NH Rev Stat § 383-E:4-403 (2021)
2021 New Hampshire Revised Statutes|Title XXXV - Banks and Banking; Loan Associations; Credit Unions|Title 383-E - Credit Union Act|Section 383-E:4-403 - Limitations.

    383-E:4-403 Limitations. –||The following limitations shall be observed with respect to the investments of credit unions:||(a) Not exceeding 5 percent of total assets shall be invested in preferred or common stock.||(b) Not exceeding 5 percent of total assets shall be invested in bonds of the Dominion of Canada, its provinces and cities.||(c) Not exceeding 20 percent in aggregate of the total assets shall be invested in corporate securities, New Hampshire securities, banks and bank holding company securities, and investment trust shares; provided, however, that not exceeding 5 percent of the total assets may be invested in preferred and common stock, including shares of investment trusts.||(d) Unless the value of a credit union's assets as determined by the commissioner shall exceed the amount of the shares and deposits by at least 5 percent, it shall be unlawful for such credit union to invest in any preferred or common stocks, including shares of investment trusts, without the written permission of the commissioner.||(e) A credit union may, in total, invest or lend up to 20 percent of its net worth in or to any single service entity, provided all of the following conditions are met:||(1) The service entity is structured to limit the credit union's exposure to loss;||(2) The service entity primarily serves credit unions and the membership of affiliated credit unions; and||(3) A credit union's aggregate investment in or loans to all service entities do not exceed 50 percent of its net worth.||(f) For the purposes of paragraph (e), "net worth" means the net worth as reported on the National Credit Union Administration Call Report Form 5300.||(g) The commissioner may grant a waiver of the 20 percent maximum investing or lending threshold in paragraph (e) if the credit union's aggregate investment in or loans to all service entities do not exceed 50 percent of its net worth and if the credit union can demonstrate that:||(1) The credit union exceeds the 20 percent limitation in paragraph (e) due to investments or loans to a service entity that engages solely in originating or servicing residential mortgage loans or both, where all such residential mortgages meet the definition of a qualified mortgage as that term is defined in 15 United States Code, Section 1639c(b)(2)(A).||(2) The lending activities of the service entity are to and for the benefit of the membership of the credit union.||(3) The loan to or investment in the service entity does not present an unacceptable exposure to loss that adversely impacts the safety and soundness of the credit union.||(h) Whenever in the opinion of the commissioner the condition of any credit union is such that the commissioner deems it unwise for the credit union to invest in any preferred or common stocks, including shares of investment trusts, he or she may by written order forbid such credit union to make such investment, and said credit union shall not thereafter make such investment until such order shall be revoked in writing.||(i) No investment shall be made which, when added to investments of the same category then held, shall cause the investments in that category to exceed the percentages permitted for such category.||(j) In determining whether an investment complies with the limitations imposed by this section, the applicable limitation shall be applied to the condition of the credit union at the time of making such investment.|||Source. 2015, 272:16, eff. Oct. 1, 2015. 2019, 115:5, eff. Jan. 1, 2020.|