§ 32104. Investments

(a) A Vermont credit union may invest its assets prudently in accordance with the best judgment of its governing body, subject to the limitations set forth in this section and in the credit union's adopted investment policy.

(b) A Vermont credit union's governing body shall establish a written investment policy, which it shall review and ratify at least annually, that addresses, at a minimum, the following:

(1) investment quality parameters.

(2) investment mix and diversification.

(3) investment maturities; and

(4) Delegation of authority to officers and committees responsible for administering the portfolio.

(c) Funds not used in loans to members may be invested:

(1) in loans to or in shares or deposits of other credit unions and central credit unions, corporate credit unions, or a central liquidity facility established under state or federal law.

(2) in the capital shares, obligations, or preferred stock issues of any agency or an association organized either as a stock company, mutual association or membership corporation; provided the membership or stockholdings, as the case may be, of such agency or association are primarily confined or restricted to credit unions or organizations of credit unions, and provided the purposes for which the agency or association is organized are designed primarily to service or otherwise assist credit union operations.

(3) in shares of a cooperative society organized under the laws of this state or of the laws of the United States in the total amount not exceeding ten percent of the shares, deposits, and surplus of the credit union.

(4) in loans to any credit union association or corporation, national or state, of which the credit union is a member, except that the investments shall be limited to two percent of the assets of the credit union.

(5) in any investment legal for financial institutions as they are defined in subdivision 11101(32) of this title, but in no event common stock. (Added 2005, No. 16, § 1, eff. July 1, 2005.)