How to Get Started

Pursuant to Regulation 703.13(e), a federal credit union may enter into securities lending transactions. The credit union's investment policy must be amended to authorize a securities lending program by the board.

Implementing a securities lending program with Alaska USA Trust Company is simple and straightforward. Simply execute the Securities Lending Intermediary Agreement. If you are not currently a custody client, Alaska USA Trust Company can prepare an authorization to transfer securities, and assist in planning and coordinating the transfer. In most cases, we can begin lending your securities in our custody immediately.

Implementation timeline

Action Item Projected Timeline
1. Amend/review the credit union's investment policy to permit securities lending 30-60 days (one board meeting)
2. Execute the Securities Lending Intermediary Agreement 1-2 weeks (depending on your legal review process)
3. If Alaska USA is not already your custodian, a Custody Agreement will need to be executed as well, and securities transferred. Custody transfer must be scheduled with Alaska USA Trust Company depending on staff workload
4. Develop your securities lending strategy. A sound Strategy must address:
  1. Counterparty due diligence procedures
  2. How much of our portfolio to lend
  3. Acceptable collateral/reinvestments
30 days (one ALCO meeting). "Normal" is 2-3 months-this is up to the credit union.