California Financial Code

§ 14657

FIN § 14657 Effective Jan 1, 2019Div. 5 · Ch. 4 · Art. 6

Statute text

(a)A credit union may invest in charitable donation accounts, or CDAs, in accordance with this section as a means of providing charitable contributions and donations to qualified charities. If a credit union invests in a CDA that satisfies all of the conditions in subdivision (b), then it may do so free from any other investment limitations of this article.

(b)(1) The book value of a credit union’s investments in all CDAs, in the aggregate, as carried on the credit union’s statement of financial condition prepared in accordance with generally accepted accounting principles, shall be limited to no more than 5 percent of the credit union’s net worth at all times for the duration of the accounts, as measured every quarterly call report cycle. A credit union shall bring its aggregate accounts into compliance with the maximum aggregate funding limit within 30 days of any breach of this limit.

(2)The assets of a CDA shall be held in a segregated custodial account or special purpose entity and shall be specifically identified as a CDA.

…

Legislative history

Added by Stats. 2018, Ch. 267, Sec. 3. (AB 2862) Effective January 1, 2019.