370.075. Investment of credit union funds.

Investment of credit union funds.

370.075. 1. A credit union by action of its board ofdirectors or the executive committee of the board of directors oran investment committee of the credit union, if the power hasbeen delegated to either committee, may invest its funds in anyof the following designated securities:

(1) Obligations of the United States of America orsecurities fully guaranteed as to principal and interest thereby;

(2) Bonds of the state of Missouri or bonds of any otherstate in the union provided that the state has not, within tenyears previous to the making of the investments by the creditunion, defaulted in the payment of any part of either principalor interest thereon;

(3) Bonds of any town, city, county or school district ofthis state that has not, within ten years previous to the makingof the investment by the credit union, defaulted in the paymentof any part of either principal or interest thereof provided thetown, city, county or school district has been in existence for aperiod of at least ten years;

(4) Saving share accounts of federal and state charteredsavings and loan associations holding certificates of insurancefrom the Federal Savings and Loan Insurance Corporation;

(5) Shares of other credit unions or credit unionassociations incorporated under the laws of this state, or of theUnited States, including shares of a credit union financialagency organized under the laws of this state or of the UnitedStates;

(6) Capital stocks of corporations solely and exclusivelyestablished to assist credit union operation in bookkeeping andaccounting, consumer counseling for members and the insuring ofmember accounts;

(7) Such other securities and in such amounts as may beapproved from time to time by the director of the division ofcredit unions. Any securities purchased while so approved may beretained if the approval is later withdrawn.

2. No investment in any single type of securities specifiedin this section, except funds in central credit unions and thosesecurities specified in subdivision (1) of subsection 1 of thissection, shall exceed twenty-five percent of the capital,surplus, and reserve fund of the credit union making theinvestment, nor shall any credit union invest more than fivepercent of its capital, surplus, and reserve funds in capitalstocks specified in subdivision (6) of subsection 1 of thissection.

(L. 1965 p. 566, A.L. 1972 S.B. 502, A.L. 1982 H.B. 1099, A.L. 1988 H.B. 1097)