A credit union exercising trust powers shall adopt and follow
appropriate written policies and procedures to maintain its fiduciary
activities in compliance with applicable law. Among other relevant
matters, the policies and procedures must address, where appropriate,
the credit union's:
(1) Brokerage placement practices;
(2) Methods for ensuring that fiduciary officers and
employees do not use material inside information in connection with
any decision or recommendation to purchase or sell any security;
(3) Methods for preventing self-dealing and conflicts
of interest;
(4) Selection and retention of legal counsel who is
readily available to timely review trust instruments or other documents
creating the credit union's fiduciary status and advise the credit
union and its fiduciary officers and employees on all fiduciary related
matters; and
(5) Investment of funds held as fiduciary, including
short-term investments and the treatment of fiduciary funds awaiting
investment or distribution.
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