comparative digest of credit union acts: powers 2018...2 comparative digest of credit union acts*:...

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CUNA’s State Governmental Affairs

COMPARATIVE DIGEST OF CREDIT UNION ACTS:

POWERS

2018

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Comparative Digest of Credit Union Acts*: Powers CUNA’s State Government Affairs – 2018

TABLE OF CONTENTS

CHAPTER 1: GENERAL POWERS 3

CHAPTER 2:

INCIDENTAL POWERS

114

CHAPTER 3:

PARITY

122

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Comparative Digest of Credit Union Acts*: Powers

Provisions from Model Credit Union Act

General Powers

*There are 47 state credit union acts. Delaware, South Dakota, and Wyoming do not have a state credit union act.

2015 Model Credit Union Act

Section 3.10. General Powers

ALTERNATIVE #19

(1) A credit union may exercise any power necessary or useful to its members and related to the business of

being a financial institution without regulatory approval.

(2) A credit union may exercise any power necessary or useful to its members and unrelated to the business

of being a financial institution with regulatory approval.

ALTERNATIVE #2

A credit union may:

(1) Enter into contracts of any nature;

(2) Sue and be sued;

(3) Acquire, lease as lessor or lessee, hold, assign, pledge, mortgage, sell, or otherwise dispose of real or

personal property or assets, either in whole or in part;

(4) Borrow from any source, provided that a credit union must notify the Commissioner in writing of its

intention to borrow in excess of fifty percent of its net worth, shares, and deposits;

(5) Purchase the assets of another credit union or sell all, or substantially all of its assets to another credit

union;

(6) Offer related financial services, including, but not limited to, electronic fund transfers, safe deposit boxes,

negotiable instruments, leasing and correspondent arrangements with or to other financial institutions

and their members;

ALTERNATIVE #1

(6) Offer related financial services, including, but not limited to, electronic fund transfers, safe deposit boxes,

negotiable instruments, leasing and correspondent arrangements with or to other financial institutions

and their members including, but not limited to, loan processing, loan servicing, member check cashing

services, disbursing share withdrawals and loan proceeds, cashing and selling money orders, ACH and

wire transfer services, prepaid debit cards, payroll debit cards, coin and currency services, performing

internal audits, and automated teller machine and deposit services;

(7) Hold membership in other credit unions, Federal Credit Unions or Foreign Credit Unions, and in credit union-

related associations and organizations;

(8) Engage in activities and programs as requested by any Government Unit;

(9) Act as fiscal agent for, and receive payments on share and deposit accounts from any Government Unit;10

(10) Make reasonable contributions to any nonprofit civic, charitable or service organization;

(11) Require the payment of an entrance fee or annual membership fee, or both, of any person admitted to

membership, pursuant to the credit union’s bylaws;

(12) Receive Deposits from its members in the form of shares and Deposits and honor requests for withdrawals

or transfers of all or any part of share and deposit accounts, in any manner approved by the board of

directors; ________________________________________________________________________________________________________

9 This alternative allows for the broadest possible scope of credit union powers. Under this provision, a credit union can do anything a bank can

without restriction and can even offer non-bank products and services as long as the regulator approves.

10 Credit union acts that allow credit unions to accept public funds, limit the amount of funds to the insurance limit; however, banks do not

have that limitation. This subsection may be expanded to read “(9) Act as fiscal agent for, and receive payments on share and deposit

accounts from any Government Unit, up to and in excess of insurance limits;

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(13) Lend funds to its members;

(14) Discount and sell any obligations owed to the credit union;

(15) Invest surplus funds as provided in this Act;

(16) Invest in shares of other credit unions and make Deposits in other financial institutions and trust companies;

(17) Invest in Credit Union Service Organizations;

(18) Issue certificates of indebtedness to members that are subordinated to all other claimants on the credit

union;

(19) Assess fees and charges to members;

(20) Declare dividends on shares and interest on deposit accounts and pay interest refunds to borrowers;

(21) Receive savings from non-members in the form of shares in the case of credit unions serving

predominantly low-income members;

(22) Receive Deposits from or lend funds to other credit unions, Federal Credit Unions or Foreign Credit Unions;

ALTERNATIVE #1

(23) Purchase or make insurance available to its members on either an individual or group basis;

ALTERNATIVE #2

(23) Sell insurance products subject to applicable insurance laws;

(24) Purchase and maintain insurance on behalf of any person who is or was a director, officer, employee, or

agent of the credit union, or who is or was serving at the request of the credit union as a director, officer,

employee, or agent of another corporation, partnership, joint venture, trust or other enterprise against any

liability asserted against such person and incurred by such person in any such capacity or arising out of

such person’s status as such, whether or not the credit union would have the power to indemnify such

person against such liability;

(25) Offer services permitted for state chartered and national banks, savings and loans, mutual savings banks,

their subsidiaries and affiliates, including, but not limited to, electronic fund transfers, safe deposit boxes,

trust services, the issuance of negotiable instruments, and leasing and correspondent arrangements with

other financial institutions;

(26) Receive payments on share, share draft, and share certificate accounts;

(27) Enter into lease agreements, lease contracts and lease-purchase agreements with members;

(28) Indemnify and/or limit the personal liability of officials in accordance with the credit union’s articles of

incorporation and bylaws;

(29) Act as agent for any electric, electric distribution, gas, water or telephone company or other utility

company operating within this state in receiving money due such company for utility services furnished by

it;

(30) Exercise the powers granted to corporations and nonprofit corporations. In the event of a conflict

between those provisions and this title, the provisions of this title shall govern;

(31) Offer debt cancellation and debt suspension contracts;

(32) Notwithstanding any other provision of law, funds deposited in a share account, share certificate, or any

other program offered by the credit union for the purpose of promoting consumer savings will not

constitute consideration or a thing of value for the purposes of a promotional contest or raffle under state

law;11

(33) Receive Supplemental Capital from members and non-members; and

(34) Exercise other powers granted by the Commissioner.

_______________________________________________________________________________________________ 11 Refer to state gaming provisions to ensure the permissibility of prize-linked savings account programs.

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Provisions from State Credit Union Acts

General Powers


Alabama § 5-17-4. Powers generally.

A credit union shall have all of the following powers:

(1) To receive the savings of its members either as payment on shares or as deposits, including the right to conduct

Christmas clubs, vacation clubs and other thrift organizations within the membership.

(2) To accept deposits of fiduciary funds if a member is the beneficiary, trustee, or personal representative and if the funds

are part of the estate of a deceased member.

(3) To make loans to members.

(4) To make loans to other credit unions.

(5) To make loans to a cooperative society or other organizations having membership in the credit union.

(6) To deposit in state and national banks, savings and loan associations, the accounts which are insured by the Federal

Savings and Loan Insurance Corporation or the Federal Deposit Insurance Corporation, and of other credit unions.

(7) To invest in any investment legal for savings banks or for trust funds in the state.

(8) To borrow money from any source and to give its note therefor; provided, that the borrowing shall not at any time

exceed 50 percent of its assets.

(9) To assess each member a recurring or nonrecurring membership fee.

(10) To exercise incidental powers as necessary to enable it to carry on effectively the purposes for which it is incorporated

and other powers as are expressly authorized by the Administrator of the Alabama Credit Union Administration.

(11) In addition to any and all other powers heretofore granted to credit unions, any credit union shall have the power to

engage in any activity in which the credit union could engage were the credit union operating as a federally

chartered credit union, including but not by way of limitation because of enumeration, the power to do any act and

own, possess, and carry as assets property of that character including stocks, bonds, or other debentures which, at the

time, are authorized under federal laws or regulations for transactions by federal credit unions, notwithstanding any

restrictions elsewhere contained in the statutes of the State of Alabama. No credit union can exercise any power

which it claims only by virtue of the power being possessed by a federal credit union if the administrator issues a

written order prohibiting a credit union from exercising that power.

§ 5-17-14. Capital, liens, entrance fees.

The capital of a credit union shall consist of the payments that have been made to it by the several members thereof on

shares. The credit union shall have a lien on the shares and deposits of a member for any sum due to the credit union from

said member or for any loan endorsed by him. A credit union may charge an entrance fee as may be fixed by the bylaws;

provided, that such entrance fee shall not exceed $1.00.

§ 5-17-25. Alabama Credit Union League - Advance payment of dues by member credit unions.

Repealed by Act 2014-317, §2, effective May 1, 2014.

Alaska

Alaska Stat. § 06.45.060. Powers of a credit union; remedy for interest violations

A credit union has succession in its corporate name during its existence and may

(1) enter into a contract;

(2) sue and be sued;

(3) adopt, use, and alter a common seal; adopt, use, and alter a common seal;

(4) purchase, hold, and dispose of property;

(5) make loans, the maturities of which may not exceed 20 years except as provided in this chapter, and

extend lines of credit to its members, to other credit unions, and to credit union organizations and

participate with other credit unions, credit union organizations, or financial organizations in making loans

to credit union members in accordance with the following:

(A) loans to members shall be made in conformity with regulations adopted by the commissioner, except that

(i) a residential real estate loan that is made to finance the acquisition of a one- to four-family dwelling for the

principal residence of a credit union member that is secured by a first lien on the dwelling may have a maturity

not exceeding 30 years;

(ii) a loan to finance the purchase of a manufactured home that is secured by a first lien on the manufactured

home, to be used as the residence of a credit union member, or for the repair, alteration, or improvement of a

residential dwelling that is the residence of a credit union member must have a maturity not to exceed 20 years

unless the loan is insured or guaranteed under (iii) of this subparagraph;

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(iii) a loan secured by the insurance or guarantee of the federal government, of a state government, or an agency

of either may be made for the maturity and under the terms and conditions specified in the law under which the

insurance or guarantee is provided;

(iv) a loan or aggregate of loans to a director or member of the supervisory or credit committee of the credit union

making the loan that exceeds $ 20,000 plus pledged shares shall be approved by the board of directors;

(v) loans to other members for which directors or members of the supervisory or credit committee act as guarantor

or endorser shall be approved by the board of directors when the loans standing alone or when added to an

outstanding loan or loans of the guarantor or endorser exceed $ 20,000;

(vi) the rate of interest may not exceed the greater of 15 percent a year or the rate specified in AS 45.45.010(b);

(vii) the taking, receiving, reserving, or charging of a rate of interest greater than is allowed by this paragraph, when

knowingly done, is considered a forfeiture of the entire interest that the note, bill, or other evidence of debt

carries with it, or that has been agreed to be paid on the note, bill, or other evidence of debt; if a greater rate of

interest has been paid, the person by whom it has been paid or the person's legal representatives may recover

back from the credit union taking or receiving it the entire amount of interest paid, but the action must be

commenced within two years from the time the usurious collection was made;

(viii) a borrower may repay a loan before maturity in whole or in part on any business day without penalty;

(ix) loans shall be paid or amortized under regulations adopted by the commissioner that consider the needs or

conditions of the borrowers, the amounts and duration of the loans, the interests of the members and the credit

union, and other factors established in regulations adopted by the commissioner;

(x) the total dollar amount of real estate loans and manufactured home loans outstanding may not exceed 25

percent of the assets of the credit union without the written approval of the commissioner;

(xi) a credit union with assets of less than $ 3,000,000 may make real estate loans with maturities in excess of 15 years

only with the approval of the commissioner;

(B) a self-replenishing line of credit to a borrower may be established to a stated maximum amount on terms and

conditions that may be different from terms and conditions established for another borrower;

(C) loans to other credit unions require the approval of the board of directors of the loaning credit union;

(D) loans to credit union associations require the approval of the board of directors of the credit union and may not

exceed one percent of the paid-in and unimpaired capital and surplus of the credit union;

(E) participation loans with other credit unions, credit union associations, or financial organizations shall be made in

accordance with written policies of the board of directors of the credit union, except that a credit union that

originates a loan for which participation arrangements are made in accordance with this section shall retain an

interest not less than 10 percent of the face amount of the loan;

(6) receive from its members and from others payments on shares that may be issued at varying dividend rates, and

payments on share certificates that may be issued at varying dividend rates and maturities, and establish share draft

accounts, subject to terms, rates, and conditions as may be established by the board of directors of the credit union,

within limitations prescribed by the commissioner;

(7) invest its funds

(A) in loans exclusively to members;

(B) in obligations of the United States or securities fully guaranteed as to principal and interest by the United States;

(C) in loans to other credit unions in the total amount not exceeding 25 percent of its paid-in and unimpaired capital

and surplus in accordance with regulations adopted by the commissioner;

(D) in shares or accounts of savings and loan associations or mutual savings banks that are insured by the Federal

Deposit Insurance Corporation;

(E) in obligations issued by banks for cooperatives, federal land banks, federal intermediate credit banks, federal home

loan banks, the Federal Home Loan Bank Board, or a corporation designated in 31 U.S.C. 9101 as a wholly owned

federal government corporation; in obligations, participations, or other instruments of or issued by or fully

guaranteed as to principal and interest by the Federal National Mortgage Association or the Government National

Mortgage Association; in mortgages, obligations, or other securities that are or have been sold by the Federal Home

Loan Mortgage Corporation under 12 U.S.C. 1454 or 12 U.S.C. 1455 (Federal Home Loan Mortgage Corporation Act);

or in obligations or other instruments or securities of the Student Loan Marketing Association; (F) in participation certificates evidencing beneficial interests in obligations, or in the right to receive interest and

principal collections from obligations, that have been subjected by one or more federal agencies to a trust or trusts

for which an executive department, agency, or instrumentality of the United States or its head has been named to

act as trustee;

(G) in shares or deposits of a central credit union in which such investments are authorized by the board of directors of

the credit union making the investment;

(H) in shares, share certificates, or share deposits of federally insured credit unions;

(I) in the shares, stocks, or obligations of another organization providing services that are associated with the routine

operations of credit unions, up to one percent of the total paid-in and unimpaired capital and surplus of the credit

union with the approval of the commissioner;

(J) in the capital stock of the National Credit Union Central Liquidity Facility;

(K) in the stocks, bonds, and other securities of

(i) a corporation licensed under AS 10.13; or

(ii) a corporation attempting to become licensed under AS 10.13 if the corporation intends to use the proceeds to

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fulfill the tasks necessary to become licensed under AS 10.13;

(L) in bankers' acceptances issued by a financial institution whose accounts are insured by an agency of the federal

government;

(M) in stock of a federal home loan bank; the investment must be limited to the minimum amount of stock required for

membership in the federal home loan bank, plus any additional stock purchase required to obtain an advance of

funds from a federal home loan bank; and

(N) in obligations of, or issued by, a state or political subdivision of the state, except that a credit union may not invest

more than 10 percent of its unimpaired capital and surplus in the obligations of any one issuer, exclusive of general

obligations of the issuer; in this subparagraph, "political subdivision of the state" includes an agency, corporation, or

instrumentality of a state or political subdivision;

(8) make deposits in national banks and in state banks, trust companies, and mutual savings banks operating in

accordance with the laws of the state;

(9) borrow in accordance with regulations adopted by the commissioner from any source, in an aggregate amount not

exceeding 50 percent of its paid-in and unimpaired capital and surplus, except that a credit union may discount with

or sell to a federal intermediate credit bank an eligible obligation up to the amount of its paid-in and unimpaired

capital;

(10) levy late charges, in accordance with the bylaws, for failure of members to meet promptly their obligations to the

credit union;

(11) levy and enforce a lien upon the shares and dividends of a member to the extent of a loan made to, and any dues or

charges payable by, the member;

(12) in accordance with regulations adopted by the commissioner, sell to members negotiable checks, travelers checks,

and money orders, and cash checks and money orders for members, for a fee which does not exceed the direct and

indirect costs incident to providing the service;

(13) in accordance with regulations adopted by the commissioner, purchase, sell, pledge, discount, or otherwise receive

or dispose of, in whole or in part, eligible obligations of its members and purchase from a liquidating credit union notes

made by individual members of the liquidating credit union at prices agreed upon by the board of directors of the

liquidating credit union and the board of directors of the purchasing credit union; a purchase may not be made

under authority of this paragraph if, upon the making of the purchase, the aggregate of the unpaid balances of notes

purchased under authority of this paragraph exceeds five percent of the unimpaired capital and surplus of the credit

union;

(14) sell all or a part of its assets to another credit union, purchase all or part of the assets of another credit union, and

assume the liabilities of the selling credit union and those of its members subject to regulations of the commissioner;

(15) issue solicited or unsolicited credit cards or other similar credit granting devices to a member for obtaining money,

goods, services or anything else of value; notwithstanding (5)(A)(vi) of this section and AS 45.45.010, when credit is

extended under this section, the credit union may impose a service charge at a monthly rate as agreed upon by

contract between the credit union and the member receiving the credit granting device, but the credit union may

not hold the member liable for charges made on a credit card or other credit granting device before its acceptance

by the member; before an unsolicited card is considered accepted by the member, the member shall execute and

furnish to the credit union a written statement of acceptance; in addition, a credit union may charge fees for credit

cards or other similar credit granting devices; and

(16) exercise incidental powers as are necessary or required to enable it to carry on effectively the business for which it is

incorporated.

