Tenn. Comp. R. & Regs. 0180-10-1-.04

Current through October 22, 2024

Section 0180-10-1-.04 - PROHIBITION AGAINST STANDBY COMMITMENTS

A credit union may not enter into a standby commitment to purchase or sell a security. This limitation also prohibits the use of a yield maintenance contract which is hereby defined as a concurrent commitment to purchase a security by means of a cash forward agreement and to sell the same security on the same settlement date by means of a standby commitment.

Tenn. Comp. R. & Regs. 0180-10-1-.04

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

Authority: T.C.A. §§ 45-4-1001 and 45-4501(3).