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The Vermont Statutes Online
Title
08
:
Banking and Insurance
Chapter
222
:
POWERS
Subchapter
001
:
GENERAL POWERS
§
32104. Investments
(a) A Vermont
credit union may invest its assets prudently in accordance with the best
judgment of its governing body, subject to the limitations set forth in this
section and in the credit union's adopted investment policy.
(b) A Vermont
credit union's governing body shall establish a written investment policy,
which it shall review and ratify at least annually, that addresses, at a
minimum, the following:
(1) investment
quality parameters.
(2) investment
mix and diversification.
(3) investment
maturities; and
(4) Delegation
of authority to officers and committees responsible for administering the
portfolio.
(c) Funds not
used in loans to members may be invested:
(1) in loans to
or in shares or deposits of other credit unions and central credit unions,
corporate credit unions, or a central liquidity facility established under
state or federal law.
(2) in the
capital shares, obligations, or preferred stock issues of any agency or an
association organized either as a stock company, mutual association or
membership corporation; provided the membership or stockholdings, as the case
may be, of such agency or association are primarily confined or restricted to
credit unions or organizations of credit unions, and provided the purposes for which
the agency or association is organized are designed primarily to service or
otherwise assist credit union operations.
(3) in shares of
a cooperative society organized under the laws of this state or of the laws of
the United States in the total amount not exceeding ten percent of the shares,
deposits, and surplus of the credit union.
(4) in loans to
any credit union association or corporation, national or state, of which the
credit union is a member, except that the investments shall be limited to two percent
of the assets of the credit union.
(5) in any
investment legal for financial institutions as they are defined in subdivision
11101(32) of this title, but in no event common stock. (Added 2005, No. 16, §
1, eff. July 1, 2005.)
