{"data":{"id":"us/12-cfr-703.103","jurisdiction":"us","citation":"12 CFR 703.103","heading":"Requirements related to the characteristics of permissible Interest Rate Risk Derivatives.","body":"(a) Under this subpart, a Federal credit union may only enter into Derivatives that have the following characteristics:\n(1) Are for the purpose of managing Interest Rate Risk;\n(2) Denominated in U.S. dollars;\n(3) Based on Domestic Interest Rates or the U.S. dollar-denominated London Interbank Offered Rate (LIBOR);\n(4) A contract maturity equal to or less than 15 years, as of the Trade Date; and\n(5) Not used to create Structured Liability Offerings for members or nonmembers.\n(b) A Federal credit union may not engage in embedded options required under U.S. Generally Accepted Accounting Principles (GAAP) to be accounted for separately from the host contract.","path":["Title 12—Banks and Banking","CHAPTER VII—NATIONAL CREDIT UNION ADMINISTRATION","SUBCHAPTER A—REGULATIONS AFFECTING CREDIT UNIONS","PART 703—INVESTMENT AND DEPOSIT ACTIVITIES","Subpart B—Derivatives"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-12.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:16Z","sha256":"f79e99d12c08c9fa43d5fcd98e7d8fbd87579f8e5030511716cf08ba619cb806","source_id":"us-cfr","stale":true,"prev":"us/12-cfr-703.102","next":"us/12-cfr-703.104"},"notice":"GroundRules: Original legal text. Not legal advice."}