12 CFR 703.107
§ 703.107 External service providers.
United States · 12 CFR — Banks and Banking · Status: effective
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- Citation
- 12 CFR 703.107, § 703.107 External service providers, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/48457
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Full text
(a) General. A Federal credit union using Derivatives may use External Service Providers to support or conduct aspects of its Derivative management program, provided:
(1) The External Service Provider, including affiliates, does not:
(i) Act as a Counterparty to any Derivative transactions that involve the Federal credit union;
(ii) Act as a principal or agent in any Derivative transactions that involve the Federal credit union; or
(iii) Have discretionary authority to execute any of the Federal credit union's Derivative transactions.
(2) The Federal credit union has the internal capacity, experience, and skills to oversee and manage any External Service Providers it uses; and
(3) The Federal credit union documents the specific uses of External Service Providers in its policies and procedures, as described in § 703.106(c) of this subpart.
(b) Relation to § 703.106. This section does not alleviate the responsibility of the Federal credit union to employ qualified staff in accordance with § 703.106 of this subpart.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.