Iowa Admin. Code r. 189-17.20

Current through Register Vol. 47, No. 13, December 25, 2024

Rule 189-17.20 - Responsibility placed upon the credit union to show cause

(1) A state-chartered credit union that engages in an investment activity that it believes to be permissible for federal credit unions, whether or not addressed by these rules, must provide the superintendent, when requested, satisfactory documentation that the activity is not prohibited by the Iowa Code or by the NCUA, or both.

(2) If a credit union engages in an investment activity, whether expressly permitted by these rules or an investment activity that the credit union believes, in good faith, is permitted, and which at the time of engagement is not or thought not to be prohibited by the Iowa Code or the NCUA, or both, but subsequently becomes or is found to have been prohibited, the credit union must develop a plan to become compliant within a reasonable period of time.

(3) Although automatic authority is granted to Iowa credit unions by Iowa Code sections 533.301(5) 7" arid 533.301(25) and these rules, such authority may be withheld or withdrawn by the superintendent for safety and soundness concerns or for blatant disregard for these rules, in whole or in part, by a credit union.

Iowa Admin. Code r. 189-17.20