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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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