742.4—RegFlex relief.

(a) Exemptions. RegFlex credit unions are exempt from the following regulatory restrictions:
(1) Charitable contributions. Section 701.25 of this chapter concerning charitable contributions;
(2) Nonmember deposits. Section 701.32(b) and (c) of this chapter concerning the maximum amount of non-member deposits a credit union can accept; and
(3) Fixed assets. Section 701.36(b)(2) of this chapter concerning the three-year partial occupancy requirement when acquiring unimproved land for future expansion; RegFlex credit unions are instead subject to a six-year partial occupancy requirement when acquiring unimproved land but remain subject to all other provisions of that section including the waiver provision;
(4) Zero-coupon securities. Section 703.16(b) of this chapter concerning the maximum maturity length of zero-coupon securities;
(5) Borrowing repurchase transactions. Section 703.13(d)(3) of this chapter, concerning the maturity of investments a credit union purchases with the proceeds received in a borrowing repurchase transaction, provided the value of the investments that mature later than the borrowing repurchase transaction does not exceed 100 percent of the federal credit union's net worth;
(6) Commercial mortgage related security. Section 703.16(d) of this chapter prohibiting the purchase of a commercial mortgage related security of an issuer other than a government-sponsored enterprise enumerated in 12 U.S.C. 1757(7)(E), provided:
(i) The security is rated in one of the two highest rating categories by at least one nationally-recognized statistical rating organization;
(ii) The security meets the definition of mortgage related security as defined in 15 U.S.C. 78c(a)(41) and the definition of commercial mortgage related security as defined in § 703.2 of this chapter ;
(iii) The security's underlying pool of loans contains more than 50 loans with no one loan representing more than 10 percent of the pool; and
(iv) The aggregate total of commercial mortgage related securities purchased by the Federal credit union does not exceed 50 percent of its net worth.
(b) Purchase of obligations from a FICU. A RegFlex credit union is authorized to purchase and hold the following obligations, provided that it would be empowered to grant them:
(1) Eligible obligations. Eligible obligations pursuant to § 701.23(b)(1)(i) of this chapter without regard to whether they are obligations of its members, provided they are purchased from a federally-insured credit union only;
(2) Student loans. Student loans pursuant to § 701.23(b)(1)(iii) of this chapter, provided they are purchased from a federally-insured credit union only;
(3) Mortgage loans. Real-state secured loans pursuant to 701.23(b)(1)(iv) of this chapter, provided they are purchased from a federally-insured credit union only;
(4) Eligible obligations of a liquidating credit union. Eligible obligations of a liquidating credit union pursuant to § 701.23(b)(1)(ii) of this chapter without regard to whether they are obligations of the liquidating credit union's members, provided that such purchases do not exceed 5 percent (5%) of the unimpaired capital and surplus of the purchasing credit union.

Code of Federal Regulations

[71 FR 4039, Jan. 25, 2006, as amended at 72 FR 30247, May 31, 2007; 74 FR 13083, Mar. 26, 2009; 75 FR 34622, June 18, 2010; 75 FR 66298, Oct. 28, 2010]