Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 68 - Investment authority parity with federal credit unions › Section DFI-CU 68.03 - Definitions

Current through June 24, 2024
In this chapter:
(1)
				"Adjusted trading" means any method or transaction used to defer a loss whereby
				a credit union sells a security to a vendor at a price above its current market
				price and simultaneously purchases or commits to purchase from the vendor
				another security at a price above its current market price.
(2) "Authorized depository financial
				institution" means any bank insured by the federal deposit insurance
				corporation or savings and loan association insured by the federal savings and
				loan insurance corporation.
(3)
				"Bailment for hire contract" means a contract whereby a third party, bank or
				other financial institution, for a fee, agrees to exercise at least ordinary
				care in protecting the securities held in safekeeping for its
				customers.
(4) "Bankers'
				acceptance" means a time draft that is drawn on and accepted by a bank, and
				that represents an irrevocable obligation of the bank.
(5) "Cash forward agreement" means an
				agreement to purchase or sell a security with delivery and acceptance being
				mandatory and at a future date in excess of 30 days from the trade
				date.
(6) "Eurodollar deposit"
				means a dollar denominated deposit in a foreign branch of an authorized
				depository financial institution whose principal office is located in the
				United States.
(7) "Federal funds
				transaction" means a short-term or open-ended transfer of funds to an
				authorized depository financial institution.
(8) "Futures contract" means a contract for
				the future delivery of commodities, including certain government securities,
				sold on commodities exchanges.
(9)
				"Immediate family member" means a spouse, or a child, parent, grandchild,
				grandparent, brother or sister, or the spouse of any such individual.
(10) "Market price" means the last
				established price at which a security is sold.
(11) "Maturity date" means the date on which
				a security matures, and shall not mean the call date or the average life of the
				security.
(12) "Repurchase
				transaction" means a transaction in which a credit union agrees to purchase a
				security from a vendor and to resell the same or any identical security to that
				vendor at a later date. A repurchase transaction may be of three types:
(a) "Investment-type repurchase transaction"
				means a repurchase transaction where the credit union purchasing the security
				takes physical possession of the security, or receives written confirmation of
				the purchase and a custodial or safekeeping receipt from a third party under a
				written bailment for hire contract, or is recorded as the owner of the security
				through the Federal Reserve Book-Entry System;
(b) "Financial institution-type repurchase
				transaction" means a repurchase transaction with an authorized depository
				financial institution;
(c)
				"Loan-type repurchase transaction" means any repurchase transaction that does
				not qualify as an investment-type or financial institution-type repurchase
				transaction.