No association shall invest in any security under this chapter, other than in liquid assets, or in any loan at any time if the association fails to meet the minimum liquidity requirements prescribed by Section 566.2 of Title 12 of the Code of Federal Regulations, unless the commissioner has issued prior written approval. “Liquid assets,” as used in this section, has the same meaning as defined by the regulations codified in Section 566.1 of Title 12 of the Code of Federal Regulations.
Investment OperationsRequired Liquidity
Section § 7200
An association is not allowed to invest in any security or loan unless it meets specific liquidity requirements outlined by federal regulations. "Liquid assets" must be understood as defined by these regulations. If the association does not meet these requirements, it needs to get written approval from the commissioner before making such investments.
investment restrictions liquidity requirements liquid assets