(b) In this section, “manufactured home” has the meaning given in AS 45.29.102.

Alaska Stat. § 06.45.070. Membership Credit union membership consists of the incorporators and other persons and incorporated and unincorporated

organizations, to the extent permitted by regulations adopted by the commissioner, elected to membership. Each

member shall subscribe to at least one share of the stock of the credit union and pay the initial installment on the stock and

a uniform entrance fee if required by the board of directors of the credit union. Credit union membership is limited to

groups having a common bond of occupation or association, or to groups within a well-defined neighborhood,

community, or rural district. Shares may be issued in joint tenancy with right of survivorship with a person designated by the

credit union member. A joint tenant may not be permitted to vote, obtain loans, or hold office, unless the joint tenant is

within the field of membership and is qualified for membership. Alaska Stat. § 06.45.190. Dividends

At intervals as the board of directors may authorize and after provision for required reserves, the board of directors may

declare, under regulations adopted by the commissioner, a dividend to be paid at different rates on different types of

shares and at different rates and maturity dates in the case of share certificates. Dividend credit may be accrued on

various types of shares and share certificates as authorized by the board of directors.

Alaska Stat. § 06.45.260. Liquidity facility participation A credit union organized under this chapter may, under regulations adopted by the commissioner, participate in the

programs offered by the National Credit Union Central Liquidity Facility.

Arizona Ariz. Rev. Stat. § 6-516. General powers

A. In addition to the powers prescribed elsewhere in this chapter and except as prohibited by law, a credit union may:

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1. Enter into contracts of any nature.

2. Sue or be sued.

3. Adopt, use and display a corporate seal.

4. Acquire, lease, hold, assign, pledge, hypothecate, sell, discount or otherwise dispose of property or assets, either in

whole or in part, necessary or incidental to its operations.

5. Borrow money from any source, except that a credit union shall obtain the prior written approval of the superintendent

to borrow in excess of an aggregate of fifty per cent of its capital.

6. Purchase the assets of another credit union.

7. Offer financial services incidental to the business of a credit union, including electronic fund transfers, safe deposit

boxes and leasing and correspondent arrangements with other financial institutions.

8. Hold membership in other credit unions organized under this chapter or other laws, in the Arizona credit union league

or in other associations and organizations controlled by or fostering the interests of credit unions.

9. Engage in activities and programs offered by any governmental unit that are incidental or reasonably related to credit

union activities.

10. Act as fiscal agent for and receive payments on share and deposit accounts from a governmental unit.

11. Make contributions to any nonprofit civic, charitable or service organizations.

B. A credit union may exercise all incidental powers that are convenient, suitable or necessary to enable it to promote or

carry out its purposes.

C. A credit union shall not delegate the management of a credit union or the exercise of any power set forth in this section

to any person who is not an officer, director or employee of the credit union without the prior written approval of the

superintendent. The superintendent may examine the books, records and business affairs of any person or entity to whom

the credit union proposes to delegate any such authority.

Ariz. Rev. Stat. § 6-571. Insurance for members

A credit union may purchase or provide insurance on the lives or credit disability of its members in an amount equal to their

respective share and loan balances or either or both of them and purchase or provide vendor's single interest property

insurance coverages on property which is pledged as security if the borrower fails to provide evidence of adequate

coverages placed with an insurance carrier selected by the borrower. Nothing in this section shall prohibit the lender from

specifying reasonable requirements for coverages and the financial condition of the insurance carrier.

Arkansas Ark. Code Ann. § 23-35-601. Powers generally.

A credit union shall have power to:

(1) Make contracts;

(2) Sue and be sued in the name of the credit union;

(3) Adopt and use a common seal and alter it at pleasure;

(4) Purchase, hold, and dispose of property necessary or incidental to its operations;

(5) Require the payment of an entrance or membership fee by any applicant admitted to membership;

(6) Receive from its members payments on shares, which shall include the right to conduct Christmas clubs, vacation

clubs, and other such thrift organizations within the membership;

(7) Lend its funds to its members as provided in this chapter;

(8) Purchase insurance on the lives of its members in an amount equal to their respective share and loan balances or any

or all of them;

(9) Borrow from any source in an aggregate amount not exceeding sixty percent (60%) of the share balances;

(10) Invest surplus funds as provided in this chapter;

(11) Make deposits in checking or similar type of accounts in state-chartered and federally chartered banks, savings and

loan associations, savings banks, and credit unions, which accounts are insured by the Federal Deposit Insurance

Corporation, Federal Savings and Loan Insurance Corporation, or the National Credit Union Administration;

(12) Hold membership in other credit unions organized under this chapter or other acts, in the Arkansas Credit Union

League, and in other organizations composed of credit unions;

(13) Declare dividends as provided in this chapter;

(14) Impress a lien upon the shares and accumulation of dividends and interest of any member to the extent of any loans

made to him directly or indirectly, or on which he is surety, and for any dues or charges payable by him;

(15) Change its place of business in Arkansas with written notice to the State Credit Union Supervisor; and

(16) Exercise the powers granted corporations organized under the laws of Arkansas and such additional incidental powers

as may be necessary or requisite to enable it to promote and effectively carry on its purposes.

Ark. Code Ann. § 23-35-604. Investment of funds. Funds not used in loans to members may be invested:

(1) In capital shares, obligations, or preferred stock issues of any agency or association organized either as a stock

company, mutual association, or membership corporation, provided that the membership or stockholdings, as the case

may be, of the agency or association are confined or restricted to credit unions or organizations of credit unions and

provided that the purposes for which the agency or association is organized are designed to service or otherwise assist

credit union operations;

(2) In obligations of the State of Arkansas or any subdivision thereof;

(3) In obligations of the United States or securities fully guaranteed as to principal and interest thereby;

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(4) In shares of a cooperative society organized under local or national cooperative laws, in an amount not exceeding ten

percent (10%) of the shares and surplus of the credit union;

(5) In any investment legal for fiduciaries, savings banks, or trust companies in Arkansas;

(6) In loans to other credit unions, in an amount not to exceed thirty-three and one-third percent (331/3%) of the shares and

unimpaired surplus of the lending credit union; and

(7) In an aggregate amount not exceeding twenty-five percent (25%) of the allocations to the reserve fund, in any agency

or association of the type described in subdivision (1) of this section, provided the purposes of any such agency or

association are designed to assist in establishing and maintaining liquidity, solvency, and security in credit union

operations.

California Cal. Fin. Code § 14052. General corporate powers.

In addition to the powers enumerated in this division, every credit union has the general powers conferred upon

corporations by the Nonprofit Mutual Benefit Corporation Law of this state unless restricted by this division.

Cal. Fin. Code § 14400. Savings capital; Equity capital

(a) The savings capital of a credit union shall consist of the payments made by members on shares as set forth in the credit

union's written savings capital structure policy pursuant to Section 14862.

(b) The equity capital of the credit union shall consist of the credit union’s regular reserve account, the undivided earnings

account, any appropriated undivided earnings accounts, and other forms of capital approved by the commissioner.

Cal. Fin. Code § 14401. Extent of permission to borrow

A credit union may borrow money from any source in an aggregate amount not to exceed 50 percent of the paid-in and

unimpaired capital and surplus of the credit union. Loans from the National Credit Union Central Liquidity Facility (12 U.S.C.

Sec. 1795 et seq.) shall not be included in computing the aggregate borrowings of a credit union. For the purposes of this

division, "certificate for funds" means borrowed money.

Cal. Fin. Code § 14402. Real property transactions

Every credit union may purchase and hold, either individually or jointly with other credit unions or affiliated organizations, a

lot and building to be employed principally for the transaction of business, and to provide for future expansion of the

facilities of those organizations. Any excess space that is not occupied by the organizations purchasing and holding the

building may be leased to the public. The lot and building may be sold if all the holders of the property join in its sale.

Cal. Fin. Code § 14403. Personal property transactions

Every credit union may purchase and hold, either individually or jointly with other credit unions or affiliated organizations,

furniture, fixtures, vaults, and other personal property necessary or proper to carry on its business, and to equip or furnish

any space in any building purchased or held individually or jointly with other credit unions or affiliated organizations under

authorization of Section 14402, whether occupied by the credit union or leased to the public. The personal property may

be sold, if all the holders of the property join in its sale.

Cal. Fin. Code § 14405 Authority to join organizations

Every credit union may:

(a)

(1) Become a member of any organization or organizations composed of credit unions, credit associations,

chambers of commerce, financial institutions, community economic development entities, or business or trade

organizations.

(2) Become a member of any nonprofit organization approved by the board of directors.

(b)Pay dues and assessments as may be levied upon it by any organization of which it is a member.

Cal. Fin. Code § 14406. Deposit of credit union funds

The savings capital, undivided profits, and reserve funds of a credit union shall be deposited only in the following:

(a) Commercial banks or trust companies, incorporated under the laws of this state.

(b) National banks doing business in this state.

(c) Shares or periodic certificates for funds received by or any form of evidence of interest or indebtedness issued by any

credit union organized under this division or by any other credit union if its member accounts are insured as provided

for by Subchapter II of the Federal Credit Union Act (12 U.S.C. Sec. 1781 et seq.), or, alternatively, are insured by other

means determined acceptable by the commissioner.

(d) Accounts with, investment certificates or withdrawable shares of, any savings and loan association doing business in

this state that is an insured institution pursuant to the Federal Deposit Insurance Corporation Act (12 U.S.C. Sec. 1811

et seq.).

Cal. Fin. Code § 14408. Gift or donation

No credit union shall make any gift or donation having a value in excess of twenty-five thousand dollars ($25,000) unless the

gift or donation is in the best interest of the credit union, is approved by a resolution of the board of directors and is in

conformance with any regulation or order that the commissioner may issue. The resolution of the board of directors

approving the gift or donation shall identify the recipient of the gift or donation, state the value of the gift or donation, and

specify the basis for the board's determination that the gift or donation is in the best interests of the credit union. The board

may establish a budget for gifts and donations and authorize appropriate officials of the credit union to select recipients

and disburse budgeted funds among those recipients.

Cal. Fin. Code § 14456. Duties

Unless the bylaws expressly reserve any or all of the following duties to the members, the directors have all of the following

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special duties:

(e) To declare dividends on shares in accordance with the credit union's written capital structure policy and to determine

the interest rate or rates which will be paid on certificates for funds. Cal. Fin. Code § 14651. Shares of corporation organized solely to provide services to credit unions

(a) Every credit union may invest in the shares of stock of a corporation, or in membership or economic interests of a limited

liability company, organized solely for the purpose of providing services to credit unions, provided the corporation or

limited liability company is formed by a credit union or group of credit unions.

(b) Every credit union may invest in the securities of a corporation or in membership or economic interests of a limited

liability company that is not a corporation or limited liability company of the type described in subdivision (a) and that

provides services to credit unions, provided the investment is approved by the commissioner.

Cal. Fin. Code § 14800. Admission of qualified persons on payment of fee or purchase of share

(a) Every credit union may admit to membership those persons qualified for membership upon the occurrence of any of

the following:

(1) Upon the purchase of a membership in the credit union as provided in the credit union's bylaws.

(2) Upon the payment of an entrance fee established from time to time by the board of directors.

(3) Upon the purchase of one or more shares in the credit union as provided in the credit union's bylaws.

(b) No officer, director, committee member, or employee of any credit union shall approve a person for admission to

membership or admit an applicant for membership in the credit union or extend any benefit or service of the credit

union to any person, unless that person is admitted to membership in the credit union pursuant to subdivision (a).

(c) Nothing in subdivisions (a) and (b) shall be construed to limit the powers of a credit union to engage in joint service

programs or business relationships for the benefit of their members where some incidental benefit may flow to third

parties to the transaction or the authority for a credit union to engage in joint loan programs pursuant to Section 14959.

(d) Nothing in this section prohibits a credit union from admitting to membership a corporation in which the credit union

holds shares pursuant to Section 14650 or a corporation formed to provide services to credit unions or to credit union

members in which the credit union holds shares or a limited liability company formed to provide services to credit

unions or to credit union members in which the credit union holds membership or economic interests pursuant to

Section 14651.

Cal. Fin. Code § 14851. Issuance of shares; Coownership; Nonmember participation

(a) Every credit union may issue shares (1) to any member qualified pursuant to the credit union's bylaws; (2) to an officer,

employee, or agent of nonmember units of federal, Indian tribal, state, or local governments, and political subdivisions

thereof when acting in his or her official capacity; and (3) in coownership to a member and any person designated by

the member. Coownership, as used herein, includes, but is not limited to, joint tenancy, tenancy in common, or

community property forms of ownership. No membership privilege, including voting and obtaining a loan, may be

made available to any nonmember as a result of ownership of shares solely as coowner of shares with a member, and

any certificate or other evidence of shares which may be issued, shall contain the words "No transfer of voting rights or

other membership privilege is permitted by virtue of transfer of shares." Shares may be transferred to a public agency

lawfully entitled to receive the shares when designated by a member as assignee of an account pledged as a surety

deposit to the public agency by the member.

(b) A credit union that has a low-income designation pursuant to Section 701.34 of the regulations of the National Credit

Union Administration (12 C.F.R. Sec. 701.34) may issue shares to nonmembers. Except with the written approval of the

commissioner, the total number of shares issued by the credit union to nonmembers pursuant to this subdivision shall not

exceed 20 percent of the unimpaired capital and surplus of the credit union.

Cal. Fin. Code § 14852. Fee for transfer of shares

Every credit union may charge a reasonable fee for the transfer of its shares.

Cal. Fin. Code § 14950. Authority to enter into obligations with members; Acceptance of notes receivable from nonmembers

as consideration for sale of assets

(a) Every credit union may enter into obligations with its members upon the approval of the credit committee or, in the

alternative, the credit manager, subject to the terms and conditions established by the board of directors pursuant to

Section 15100.

(b)

(1) The board of directors of a credit union shall adopt a policy governing the acceptance by the credit union of notes

receivable from nonmembers as consideration for the sale of assets owned by the credit union through bona fide

transactions.

