441-720-0110 Definitions The following definitions are adopted for the purposes of this Division: (1) “Average Daily Assets” means the daily average of net assets calculated on the basis of assets at the close of each day in the period. (2) “CLF” means Central Liquidity Facility. (3) “CMO” means Collateralized Mortgage Obligation. (4) “Capital” means the total of all corporate reserves (regular or statutory reserves, as applicable), all undivided earnings, net income, and membership capital share deposit (or equivalent) accounts. (5) “Equity Reserves,” pursuant to ORS 723.730(1), means regular or statutory reserves, and all undivided earnings, which shall be used to finance expansion, pay dividends, absorb losses or be expended for any other bona fide corporate purpose. (6) “MCSD” means membership capital share deposit. (7) “Membership Capital Share Deposit” account means a share, deposit, or other account that: (a) Is established, at a minimum, as a 12-month notice account; (b) Is limited to members; (c) Is not subject to share insurance coverage by the NCUSIF; and (d) In the event of liquidation of the corporate central credit union, is payable only after satisfaction of all liabilities of the liquidation estate, including uninsured obligations to shareholders and the NCUSIF. In any event, an MCSD account shall not be repayable until notice that the accountholder credit union intends to withdraw MCSD account funds from the corporate central credit union, except in the case of a credit union that is placed into liquidation, is purchased and assumed, or is merged. MCSD accounts cannot be used to pledge borrowings. If the corporate central credit union issues MCSD accounts, it shall disclose, at least annually to its members, the terms and conditions under which such accounts are issued. (8) “NCUSIF” means the National Credit Union Share Insurance Fund. (9) “Net Assets” means total assets less CLF stock subscriptions, CLF loans guaranteed by the NCUSIF, U.S. Central CLF certificates, and member reverse repurchase transactions. (10) “Primary Capital” means all corporate reserves and undivided earnings. (11) “REMIC” means Real Estate Mortgage Investment Conduit. (12) “Risk-Based Capital” means the total of primary capital and secondary capital (up to 100 percent of primary capital). (13) “Risk-Weighted Assets” means the sum of total balance sheet assets and off-balance sheet credit equivalent amounts multiplied by their appropriate risk weights. (14) “SEC” means the Securities and Exchange Commission. (15) “Secondary Capital” means MCSD or equivalent accounts (except for MCSD accounts owned by other corporate central credit unions unless the MCSD account is held by a corporate central credit union whose members are primarily other corporate central credit unions and other organizations recognized under Section 501(c)(6) of the Internal Revenue Code), allowance for loan and lease losses up to a maximum of 1.25 percent of risk-weighted assets, and term subordinated debt weighted by remaining maturity as indicated: (a) Five years or more until maturity: 100 percent; (b) Four years to less than five years: 80 percent; (c) Three years to less than four years: 60 percent; (d) Two years to less than three years: 40 percent; (e) One year to less than two years: 20 percent; and (f) Less than one year remaining maturity: 0 percent. MCSD accounts upon which the accountholder has given the corporate central credit union notice of intent to withdraw may no longer be considered secondary capital. (16) “United States Government-Sponsored Corporations and Enterprises” means agencies originally established or chartered to serve public purposes specified by Congress, but whose obligations are not explicitly guaranteed by the full faith and credit of the United States Government. Statutory/Other Authority: ORS 723.102, 723.156 & 723.730 Statutes/Other Implemented: ORS 723.730 History: FCS 5-1992, f. & cert. ef. 12-21-92