Tenn. Comp. R. & Regs. 0180-10-1-.05

Current through October 22, 2024

Section 0180-10-1-.05 - REPURCHASE TRANSACTIONS

A credit union may enter into a repurchase transaction only if:

(a) A credit union purchasing the security takes physical possession of the security, or receives written confirmation of the purchase and a custodial or safekeeping receipt from a third party bank or other financial institution which identifies a specific security in its possession as owned by the credit union;

(b) There is no restriction on the transfer of the security purchased by the credit union; and

(c) The credit union is not required to deliver the identical security to the vendor upon resale.

Any other repurchase agreement shall be deemed to be a loan and may be made only to members of the credit union or to other credit unions.

Tenn. Comp. R. & Regs. 0180-10-1-.05

Original rule filed September 11, 1980; effective October 27, 1980.

Authority: T.C.A. §§ 45-4-1001 and 45-4-501(3).