(2) No credit union may accept notes receivable from nonmembers as consideration for the sale of assets owned by

the credit union except in accordance with a policy adopted by the board of directors pursuant to paragraph (1).

(3) Transactions subject to this subdivision shall not be deemed to be loans to nonmembers for purposes of Section

14750.

(c) Notwithstanding subdivision (a), a credit union may permit a nonmember to participate in an obligation or extension of

credit to a member as a joint applicant or co-obligor. An obligation or extension of credit made pursuant to this

subdivision shall not be deemed a violation of subdivision (b) of Section 14800. Except as otherwise permitted by statute

or regulation, the credit union shall not extend any other benefit or service of the credit union to the nonmember solely

as a result of participation as a joint applicant or co-obligor unless the nonmember is thereafter admitted to

membership.

Cal. Fin. Code § 14958. Government loan programs

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A credit union may participate in guaranteed loan programs of the federal or state governments, subject to the limitations

on loans set forth in this division.

Cal. Fin. Code § 15001. Late charges

Every credit union may assess charges as approved by the board of directors for failure to meet punctually obligations to

the credit union. Any late charge shall be made only once for each delinquent payment and shall be subject to Section

2954.5 of the Civil Code, Division 1.1 (commencing with Section 4000) of this code, and any other applicable law.

Colorado Colo. Rev. Stat. §11-30-103. Membership

(1) Credit union membership shall consist of the incorporators and any other persons and organizations which are elected

to membership and which pay any entrance fee. Organizations, incorporated or otherwise, composed for the most

part of the same general group as the credit union membership may be members. A central credit union may be

organized under this article and may have a membership made up principally of other credit unions organized

pursuant to this article or any credit unions authorized to operate within the state of Colorado, and such membership

may also include the officers and committee members of such credit unions, members or persons within the field of

membership of credit unions within the state which have entered into or are about to enter into voluntary or involuntary

liquidation proceedings, and small groups which the commissioner determines lack the potential membership to

organize their own credit union if such groups have a common bond of employment or association.

(2) Credit union organization and membership, other than those of a central credit union, shall be limited to groups having

a common bond of employment or association or groups which reside within a well-defined neighborhood,

community, or rural district having a population of no more than twenty-five thousand or as otherwise authorized by the

board. Small groups which the commissioner determines to lack the potential membership to organize their own credit

union may be eligible for membership in an existing credit union if such small groups have a common bond of

employment or association. A member of the immediate family of any person who, under the provisions of this article, is

eligible for membership in a credit union may also be admitted to membership therein. "Immediate family" means

persons related by blood, by marriage, or by adoption.

(3) A member who leaves the field of membership of the credit union may retain membership in the credit union as

provided by the bylaws of the credit union.

(4) Except as to accounts, which are defined in and which shall be paid as provided for in article 15 of title 15, C.R.S.,

nothing in this article shall be construed to prohibit credit unions organized under this article from carrying membership

accounts in the names of two or more persons in joint tenancy; and, if any credit union transacting business in this state

issues shares and deposits in the names of two or more persons payable to them or to any of them, such shares and

deposits, or any part thereof or any interest or dividend thereon, may be paid to any one of said persons whether the

others are living or not, and the receipt or acquittance of the person so paid shall be a valid and sufficient discharge to

the credit union from all of said persons and their heirs, executors, administrators, and assigns, and such shares and

deposits shall be deemed to be owned by said persons in joint tenancy with the right of survivorship.

Colo. Rev. Stat. §11-30-104. Powers

(1) A credit union has the following powers to:

(a) Receive the savings of its members either as payment on shares or as deposits, including the right to conduct

Christmas clubs, vacation clubs, and other such thrift organizations or plans within the membership;

(b) Make loans to its members;

(c) Make loans to other credit unions as provided in this article;

(d) Deposit in state and national financial institutions insured by an agency of the federal government and to invest in

the shares and deposits of the central credit union organized pursuant to this article;

(e) Invest in any of the following: Obligations of the United States or securities guaranteed or insured by any agency of

the United States; obligations of any state or territory of the United States, or of any political subdivision or

instrumentality thereof, except revenue obligations issued to provide, enlarge, or improve electric power, gas, water,

or sewer facilities, or any combination thereof, issued by any city or town, or other similar municipal corporation

having a population of less than five thousand persons, as determined by the latest federal decennial census; and,

to an extent which shall not exceed ten percent of its shares, deposits, and undivided earnings, in shares of mutual

funds or investment companies, stocks, bonds, or other securities of any corporation or religious or educational

organizations, as may be approved as prudent and sound by the commissioner;

(f) Borrow money as provided in section 11-30-115;

(g) Apply for and hold membership in a central credit union organized pursuant to this article, in any other central credit

union authorized to transact business in this state, and in any organization or association of credit unions;

(h) Acquire, through purchase or other lawful transactions, and to hold title to real and personal property necessary

and incidental to the operation of the credit union, and to sell, mortgage, or otherwise dispose of the same;

(i) Exercise such incidental powers as shall be necessary to enable it to carry on effectively the business for which it is

incorporated;

(j) Upon the written approval of the commissioner, engage in any activity in which such credit union could engage

were it operating under a federal charter at the time, provided such activity is not prohibited by the laws of this

state;

(k) Sell all or any portion of its assets and purchase all or any portion of the assets of another credit union and assume

the liabilities of the selling credit union and its field of membership, subject to the approval of the commissioner;

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(l) Allow shares and deposits to be paid for, transferred, and withdrawn for payment to the account holder or to third

parties in such manner and with such procedures as may be established by the board of directors. This paragraph

(l) shall apply only with respect to share draft accounts in which the entire beneficial interest is held by one or more

individuals or members or by an organization which is operated primarily for religious, philanthropic, charitable,

educational, or other similar purposes and which is not operated for profit.

(m) Make loans to, or permit the assumption of loans by, officers or employees of the division who are members of the

credit union;

(n) Participate with other credit unions, credit union organizations, or financial organizations in making loans to credit

union members when the borrower is a member of either the credit union originating the loan or the credit union

purchasing a participation interest in the loan;

(o) Act as trustee or custodian of individual retirement accounts for the credit union's members authorized by federal or

state law or as trustee or custodian of any plan established pursuant to the federal "Self-Employed Individuals Tax

Retirement Act of 1962", as amended, or the federal "Employee Retirement Income Security Act of 1974", as

amended, if a significant portion of the participants in any such plan are eligible for membership in the credit union

and the funds held in the trustee or custodial capacity are invested in the credit union's shares or deposits;

(p) Act as fiscal agent for and receive payments on shares and deposits from nonmember units of the federal

government or the state of Colorado or any agency or political subdivision thereof;

(q) Receive payment on deposits from nonmember financial institutions which are supervised under the laws of this

state, the United States, or another state or territory of the United States.

(2) As authorized pursuant to section 10-2-601 (2), C.R.S., a credit union may, pursuant to federal law or under such rules as

may be adopted by the financial services board or the commissioner of insurance pursuant to section 10-2-601, C.R.S.,

act as the agent, through the credit union or any credit union service organization, for any insurance company

authorized to do business in this state by soliciting and selling insurance and collecting premiums on policies issued by

such company. For such services, a credit union or credit union service organization may receive such fees or

commissions as may be agreed between such entity and the insurance company.

Colo. Rev. Stat. § 11-30-115. Power to borrow and loan money

A credit union may borrow from any source a total sum which shall not exceed fifty percent of its shares, deposits, and

undivided earnings. No credit union shall loan more than ten percent of its assets to any member or to another credit

union.

Colo. Rev. Stat. § 11-30-118. Dividends

At such intervals and for such periods of time as the board of directors may authorize and after provision for the required

reserves, the board of directors may declare a dividend. Dividends may be paid at various rates on different classes of

shares, and dividend credit may be accrued on different classes of shares, as determined by the board of directors.

Dividends shall not be paid in excess of available earnings.

Connecticut Conn. Gen. Stat. § 36a-454a. Benefits for Connecticut credit union employees and their families. Liability or indemnity

coverage for directors, credit committee members and supervisory committee members.

(a) In addition to compensating its employees, a Connecticut credit union may, either independently or in conjunction with

one or more other Connecticut credit unions, with the approval of the governing board, provide death benefits,

disability benefits, accident benefits, hospital, medical, surgical and dental benefits, incentive savings benefits,

severance benefits, retirement benefits and other employee benefits for its active and retired employees and their

families. The provisions of this section shall be subject to the conditions and requirements imposed by the Employee

Retirement Income Security Act of 1974, Public Law 93-406, as from time to time amended.

(b) A Connecticut credit union may, with the approval of a majority of the governing board, provide personal liability or

indemnity insurance coverage for its directors, appointed directors, credit committee members and supervisory

committee members. With the approval of the commissioner, a Connecticut credit union may also provide reasonable

health, accident and related types of personal insurance for its directors, which insurance shall not be considered

compensation. A Connecticut credit union shall not provide such health, accident or related types of personal

insurance for its appointed directors.

Conn. Gen. Stat. § 36a-455a. Powers.

A Connecticut credit union may:

(1) Transact a general credit union business and exercise by its governing board or duly authorized members of senior

management, subject to applicable law, all such incidental powers as are consistent with its purposes. The express

powers authorized for a Connecticut credit union under this section do not preclude the existence of additional powers

deemed to be incidental to the transaction of a general credit union business pursuant to this subdivision;

(2) (A) Issue shares to its members and receive payments on shares from its members and from those nonmembers

specified in subsection (e) of section 36a-456a, subject to the provisions of sections 36a-290 to 36a-297, inclusive, 36a-

330 to 36a-338, inclusive, and 36a-456a, (B) receive deposits of members and nonmembers subject to provisions of

sections 36a-456a and 36a-456b, (C) reduce the amount of its member and nonmember shares and deposits, (D) expel

members and cancel shares in accordance with section 36a-439a, and (E) provide check cashing and wire and

electronic transfer services to nonmembers who are within such credit union's field of membership;

(3) Make and use its best efforts to make secured and unsecured loans and other extensions of credit to its members in

accordance with section 36a-265 and sections 36a-457a, 36a-457b and 36a-458a;

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(4) Invest its funds in accordance with section 36a-459a;

(5) Declare and pay dividends in accordance with sections 36a-441a and 36a-456c, and pay interest refunds to borrowers;

(6) Act as a finder or agent for the sale of insurance and fixed and variable rate annuities directly, sell insurance and such

annuities indirectly through a Connecticut credit union service organization, or enter into arrangements with third-party

marketing organizations for the sale by such third-party marketing organizations of insurance or such annuities on the

premises of the Connecticut credit union or to members of the Connecticut credit union, provided: (A) Such insurance

and annuities are issued or purchased by or from an insurance company licensed in accordance with section 38a-41;

and (B) the Connecticut credit union, Connecticut credit union service organization or third-party marketing

organization, and any officer and employee thereof, shall be licensed as required by section 38a-769 before engaging

in any of the activities authorized by this subdivision. As used in this subdivision, "annuities" and "insurance" have the

same meanings as set forth in section 38a-41, except that "insurance" does not include title insurance. The provisions of

this subdivision do not authorize a Connecticut credit union or Connecticut credit union service organization to

underwrite insurance or annuities;

(7) Borrow money to an amount not exceeding fifty per cent of the total assets of the Connecticut credit union provided

the credit union shall give prior notice to the commissioner in writing of its intention to borrow amounts in excess of thirty-

five per cent of its total assets;

(8) Act as fiscal agent for the federal government, this state or any agency or political subdivision thereof;

(9) Provide loan processing, loan servicing, member check and money order cashing services, disbursement of share

withdrawals and loan proceeds, money orders, internal audits, automated teller machine services and other similar

services to other Connecticut credit unions, federal credit unions and out-of-state credit unions;

(10) Provide finder services to its members, including the offering of third party products and services through the sale of

advertising space on its web site, account statements and receipts, and the sale of statistical or consumer financial

information to outside vendors in accordance with sections 36a-40 to 36a-45, inclusive, in order to facilitate the sale of

such products to the members of such Connecticut credit union;

(11) With the prior approval of the commissioner, exercise fiduciary powers;

(12) Maintain and rent safe deposit boxes within suitably constructed vaults, provided the Connecticut credit union has

adequate insurance coverage for losses related to such rental;

(13) Provide certification services, including notary services, signature guaranties, certification of electronic signatures and

share draft certifications;

(14) Act as agent (A) in the collection of taxes for any qualified treasurer of any taxing district or qualified collector of

taxes, or (B) for any, electric distribution, gas, water or telephone company operating within this state in receiving

moneys due such company for utility services furnished by it;

(15) Issue and sell securities which (A) are guaranteed by the Federal National Mortgage Association or any other agency

or instrumentality authorized by state or federal law to create a secondary market with respect to extensions of credit

of the type originated by the Connecticut credit union, or (B) subject to the approval of the commissioner, relate to

extensions of credit originated by the Connecticut credit union and are guaranteed or insured by a financial guaranty

insurance company or comparable private entity;

(16) Establish a charitable fund, either in the form of a charitable trust or a nonprofit corporation to assist in making

charitable contributions, provided (A) the trust or nonprofit corporation is exempt from federal income taxation and

may accept charitable contributions under Section 501 of the Internal Revenue Code of 1986, or any subsequent

corresponding internal revenue code of the United States, as from time to time amended, (B) the trust or nonprofit

corporation's operations are disclosed fully to the commissioner upon request, and (C) the trust department of the

credit union or one or more directors or members of senior management of the credit union act as trustees or directors

of the fund;

(17) In the discretion of a majority of its governing board, make contributions or gifts to or for the use of any corporation,

trust or community chest, fund or foundation created or organized under the laws of the United States or of this state

and organized and operated exclusively for charitable, educational or public welfare purposes, or of any hospital

which is located in this state and which is exempt from federal income taxes and to which contributions are

deductible under Section 501(c) of the Internal Revenue Code of 1986, or any subsequent corresponding internal

revenue code of the United States, as from time to time amended;

(18) Subject to the provisions of section 36a-455b, sell, pledge or assign any or all of its outstanding extensions of credit to

any other lending institution, credit union service organization or quasi-governmental entity and any government-

sponsored enterprise, and act as collecting, remitting and servicing agent in connection with any such extension of

credit and charge for its acts as agent. Any such credit union may purchase the minimum amount of capital stock of

such entity or enterprise if required by that entity or enterprise to be purchased in connection with the sale, pledge or

assignment of extensions of credit to that entity or enterprise and may hold and dispose of such stock, provided that

with respect to purchases of stock of a credit union service organization, the Connecticut credit union shall not

exceed the limitations of section 36a-459a. A Connecticut credit union may purchase one or more outstanding

extensions of credit from any other lending institution and any federally-recognized Native American tribe, provided

there exists a formal written agreement with tribal government to permit the credit union to service and collect on

such extensions of credit;

(19) Subject to the provisions of section 36a-455b, sell a participating interest in any or all of its outstanding extensions of

credit to and purchase a participating interest in any or all of the outstanding extensions of credit of any financial

institution or credit union service organization pursuant to an appropriate written participation and servicing

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agreement to be signed by all parties involved in such transaction;

(20) With the approval of the commissioner, join the Federal Home Loan Bank System and borrow funds as provided under

federal law;

(21) Subject to the provisions of section 36a-455b, sell all or part of its assets, other than extensions of credit, to other lending

institutions, purchase all or part of the assets, other than extensions of credit, of other lending institutions, and assume all

or part of the shares and the liabilities of any other credit union or out-of-state credit union;

(22) With the prior written approval of the commissioner, engage in closely related activities, unless the commissioner

determines that any such activity shall be conducted by a credit union service organization of the Connecticut credit

union, utilizing such organizational, structural or other safeguards as the commissioner may require, in order to protect

the Connecticut credit union from exposure to loss. As used in this subdivision, "closely related activities" means those

activities that are closely related, convenient and necessary to the business of a Connecticut credit union, are

reasonably related to the operation of a Connecticut credit union or are financial in nature including, but not limited

to, business and professional services, data processing, courier and messenger services, credit-related activities,

consumer services, services related to real estate, financial consulting, tax planning and preparation, community

development activities, or any activities reasonably related to such activities;

(23) With the approval of the commissioner, engage in any activity that a federal credit union or out-of-state credit union

may be authorized to engage in under state or federal law. The application for such approval shall be in writing and

shall include a description of the activity, a description of the financial impact of the activity on the Connecticut

credit union, citation of the legal authority to engage in the activity under state or federal law, a description of any

limitations or restrictions imposed on such activity under state or federal law, and any other information that the

commissioner may require. The commissioner shall approve or disapprove such activity not later than thirty days after

the application filed is complete. The commissioner may impose any limitations or conditions to ensure that any such

activity is conducted in a safe and sound manner with adequate consumer protections. The provisions of this

subdivision do not authorize a Connecticut credit union or a Connecticut credit union service organization to sell title

insurance.

