Tenn. Comp. R. & Regs. 0180-10-1-.01

Current through October 22, 2024

Section 0180-10-1-.01 - DEFINITIONS

For the purpose of this chapter, unless the context otherwise provides:

(1) "Security" means any investment or deposit authorized for a credit union pursuant to T.C.A. Section 45-4-501(3).

(2) "Standby commitment" means an agreement to purchase or sell a security at a future date, whereby the buyer is required to accept delivery of the security at the option of the seller.

(3) "Cash forward agreement" means an agreement to purchase or sell a security at a future date requiring mandatory delivery and acceptance. A contract for the purchase or sale of a security for which delivery of the security is made in excess of thirty (30) days of the trade date shall be considered a cash forward agreement.

(4) "Repurchase transaction" means a transaction in which a credit union agrees to purchase a security from a seller and to resell a security to that seller at a later date.

(5) "Reverse repurchase transaction" means a transaction whereby a credit union agrees to sell a security to a purchaser and to repurchase the same security from the purchaser at a future date, irrespective of the amount of consideration paid by the credit union or the purchaser.

(6) "Futures contract" means a contract for the purchase or sale of a commodity on a future date at a specified price through an organized exchange and includes contracts known as "interest rate futures".

(7) "Settlement date" means the date originally agreed to by a credit union and a vendor for settlement of the purchase or sale of a security, without any modification or extension of that date.

(8) "Maturity date" means the date on which the security matures and shall not mean the call date or the average life of the security.

(9) "Adjusted trading" means any method or transaction used to defer a loss whereby a credit union sells a security to a vendor at a price above its current market price and simultaneously purchases or commits to purchase from that vendor another security above its current market price.

(10) "Trade date" means the date a credit union originally agreed, whether by oral or written agreement, to enter into the purchase or sale of a security with a vendor.

(11) "Short sale" means the sale of a security not owned by the seller.

(12) "Market price" means the last established price at which a security is sold.

Tenn. Comp. R. & Regs. 0180-10-1-.01

Original Rule filed September 11, 1980; effective October 27, 1980.

Authority: T.C.A. §§ 45-4-1001 and 45-4-501(3).