Md. Code Regs. 09.03.01.10

Current through Register Vol. 51, No. 22, November 1, 2024

Section 09.03.01.10 - Investments

A. In this regulation, the following terms have the meanings indicated.

B. Terms Defined.

(1) "Adjusted trading" means any method or transaction used to defer a loss whereby a credit union sells a security to a vendor at a price above its current market price, and simultaneously purchases or commits to purchase from the vendor another security at a price above its current market price.

(2) Options or Futures Contracts.

(a) "Option or futures contracts" means commitment to either buy or sell a security, on or before a future date, at a predetermined price.

(b) "Option or future contract" does not include the subscription for the purchase of initial offering of an investment permitted by Financial Institutions Article §6-705, Annotated Code of Maryland.

(3) "Short sale" means the sale of a security not owned by the seller.

C. A credit union may not engage in adjusted trading.

D. A credit union may not invest in options or futures contracts or engage in short sales.

Md. Code Regs. 09.03.01.10

Regulations .10 adopted as an emergency provision effective July 19, 1988 (15:18 Md. R. 2143); emergency status extended at 15:27 Md. R. 3123
Regulations .10 adopted effective August 6, 1990 (17:15 Md. R. 1855)
Regulations .10 and new Regulation .10 adopted effective October 1, 2001 (28:19 Md. R. 1683)