Conn. Gen. Stat. § 36a-456a. Shares; secondary capital accounts; share insurance.

(a) The par value of shares of a Connecticut credit union shall be five dollars or any multiple thereof, provided such par

value shall not exceed one hundred dollars.

(b) A Connecticut credit union may receive payments on shares and permit withdrawals of payments on shares with the

exception of membership shares in accordance with such credit union's bylaws and the Deposit Account Contract Act,

sections 36a-315 to 36a-323, inclusive, except that the governing board may require members to give sixty days' notice

of intention to withdraw the whole or any part of their shares or payments on shares, including membership shares. (c) A Connecticut credit union may, with the written approval of the commissioner and subject to applicable restrictions of

state and federal law, receive from members payments on shares that qualify as part of a retirement plan for self-

employed individuals or an individual retirement account in accordance with the applicable provisions of the Internal

Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to

time amended. Such payments on shares shall be established in a separate account from the shares of the member,

and shall not be subject to pledge to secure extensions of credit by the Connecticut credit union to the member or be

available for set-off by the Connecticut credit union if the member defaults on an extension of credit. Such shares shall

be treated as under separate ownership for purposes of applying any limit imposed by the governing board pursuant to

its authority under subdivision (5) of subsection (a) of section 36a-448a, on the maximum amount of shares owned by a

member. Otherwise, such shares are subject to all of the provisions of this chapter relating to shares.

(d) A Connecticut credit union may receive payments on shares which the member agrees in writing not to withdraw within

the time period specified in the agreement.

(e) A Connecticut credit union may receive payments from a nonmember who is (1) an individual, into a share account

held jointly with a member of the Connecticut credit union, which share account is subject to the provisions of section

36a-290; (2) the United States, this state or any municipality or other political subdivision thereof; (3) a federally-

recognized Native American tribal government located in this state; or (4) another Connecticut credit union, federal

credit union or out-of-state credit union.

(f) A Connecticut credit union that has received a low-income designation from the National Credit Union Administration,

or its successor agency, under 12 CFR 701.34, as from time to time amended, may offer secondary capital accounts to

any person other than an individual, subject to the requirements and conditions imposed on federally-chartered, low-

income designated credit unions under 12 CFR 701.34, as from time to time amended.

(g) A Connecticut credit union shall maintain in full force and effect share insurance as required under the Federal Credit

Union Act. Any Connecticut credit union that fails to maintain in full force and effect such share insurance shall

terminate its corporate existence under such terms and conditions as the commissioner deems appropriate.

(h) A Connecticut credit union may obtain from an insurance company licensed and qualified to do business in this state

share insurance coverage that exceeds the maximum allowable under the Federal Credit Union Act.

(i) Without being required to take any action to attach or perfect a lien, a Connecticut credit union shall have and may

impress and enforce a lien on the shares of each member to secure the payment of all absolute and contingent

liabilities of such member to the Connecticut credit union.

Conn. Gen. Stat. § 36a-456c. Dividends.

The governing board of a Connecticut credit union, or the executive committee or senior management if so delegated by

the governing board, may declare and pay dividends on partial or full shares from current or accumulated net earnings,

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provided such credit union shall meet its net worth requirements, provide for accrued and unpaid expenses and

adequately fund the allowance for loan and lease losses account. A Connecticut credit union may not declare or pay

dividends if it is insolvent or if its net assets are less than stated capital or if the payment of dividends would render such

credit union insolvent or reduce its net assets below stated capital. The commissioner may restrict the payment of dividends

whenever it appears that such payment would adversely affect the financial condition of a Connecticut credit union.

Conn. Gen. Stat. § 36a-459a. Investment policy.

(a) The governing board of a Connecticut credit union shall adopt and implement a written investment policy governing

investments made pursuant to this section and securities trading, if any. No Connecticut credit union shall make any

investment pursuant to this section unless the purchase and holding of such investment is consistent with such policy.

The policy shall establish standards for the making of prudent investments which shall include (1) the rating of individual

investments by nationally recognized rating services, if any, and (2) standards for diversification of the credit union's

investment portfolio among industry categories. The policy shall provide for the frequent and periodic review by the

credit union of investments made pursuant to the policy and shall provide for the reasonable and expeditious

divestiture of investments which the governing board, upon its review, no longer deems prudent or consistent with the

credit union's investment policy. The investment policy and any investment made pursuant to the policy shall be subject

to the supervision of the commissioner concerning safe and sound credit union practices.

(b) The investment officer or investment committee, if any, shall act for the governing board between meetings of the

governing board in all matters involving investment of funds pursuant to this section. Such investment officer or

committee shall report to the governing board at each of its regular meetings, during which the governing board shall

review all investments made pursuant to this section, as well as details of any securities trading engaged in by such

credit union. The minutes of the governing board meetings shall recite the results of each such review. The governing

board shall cause the credit union to use reasonable efforts to divest as expeditiously as possible any investment which

the governing board, upon its review, no longer deems prudent or consistent with the Connecticut credit union's

investment policy.

(c) A Connecticut credit union may invest its funds, which are not committed to loans to members in: (1) Securities,

obligations, or other instruments of, or issued by, or fully guaranteed as to principal and interest by the United States or

any of its agencies or instrumentalities, or in any trusts established for investing directly or collectively in such instruments;

(2) general obligations and revenue obligations of any state or territory of the United States, or any political subdivision

thereof, provided such obligations are rated in the three highest rating categories by a rating service of such

obligations recognized by the commissioner and no more than ten per cent of total assets may be invested in any one

issuer; (3) obligations or other instruments or securities of the Student Loan Marketing Association; (4) federal funds,

shares, share certificates or other share deposits of any other Connecticut credit union, federal credit union or out-of-

state credit union whose share accounts or deposits are insured by the National Credit Union Administration, or its

successor agency; (5) loans not exceeding twenty per cent of the lending credit union's total assets to any other

Connecticut credit union, federal credit union or out-of-state credit union; (6) federal funds of or deposit accounts with

a Connecticut bank, federal bank or out-of-state bank the accounts of which are insured by the Federal Deposit

Insurance Corporation or its successor agency; (7) shares of, deposits with or loans to any federal reserve bank or any

central liquidity facility established under state or federal law; (8) shares of, deposits with or loans to any corporate

Connecticut credit union, corporate federal credit union or corporate out-of-state credit union; (9) shares of stock or

obligations of or loans to a national or state credit union association or credit union corporation of which the credit

union is a member, provided such investment does not constitute a controlling interest in such association or

corporation or does not in the aggregate exceed one per cent of the total assets of the credit union; (10) real estate

and improvements thereon, furniture, fixtures and equipment for the present or future use of the credit union, provided

such investment may not in the aggregate exceed five per cent of the total assets of the credit union without the

written approval of the commissioner; (11) debt mutual funds and equity mutual funds, provided the portfolios of such

mutual funds consist solely of investments described in subdivisions (1) to (3), inclusive, of this subsection; (12) fixed or

variable rate asset-backed securities, collateralized mortgage obligations and real estate mortgage investment

conduits, except stripped mortgage-backed securities, residual interests, mortgage servicing rights, commercial

mortgage related securities or small business-related securities; (13) money market funds rated in the three highest

rating categories by a rating service of such funds recognized by the commissioner; (14) repurchase agreements and

reverse repurchase agreements provided (A) the underlying securities are legal investments for Connecticut credit

unions, (B) the Connecticut credit union receives a daily assessment of the market value of the underlying securities,

including accrued interest, and maintains an adequate margin that reflects a risk assessment of the underlying

securities and the term of the agreement, and (C) the Connecticut credit union has entered into signed contracts with

all approved counterparties; and (15) Yankee dollar deposits, Eurodollar deposits, banker's acceptances, deposit notes

and bank notes with original weighted average maturities of less than five years and issued by a Connecticut bank,

federal bank or out-of-state bank.

(d) A Connecticut credit union may, subject to the provisions of subsections (e), (f) and (g) of section 36a-461a, invest its

funds in or make loans to credit union service organizations provided (1) the total of any such investment in or loan to

any one credit union service organization does not exceed two per cent of the total assets of the credit union without

regard to the amount derived from the profitability of such credit union service organization, and (2) the credit union

shall file with the commissioner prior written notice of its intention to make such investment or loan. The Connecticut

credit union may make such investment or loan unless the commissioner disapproves such investment or loan not later

than thirty business days after the notice is filed. The thirty-day period may be extended by the commissioner, in writing,

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if the commissioner determines that the notice raises issues that require additional information or additional time for

analysis.

(e) In addition to other investments authorized by this section, a Connecticut credit union may, with the prior written

approval of the commissioner, invest its funds in: (1) Debt securities, equity securities, debt mutual funds and equity

mutual funds without regard to any other liability to the Connecticut credit union of the maker, obligor, guarantor or

issuer of such securities and mutual funds provided: (A) The securities and mutual funds are rated in the three highest

rating categories by a rating service of such securities and mutual funds recognized by the commissioner or, if not so

rated, are determined by the credit union's governing board to be a prudent investment, (B) the total amount of such

securities and mutual funds of any one maker, obligor or issuer invested in by a Connecticut credit union may not

exceed at any time twenty-five per cent of its capital, (C) the total amount of such debt securities and debt mutual

funds may not exceed at any time twenty-five per cent of its total assets, (D) the total amount of such equity securities

and equity mutual funds may not exceed at any time twenty-five per cent of its total assets, and (E) a Connecticut

credit union may not engage in securities trading, including when-issued trading and pair-off transactions without

additional prior written approval of the commissioner; and (2) subject to any limitations imposed by the commissioner,

in any other investment the commissioner deems appropriate in light of such factors as the financial condition and

strategic goals of the Connecticut credit union and the degree of risk inherent in the investment, provided the credit

union demonstrates that sufficient resources, knowledge, systems and procedures are in place to monitor and control

the risks involved.

(f) All securities in which a Connecticut credit union invests shall be registered in the name of the credit union. Records of

securities owned by such credit union shall be maintained at the main office of such credit union. The records held by

such credit union concerning its account with any of the depositories or financial institutions holding its securities, and

the securities registered in its name and held by it, shall be subject to inspection at any time during business hours by

any director, member of senior management or member of the supervisory committee of the Connecticut credit union.

(g) As used in this section:

(1) "Debt mutual funds" means partnership interests in, shares of stock of, units of beneficial interest in or other ownership

interest in any one investment company registered under the Investment Company Act of 1940, as from time to time

amended, commonly described as mutual funds, money market funds, investment trusts or business trusts, provided

the portfolios of such investment companies consist solely of investments described in subdivision (3) of this

subsection.

(2) "Equity mutual funds" means partnership interests in, shares of stock of, units of beneficial interest in or other

ownership interest in any one investment company which is registered under the Investment Company Act of 1940,

as from time to time amended, commonly described as mutual funds, money market funds, investment trusts or

business trusts, but excludes debt mutual funds, as defined in subdivision (1) of this subsection.

(3) "Debt securities" means (A) any marketable obligation evidencing indebtedness of any person in the form of direct,

assumed or guaranteed bonds, notes or debentures or any security that has attributes similar to such marketable

obligations; (B) any obligation identified by certificates of participation in investments described in subparagraph

(A) of this subdivision in which a Connecticut credit union could invest directly; or (C) repurchase agreements.

(4) "Equity securities" means any stock or similar security, certificate of interest or participation in any profit-sharing

agreement, preorganization certificate or subscription, transferable share, voting trust certificate or certificate of

deposit for an equity security, limited partnership interest, interest in a joint venture or certificate of interest in a

business trust; or any security convertible, with or without consideration, into such a security, or carrying any warrant

or right to subscribe to or purchase such a security; or any such warrant or right; or any put, call, straddle or other

option or privilege of buying such a security from or selling such a security to another without being bound to do so,

but excludes debt mutual funds, as defined in subdivision (1) of this subsection, and equity mutual funds, as defined

in subdivision (2) of this subsection.

Conn. Gen. Stat. § 36a-461a. Credit union service organizations.

(a) With the approval of the commissioner and in accordance with subsection (d) of section 36a-459a, a Connecticut

credit union may establish a Connecticut credit union service organization by itself or jointly with one or more other

Connecticut credit unions, federal credit unions, out- of-state credit unions or other federally-insured depository

institutions within or outside of this state. The establishing Connecticut credit union shall file with the commissioner an

application, which shall include a description of the credit union service organization services to be engaged in by the

Connecticut credit union service organization, an explanation of how the proposed services are related to credit union

services, and any other information that the commissioner may require. Such credit union service organization shall be

organized as a corporation, limited liability company or limited partnership, provided the establishing Connecticut

credit union obtains and files together with its application a written legal opinion that any such limited liability company

or limited partnership is established in a manner that will limit potential exposure of such Connecticut credit union to no

more than the amount of funds invested in or lent to the Connecticut credit union service organization by such

Connecticut credit union.

(b) A Connecticut credit union service organization shall (1) account for all transactions in accordance with generally

accepted accounting principles, (2) prepare quarterly financial statements and obtain an annual opinion audit by a

licensed certified public accountant on its financial statements in accordance with generally accepted auditing

standards, (3) preserve all of its books and records in accordance with regulations applicable to Connecticut credit

unions adopted by the commissioner pursuant to chapter 54, (4) provide the commissioner with complete access to its

books, records and internal controls for review, evaluation and examination, and (5) pay the actual cost of any such

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review, evaluation or examination conducted by the commissioner.

(c) A Connecticut credit union service organization may expand its credit union service organization services by filing with

the commissioner prior written notice of its intention to engage in such expanded services, including a description of

the proposed expanded services, an explanation of how the proposed expansion is related to credit union services,

and any other information that the commissioner may require. The Connecticut credit union service organization may

expand its services unless the commissioner disapproves such expansion not later than thirty business days after the

notice is filed.

(d) A Connecticut credit union service organization shall not acquire control, either directly or indirectly, of another

depository financial institution, nor invest in shares, stocks or obligations of an insurance company, trade association,

liquidity facility, or similar organization, corporation or association.

(e) A Connecticut credit union service organization shall be subject to the conservatorship and receivership provisions of

sections 36a-215 to 36a-239, inclusive.

(f) A Connecticut credit union may invest its funds in or lend to an existing credit union service organization in accordance

with subsection (d) of section 36a-459a.

