§ 703.1. Purpose and scope.
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/us/cfr/t12/s§ 703.1·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)This part interprets several of the provisions of Sections 107(7), 107(8), and 107(15) of the Federal Credit Union Act (Act), 12 U.S.C. 1757(7), 1757(8), 1757(15), which list those securities, deposits, and other obligations in which a Federal credit union may invest. Part 703 identifies certain investments and deposit activities permissible under the Act and prescribes regulations governing those investments and deposit activities on the basis of safety and soundness concerns. Additionally, part 703 identifies and prohibits certain investments and deposit activities. Investments and deposit activities that are permissible under the Act and not prohibited or otherwise regulated by part 703 remain permissible for Federal credit unions.
(b)This part does not apply to:
(1)Investment in loans to members and related activities, which is governed by §§ 701.21, 701.22, 701.23, and part 723 of this chapter;
(2)The purchase of real estate-secured loans pursuant to Section 107(15)(A) of the Act, which is governed by § 701.23 of this chapter, except those real estate-secured loans purchased as a part of an investment repurchase transaction, which is governed by §§ 703.13 and 703.14 of this chapter;
(3)Investment in credit union service organizations, which is governed by part 712 of this chapter;
(4)Investment in fixed assets, which is governed by § 701.36 of this chapter;
(5)Investment by corporate credit unions, which is governed by part 704 of this chapter.
(6)Investment activity by State-chartered credit unions, except as provided in §§ 741.3(a)(2) and 741.219 of this chapter; or
(7)Funding a Charitable Donation Account pursuant to § 721.3(b) of this chapter. [68 FR 32960, June 3, 2003, as amended at 69 FR 27828, May 17, 2004; 71 FR 76124, Dec. 20, 2006; 78 FR 76730, Dec. 19, 2013]
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§ 703.1
Purpose and scope.
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