Texas § FI.124.351 - PERMITTED INVESTMENTS

§ FI.124.351. PERMITTED INVESTMENTS

PERMITTED INVESTMENTS. (a) A credit union may invest money not used in loans to members in: (1) capital shares, obligations, participation certificates, or common or preferred stock of an agency, association, or company, subject to Section 124.352 (a); (2) loans to a national or state credit union association or corporation of which the credit union is a member; (3) obligations, bonds, notes, or other evidences of indebtedness of a state or political subdivision of a state; (4) certificates of deposit or other accounts issued by a state or national bank, savings and loan association, savings association, or mutual savings bank; (5) securities, obligations, participations, or other instruments of or issued by the United States, or in a trust established for investing directly or collectively in those investments; (6) loans to, shares of, or deposits in another credit union, a central credit union, a corporate credit union, a central liquidity facility established under state or federal law, a trust, or an organization established for lending directly or collectively to credit unions; (7) securities, obligations, participations, or other instruments fully or partially guaranteed as to principal, interest, or both by the United States, or in a trust established for investing directly or collectively in those investments; (8) participation loans with another credit union, corporation, credit organization, or financial organization; (9) notes receivable, loans to members, or other assets of a credit union operating under this subtitle or the Federal Credit Union Act (12 U.S.C. Section 1751 et seq.); and (10) other investments authorized by rules adopted by the commission that satisfy Subsection (b). (b) A rule adopted under Subsection (a)(10) must be responsive to: (1) changes in economic conditions or competitive practices; and (2) the need for safety and soundness of credit union investments. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.