(g) (1) Prior to investing in or lending to a credit union service organization, a Connecticut credit union shall obtain (A) a

written agreement that the credit union service organization will: (i) Account for all transactions in accordance with

generally accepted accounting principles, (ii) prepare quarterly financial statements and obtain an annual opinion

audit by a licensed certified public accountant on its financial statements in accordance with generally accepted

auditing standards, (iii) provide the commissioner with complete access to all books and records of the credit union

service organization and with the ability to review credit union service organization internal controls, as the

commissioner deems necessary, and (iv) pay the actual cost of any examination conducted by the commissioner; and

(B) a written legal opinion that the credit union service organization is established as a corporation, limited partnership

or limited liability company and the potential exposure of the Connecticut credit union is limited to no more than the

loss of funds invested in or lent to the credit union service organization. In order for a Connecticut credit union to

maintain its investment in or loan to a credit union service organization that plans to change its form of organization, the

Connecticut credit union shall obtain a written legal opinion that the credit union service organization will continue in

such form that will limit potential exposure to the Connecticut credit union to no more than the loss of funds invested in

or lent to the credit union service organization.

(2) If the commissioner determines that a Connecticut credit union's investments in or loans to any credit union service

organization exceed the limitations of this section or subsection (d) of section 36a-459a, or are otherwise not prudent for

the Connecticut credit union to maintain, the commissioner may require the Connecticut credit union to divest such

loans or investments.

(h) In connection with providing credit union service organization services, a Connecticut credit union service organization

may invest in service providers. Any such investment shall be limited to the amount required by the service provider to

obtain its services.

(i) A Connecticut credit union may, in order to obtain credit union service organization services or to provide credit union

service organization services to its members, or to enable its members to conduct transactions through a credit union

service organization, whether or not it establishes, invests its funds in or lends to a credit union service organization

pursuant to subsection (a) or (f) of this section, enter into agreements with and pay appropriate fees and service

charges to a credit union service organization.

(j) As frequently as the commissioner deems appropriate or necessary, the commissioner may conduct an examination of

the records and books of a Connecticut credit union service organization or a credit union service organization in

which a Connecticut credit union has invested or to which it has lent funds.

(k) Each Connecticut credit union service organization and each of its directors, officers, managers, general partners,

employees and authorized agents who have charge or possession of the funds, securities or other assets of such credit

union service organization shall be bonded by a surety company authorized to do business in this state. Such bond shall

be in favor of the Connecticut credit union service organization and in such amount as is approved by the board of

directors, managers or general partners of the credit union service organization, which amount the commissioner may

require to be increased for reasons of safety and soundness. A copy of each such bond and any renewal thereof or

premium receipt therefor shall be promptly filed with the commissioner by the Connecticut credit union service

organization.

Florida Fla. Stat. § 657.023. Membership

(1) Upon payment of any required entrance or membership fee, payment of shares as required by the bylaws, and

compliance with the bylaws, any person within the limited field of membership of a credit union may be admitted to its

membership.

(2) Members of the credit union shall not be personally or individually liable for payment of the debts of the credit union.

(3) A credit union may close the account and terminate the membership of any member whose actions have resulted in

any financial loss to the credit union or for good cause.

(4) Denial of membership hereunder shall not be considered to be a denial of credit.

Fla. Stat. § 657.031. Powers

(1) When not in direct conflict with or superseded by specific provisions of the financial institutions codes, the general

powers authorized to corporations in s. 607.0302 extend to credit unions formed under this chapter. This section shall be

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liberally construed to accomplish the purposes stated herein.

(2) Except as provided in s. 607.0304 or specific provisions of the financial institutions codes, the validity of a credit union's

action, including, but not limited to, any conveyance, transfer, or encumbrance of real or personal property to or by a

credit union, may not be challenged on the ground that the credit union lacks or lacked power to act.

(3) A credit union formed under this chapter shall operate as a financial institution, consistent with the provisions of chapter

655 and this chapter, and may exercise such incidental powers as are necessary or required to effectively carry out the

purposes for which the credit union was organized, provided the exercise of powers is approved by rule or order of the

commission or office.

Fla. Stat. § 657.033. Accounts

(1) Shares may be paid for and transferred in such manner as the bylaws prescribe. At such intervals and for such periods

as the board of directors may authorize, and after provisions are made for the required reserves, the board of directors

may declare dividends, to be paid from the undivided earnings at such rates and upon such classes of shares as are

determined by the board.

(2) The credit union may require not more than 60 days' notice of a member's intention to withdraw shares and deposits.

(3) A credit union may receive deposits from its members and contract to pay interest thereon, subject to conditions the

board of directors establishes and subject to rules of the commission.

(4) The credit union shall have a lien and right of setoff on the shares, deposits, and accumulated dividends or interest in

any member's individual, joint, or trust account for any sum due the credit union from that member.

(5) When there has not been any activity generated by the member on the account for 12 months, such account shall be

considered a dormant account and shall be placed under an accounting control system.

(6) If the owner of a dormant account, a person named on the account, or the beneficiary of the account has not had

any activity with a credit union for 5 years and the whereabouts of those interested parties are unknown to the credit

union, that account is unclaimed or abandoned property and shall be maintained pursuant to chapter 717.

(7) A credit union may receive shares and deposits from its members and other credit unions; however, a credit union may

not receive shares or deposits from persons, other than credit unions, who are not members of the credit union, except

to a joint account in which at least one of the tenants is a member of the credit union.

(8) A credit union may participate in systems that allow the transfer, withdrawal, or deposit of funds of credit unions or

credit union members by automated or electronic means and hold membership in entities established to promote and

effectuate these systems, if such participation is not inconsistent with those rules of the commission adopted to further

service to the members and to protect members' funds against unreasonable risks.

(9) A credit union shall obtain and maintain insurance of accounts through the National Credit Union Administration.

Fla. Stat. § 657.038. Loan powers

(1) A credit union may extend credit to members for such purpose and upon such security and terms as the credit

committee, credit manager, or loan officer approves, pursuant to written loan policies established by the board of

directors, or as may otherwise be provided by law.

(2) For credit unions that have been opened for 5 years or more, the total unsecured obligations outstanding from any

member must not exceed the greater of $ 500 or 15 percent of the equity of the credit union. However, the total

obligations outstanding from any member must not exceed the greater of $ 1,000 or 25 percent of the equity of the

credit union. The limitations provided in this subsection do not apply to loans that are fully secured by assignment of

shares or deposits in the lending credit union.

(3) For credit unions that have been opened for less than 5 years, the limitation on total obligations outstanding to any

member is 10 percent of the credit union's capital. The limitations provided in this subsection do not apply to loans that

are fully secured by assignment of shares or deposits in the lending credit union.

(4) The credit committee or credit manager may approve in advance, upon request of a member, a line of credit, and

disbursements may be granted to such member within the limit of such line of credit. When a line of credit has been

approved, no additional credit applications are required as long as the aggregate obligation does not exceed the

limit of such line of credit; however, no additional disbursements may be made to any member whose existing

extensions of credit are in default or are subject to adverse classification without receiving current financial

information.

(5) Loans secured by mortgages on real property must be made in accordance with written policies of the board of

directors and rules of the commission.

(6) In computing a person's total obligations outstanding, all loans endorsed or guaranteed as to repayment by that

person and any related interest of such person must be included. The credit union must also include all of the person's

potential liabilities and obligations resulting from the person's derivatives transactions, repurchase agreements,

securities lending and borrowing transactions, credit default swaps, and similar contracts.

(7) A loan may be made to any corporation in which the credit union holds an equity interest.

(8) The loan limitations stated in this section shall not be enlarged by the provision of any other section of this chapter.

(9) Any approval of extension of credit requiring approval of the board of directors shall be recorded in the minutes of the

board, including the borrower's account number or other code, the amount of the loan, the maturity of the loan, and

the general type of security.

(10) The commission may adopt rules to provide for minimum documentation and safe lending procedures necessary to

protect the members' funds.

(11) A credit union may participate in extensions of credit jointly with other credit unions, corporations, or financial

institutions.

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(12) A credit union may participate in guaranteed loan programs of the federal and state governments, provided the

borrower is a member of the credit union.

(13) If approved by the board of directors, a credit union may extend credit to other credit unions in an amount not greater

than 25 percent of the capital of the lending credit union.

(14) A credit union may purchase the conditional sales contracts, notes, and similar instruments of its members, provided

that the credit union could have originally made the loan.

(15) A credit union may issue credit cards and debit cards to allow members to obtain access to their shares, deposits, and

extensions of credit, if such issuance is not inconsistent with the rules of the commission. The commission may, by rule,

allow the use of devices similar to credit cards and debit cards to allow members to obtain access to their shares,

deposits, and extensions of credit.

Fla. Stat. § 657.042. Investment powers and limitations

A credit union may invest its funds subject to the following definitions, restrictions, and limitations:

(1) Investments not subject to limitations. --There is no limitation with respect to the capital of the investing credit union on

the following investments:

(a) Direct obligations of the United States Government.

(b) Obligations of agencies created by the United States Congress and authorized thereby to issue securities or

evidences of indebtedness, regardless of guarantee of repayment by the United States Government.

(c) Public housing authority obligations.

(d) General obligations of the states of the United States and of the political subdivisions and municipalities thereof.

(e) Obligations issued by the State Board of Education under authority of the Constitution or applicable statutes.

(f) Tax anticipation certificates or warrants of counties or municipalities having maturities not exceeding 1 year.

(g) The assets of liquidating credit unions in this state, provided such assets are otherwise eligible for investment by the

acquiring credit union.

(h) The shares and deposit accounts of corporate credit unions and any other fund established by this state or by the

Federal Government for the purpose of maintaining liquidity in credit unions; however, such investments shall not

exceed the amount required for the purpose of meeting the daily needs of the investing credit union for operating

liquidity.

(i) Stock of the Federal National Mortgage Association, Federal Home Loan Bank, or any other similar entity designated

by the office, designed to promote investment in residential mortgages, which may be purchased and retained as

required in connection with mortgage transactions with the association or entity.

(2) Investments subject to limitation of 25 percent of capital of the credit union. --Up to 25 percent of the capital of the

credit union may be invested in:

(a) The shares or deposit accounts in any one corporate credit union or other insured financial depository institution. The

credit union may exceed the 25-percent investment limitation in the corporate credit union, subject to the prior

written approval of the office.

(b) Federal funds, daily; however, a credit union may not sell at any one time federal funds to any individual institution

in an amount exceeding 100 percent of the equity of the selling credit union.

(c) Bankers' acceptances that are eligible for purchase by Federal Reserve Banks.

(3) Investment subject to limitation of two percent of capital of the credit union.

(a) Up to 2 percent of the capital of the credit union may be invested in the capital shares, obligations, or preferred

stock issues of any agency or association, or membership association, provided the membership or stockholdings, as

the case may be, of such agency or association are primarily confined or restricted to credit unions or organizations

of credit unions and provided the purposes for which such agency or association is organized are designed primarily

to service or otherwise assist credit union operations.

(b) Commercial paper and bonds of any corporation within the United States which have a fixed maturity, as provided

in subsection (7), except that the total investment in all such paper and bonds may not exceed 10 percent of the

capital of the credit union.

(4) Investment subject to limitation of one percent of capital of the credit union.. --Up to 1 percent of the capital of the

credit union may be invested in any of the following:

(a) Corporate obligations of any one corporation which is an affiliate or subsidiary of the credit union or a service

corporation, except that the total investment in all such corporate obligations shall not exceed 10 percent of the

capital of the credit union.

(b) Any capital participation instrument or evidence of indebtedness issued by Enterprise Florida, Inc., pursuant to the

Florida Small and Minority Business Assistance Act.

(5) Investments in real estate and equipment for the credit union.

(a) Up to 5 percent of the capital of the credit union may be invested in real estate and improvements thereon,

furniture, fixtures, and equipment utilized or to be utilized by the credit union for the transaction of business.

(b) The limitations provided by this subsection may be exceeded with the prior written approval of the office. The office

shall grant such approval if it is satisfied that:

1. The proposed investment is necessary.

2. The amount thereof is commensurate with the size and needs of the credit union.

3. The investment will be beneficial to the members.

4. A reasonable plan is developed to reduce the investment to statutory limits.

(6) Investments subject to approval. --A credit union may invest its funds in such other investments, including the capital

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stock of other financial institutions, as the commission or office approves by rule or order.

(7) Special provisions..

(a) A credit union may not invest its funds in bonds or other obligations described in this section unless the bonds or other

obligations are current as to all payments of principal and interest.

(b) A credit union shall establish written policies and procedures for evaluating the systemic and specific risks and

benefits associated with investments authorized under this section before making such investments and must

conduct appropriate risk management and monitoring for the duration of the investment. An investment decision

may not be based solely on the rating of the bond or other obligation by an investment rating service. The office

may require a credit union to divest itself of an investment that the office determines creates excessive risk or the

associated risk exceeds the ability of the credit union to properly evaluate and manage.

(c) With prior office approval, any investment permitted in this section may also be made indirectly by investment in a

trust or mutual fund, the investments of which are limited as set forth in this section. The credit union must maintain a

current file on each investment which contains sufficient information to determine whether the investment complies

with the requirements of this section. If the investment fails to comply, the credit union must divest itself of its

investment, unless otherwise approved by the office.

Fla. Stat. § 657.043. Reserves

(1) Allowance for loan losses account. --The credit union shall maintain an account for loan and lease losses. The amount in

the account should be consistent with applicable United States generally accepted accounting principles and industry

guidance provided by regulatory agencies or as required by the office. The account must be provided for before

paying a dividend.

(2) Regular reserve. --The regular reserve shall belong to the credit union and shall be used to meet losses. The regular

reserve may not be decreased without the prior written approval of the office or as provided by rule of the commission.

(3) Allowance for investment losses. --The credit union may maintain a contra asset account to provide an allowance for

investment losses, which will not be included in the determination of equity. The account must be maintained consistent

with the rules of the commission.

(4) Special reserves. --In addition to such regular reserve, special reserves shall be established:

(a) To protect members against losses resulting from credit extended or from risk assets when required by rule, or when

found by the office, in any special case, to be necessary for that purpose; or

(b) As authorized by the board of directors.

(5) Borrowing money. --A credit union may borrow money and issue evidences of indebtedness for a loan or loans in the

usual course of its business and secure such obligations by mortgage or pledge of any of its assets. Aggregate

borrowings may not exceed 50 percent of the capital that is not impaired by losses of the credit union. However, this

percentage limitation does not apply to loans from the National Credit Union Administration.

