Section 0180-10-1-.03 - EXCEPTIONS; PROHIBITION AGAINST PAIR-OFF ARRANGEMENTS(1) A credit union may enter into a cash forward agreement to purchase a security; provided that the period from the trade date to the settlement date does not exceed one hundred twenty (120) days, and the credit union has written cash flow projections evidencing its ability to purchase the underlying security.(2) A credit union may not enter into a cash forward agreement to sell a security unless it owns the security at the time of the trade date, and the settlement date is not more than thirty (30) days from the trade date. All cash forward agreements must be settled on a cash basis at the settlement date.(3) A credit union may not engage in pair-off transactions involving cash forward agreements whereby a credit union agrees to purchase a security and subsequently agrees to sell the same security on the same settlement date.Tenn. Comp. R. & Regs. 0180-10-1-.03
Original Rule filed September 11, 1980; effective October 27, 1980.Authority: T.C.A. §§ 45-4-1001 and 45-4-501(3).