Section 723.602 - Investment of funds; rules A credit union may invest funds not used in loans to members in:
(1) Securities, obligations or other instruments of or issued by or fully guaranteed as to principal and interest by the United States or an agency of the United States or in a trust or trusts established directly or collectively in the securities, obligations or instruments described in this subsection.(2) Obligations of a state of the United States, the agencies or instrumentalities of the federal government, the District of Columbia, the Commonwealth of Puerto Rico and the several territories organized by Congress, or a political subdivision of a state, district, commonwealth or territory identified in this subsection.(3) Certificates of deposit or passbook type accounts issued by a state or national bank, mutual savings bank or savings and loan association.(4) Loans to or in shares or deposits of other credit unions.(5) Stocks, membership units or other ownership interests in, or loans to, a corporation, limited liability company or mutual association in an aggregate amount not to exceed five percent of assets, if:(a) The purposes for which the corporation, limited liability company or mutual association is organized are primarily to service or otherwise assist credit union operations; or(b) The corporation, limited liability company or mutual association provides goods or services associated with the routine operations of the credit union, the investment or loan is reasonably related to the credit union's use or potential use of the goods or services provided, the investment or loan is made in accordance with any rules governing such investments or loans as may be adopted by the Director of the Department of Consumer and Business Services and the credit union receives prior approval for the investment or loan from the director.(6) Shares of a credit union cooperative society organized under the laws of this state or of the laws of the United States in a total amount not exceeding one percent of the shares, deposits and surplus of the credit union.(7) Loans to a national or state credit union association or corporation of which the credit union is a member, except that the loans must be limited to not more than five percent of the assets of the credit union.(8) Other investments the Director of the Department of Consumer and Business Services approves by rule or order.Amended by 2023 Ch. 57,§ 4, eff. 1/1/2024.Amended by 2021 Ch. 125, § 3, eff. 1/1/2022.1975 c.652 §64; 1987 c.286 §11; 1999 c.185 §48; 2005 c. 95, § 9; 2011 c. 327, § 4