Georgia Ga. Code Ann. § 7-1-650. Powers

A credit union shall have, in addition to the powers common to all corporations under the laws of this state, the following

powers:

(1) It may receive funds from its members or other financial institutions in the form of shares and deposits on accounts or as

evidenced by certificates of deposit issued by the credit union but shall not have the power to offer third-party payment

services except as authorized under Code Section 7-1-670;

(2) Receive savings deposits from nonmembers, provided that such deposits are:

(A) Insured by or through a federal public body or are expressly authorized by state or federal law;

(B) Made in such a manner as expressly authorized by the bylaws;

(C) Not deposited in a share draft account; and

(D) Not bearing a greater rate of interest than the rate of interest paid to members for the same class of deposit;

(3) It may make loans to members subject to approval by its credit committee or authorized employees pursuant to Code

Section 7-1-658;

(4) It may also invest, on the authority of its board of directors or by employees authorized by the board of directors, funds

in the following manner:

(A) In obligations of the United States, including bonds and securities upon which payment of principal and interest is

fully guaranteed by the United States; obligations issued by banks for cooperatives, federal land banks, federal

intermediate credit banks, federal home loan banks, the Federal Home Loan Bank Board, or any corporation

designated in Section 846 of Title 31 of the United States Code as a wholly owned government corporation; or in

obligations, participations, or other instruments of or issued by or fully guaranteed as to principal and interest by the

Federal National Mortgage Association or the Government National Mortgage Association;

(B) In general and direct obligations of the State of Georgia, its counties, districts, and municipalities which have been

validated as provided by law, if no more than 25 percent of the shares and deposits of a credit union shall be

invested in the obligations of any one such obligor;

(C) In loans to other credit unions, provided the loans do not exceed 10 percent of the shares, deposits, and surplus of

the investing credit union;

(D) By depositing its funds in banks, building and loan associations, savings and loan associations, and credit unions; by

purchasing certificates of deposit and savings certificates which such financial institutions are authorized to issue;

and by selling or purchasing federal or correspondent (daily) funds or loan participations through such financial

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institutions; subject to limitations prescribed in regulations issued by the department; and

(E) In any other types of investments authorized by the department, including commercial paper, provided such

investments shall not, in the aggregate, exceed 10 percent of the shares, deposits, and surplus of the investing

credit union. In lieu of the foregoing limitation, any credit union may invest up to 15 percent of its equity capital as

defined by the department in authorized investments issued by any single obligor;

(5) It may borrow from any source, but the total of such borrowings shall at no time exceed 50 percent of paid-in shares,

deposits, and surplus. The department may, notwithstanding the other provisions of this Code section, temporarily waive

the requirements of this paragraph to permit an individual credit union to borrow for emergency purposes;

(6) It may undertake with the approval of the department other activities which are not inconsistent with this chapter or

regulations adopted pursuant thereto, including such powers as are afforded to federally chartered credit unions,

either directly, through a subsidiary corporation, or in cooperation with other credit unions; provided, however, no such

approval shall be granted unless the commissioner determines the activities do not present undue safety and

soundness risks to the credit union involved;

(7) It may organize and engage in business without having any stated amount of capital subscribed or paid in other than

that derived from the subscribers' qualifying shares, may commence business with only such capital authorized and

paid in as may be provided in its bylaws, and may provide for the payment and withdrawal thereof as and in the

manner provided by its bylaws;

(8) It may purchase, hold, and convey real estate for the following purposes only:

(A) Such real estate as shall be necessary for the convenient transaction of its business, subject to the prior approval of

the department;

(B) Such real estate as shall be conveyed to it in satisfaction of debt previously contracted in the course of its business;

and

(C) Such real estate as it shall purchase at sales under judgments, decrees, or mortgage foreclosures pursuant to

mortgages or security deeds held by it;

(9) Hold real estate acquired in the cases provided for by subparagraphs (B) and (C) of paragraph (8) of this Code

section and real estate which has ceased to be used primarily as credit union premises, subject to a determination by

a majority vote of its directors at least once each year as to the advisability of retaining any such property and

provided that no such property is held for more than five years without the prior written approval of the department;

(10) Hold property other than real estate, which is acquired in satisfaction of debts previously contracted and which a

credit union is not otherwise authorized to own, for no longer than six months unless such time period is extended by

the department;

(11) Dispose of property held pursuant to paragraphs (9) and (10) of this subsection through financing by the credit union

without the advance of additional funds irrespective of the purchasers' membership in the credit union and of

ordinarily applicable collateral margin requirements;

(12) Provide, in its articles of incorporation approved by a majority of its membership present and voting, for the elimination

or limitation of personal liability of a director to the credit union or its members in their capacity as shareholders of the

credit union to the same extent as a bank or trust company operating under the provisions of this chapter; and

(13) Subject to any rules and regulations enacted by the department and in compliance with federal law and applicable

provisions regarding insurable interests in Chapter 24 of Title 33, purchase, hold, or fund insurance on the life of any of

its directors, officers, or employees, or any other person whose death might cause financial loss to the credit union, or,

pursuant to any contract lawfully obligating the credit union as guarantor or surety, on the life of the principal obligor. Ga. Code Ann. § 7-1-656. Duties of directors; meetings; applicability of Code Section 7-1-490

(a) The board of directors shall be responsible for the affairs, funds, and records of the credit union and shall meet as often

as necessary, but at least once during ten different months of each calendar year. Unless the bylaws specifically

reserve any or all of the duties to the members, it shall be the special duty of the directors:

(1) To act upon all applications for membership or approve the actions of an officer without loan granting authority,

designated by the board of directors to approve applications for membership;

(2) To determine from time to time rates of interest and dividends which shall be allowed on deposits and charged on

loans consistent with this article and other applicable laws and to authorize any interest refunds on such classes of

loans and under such conditions as the board prescribes;

(3) To fix the amount of the fidelity bond which shall be required of all officers, employees, agents, or members having

custody of funds, properties, or records; provided, however, that the amount of such fidelity bond shall not be less

than such minimum requirements as shall be prescribed by regulation of the department and shall be in such form

as may from time to time be approved by the department;

(4) To fix within the restrictions imposed by statute the maximum amount of deposits which may be made by and the

maximum amount that may be loaned to any one member;

(5) To fill vacancies on the board of directors, credit committee, and supervisory committee until the election and

qualification of a successor;

(6) To have charge of the investment of funds of the credit union other than loans to members within the restrictions

imposed by statute or delegate investment authority to a qualified committee or officer as designated by the board

of directors; and

(7) To appoint any committees deemed necessary; and

(8) To perform such other duties as the members may from time to time authorize.

Ga. Code Ann. § 7-1-659. Entrance fees; reserves; exclusion of state and federal credit union reserves from tax calculations

21

(a) A credit union may charge entrance fees as provided in the bylaws. All such fees shall, after payment of organizational

expense, be known as reserve income and shall be added to the regular reserve of the credit union.

(b) Immediately before the payment of each dividend, the gross earnings of the credit union shall be determined. There

shall be set aside from that amount as an allowance for loan and lease losses, sums adequate to cover such

anticipated losses, based on the risk characteristics of the loan portfolio.

(c) All credit unions shall be subject to the capital and reserve requirements of Part 702 of the Rules and Regulations of the

National Credit Union Administration, known as Prompt Corrective Action. Credit unions that are less than ten years old

shall operate according to a business plan which shall contain requirements for reserves and which shall be approved

by the department. The department shall have the discretion to require additional capital and reserves to assure the

safety and soundness of any credit union.

(d) In addition to regular reserves, special reserves to protect the interest of members shall be established when found

necessary in any special case by the board of directors of the credit union or by the department.

(e) All reserves of credit unions or federal credit unions established in accord with generally accepted accounting

principles or upon the specific direction of the department or any federal regulatory body or for the purpose of

complying with any conditions lawfully imposed by the department or any federal regulatory body shall not be

considered as surplus or undivided profits of any credit union for tax purposes.

Ga. Code Ann. § 7-1-660. Dividends; interest

At such intervals and for such periods as the board of directors may authorize, dividends and interest from retained

earnings may be declared at such rates as are determined by the board, provided that such dividends and interest shall

not be paid until provision for the transfer to the allowance for loan losses has been made. Dividends or interest in excess of

100 percent of a credit union's net earnings before dividends shall be approved in writing by the department prior to

payment, provided that an application from a credit union with net worth equal to or in excess of the requirements for a

well-capitalized credit union, as defined by the National Credit Union Administration rules and regulations, shall be deemed

to be approved five business days after the receipt of the dividend approval form by the department unless the

department notifies the credit union that the dividend is not approved within this period. The proposed dividend or interest

may be paid after approval by the department upon its determination that such payment would be in the continued best

interest of the credit union, would promote its stability, and would not impair its ability to repay its creditors other than its

shareholders and depositors.

Hawaii Haw. Rev. Stat. § 412:10-109. Membership.

(a) The membership of a credit union shall consist of those persons who share a common bond set forth in the articles of

association, have been duly admitted members, have paid any required one-time or periodic membership fee, or both,

have subscribed to one or more shares and have complied with such other requirements as the articles of association

and bylaws specify.

(b) Organizations comprised primarily of individuals who are eligible for membership in the credit union, and corporations

whose total number of stockholders or whose majority stockholders are comprised primarily of such individuals, may be

admitted to membership in the same manner and under the same conditions as individuals. Likewise, organizations one

of whose principal functions is to provide services to persons who are eligible for membership in the credit union may be

admitted to membership. Other organizations having a commonality of interest with the credit union may be admitted

to membership with the approval of the commissioner.

(c) Any credit union organized under this article may accept as a member any other credit union organized under this

chapter or federal law.

(d) The board of directors shall act on all membership applications, unless the board has appointed one or more

membership officers, who shall be empowered to approve or disapprove membership applications according to

criteria established in the bylaws and under the direction of the board. A record of the actions taken by a membership

officer shall be made available in writing to the board of directors for inspection. Any person whose application has

been disapproved may appeal such decision to the board in writing.

(e) Members who cease to be eligible for membership may be permitted to retain their membership in the credit union,

under reasonable standards established by the board of directors.

(f) The members of a credit union shall not be personally or individually liable for the payment of the credit union's debts

solely by virtue of holding membership.

(g) The board of directors may expel a member from membership in the credit union, if such member fails to comply with

the articles, bylaws, rules, or regulations of the credit union, any law applicable to the credit union, or for any other just

cause; provided that no member may be expelled unless:

(1) The member has been informed in writing of the reasons for the expulsion;

(2) The member has, upon request, a reasonable opportunity to present evidence and argue against the expulsion,

before a hearing panel consisting of the board of directors and the supervisory committee; and

(3) If the hearing is requested, a majority of the hearing panel votes to expel the member.

The amounts paid by an expelled member for shares of the credit union shall be paid to such member after deducting

any amounts due by such member to the credit union; provided that such expulsion shall not relieve the expelled

member from any remaining liability to the credit union.

(h) Any proposed change to a credit union's field of membership, whether it is an addition, deletion, or simple update, shall

require the prior written approval of the commissioner. Upon receipt of the commissioner's approval, the change shall

22

be reflected formally in the credit union's articles of association.

Haw Rev. Stat.§ 412:10-200. General powers.

(a) Except as expressly prohibited or limited by this chapter, a credit union shall have the power to issue shares, solicit,

accept and hold deposits, and engage in any activities which are usual or incidental to the business of a credit union.

In addition to the powers mentioned elsewhere in this article, a credit union may:

(1) Enter into contracts of any nature;


(3) Adopt, use and display a common seal;

(4) Acquire, lease, hold, assign, pledge, hypothecate, sell, or otherwise dispose of property, either in whole or in part,

necessary or incidental to its operations;

(5) Offer to its members, public unit accounts and other credit unions, shares, share certificates, share drafts, deposits, as

provided in this article;

(6) Make loans and extensions of credit of any kind, whether unsecured or secured by real or personal property of any

kind or description;

(7) Borrow from any source within or without the State; provided that a credit union shall notify the commissioner in

writing of its intention to borrow in excess of an aggregate of fifty per cent of its capital;

(8) Discount or sell any of the credit union's assets, and purchase the assets of another credit union;

(9) Offer related financial services, including, but not limited to, electronic fund transfers, safe deposit boxes, leasing and

correspondent arrangements with other financial institutions;

(10) Hold membership in other credit unions organized under this or other laws, in service centers, and in associations and

organizations controlled by or fostering the interests of credit unions, including a central liquidity facility organized

under State or federal law;

(11) Engage in activities and programs as requested by any governmental unit, subject to approval by the board of

directors and not inconsistent with this article;

(12) Act as fiscal agent for and receive payments on share and deposit accounts from a governmental unit;

(13) Make contributions to any nonprofit civic, charitable or service organizations; and

(14) Make investments as permitted under this article.

(b) A credit union may exercise all incidental powers that are necessary or requisite to enable it to effectively carry out its

purposes.

Haw. Rev. Stat. § 412:10-201. Powers granted under federal law.

(a) In this section "federal power" means any activity, right, privilege, or immunity granted to a federal credit union under

any federal statute, rule, regulation, interpretation or court decision.

(b) Any credit union desiring to acquire any federal power, shall file an application with the commissioner. The application

shall indicate the applicable federal statute rule, regulation, interpretation or court decision, the extent of the federal

power desired, the reasons for the application, and any other information requested by the commissioner. The

commissioner may by rule prescribe the form of application and application filing fees.

(c) If the commissioner is satisfied that the power should be granted, the commissioner shall issue a written approval of the

application, subject to such terms and conditions as the commissioner deems appropriate. Other credit unions may file

an application if they desire the same federal power, but approval of any application need not be granted. Any

federal power granted pursuant to this section is in addition to, and not in limitation of, any other provision of this

chapter, and the federal power may be exercised notwithstanding any other provision of this chapter.

(d) If any federal power is terminated or modified, the commissioner may terminate or make a similar modification to any

corresponding power granted under this section.

(e) The commissioner may suspend or revoke any federal power granted under this section or under previous law if the

commissioner finds:

(1) That the credit union has violated any conditions imposed in connection with the grant of power; or,

(2) The credit union has not begun to exercise such power within one year of the date it was granted.

(f) The commissioner shall retain jurisdiction over the enforcement of any power granted under this section or under

previous law. Any action taken under subsections (d) or (e) shall be taken only after the commissioner has given the

credit union notice of the proposed action and an opportunity to be heard.

Haw. Rev. Stat. § 412:10-202. Credit union service organizations.

A credit union may invest its funds in shares, stocks, or obligations of credit union service organizations providing services

which are associated with the routine operations of credit unions, up to one per cent of the capital of the credit union. This

authority does not include the power to acquire control directly or indirectly, of another financial institution. Loans to credit

union service organizations, shall not exceed one per cent of the capital of the credit union. The one per cent limitation on

loans to credit union service organizations is independent of, and in addition to, the one per cent limitation on investment

in credit union service organizations.

Haw. Rev. Stat. § 412:10-203. Sale or purchase of obligations or notes.

A credit union may purchase, sell, pledge, or discount or otherwise receive or dispose of, in whole or in part, any eligible

obligations of its members and to purchase from any liquidating credit union notes made by individual members of the

liquidating credit union as may be agreed upon by the board of directors of the liquidating credit union and the board of

directors of the purchasing credit union, but no purchase may be made under authority of this section, if after that

purchase, the aggregate of the unpaid balances of notes purchased under authority of this section would exceed five per

cent of the capital of the credit union.

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Haw. Rev. Stat. § 412:10-204. Sale or purchase of assets.

A credit union may sell all or part of its assets to another credit union, purchase all or part of the assets of another credit

union and assume the liabilities of the selling credit union and those of its members.

Haw. Rev. Stat. § 412:10-302. Dividends.

(a) At such intervals as the board of directors may authorize, and after provision for required reserves, the board of

directors may declare dividends to be paid on share accounts and membership shares (if any) from undivided

earnings.

(b) Dividends may be paid at various rates with due regard to the conditions that pertain to each type of account such as

minimum balance, notice and time requirements.

Haw. Rev. Stat. § 412:10-503. Deposits made by credit unions.

A credit union may deposit any of its funds in a deposit or share account with another depository institution; provided that

the other depository institution has been designated a depository by the board of directors of the credit union and the

accounts of the depository institutions are insured by the Federal Deposit Insurance Corporation, National Credit Union

Share Insurance Fund or a successor agency.

Haw. Rev. Stat. § 412:10-700. Insurance for members.

A credit union may purchase or make available insurance for its members either on an individual or group basis.

Haw. Rev. Stat. § 412:10-701. Liability insurance for officers.

