17 CFR §401.5

1. (a)
   1. (1)Subject to the requirements of paragraph (b) of this section, a corporate credit union shall be exempt from the provisions of section 15C (a), (b) and (d) of the Act (15 U.S.C. 78o-5 (a), (b), (d)) and the regulations thereunder if its government securities dealer activities are limited to the sale and subsequent repurchase and the purchase and subsequent resale, each pursuant to a repurchase or reverse repurchase agreement, of government securities to other credit unions and such other activities as have been exempted by regulation under this part.
   2. (2)For the purposes of this section, “corporate credit union” means a credit union whose membership consists primarily of other credit unions and that is (i) a Federal credit union as defined in 12 U.S.C. 1752(1), (ii) an insured credit union as defined in 12 U.S.C. 1752(7), or (iii) a member of the National Credit Union Administration Central Liquidity Facility.
2. (b)A credit union that relies on the exemption contained in paragraph (a) of this section is required to comply with:
   1. (1)The regulations of part 450 of this chapter concerning custodial holdings of government securities; and
   2. (2)Section 403.5(d) concerning certain repurchase transactions with customers.