Wisconsin Administrative Code
Department of Financial Institutions
DFI-CU 51-75 - Department of Financial Institutions-Credit Unions
Chapter DFI-CU 59 - Miscellaneous investments by credit unions
Section DFI-CU 59.03 - Minimum requirements
Current through February 26, 2024
(1) The institutional security must have at least a "AA" rating by fitch investors service of New York City, or a comparable rating service.
(2) Even though exempt with the federal securities and exchange commission, the institutional investment securities should be registered with the office of the division of securities, state of Wisconsin, and saleable in the state of Wisconsin.
(3) The institutional investments are to be limited to institutions located within the continental United States.
(4) The maturity of the securities purchased may be up to 5 years from the date of purchase. The foregoing is not to be construed as permitting investments in excess of 60 months.
(5) A credit union may not invest in institutional investments within the "balloon"; that is, where a substantial portion of the securities mature on the same date, usually, the last maturity year.
(6) An individual credit union may not invest more than $50,000 in securities issued by any one individual institution without the prior approval of the director of credit unions.
(7) At the date of the investment, the credit union must have at least 70% of its liquidity in investments other than institutional investments.
(8) The individual investment must be approved by a majority of the investing credit union board of directors.
