§ 7200 Association Investment Restrictions

• •Groups can't invest in risky things if they don't have enough cash or easy-to-sell assets.
• •They must follow rules about having enough cash or easy-to-sell assets before investing.
• •If they want to invest anyway, they need special permission in writing first.

A local club wants to buy a bunch of rare coins as an investment.

The club can't do this if they don't have enough cash or easy-to-sell assets. They need to check their money situation first. If they still want to buy the coins, they must ask for and get written permission before doing it.