Kan. Admin. Regs. § 121-4-6

Current through Register Vol. 43, No. 24, August 22, 2024

Section 121-4-6 - Funds awaiting investment or distribution

(a) Funds in an account which are awaiting investment or distribution shall not be held uninvested or undistributed any longer than is reasonable for the proper management of the account.

(1) Each corporate credit union exercising fiduciary powers shall adopt and follow written policies and procedures intended to provide a rate of return on investment of funds in an account that is:

(A) prudent given the rate of return available for trust-quality, short-term investments; and

(B) consistent with the requirements of the governing instrument and local laws.

(2) These policies and procedures shall take into consideration all relevant factors, including the following:

(A) the anticipated return that could be obtained while the cash remains uninvested or undistributed;

(B) the cost of investing the funds;

(C) the anticipated need for the funds; and

(D) the costs and operational complexities of implementing and maintaining the investments for the corporate credit union.

(b)

(1) Any corporate credit union may invest funds it holds in trust which are awaiting investment or distribution in the share or share certificate accounts of the corporate credit union when:

(A) the trust is a member of the corporate credit union; and

(B) the instrument creating the trust does not prohibit such an investment.

(2) Except as provided in paragraph (3), the maximum amount of funds in an account that may be invested in share or share certificate accounts of the corporate credit union shall be an amount equal to the insurance coverage provided by the national credit union share insurance fund for such accounts.

(3) If the instrument creating the trust expressly authorizes investments in such share and share certificate accounts and also specifies the maximum amount or percentage of trust assets that may be invested in such share and share certificate accounts, the corporate credit union may invest an amount up to the maximum amount specified in the instrument creating the trust.

Kan. Admin. Regs. § 121-4-6

Authorized by and implementing K.S.A. 17-2214; effective Jan. 31, 1997.