§ 124.351 — PERMITTED INVESTMENTS.

Texas § 124.351

• Jurisdiction: Texas
• Code FI: Finance Code

Text

Sec. 124.351. PERMITTED INVESTMENTS. (a) A credit union may invest money not used in loans to members in:
(1) capital shares, obligations, participation certificates, or common or preferred stock of an agency, association, or company, subject to Section 124.352 (a);
(2) loans to a national or state credit union association or corporation of which the credit union is a member;
(3) obligations, bonds, notes, or other evidences of indebtedness of a state or political subdivision of a state;
(4) certificates of deposit or other accounts issued by a state or national bank, savings and loan association, savings association, or mutual savings bank;
(5) securities, obligations, participations, or other instruments of or issued by the United States, or in a trust established for investing directly or collectively in those investments;
(6) loans to, shares of, or deposits in another credit union, a central credit union, a corporate credit union, a central liquidity facility established under state or federal law, a trust, or an organization established for lending directly or collectively to credit unions;
(7) securities, obligations, participations, or other instruments fully or partially guaranteed as to principal, interest, or both by the United States, or in a trust established for investing directly or collectively in those investments;
(8) participation loans with another credit union, corporation, credit organization, or financial organization;
(9) notes receivable, loans to members, or other assets of a credit union operating under this subtitle or the Federal Credit Union Act (12 U.S.C. Section 1751 et seq.); and
(10) other investments authorized by rules adopted by the commission that satisfy Subsection (b).
(b) A rule adopted under Subsection (a)(10) must be responsive to:
(1) changes in economic conditions or competitive practices; and
(2) the need for safety and soundness of credit union investments.

Legislative History

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.