CFR > Title 12 - Banks and Banking > CHAPTER VII—NATIONAL CREDIT UNION ADMINISTRATION > SUBCHAPTER A—REGULATIONS AFFECTING CREDIT UNIONS (parts 700 to 761) > PART 702—PROMPT CORRECTIVE ACTION > SUBPART A—Net Worth Classification (§702.101 to §702.108) > 702.105—Weighted-average life of investments.

702.105—Weighted-average life of investments.

Except as provided below (Table 3), the weighted-average life of an investment for purposes of §§ 702.106(c) and 702.107(c) is defined pursuant to § 702.2(m) :
(a) Registered investment companies and collective investment funds. (1) For investments in registered investment companies (e.g., mutual funds) and collective investment funds, the weighted-average life is defined as the maximum weighted-average life disclosed, directly or indirectly, in the prospectus or trust instrument;
(2) For investments in money market funds, as defined in 17 CFR 270.2a-7, and collective investment funds operated in accordance with short-term investment fund rules set forth in 12 CFR 9.18(b)(4)(ii)(B)(1) -(3), the weighted-average life is defined as one (1) year or less; and
(3) For other investments in registered investment companies or collective investment funds, the weighted-average life is defined as greater than five (5) years, but less than or equal to seven (7) years;
(b) Callable fixed-rate debt obligations and deposits. For fixed-rate debt obligations and deposits that are callable in whole, the weighted-average life is defined as the period remaining to the maturity date;
(c) Variable-rate debt obligations and deposits. For variable-rate debt obligations and deposits, the weighted-average life is defined as the period remaining to the next rate adjustment date;
(d) Capital in mixed-ownership Government corporations and corporate credit unions. For capital stock in mixed-ownership Government corporations, as defined in 31 U.S.C. 9101(2), and member paid-in capital and membership capital in corporate credit unions, as defined in 12 CFR 704.2, the weighted-average life is defined as greater than one (1) year, but less than or equal to three (3) years;
(e) Investments in CUSOs. For investments in CUSOs (as defined in § 702.2(d) ), the weighted-average life is defined as greater than one (1) year, but less than or equal to three (3) years; and
(f) Other equity securities. For other equity securities, the weighted average life is defined as greater than ten (10) years.

Code of Federal Regulations

[Please see PDF for image: ER06JA03.003 ]

Code of Federal Regulations

[65 FR 44966, July 20, 2000, as amended at 67 FR 71088, Nov. 29, 2002]

Code of Federal Regulations

Effective Date Note: At 75 FR 64826, Oct. 20, 2010, § 702.105 was amended by revising paragraph (d), effective Oct. 20, 2011. For the convenience of the user, the revised text is set forth as follows: § 702.105 Weighted—average life of investments. (d) Capital in mixed-ownership Government corporations and corporate credit unions. For capital stock in mixed-ownership Government corporations, as defined in 31 U.S.C. 9101(2) , and perpetual and nonperpetual capital in corporate credit unions, as defined in 12 CFR 704.2 , the weighted-average life is defined as greater than one (1) year, but less than or equal to three years;
Code of Federal Regulations 520
Code of Federal Regulations 525
Pt. 702, Apps. Appendixes A-H to Subpart A of Part 702 [Please see PDF for image: ER01OC03.056 ]
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[Please see PDF for image: ER06JA03.008 ] [Please see PDF for image: ER29NO02.067 ] [Please see PDF for image: ER01OC03.057 ]
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[Please see PDF for image: ER06JA03.011 ] [Please see PDF for image: ER29NO02.068 ] [Please see PDF for image: ER29NO02.069 ]
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[Please see PDF for image: ER01OC03.058 ] [65 FR 44971, July 20, 2000, as amended at 67 FR 71089, 71090, 71091, Nov. 29, 2002; 68 FR 56548, 56549, 56550, Oct. 1, 2003]