Section 704.10 - Investment action plan(a) Any corporate credit union in possession of an investment, including a derivative, that fails to meet a requirement of this part must, within 30 calendar days of the failure, report the failed investment to its board of directors, supervisory committee and the Director of the Office of National Examinations and Supervision (ONES). If the corporate credit union does not sell the failed investment, and the investment continues to fail to meet a requirement of this part, the corporate credit union must, within 30 calendar days of the failure, provide to the ONES Director a written action plan that addresses: (1) The investment's characteristics and risks;(2) The process to obtain and adequately evaluate the investment's market pricing, cash flows, and risk;(3) How the investment fits into the credit union's asset and liability management strategy;(4) The impact that either holding or selling the investment will have on the corporate credit union's earnings, liquidity, and capital in different interest rate environments; and(5) The likelihood that the investment may again pass the requirements of this part.(b) The ONES Director may require, for safety and soundness reasons, a shorter time period for plan development than that set forth in paragraph (a) of this section.(c) If the plan described in paragraph (a) of this section is not approved by the ONES Director, the credit union must adhere to the ONES Director's directed course of action.62 FR 12938, Mar. 19, 1997, as amended at 67 FR 65656 , 65659, Oct. 25, 2002; 78 FR 32544 , May 31, 2013