---
kind: "section"
citation: "12 C.F.R. § 703.1"
title: "12"
number: "703.1"
heading: "Purpose and scope."
url: "https://uscodex.org/cfr/12/703.1"
---

# §703.1. Purpose and scope.

- (a) This part interprets several of the provisions of Sections 107(7), 107(8), and 107(15) of the Federal Credit Union Act (Act), 12 U.S.C. [1757(7)](/usc/12/1757.md?p=7), [1757(8)](/usc/12/1757.md?p=8), [1757(15)](/usc/12/1757.md?p=15), which list those securities, deposits, and other obligations in which a Federal credit union may invest. [Part 703](/cfr/12/part703.md) identifies certain investments and deposit activities permissible under the Act and prescribes regulations governing those investments and deposit activities on the basis of safety and soundness concerns. Additionally, [part 703](/cfr/12/part703.md) identifies and prohibits certain investments and deposit activities. Investments and deposit activities that are permissible under the Act and not prohibited or otherwise regulated by [part 703](/cfr/12/part703.md) remain permissible for Federal credit unions.
- (b) **This part does not apply to—**
  - (1) Investment in loans to members and related activities, which is governed by §§ [701.21](/cfr/12/701.21.md), [701.22](/cfr/12/701.22.md), [701.23](/cfr/12/701.23.md), and [part 723](/cfr/12/part723.md) of this chapter;
  - (2) The purchase of real estate-secured loans pursuant to Section 107(15)(A) of the Act, which is governed by [§ 701.23](/cfr/12/701.23.md) of this chapter, except those real estate-secured loans purchased as a part of an investment repurchase transaction, which is governed by §§ [703.13](/cfr/12/703.13.md) and [703.14](/cfr/12/703.14.md) of this chapter;
  - (3) Investment in credit union service organizations, which is governed by [part 712](/cfr/12/part712.md) of this chapter;
  - (4) Investment in fixed assets, which is governed by [§ 701.36](/cfr/12/701.36.md) of this chapter;
  - (5) **Investment by corporate credit unions, which is governed by part 704 of this chapter.**
  - (6) Investment activity by State-chartered credit unions, except as provided in §§ [741.3(a)(2)](/cfr/12/741.3.md?p=a-2) and [741.219](/cfr/12/741.219.md) of this chapter; or
  - (7) Funding a Charitable Donation Account pursuant to [§ 721.3(b)](/cfr/12/721.3.md?p=b) of this chapter.

## Notes

### Amendments

[68 FR 32960, June 3, 2003, as amended at 69 FR 27828, May 17, 2004; 71 FR 76124, Dec. 20, 2006; 78 FR 76730, Dec. 19, 2013]

### Authority

Authority: 12 U.S.C. 1757(7), 1757(8), 1757(14) and 1757(15).

### Source

Source: 68 FR 32960, June 3, 2003, unless otherwise noted.

### Amendments

[68 FR 32960, June 3, 2003, as amended at 69 FR 27828, May 17, 2004; 71 FR 76124, Dec. 20, 2006; 78 FR 76730, Dec. 19, 2013]