A credit union may purchase and maintain insurance on behalf of any person who is or was a director, officer, employee,

or agent of the credit union, or who is or was serving at the request of the credit union as a director, officer, employee, or

agent of another corporation, partnership, joint venture, trust or other enterprise against any liability asserted against such

person and incurred by such person in any such capacity or arising out of such person's status as such, whether or not the

credit union would have the power to indemnify such person against such liability.

Haw. Rev. Stat. § 412:10-703. Money-type instruments.

A credit union may collect, receive and disburse monies in connection with the providing of negotiable checks, money

orders, travelers checks, and other money-type instruments, and the providing of services through automated teller

machines and for such other purposes as may provide benefit or convenience to its members. A credit union may charge

fees for such services.

Idaho Idaho Code § 26-2108. Corporate powers


(a) Make contracts.

(b) Sue and be sued in the name of the credit union.

(c) Adopt and use a common seal and alter same at pleasure.

(d) Own, hold or use any real property or any interest therein as provided in section 26-2109, Idaho Code.

(e) May require the payment of an entrance or membership fee, not to exceed one dollar ($ 1.00), of any applicant

admitted to membership.

(f) Receive from its members payments on shares and deposits, including the right to conduct Christmas share clubs,

vacation clubs, and other such thrift organizations within the membership.

(g) Lend its funds to its members as hereinafter provided.

(h) Purchase insurance on the lives of its members in an amount equal to their respective share and loan balances.

(i) Borrow from any financial institution or individuals in an aggregate amount not to exceed fifty per cent (50%) of its

members' shares and deposits.

(j) May invest any surplus funds in such investments as provided for in this chapter.

(k) Make deposits in federally insured banks and savings and loan companies in Idaho, in state or federally chartered

credit unions in Idaho and in the Idaho Corporate Credit Union.

(l) Hold membership in other state or federally chartered credit unions in Idaho, in the Idaho Credit Union League, in the

Idaho Corporate Credit Union and in other organizations composed of credit unions approved by the director.

(m) Declare dividends on members' shares and fix the rates on interest paid on members' certificates of deposit,

nonmembers' certificates of indebtedness, and other thrift accounts as provided for in this chapter.

(n) Fine members for failure to meet punctually obligations to such credit union.

(o) In the event of default, impress a lien upon the shares and deposits and accumulation of dividends and interest of any

member to the extent of any loans made to him directly or indirectly, or on which he is surety and for any dues or

charges or fines payable by him; the credit union shall also have the right of setoff with respect to every such account.

(p) Relocate its head office or branches and the location of its books and records upon written notice to the director.

(q) Collect, receive and disburse monies in connection with sales of travelers' checks, money orders and for such other

purposes as may provide convenience or benefit for its members.

(r) Exercise such incidental powers as are necessary to carry on the business for which it is incorporated not inconsistent

with the provisions of this chapter.

(s) Form and operate a credit union service corporation as provided in section 26-2147, Idaho Code.

(t) Provide for its members, share and deposit accounts from which the member may withdraw funds by the use of a

negotiable instrument.

(u) Participate in systems which allow the transfer of credit union funds or the shares or deposits of members by electronic

means and hold membership in automated clearing house associations or corporations.

24

(v) Sell all or part of its assets to another credit union, to purchase all or part of the assets of another credit union and to

assume the liabilities of the selling credit union and those of its members subject to the approval of the director.

Idaho Code § 26-2127. Investments

Funds not used for loans to members may be invested in:

(a) Obligations fully guaranteed as to principal and interest by the United States government;

(b) Time certificates of deposits issued by any state or federally chartered bank within the state of Idaho whose accounts

are insured by the federal deposit insurance corporation. Such time certificates of deposit may be made in an amount

not to exceed the greater of the federal deposit insurance corporation insurance limits or one percent (1%) of the

issuing bank's total deposits;

(c) Time certificates of deposit or savings accounts in any state or federally chartered savings and loan association within

the state of Idaho whose accounts are insured by the federal deposit insurance corporation in an amount not to

exceed the greater of the federal deposit insurance corporation insurance limit or one percent (1%) of the savings and

loan's withdrawable savings liability;

(d) Shares of stock in a credit union service corporation as provided in this chapter;

(e) Shares or deposits of a corporate credit union in an amount not to exceed ten percent (10%) of the corporate credit

union's total outstanding shares, provided that the director may approve an investment in shares or deposits in excess of

the ten percent (10%) limitation contained in this subsection; and

(f) Shares in the Idaho league services corporation.

Idaho Code § 26-2154. Credit unions eligible as depositories

Notwithstanding any other provision of this chapter, any state credit union or federal credit union located within this state

may become a state depository by making application for that purpose to the state treasurer and may accept such funds

as nonmember deposits.

Illinois 205 Ill. Comp. Stat. § 305/13. General powers

A credit union may:

(1) Make contracts; sue and be sued; and adopt and use a common seal and alter the same;

(2) Acquire, lease (either as lessee or lessor), hold, pledge, mortgage, sell and dispose of real property, either in whole or in

part, or any interest therein, as may be necessary or incidental to its present or future operations and needs, subject to

such limitations as may be imposed thereon in rules and regulations promulgated by the Secretary; acquire, lease

(either as lessee or lessor), hold, pledge, mortgage, sell and dispose of personal property, either in whole or in part, or

any interest therein, as may be necessary or incidental to its present or future operations and needs;

(3) At the discretion of the board of directors, require the payment of an entrance fee or annual membership fee, or

both, of any person admitted to membership;

(4) Receive savings from its members in the form of shares of various classes, or special purpose share accounts; act as

custodian of its members' accounts; issue shares in trust as provided in this Act;

(5) Lend its funds to its members and otherwise as hereinafter provided;

(6) Borrow from any source in accordance with policy established by the board of directors to a maximum of 50% of

capital, surplus and reserves;

(7) Discount and sell any obligations owed to the credit union;

(8) Honor requests for withdrawals or transfers of all or any part of member share accounts, and any classes thereof, in any

manner approved by the credit union board of directors;

(9) Sell all or a part of its assets or purchase all or a part of the assets of another credit union and assume the liabilities of

the selling credit union, subject to the prior approval of the Director, which approval shall not be required in the case of

loan transactions otherwise authorized under applicable law;

(10) Invest surplus funds as provided in this Act;

(11) Make deposits in banks, savings banks, savings and loan associations, trust companies; and invest in shares, classes of

shares or share certificates of other credit unions;

(12) Assess charges and fees to members in accordance with board resolution;

(13) Hold membership in and pay dues to associations and organizations; to invest in shares, stocks or obligations of any

credit union organization;

(14) Declare dividends and pay interest refunds to borrowers as provided in this Act;

(15) Collect, receive and disburse monies in connection with providing negotiable checks, money orders and other money-

type instruments, and for such other purposes as may provide benefit or convenience to its members, and charge a

reasonable fee for such services;

(16) Act as fiscal agent for and receive deposits from the federal government, this state or any agency or political

subdivision thereof;

(17) Receive savings from nonmembers in the form of shares or share accounts in the case of credit unions serving

predominantly low-income members. The term "low income members" shall mean those members who make less than

80% of the average for all wage earners as established by the Bureau of Labor Statistics or those members whose

annual household income falls at or below 80% of the median household income for the nation as established by the

Census Bureau. The term "predominantly" is defined as a simple majority;

(18) Establish, maintain, and operate terminals as authorized by the Electronic Fund Transfer Act [205 ILCS 616/1 et seq.];

(19) Subject to Article XLIV of the Illinois Insurance Code [215 ILCS 5/1400 et seq.], act as the agent for any fire, life, or other

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insurance company authorized by the State of Illinois, by soliciting and selling insurance and collecting premiums on

policies issued by such company; and may receive for services so rendered such fees or commissions as may be

agreed upon between the said credit union and the insurance company for which it may act as agent; provided,

however, that no such credit union shall in any case assume or guarantee the payment of any premium on insurance

policies issued through its agency by its principal; and provided further, that the credit union shall not guarantee the

truth of any statement made by an assured in filing his application for insurance; and

(20) Make reasonable contributions to civic, charitable, or service organizations not organized for profit; religious

corporations; and fundraisers benefiting persons in the credit union's service area.

205 Ill. Comp. Stat. § 305/14. Incidental powers

A credit union may exercise such incidental powers as are granted corporations organized under the laws of this State

including, to the extent such powers are not inconsistent with powers and prohibitions contained in this Act, such powers as

are necessary or convenient to enable credit unions to promote and carry on their purposes. The provisions of this Section

shall be interpreted liberally and not restrictively.

205 Ill. Comp. Stat. § 305/59. Investment of funds

(a) Funds not used in loans to members may be invested, pursuant to subsection (7) of Section 30 of this Act [205 ILCS

305/30], and subject to Departmental rules and regulations:

(1) In securities, obligations or other instruments of or issued by or fully guaranteed as to principal and interest by the

United States of America or any agency thereof or in any trust or trusts established for investing directly or

collectively in the same;

(2) In obligations of any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and

the several territories organized by Congress, or any political subdivision thereof; however, a credit union may not

invest more than 10% of its unimpaired capital and surplus in the obligations of one issuer, exclusive of general

obligations of the issuer, and investments in municipal securities must be limited to securities rated in one of the 4

highest rating categories by a nationally recognized statistical rating organization;

(3) In certificates of deposit or passbook type accounts issued by a state or national bank, mutual savings bank or

savings and loan association; provided that such institutions have their accounts insured by the Federal Deposit

Insurance Corporation or the Federal Savings and Loan Insurance Corporation; but provided, further, that a credit

union's investment in an account in any one institution may exceed the insured limit on accounts;

(4) In shares, classes of shares or share certificates of other credit unions, including, but not limited to corporate credit

unions; provided that such credit unions have their members' accounts insured by the NCUA or other approved

insurers, and that if the members' accounts are so insured, a credit union's investment may exceed the insured limit

on accounts;

(5) In shares of a cooperative society organized under the laws of this State or the laws of the United States in the total

amount not exceeding 10% of the unimpaired capital and surplus of the credit union; provided that such

investment shall first be approved by the Department;

(6) In obligations of the State of Israel, or obligations fully guaranteed by the State of Israel as to payment of principal

and interest;

(7) In shares, stocks or obligations of other financial institutions in the total amount not exceeding 5% of the unimpaired

capital and surplus of the credit union;

(8) In federal funds and bankers' acceptances;

(9) In shares or stocks of Credit Union Service Organizations in the total amount not exceeding the greater of 3% of the

unimpaired capital and surplus of the credit union or the amount authorized for federal credit unions.

(10) In corporate bonds identified as investment grade by at least one nationally recognized statistical rating

organization, provided that:

(i) the board of directors has established a written policy that addresses corporate bond investment procedures

and how the credit union will manage credit risk, interest rate risk, liquidity risk, and concentration risk; and

(ii) the credit union has documented in its records that a credit analysis of a particular investment and the issuing

entity was conducted by the credit union, a third party on behalf of the credit union qualified by education or

experience to assess the risk characteristics of corporate bonds, or a nationally recognized statistical rating

agency before purchasing the investment and the analysis is updated at least annually for as long as it holds

the investment;

(11) To aid in the credit union's management of its assets, liabilities, and liquidity in the purchase of an investment

interest in a pool of loans, in whole or in part and without regard to the membership of the borrowers, from other

depository institutions and financial type institutions, including mortgage banks, finance companies, insurance

companies, and other loan sellers, subject to such safety and soundness standards, limitations, and qualifications

as the Department may establish by rule or guidance from time to time;

(12) To aid in the credit union's management of its assets, liabilities, and liquidity by receiving funds from another

financial institution as evidenced by certificates of deposit, share certificates, or other classes of shares issued by

the credit union to the financial institution; and

(13) In the purchase and assumption of assets held by other financial institutions, with approval of the Secretary and

subject to any safety and soundness standards, limitations, and qualifications as the Department may establish by

rule or guidance from time to time.

(b) As used in this Section, "political subdivision" includes, but is not limited to, counties, townships, cities, villages,

incorporated towns, school districts, educational service regions, special road districts, public water supply districts, fire

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protection districts, drainage districts, levee districts, sewer districts, housing authorities, park districts, and any agency,

corporation, or instrumentality of a state or its political subdivisions, whether now or hereafter created and whether

herein specifically mentioned or not.

(c) A credit union investing to fund an employee benefit plan obligation is not subject to the investment limitations of this

Act and this Section and may purchase an investment that would otherwise be impermissible if the investment is

directly related to the credit union's obligation under the employee benefit plan and the credit union holds the

investment only for so long as it has an actual or potential obligation under the employee benefit plan.

205 Ill. Comp. Stat. § 305/37. Shares and classes of shares

(1) The capital of a credit union shall consist of the payments made by members for shares of the credit union.

(2) Shares may be subscribed to, paid for and transferred in such manner as the bylaws prescribe.

(3) The board of directors may establish different classes of share accounts classified in relation to different rights,

restrictions and dividend rates.

(4) A certificate, passbook, periodic statement of account or other written evidence of ownership shall be issued to

denote ownership of shares in a credit union.

205 Ill. Comp. Stat. § 305/38. Dividends

The board of directors may declare a dividend to be paid periodically from net earnings or undivided earnings and

distributed ratably among holders of share accounts of the same class as provided in the bylaws. Dividends may not be

declared or paid at a time when the credit union is insolvent or its net assets are less than its stated capital or when the

payment thereof would render the credit union insolvent or reduce its net assets below its stated capital.

205 Ill. Comp. Stat. § 305/53. Loans to credit unions.

A credit union may make loans to other credit unions if so provided and within the limits set forth in a policy adopted by the

board of directors.

205 Ill. Comp. Stat. § 305/55. Insurance for members

(1) A credit union may purchase or make available insurance for its members.

(2) A credit union may enter into cooperative marketing arrangements to facilitate its members' voluntary

purchase of insurance including, but not by way of limitation, life insurance, disability insurance, accident

and health insurance, property insurance, liability insurance and legal expense insurance.

205 Ill. Comp. Stat. § 305/56. Liability insurance for directors and officers

Liability insurance for directors and officers. A credit union may purchase and maintain insurance on behalf of any person

who is or was a director, officer, committee member, employee or agent of the credit union as a director, officer,

committee member, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against

any liability asserted against such person incurred by such person in any such capacity or arising out of such person's status

as such, whether or not the credit union would have the power to indemnify such person against such liability.

Indiana Ind. Code Ann. § 28-7-1-9. Powers.

(a) A credit union has the following powers:

(1) To issue shares of its capital stock to its members. No commission or compensation shall be paid for securing

members or for the sale of shares.

(2) To make loans to officers, directors, or committee members under sections 17.1 and 17.2 [IC 28-7-1-17.1 and IC 28-7-

1-17.2] of this chapter.

(3) To invest in any of the following:

(A) Bonds, notes, or certificates that are the direct or indirect obligations of the United States, or of the state, or the

direct obligations of a county, township, city, town, or other taxing district or municipality or instrumentality of

Indiana and that are not in default.

(B) Bonds or debentures issued by the Federal Home Loan Bank Act (12 U.S.C. 1421 through 1449) or the Home

Owners' Loan Act (12 U.S.C. 1461 through 1468).

(C) Obligations of national mortgage associations issued under the authority of the National Housing Act.

(D) Mortgages on real estate situated in Indiana which are fully insured under Title 2 of the National Housing Act (12

U.S.C. 1707 through 1715z).

(E) Obligations issued by farm credit banks and banks for cooperatives under the Farm Credit Act of 1971 (12 U.S.C.

2001 through 2279aa-14).

