§ 23-35-604 — Investment of funds

Arkansas § 23-35-604

• Jurisdiction: Arkansas
• Title: 23

Text

Funds not used in loans to members may be invested: (1) In capital shares, obligations, or preferred stock issues of any agency or association organized either as a stock company, mutual association, or membership corporation, provided that the membership or stockholdings, as the case may be, of the agency or association are confined or restricted to credit unions or organizations of credit unions and provided that the purposes for which the agency or association is organized are designed to service or otherwise assist credit union operations; (2) In obligations of the State of Arkansas or any subdivision thereof; (3) In obligations of the United States or securities fully guaranteed as to principal and interest thereby; (4) In shares of a cooperative society organized under local or national cooperative laws, in an amount not exceeding ten percent (10%) of the shares and surplus of the credit union; (5) In any investment legal for fiduciaries, savings banks, or trust companies in Arkansas; (6) In loans to other credit unions, in an amount not to exceed thirty-three and one-third percent (331/3%) of the shares and unimpaired surplus of the lending credit union; and (7) In an aggregate amount not exceeding twenty-five percent (25%) of the allocations to the reserve fund, in any agency or association of the type described in subdivision (1) of this section, provided the purposes of any such agency or association are designed to assist in establishing and maintaining liquidity, solvency, and security in credit union operations.

Legislative History

Acts 1971, No. 132, § 25; A.S.A. 1947, § 67-925.