§32104. Investments

Link to law: http://legislature.vermont.gov/statutes/section/08/222/32104
Published: 2015

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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.)
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