---
kind: "section"
citation: "17 C.F.R. § 401.5"
title: "17"
number: "401.5"
heading: "Exemption for corporate credit unions transacting limited government securities business with other credit unions."
url: "https://uscodex.org/cfr/17/401.5"
---

# §401.5. Exemption for corporate credit unions transacting limited government securities business with other credit unions.

- (a)
  - (1) Subject to the requirements of [paragraph (b)](#b) of this section, a corporate credit union shall be exempt from the provisions of section 15C (a), (b) and (d) of the Act (15 U.S.C. [78o-5 (a)](/usc/15/78o-5.md?p=a), [(b)](/usc/15/78o-5.md?p=b), [(d)](/usc/15/78o-5.md?p=d)) and the regulations thereunder if its government securities dealer activities are limited to the sale and subsequent repurchase and the purchase and subsequent resale, each pursuant to a repurchase or reverse repurchase agreement, of government securities to other credit unions and such other activities as have been exempted by regulation under this part.
  - (2) For the purposes of this section, “corporate credit union” means a credit union whose membership consists primarily of other credit unions and that is (i) a Federal credit union as defined in 12 U.S.C. [1752(1)](/usc/12/1752.md?p=1), [(ii)](/usc/12/1752.md?p=ii) an insured credit union as defined in 12 U.S.C. [1752(7)](/usc/12/1752.md?p=7), or [(iii)](/usc/12/1752.md?p=iii) a member of the National Credit Union Administration Central Liquidity Facility.
- (b) A credit union that relies on the exemption contained in [paragraph (a)](#a) of this section is required to comply with:
  - (1) The regulations of [part 450](/cfr/17/part450.md) of this chapter concerning custodial holdings of government securities; and
  - (2) [Section 403.5(d)](/cfr/17/403.5.md?p=d) concerning certain repurchase transactions with customers.

## Notes

### Authority

Authority: Sec. 101, Pub. L. 99-571, 100 Stat. 3209 (15 U.S.C. 78o-5(a)(4)).

### Source

Source: 52 FR 27930, July 24, 1987, unless otherwise noted.