Section 394-B:23 Loan of Securities.
In order to increase income from investment securities, any credit union may loan to brokerage firms which are members of the New York Stock Exchange any stocks, bonds or other securities in which such credit union has invested under this chapter provided that:
I. Every such loan shall be executed through a correspondent bank having assets of not less than $500,000,000;
II. At the inception of any such loan of securities at least 100 percent of the market value of the securities lent shall be secured by cash or debt obligations of the United States or debt obligations for which the faith and credit of the United States is pledged for the payment of the principal and interest thereof;
III. At all times during the term of any such loan the collateral securing the same shall be equal in value to not less than 95 percent of the market value of the securities lent;
IV. The market value of the securities loaned by any credit union under the authority of this action shall not, at any one time, exceed 10 percent of the aggregate market value of all stocks, bonds or other securities then held by such credit union as investments under this chapter; and
V. No such loan of securities shall be made to any brokerage firm which is then listed for and under special surveillance by the New York Stock Exchange in the belief that such brokerage firm is in or is approaching financial difficulty, and which is, at the time, the subject of any pending notice given by the New York Stock Exchange to the Securities Investor Protection Corporation and the Securities and Exchange Commission pursuant to 15 U.S.C. section 78eee(a)(1).
VI. Every brokerage firm receiving a loan of securities under this section shall be registered, and every agent soliciting such a loan of securities shall be licensed, with the securities division of the New Hampshire insurance department pursuant to RSA 421.
Source. 1983, 195:1, eff. Aug. 14, 1983.