§ 31.12.436. Investment of funds
A credit union may invest its funds in any of the following, as long as they are deemed prudent by the board:
(1) Loans held by credit unions, out-of-state credit unions, or federal credit unions; loans to members held by other lenders; and loans to nonmembers held by other lenders, with the approval of the director;
(2) Bonds, securities, or other investments that are fully guaranteed as to principal and interest by the United States government, and general obligations of this state and its political subdivisions;
(3) Obligations issued by corporations designated under 31 U.S.C. Sec. 9101, or obligations, participations or other instruments issued and guaranteed by the federal national mortgage association, federal home loan mortgage corporation, government national mortgage association, or other government-sponsored enterprise;
(4) Participations or obligations which have been subjected by one or more government agencies to a trust or trusts for which an executive department, agency, or instrumentality of the United States has been named to act as trustee;
(5) Share or deposit accounts of other financial institutions, the accounts of which are federally insured or insured or guaranteed by another insurer or guarantor approved by the director. The shares and deposits made by a credit union under this subsection may exceed the insurance or guarantee limits established by the organization insuring or guaranteeing the institution into which the shares or deposits are made;
(6) Common trust or mutual funds whose investment portfolios consist of securities issued or guaranteed by the federal government or an agency of the government;
(7) Up to five percent of the capital of the credit union, in debt or equity issued by an organization owned by the Washington credit union league;
(8) Shares, stocks, loans, or other obligations of organizations whose primary purpose is to strengthen, advance, or provide services to the credit union industry or credit union members. A credit union may in the aggregate invest an amount not to exceed one percent of its assets in organizations under this subsection. In addition, a credit union may in the aggregate lend an amount not to exceed one percent of its assets to organizations under this subsection. These limits do not apply to investments in, and loans to, an organization:
(a) That is wholly owned by one or more credit unions or federal or out-of-state credit unions; and
(b) Whose activities are limited exclusively to those authorized by this chapter for a credit union;
(9) Loans to credit unions, out-of-state credit unions, or federal credit unions. The aggregate of loans issued under this subsection is limited to twenty-five percent of the total shares and deposits of the lending credit union;
(10) Key person insurance policies, the proceeds of which inure exclusively to the benefit of the credit union; or
(11) Other investments approved by the director upon written application.
[2001 c 83 § 19; 1997 c 397 § 36. Prior: 1994 c 256 § 86; 1994 c 92 § 197; 1987 c 338 § 7; 1984 c 31 § 44. Formerly RCW 31.12.425.]
Notes:
Findings -- Construction -- 1994 c 256: See RCW 43.320.007.
Sections: Previous 31.12.404 31.12.408 31.12.413 31.12.416 31.12.418 31.12.426 31.12.428 31.12.436 31.12.438 31.12.461 31.12.464 31.12.467 31.12.471 31.12.474 31.12.516 Next
Last modified: April 7, 2009