Safekeeping requirements are governed by the criteria contained in Part 703.9 of the NCUA Rules and Regulations. Additional guidance is contained in Letter to Credit Union, Number 29, April 17, 1979.
The following summarizes these requirements. The credit union must:
- Retain its investments and repurchase collateral using one of the following methods
- Retained in its possession;
- Recorded as owned by the Federal credit union through the Federal Reserve Book–Entry System; or
- Held by a board-approved safekeeper, under a written custodial agreement.
- Obtain an individual confirmation statement for each investment purchased or sold.
- Use only a safekeeper that is regulated by the SEC, a state or federal depository institution regulatory agency or a state trust company regulatory agency.