Wisconsin Administrative Code
Department of Financial Institutions
DFI-CU 51-75 - Department of Financial Institutions-Credit Unions
Chapter DFI-CU 68 - Investment authority parity with federal credit unions
Section DFI-CU 68.03 - Definitions

(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) "Authorized depository financial institution" means any bank insured by the federal deposit insurance corporation or savings and loan association insured by the federal savings and loan insurance corporation.

(3) "Bailment for hire contract" means a contract whereby a third party, bank or other financial institution, for a fee, agrees to exercise at least ordinary care in protecting the securities held in safekeeping for its customers.

(4) "Bankers' acceptance" means a time draft that is drawn on and accepted by a bank, and that represents an irrevocable obligation of the bank.

(5) "Cash forward agreement" means an agreement to purchase or sell a security with delivery and acceptance being mandatory and at a future date in excess of 30 days from the trade date.

(6) "Eurodollar deposit" means a dollar denominated deposit in a foreign branch of an authorized depository financial institution whose principal office is located in the United States.

(7) "Federal funds transaction" means a short-term or open-ended transfer of funds to an authorized depository financial institution.

(8) "Futures contract" means a contract for the future delivery of commodities, including certain government securities, sold on commodities exchanges.

(9) "Immediate family member" means a spouse, or a child, parent, grandchild, grandparent, brother or sister, or the spouse of any such individual.

(10) "Market price" means the last established price at which a security is sold.

(11) "Maturity date" means the date on which a security matures, and shall not mean the call date or the average life of the security.

(12) "Repurchase transaction" means a transaction in which a credit union agrees to purchase a security from a vendor and to resell the same or any identical security to that vendor at a later date. A repurchase transaction may be of three types:

(13) "Reverse repurchase transaction" means a transaction whereby a credit union agrees to sell a security to a purchaser and to repurchase the same or any identical security from that purchaser at a future date and at a specified price.

(14) "Security" means any investment instrument, account, deposit, contract, or other obligation in which a credit union is authorized to invest pursuant to this chapter.

(15) "Settlement date" means the date originally agreed to by a credit union and a vendor for settlement of the purchase or sale of a security.

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

(17) "Standby commitment" means a commitment to either buy or sell a security, on or before a future date, at a predetermined price, or to sell a security in the future at a predetermined price. The seller of the commitment is the party receiving payment for assuming the risk associated with committing either to purchase a security in the future at a predetermined price, or to sell a security in the future at a predetermined price. The seller of the commitment is required to either accept delivery of a security (in the case of a commitment to buy) or make delivery of a security (in the case of a commitment to sell), in either case at the option of the buyer of the commitment.

(18) "Trade date" means the date a credit union originally agrees, whether orally or in writing, to enter into the purchase or sale of a security.

(19) "Yankee dollar deposit" means a deposit in a United States branch of a foreign bank licensed to do business in the state in which it is located, or a deposit in a state chartered, foreign controlled bank.