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Rules & Regulations

Section 3.        Investments

The Board of Directors of each Alabama state chartered credit union shall establish written investment policies consistent with the applicable provisions of the Alabama Credit Union Act, NCUA's Rules and Regulations, and other applicable laws and regulations. Policies should be reviewed and modified as required; not less frequently than annually.

At a minimum, the written policy shall address the following:

(a)    Purposes and objectives of the credit union's investment activities, including a statement whether securities purchased are categorized as (1) hold to maturity,(2) available for sale, or (3) trading securities;

(b)    Persons or committees to whom investment authority has been delegated and the extent of their authority;

(c)    Limits on the amount of funds that may be committed to any particular investments or securities transaction;

(d)    Maturity limits;

(e)    Interest rate risk (as applicable);

(f)     Credit risk (as applicable);

(g)    Securities dealers/brokerage firms approved for use by the Board of Directors together with any limitations that the board has established with respect to the amount of funds that may be placed or invested with any of the approved broker/dealers (as applicable); and,

(h)    Safekeeping of securities, including a list of safekeeping facilities approved by the credit union's Board of Directors.

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