Download as PDF
286.6-585 Investments.
Funds not used in loans to members may be invested:
(1) In securities, obligations, or other instruments of or issued by or fully
guaranteed as to principal and interest by the United States of America or any
agency thereof or in any trust or trusts established for investing directly or
collectively in the same;
(2) In obligations of any state of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, and the several territories organized by
Congress, or any political subdivision thereof;
(3) In certificates of deposit or passbook-type accounts issued by a state or
national bank, mutual savings bank, or savings and loan association;
(4) (a) In loans, not to exceed twenty-five percent (25%) of capital at the lending
credit union, to; or
(b) In shares or deposits, not to exceed twenty percent (20%) of the capital of
the investing credit union, of other credit unions, central credit unions,
corporate credit unions, or a central liquidity facility established under
state or federal law;
(5) In shares, stocks, loans, or other obligations of any organization, corporation,
or association, provided the membership or ownership, as the case may be, of
the organization, corporation, or association is primarily confined or restricted
to credit unions, or organizations of credit unions, and provided further the
purpose for which it is organized is to strengthen or advance the development
of credit unions or credit union organizations;
(6) 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
(10%) of the shares, deposits, and surplus of the credit union;
(7) In stocks and bonds of corporations organized in any state of the United
States, the District of Columbia, the Commonwealth of Puerto Rico and the
several territories organized by Congress to an aggregate maximum of five
percent (5%) of members' shares in stocks and an aggregate maximum of five
percent (5%) of members' shares in bonds, provided that investments shall be
limited to stocks or bonds which appear on a list approved by the commissioner
and published quarterly or annually, the list to include not less than thirty (30)
corporations.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 738, effective July 15, 2010. -Amended 2000 Ky. Acts ch. 157, sec. 9, effective July 14, 2000. -- Amended
1988 Ky. Acts ch. 195, sec. 5, effective July 15, 1988. -- Created 1984 Ky. Acts
ch. 408, sec. 59, effective July 13, 1984.
Formerly codified as KRS 290.585.
Legislative Research Commission Note (7/12/2006). In accordance with 2006
Ky. Acts ch. 247, secs. 38 and 39, this statute has been renumbered as a
section of the Kentucky Financial Services Code, KRS Chapter 286.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.