OAR 441-720-0220: Investments in Investment and Borrowing Repurchase Agreements, Bankers Acceptances, Participation in Federal Funds Authorized; Adoption of Federal Statutes, Regulations on Such Investments

A state credit union is authorized to invest in investment and borrowing repurchase agreements, bankers acceptances and federal funds permissible for federal credit unions as described in the following provisions. (1) A credit union may sell Federal funds to a financial institution defined in ORS 706.008, as long as the interest or other consideration received from the financial institution is at the market rate for Federal funds transactions. (2) A credit union may enter into an investment repurchase transaction so long as: (a) Any securities the credit union receives are permissible investments for federal credit unions; (b) The credit union, or its agent, either: (A) Takes physical possession or control of the repurchase securities; or (B) Is recorded as owner of them through the Federal Reserve Book Entry Securities Transfer System. (c) The credit union, or its agent, receives a daily assessment of their market value, including accrued interest; (d) The credit union maintains adequate margins that reflect a risk assessment of the securities and the term of the transaction; and (e) The credit union has entered into signed contracts with all approved counterparties. (3) A credit union may enter into a borrowing repurchase transaction so long as: (a) The transaction meets the requirements of section (2) of this rule; (b) Any cash the credit union receives is subject to a borrowing limit of 50% of paid-in and unimpaired capital and surplus; (c) Any investments the credit union purchases with that cash are permissible for credit unions; and (d) The investments purchased with that cash mature no later than the maturity of the borrowing repurchase transaction. (4) A credit union may invest in banker’s acceptances issued by a financial institution defined in ORS 706.008.