Section 70: Reserve for losses on investments
108 words·~1 min read·
/ma/part-i/title-xxii/chapter-171/70·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 70. A credit union shall maintain a reserve for loses on investments equal to five percent of the difference between the book value and the market value of all investments mentioned in section sixty-seven excluding those investments which are included in the liquidity reserve; provided, however, that a credit union shall maintain a reserve for the stock investments authorized by paragraph
(o)and the investment funds authorized by paragraph
(p)of section sixty-seven.
Should the reserves maintained in this section and section sixty-nine exceed the amount necessary to be kept or maintained in those accounts, the credit union may transfer such excess into an undivided earnings account.