87. The portion of the surplus earning representing the increase in value of the investment deposits of a credit union in an investment fund established pursuant to section 414, of the capital shares in relation to an investment fund that are held by a credit union, or of any security determined by by-law of the federation, shall be allocated to a reserve established for that purpose in accordance with the standards of the federation.
The following may also be allocated to the reserve, as determined by by-law of the federation:
(1) any asset or liability that is unrealized, is subject to market fluctuations and, according to the applicable accounting principles and standards, would otherwise be added to the surplus earnings to be allocated;
(2) the variation in the value of the assets and liabilities described in subparagraph 1, determined according to the applicable accounting principles;
(3) any other element, with the authorization of the Authority.
The reserve may, in accordance with the standards of the federation, be drawn upon to increase the surplus earnings that the credit union may allocate following
(1) the cashing of some or all of the investment deposits or capital shares in relation to an investment fund;
(2) the realization of any investment;
(3) the realization of any element allocated to the reserve.
2000, c. 29, s. 87; 2010, c. 40, s. 3.