09.03.01.10

.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.