and 45-4-501(3).

Disclaimer: These regulations may not be the most recent version. Tennessee 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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