{"data":{"id":"us/12-cfr-703.19","jurisdiction":"us","citation":"12 CFR 703.19","heading":"Investment pilot program.","body":"(a) Under the investment pilot program, NCUA will permit a limited number of Federal credit unions to engage in investment activities prohibited by this part but permitted by the Act.\n(b) Except as provided in paragraph (c) of this section, before a Federal credit union may engage in additional activities it must obtain written approval from NCUA. To obtain approval, a Federal credit union must submit a request to its regional director that addresses the following items:\n(1) Certification that the Federal credit union is “well-capitalized” under part 702 of this chapter;\n(2) Board policies approving the activities and establishing limits on them;\n(3) A complete description of the activities, with specific examples of how they will benefit the Federal credit union and how they will be conducted;\n(4) A demonstration of how the activities will affect the Federal credit union's financial performance, risk profile, and asset-liability management strategies;\n(5) Examples of reports the Federal credit union will generate to monitor the activities;\n(6) Projections of the associated costs of the activities, including personnel, computer, audit, and so forth;\n(7) Descriptions of the internal systems that will measure, monitor, and report the activities;\n(8) Qualifications of the staff and officials responsible for implementing and overseeing the activities; and\n(9) Internal control procedures that will be implemented, including audit requirements.\n(c) A third-party seeking approval of an investment pilot program must submit a request to the Director of the Office of Capital Markets and Planning that addresses the following items:\n(1) A complete description of the activities with specific examples of how a credit union will conduct and account for them, and how they will benefit a Federal credit union;\n(2) A description of any risks to a Federal credit union from participating in the program; and\n(3) Contracts that must be executed by the Federal credit union.\n(d) A Federal credit union need not obtain individual written approval to engage in investment activities prohibited by this part but permitted by statute where the activities are part of a third-party investment program that NCUA has approved under this section.","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 A—General Investment and Deposit Activities"],"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":"fc170fc8b74ec20abc1d0ebbcd80a54e094eaa7ec60acc7748d3b06fb8224c2d","source_id":"us-cfr","stale":true,"prev":"us/12-cfr-703.18","next":"us/12-cfr-703.20"},"notice":"GroundRules: Original legal text. Not legal advice."}