Section 13-03-22-12 - Safekeeping of investments1. A credit union's purchased investments and repurchase collateral must be in the credit union's possession, recorded as owned by the credit union through the federal reserve book entry system, or held by a board-approved safekeeper under a written custodial agreement that requires the safekeeper to exercise at least ordinary care. The written custodial agreement will also include a provision that the safekeeper cannot use the credit union's securities for collateral on any borrowings of the safekeeper. 2. Any safekeeper used by a credit union must be regulated and supervised by either the securities and exchange commission, a federal or state depository institution regulatory agency, or a state trust company regulatory agency. 3. A credit union must obtain and reconcile monthly a statement of purchased investments and repurchase collateral held in safekeeping. 4. Annually, the credit union must analyze the ability of the safekeeper to fulfill its custodial responsibilities, as evidenced by capital strength, liquidity, and operating results. The credit union should consider current financial data, annual reports, reports of nationally recognized statistical rating agencies, relevant disclosure documents, and other sources of financial information. N.D. Admin Code 13-03-22-12
Effective January 1, 2007.General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-06-06