North Dakota Administrative Code › Title 13 - Department of Financial Institutions › Article 13-03 - Credit Unions › Chapter 13-03-22 - Investment Activities › Section 13-03-22-02 - Permissible investments

Current through Supplement No. 393, July, 2024
A credit union may invest in the following types of
				  investments:
1. Bonds of the United
				States without limitation in securities issued as direct obligations of the
				United States government or any agency thereof and in any trust established for
				investing directly or collectively in such securities.
2. Bonds or evidences of debt of this state
				or in bonds of states of the United States.
3. Bonds or certificates of indebtedness of
				any county, city, or school district, issued pursuant to authority of law,
				subject to a limitation of thirty percent of the assets of the credit
				union.
4. First lien, public
				utility, industrial, corporation, or association bonds, notes or other
				evidences of debt issued by corporations located in the United States to the
				extent authorized under  chapter 13-03-03. These investments must be rated in
				one of the four highest rating categories by a nationally recognized
				statistical rating organization registered with the securities and exchange
				commission. In the case of different ratings from different rating
				organizations, the lower rating applies.
5. Shares of a registered investment company
				or collective investment fund, as long as the prospectus of the company or fund
				restricts the investment portfolio to investments and investment transactions
				that are permissible for state-chartered credit unions.
6. Corporate credit union shares or deposits,
				including paid-in or membership capital. A credit union's aggregate amount of
				paid-in capital and membership capital in one corporate credit union is limited
				to two percent of its assets measured at the time of investment or adjustment.
				A credit union's aggregate amount of paid-in capital and membership capital in
				all corporate credit unions is limited to four percent of its assets measured
				at the time of investment or adjustment.
7. Certificates of deposit or other deposits
				issued by federally insured state or national banks, mutual savings banks,
				trust companies, or issued by an insured financial institution located in a
				territory of the United States that is either insured by the federal deposit
				insurance corporation or by the national credit union administration. Included
				in these deposits are yankee dollar deposits, Eurodollar deposits, banker's
				acceptances, deposit notes, and bank notes with original weighted average
				maturities of less than five years.
8. Variable rate investments as long as the
				index is tied to domestic interest rates and not, for example, to foreign
				currencies, foreign interest rates, or domestic or foreign commodity prices,
				equity prices, or inflation rates.
9. A fixed rate or variable rate
				collateralized mortgage obligation or real estate mortgage investment conduit
				issued by an agency of the federal government.
10. Derivative products but only for the
				purposes of managing interest rate risk and subject to the limitations outlined
				in section 13-03-22-16.
11.
				Charitable donation accounts subject to the limitations outlined in section 13-03-22-17.
General Authority:
NDCC 6-01-04
Law Implemented:
NDCC
					 6-06-06