7-9-26 - Loans to members -- Investment officers -- Investments.
7-9-26. Loans to members -- Investment officers -- Investments.
(1) Subject to Subsections 7-9-20(7) and (8) and Section 7-9-58, capital and surplus ofthe credit union shall be loaned to the members for the purposes and upon the endorsements orsecurity and the terms as the bylaws provide.
(2) Within 30 days after the annual meeting of the members the board of directors mayappoint one or more investment officers who shall have responsibilities for the credit unioninvestment portfolio based upon policy established by the board of directors and as provided inthis chapter or in the bylaws.
(3) The credit union by action of its board of directors may invest its funds as follows:
(a) in securities, obligations, or other instruments of, or issued by, or fully guaranteed asto principal and interest by, the United States of America or any of its agencies, or in any trustsestablished by investing directly or collectively in these instruments;
(b) in obligations of any state of the United States, the District of Columbia, theCommonwealth of Puerto Rico, and the territories organized by Congress, or any of theirpolitical subdivisions;
(c) in certificates of deposit or accounts issued by a federally insured state or nationaldepository institution;
(d) in loans to, or in shares or deposits of, other federally insured credit unions, centralcredit unions, corporate credit unions, or a central liquidity facility established under state orfederal law;
(e) in shares, stocks, loans, or other obligations of any organization, corporation, orassociation, if the membership or ownership of the organization, corporation, or association isprimarily confined or restricted to credit unions, and if the purpose for which it is organized is tostrengthen or advance the development of credit unions or credit union organizations; and
(f) in other investments that are reasonable and prudent.
Amended by Chapter 327, 2003 General Session