6.2-1376 - (Effective October 1, 2010) Authorized investments. - Virginia Statutes

§ 6.2-1376. (Effective October 1, 2010) Authorized investments.

The funds of a credit union that are not used in loans to members may beinvested only:

1. In loans to other insured credit unions to the extent permitted in thebylaws;

2. In shares, share accounts, or deposits of other insured credit unions tothe extent authorized in its bylaws, but not to exceed 25 percent of theinvesting credit union's outstanding shares and reserve fund;

3. Notwithstanding any other provision of this section, in shares or depositsof any corporate credit union provided such investments are specificallyauthorized by the board of directors making the investment;

4. In federally insured banks and savings institutions;

5. In the capital stock of the National Credit Union Central LiquidityFacility or any central liquidity facility established under the laws of theCommonwealth;

6. In obligations of the United States and securities fully guaranteed as toprincipal and interest thereby;

7. In obligations of the Commonwealth and any political subdivision thereof,including, but not limited to, revenue bonds;

8. In such stock, securities, obligations, or other investments as may beapproved from time to time by the Commission;

9. In real estate, office buildings, equipment, and furnishings of the creditunion provided that the aggregate investment in all such fixed assets shallnot exceed five percent of the total of the members' share accounts withoutthe prior written authorization of the Commissioner;

10. In shares, stock, deposits in, loans, or other obligations of any creditunion service organization, corporation, or association, if (i) themembership or ownership, as the case may be, of such organization,corporation, or association is primarily confined or restricted to creditunions or organizations of credit unions and (ii) the purpose for which suchorganization, corporation, or association is organized is to strengthen oradvance the development of credit unions or credit union organizations. Suchinvestment by any credit union shall not exceed five percent of the creditunion's outstanding shares and reserves without the prior approval of theCommissioner;

11. In deposits in, loans to, or shares of any Federal Reserve Bank; and

12. In cooperative loans with other credit unions or credit unionorganizations. Such investment shall not exceed 10 percent of outstandingshares and reserves of the investing credit union.

(Code 1950, § 6-225; 1956, c. 90; 1958, c. 21; 1966, c. 584, § 6.1-216; 1968,c. 560; 1972, c. 192; 1974, c. 117; 1975, c. 35; 1979, c. 190; 1980, cc. 207,210; 1983, c. 466; 1984, c. 351; 1990, c. 373, § 6.1-225.57; 1991, c. 367;2010, c. 794.)