{"data":{"id":"us/12-cfr-703.104","jurisdiction":"us","citation":"12 CFR 703.104","heading":"Requirements for Counterparty agreements, collateral and Margining.","body":"To enter into Derivative transactions under this subpart, a Federal credit union must:\n(a) Have an executed Master Services Agreement with a Counterparty. Such agreement must be reviewed by counsel with expertise in similar types of transactions to ensure the agreement reasonably protects the interests of the Federal credit union;\n(b) Use only the following Counterparties:\n(1) For exchange-traded and cleared Derivatives: Swap Dealers, Introducing Brokers, and/or FCMs that are current registrants of the CFTC; or\n(2) For Non-cleared Derivative transactions: Swap Dealers that are current registrants of the CFTC.\n(c) Utilize contracted Margin requirements with a maximum Margin threshold amount of $250,000; and\n(d) For Non-cleared Derivative transactions, accept as eligible collateral, for Margin requirements, only the following: Cash (U.S. dollars), U.S. Treasuries, government-sponsored enterprise debt, U.S. government agency debt, government-sponsored enterprise residential mortgage-backed security pass-through securities, and U.S. government agency residential mortgage-backed security pass-through securities.","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":"ff8e74764ad67fb2d9cc22238622bc50226348c06197db5057c3327e5fe8c360","source_id":"us-cfr","stale":true,"prev":"us/12-cfr-703.103","next":"us/12-cfr-703.105"},"notice":"GroundRules: Original legal text. Not legal advice."}