1. Money not used in loans to members may be invested in: (a) Securities, obligations, participations 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 these instruments; (b) Obligations of this state or any political subdivision thereof, including, without limitation, a city, county or school district; (c) Certificates of deposit or passbook type accounts issued by a state or national bank, mutual savings bank, savings and loan association or savings bank; (d) Loans to or shares or deposits of other credit unions as permitted by the bylaws; (e) Capital shares, obligations or preferred stock issues of any agency or association organized either as a stock company, mutual association or membership corporation if the membership or stockholdings, as the case may be, of the agency or association are confined or restricted to credit unions or organizations of credit unions, and the purposes for which the agency or association is organized are designed to service or otherwise assist credit union operations; (f) Shares of a cooperative society organized under the laws of this state or the United States in a total amount not exceeding 10 percent of the shares, deposits and surplus of the credit union; (g) Stocks and bonds of United States corporations to a maximum of 5 percent of unallocated reserves, except that such an investment must be limited to stocks or bonds yielding income which are approved by the Commissioner; (h) Loans to any credit union association, national or state, of which the credit union is a member, except that such an investment must be limited to 1 percent of the shares, capital deposits and unimpaired surplus of the credit union; (i) Negotiable obligations of federal or state banks; and (j) Municipal bonds which are issued by a public entity outside of this State, if the credit union conducts and documents an analysis which reasonably concludes that the security is at least investment grade and ensures that: (1) The aggregate municipal securities holdings of the credit union are not more than 75 percent of the net worth of the credit union; and (2) The municipal securities holdings issued by any single issuer to the credit union are not more than 25 percent of the net worth of the credit union. 2. As used in this section, investment grade means a security which has achieved a minimum credit rating which is approved by the Commissioner from Moodys Ratings, S&P Global Ratings or Fitch Ratings to be considered investment grade.
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