Iowa Admin. Code r. 189-17.1

Current through Register Vol. 47, No. 6, September 18, 2024

Rule 189-17.1 - Authority and purpose

(1) These rules implement the authority of credit unions organized in accordance with Iowa Code chapter 533 to engage in investment and deposit activities which would be permitted if the credit union were federally chartered in accordance with Iowa Code sections 533.301(5) "j" and 533.301(25), and are promulgated under the authority of Iowa Code section 533.104.

(2) These rules identify certain investments and deposit activities permissible under the Federal Credit Union Act, 12 U.S.C. Section 1757, and National Credit Union Administration (NCUA) rules and regulations, 12 CFR Part 703, and prescribe the rules governing those investments and deposit activities on the basis of safety and soundness concerns. Additionally, these rules identify and prohibit certain investments and deposit activities, which may or may not be permitted for federal credit unions and which are considered inconsistent with state law or unsafe or unsound investment for Iowa state-chartered credit unions. Finally, these rules address investment authority granted to Iowa state-chartered credit unions in Iowa Code chapter 533, which may or may not be permitted for federal credit unions.

(3) Exceptions. These rules do not apply to:

a. Investment in loans to members and other activities pursuant to Iowa Code sections 533.301(2), 533.301(3), 533.301(15) and 533.301(16);

b. Investment in real estate-secured loans to members pursuant to Iowa Code section 533.315(4);

c. Investment in credit union service organizations pursuant to Iowa Code section 533.301(5) '/";

d. Investment in fixed assets pursuant to Iowa Code section 533.301(10).

Iowa Admin. Code r. 189-17.1