(F) Savings and loan associations, other credit unions that are insured under section 31.5 [IC 28-7-1-31.5] of this

chapter, and certificates of indebtedness or investment of an industrial loan and investment company if the

association or company is federally insured. Not more than twenty percent (20%) of the assets of a credit union

may be invested in the shares or certificates of an association or company, nor more than forty percent (40%) in

all such associations and companies.

(G) Corporate credit unions.

(H) Federal funds or similar types of daily funds transactions with other financial institutions.

(I) Shares or certificates of an open-end management investment company registered with the Securities and

Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. 80a-1 through 15 U.S.C. 80a-3 and

15 U.S.C. 80a-4 through 15 U.S.C. 80a-64), if all of the following conditions are met:

(i) The fund's assets consist of and are limited to securities in which a credit union may invest directly.

(ii) The credit union has an equitable and undivided interest in the underlying assets of the fund.

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(iii) The credit union is not liable for acts or obligations of the fund.

(iv) The credit union's investment in any one (1) fund does not exceed fifteen percent (15%) of the amount of the

credit union's net worth.

(J) For a credit union that is well capitalized (as defined in Part 702 of the Rules and Regulations of the National

Credit Union Administration, 12 CFR 702), investment securities, as may be defined by a statute or a policy or rule

of the department and subject to the following:

(i) The department may prescribe, by policy or rule, limitations or restrictions on a credit union's investment in

investment securities.

(ii) The total amount of any investment securities purchased or held by a credit union may never exceed at any

given time ten percent (10%) of the capital and surplus of the credit union. However, the limitations imposed

by this item do not apply to investments in the direct or indirect obligations of the United States or in the

direct obligations of a United States territory or insular possession, or in the direct obligations of the state or

any municipal corporation or taxing district in Indiana.

(iii) A credit union may not purchase for its own account any bond, note, or other evidence of indebtedness that

is commonly designated as a security that is speculative in character or that has speculative characteristics.

For the purposes of this item, a security is speculative or has speculative characteristics if at the time of

purchase the security is in default, is rated below the first four (4) rating classes by a generally recognized

security rating service, or is otherwise considered speculative by the director.

(iv) A credit union may purchase for its own account a security that is not rated by a generally recognized

security rating service if the credit union at the time of purchase obtains financial information that is

adequate to document the investment quality of the security and if the security is not otherwise considered

speculative by the director.

(v) A credit union that purchases a security for its own account shall maintain sufficient records of the security to

allow the security to be properly identified by the department for examination purposes.

(vi) Except as otherwise authorized by this title, a credit union may not purchase any share of stock of a

corporation. If a credit union possesses stock or another equity investment as a result of a loan default, the

credit union shall dispose of the investment within a reasonable period that does not exceed one (1) year or

a longer period if approved by the department.

(vii)Subject to items (i) through (iv), a credit union may purchase yankee dollar deposits, eurodollar deposits,

banker's acceptances, deposit notes, bank notes with original weighted average maturities of less than five

(5) years, and investments in obligations of, or issued by, any state or political subdivision (including any

agency, corporation, or instrumentality of a state or political subdivision).

(K) Collateralized obligations that are eligible for purchase and sale by federal credit unions. However, a credit union

may purchase for its own account and sell the obligations only to the extent that a federal credit union can

purchase and sell those obligations.

(4) With the prior approval of the department, and subject to the limitations of this subsection, a credit union may

organize, invest in, or loan money to a credit union service organization (as defined in Part 712 of the regulations of

the National Credit Union Administration, 12 CFR 712). A credit union may not loan or invest in a credit union service

organization if the aggregate amount of all such loans or investments in a particular credit union service

organization is greater than ten percent (10%) of the capital, surplus, and unimpaired shares of the credit union

without the prior written approval of the department. A credit union may organize, invest in, or loan money to a

credit union service organization described in this subdivision only if the following requirements are met:

(A) The credit union service organization is adequately capitalized or has a reasonable plan for adequate

capitalization if the credit union service organization is to be formed or is newly formed.

(B) The credit union service organization is structured and operated as a separate legal entity from the credit union.

(C) The credit union obtains a written legal opinion that the credit union service organization is structured and

operated in a manner that limits the credit union's potential liability for the debts and liabilities of the credit union

service organization to not more than the loss of money invested in or loaned to the credit union service

organization by the credit union.

(D) The credit union service organization agrees in writing to prepare financial statements and provide the financial

statements to the credit union at least quarterly, and to the department upon request.

(E) The credit union service organization agrees in writing to obtain an audit of the credit union service organization

from a certified public accountant at least annually and provide a copy of each audit report to the credit union,

and to the department upon request. A wholly owned credit union service organization is not required to obtain

a separate annual audit if the credit union service organization is included in the annual consolidated audit of

the credit union that is the credit union service organization's parent.

(F) The credit union service organization operates in compliance with all applicable federal and state laws.

(5) To deposit its funds into:

(A) depository institutions that are federally insured; or

(B) state chartered credit unions that are privately insured by an insurer approved by the department.

(6) To purchase, hold, own, or convey real estate as may be conveyed to the credit union in satisfaction of debts

previously contracted or in exchange for real estate conveyed to the credit union.

(7) To own, hold, or convey real estate as may be purchased by the credit union upon judgment in its favor or

decrees of foreclosure upon mortgages.

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(8) To issue shares of stock and upon the terms, conditions, limitations, and restrictions and with the relative rights as

may be stated in the bylaws of the credit union, but no stock may have preference or priority over the other to

share in the assets of the credit union upon liquidation or dissolution or for the payment of dividends except as to

the amount of the dividends and the time for the payment of the dividends as provided in the bylaws.

(9) To charge the member's share account for the actual cost of a necessary locator service when the member has

failed to keep the credit union informed about the member's current address. The charge shall be made only for

amounts paid to a person or concern normally engaged in providing such service, and shall be made against the

account or accounts of any one (1) member not more than once in any twelve (12) month period.

(10) To transfer to an accounts payable account, a dormant account, or a special account share accounts which

have been inactive, except for dividend credits, for a period of at least two (2) years. The credit union shall not

consider the payment of dividends on the transferred account.

(11) To invest in fixed assets with the funds of the credit union. An investment in fixed assets in excess of five percent (5%)

of its assets is subject to the approval of the department. A credit union may rent excess space at the credit union's

main office or branch as a source of income.

(12) To establish branch offices, upon approval of the department, provided that all books of account shall be

maintained at the principal office.

(13) To pay an interest refund on loans proportionate to the interest paid during the dividend period by borrowers who

are members at the end of the dividend period.

(14) To purchase life savings and loan protection insurance for the benefit of the credit union and its members, if:

(A) the coverage is placed with an insurance company licensed to do business in Indiana; and

(B) no officer, director, or employee of the credit union personally benefits, directly or indirectly, from the sale or

purchase of the coverage.

(15) To sell and cash negotiable checks, travelers checks, and money orders for members.

(16) To purchase members' notes from any liquidating credit union, with written approval from the department, at

prices agreed upon by the boards of directors of both the liquidating and the purchasing credit unions. However,

the aggregate of the unpaid balances of all notes of liquidating credit unions purchased by any one (1) credit

union shall not exceed ten percent (10%) of the purchasing credit union's capital and surplus unless special written

authorization has been granted by the department.

(17) To exercise such incidental powers necessary or requisite to enable it to carry on effectively the business for which it

is incorporated.

(18) To act as a custodian or trustee of any trust created or organized in the United States and forming part of a tax

advantaged savings plan which qualifies or qualified for specific tax treatment under Section 223, 401(d), 408,

408A, or 530 of the Internal Revenue Code, if the funds of the trust are invested only in share accounts or insured

certificates of the credit union.

(19) To issue shares or insured certificates to a trustee or custodian of a pension plan, profit sharing plan, or stock bonus

plan which qualifies for specific tax treatment under Sections 401(d) or 408(a) of the Internal Revenue Code.

(20) To exercise any rights and privileges that are:

(A) granted to federal credit unions; but

(B) not authorized for credit unions under the Indiana Code (except for this section) or any rule adopted under the

Indiana Code; if the credit union complies with section 9.2 [IC 28-7-1-9.2] of this chapter.

(21) To sell, pledge, or discount any of its assets. However, a credit union may not pledge any of its assets as security for

the safekeeping and prompt payment of any money deposited, except that a credit union may, for the

safekeeping and prompt payment of money deposited, give security as authorized by federal law.

(22) To purchase assets of another credit union and to assume the liabilities of the selling credit union.

(23) To act as a fiscal agent of the United States and to receive deposits from nonmember units of the federal, state, or

county governments, from political subdivisions, and from other credit unions upon which the credit union may pay

varying interest rates at varying maturities subject to terms, rates, and conditions that are established by the board

of directors. However, the total amount of public funds received from units of state and county governments and

political subdivisions that a credit union may have on deposit may not exceed twenty percent (20%) of the total

assets of that credit union, excluding those public funds.

(24) To join the National Credit Union Administration Central Liquidity Facility.

(25) To participate in community investment initiatives under the administration of organizations:

(A) exempt from taxation under Section 501(c)(3) of the Internal Revenue Code; and

(B) located or conducting activities in communities in which the credit union does business.

Participation may be in the form of either charitable contributions or participation loans. In either case,

disbursement of funds through the administering organization is not required to be limited to members of the

credit union. Total contributions or participation loans may not exceed one-tenth of one percent (0.1%) of total

assets of the credit union. A recipient of a contribution or loan is not considered qualified for credit union

membership. A contribution or participation loan made under this subdivision must be approved by the board

of directors.

(26) To establish and operate an automated teller machine (ATM):

(A) at any location within Indiana; or

(B) as permitted by the laws of the state in which the automated teller machine is to be located.

(27) To demand and receive, for the faithful performance and discharge of services performed under the powers

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vested in the credit union by this article:

(A) reasonable compensation, or compensation as fixed by agreement of the parties;

(B) all advances necessarily paid out and expended in the discharge and performance of its duties; and

(C) unless otherwise agreed upon, interest at the legal rate on the advances referred to in clause (B).

(28) Subject to any restrictions the department may impose, to become the owner or lessor of personal property

acquired upon the request and for the use of a member and to incur additional obligations as may be incident to

becoming an owner or lessor of such property.

(b) A credit union shall maintain files containing credit and other information adequate to demonstrate evidence of

prudent business judgment in exercising the investment powers granted under this chapter or by rule, order, or

declaratory ruling of the department.

(c) Subject to any limitations or restrictions that the department or a federal regulator may impose by regulation, rule,

policy, or guidance, a credit union may purchase and hold life insurance as follows:

(1) Life insurance purchased or held in connection with employee compensation or benefit plans approved by the

credit union's board of directors.

(2) Life insurance purchased or held to recover the cost of providing preretirement or postretirement employee benefits

approved by the credit union's board of directors.

(3) Life insurance on the lives of borrowers.

(4) Life insurance held as security for a loan.

(5) Life insurance that a federal credit union may purchase or hold under 12 CFR 701.19(c).

Ind. Code Ann. § 28-7-1-16. Officers and directors -- Powers and duties -- Responsibility of credit union board.

(a) Not more than thirty (30) business days after the conclusion of the annual meeting, the board of directors shall elect

from its own members:

(1) a chairperson;

(2) a vice chairperson or vice chairpersons;

(3) a secretary;

(4) a treasurer; and

(5) other officers determined necessary by the board of directors.

(b) The board may appoint officers of the credit union.

(c) The office of secretary and treasurer may be held by the same person. The board may appoint:

(1) an assistant secretary;

(2) an assistant treasurer; or

(3) both an assistant secretary and an assistant treasurer.

(d) The board of directors shall have the general management of the affairs, funds, and records of the credit union and

shall meet at least monthly, in person or by any means of communication by which all directors participating may

simultaneously hear each other during the meeting. A director participating in a meeting in accordance with this

subsection is considered to be present in person at the meeting. Minutes of every meeting of the board of directors or

executive committee shall be kept and maintained.

(e) The board may appoint an executive committee to exercise authority delegated to it by the board. The board retains

ultimate responsibility for authority delegated to an executive committee.

(f) It is the duty of the directors to do the following:

(1) To determine:

(A) the maximum number of shares which may be held by a member; and

(B) the maximum amount which may be loaned to a member.

(2) To amend the bylaws, provided that the qualifications for membership in the credit union are principally defined in

the articles of incorporation.

(3) To fill vacancies on the board and the credit committee until the next election.

(4) To set the compensation of members of the board, credit committee, or supervisory committee.

(5) To establish and annually review written lending and investment policies and other policies necessary for the

prudent operation of the credit union.

(6) To approve an annual operating budget for the credit union.

(g) The board may appoint loan officers. Each loan officer shall furnish to the credit committee or to the board a record of

each loan approved or denied at its next meeting. A loan officer, including the treasurer or assistant treasurer, shall not

have authority to disburse funds of the credit union for any loan which has been approved by the loan officer.

(h) A credit union board is responsible for the performance of all of the duties listed in this subsection. The board may

delegate the performance of the duties to the chief executive officer, who may further delegate one (1) or more of

the following duties:

(1) Approving, disapproving, or otherwise acting on applications for membership.

(2) Determining the interest rates on loans and on deposits.

(3) Hiring employees other than the chief executive officer and fixing the employees' compensation.

(4) Making and selling investments according to investment policies adopted by the board.

(5) Designating one (1) or more depositories for funds.

(6) Establishing procedures to implement policies of the credit union board.

(7) Establishing internal controls as necessary.

(8) Determining the amount of a dividend after providing for any required reserves and declaring the dividend.

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(i) The board of directors by a majority vote may suspend or remove any officer from the officer's duties as an officer.

(j) Unless specifically prohibited by the bylaws, if this chapter requires or allows a credit union board to take an action at a

meeting, the board may take that action without a meeting if a consent in writing setting forth the action taken is

signed by all of the directors entitled to vote on the matter. A written consent under this subsection must contain one

(1) or more written approvals, each of which sets forth the action taken and bears the signature of one (1) or more

directors. The directors shall deliver the directors' signed approvals to the secretary, and the secretary shall file the

approvals in the corporate records of the credit union. An action taken by written consent under this subsection is

effective on the date that all the directors have approved the consent unless the consent specifies a different effective

date. A consent signed by all the directors has the same effect as a unanimous vote. The credit union may represent

that the action was approved by a unanimous vote in any document filed with the department under this act.

Ind. Code Ann. § 28-7-1-17. Loans.

(a) Every loan application shall be submitted on a form approved by the board of directors. When making an application,

a member shall state the security offered. Loans may be dispersed upon written approval by a majority of the credit

committee or a loan officer. If the credit committee or loan officer fails to approve an application for a loan, the

applicant may appeal to the board of directors, providing such appeal is authorized by the bylaws.

(b) Loans to members may be made only under the following terms and conditions:

(1) All loans shall be evidenced by notes signed by the borrowing member.

(2) Except as otherwise provided in this section, the terms of any loan to a member with a maturity of more than six (6)

months shall provide for principal and interest payments that will amortize the obligation in full within the terms of the

loan contract. If the income of the borrowing member is seasonal, the terms of the loan contract may provide for

seasonal amortization.

(3) Loans may be made upon the security of improved or unimproved real estate. Except as otherwise specified in this

section, such loans must be secured by a first lien upon real estate prior to all other liens, except for taxes and

assessments not delinquent, and may be made with repayment terms other than as provided in subdivision (2). The

credit union loan folder for all real estate mortgage loans shall include the following:

(A) The loan application.

(B) The mortgage instrument.

(C) The note.

(D) The disclosure statement.

(E) The documentation of property insurance.

(F) For the real estate for which the loan is made, a written appraisal, which must be performed by a state licensed

or certified appraiser designated by the board of directors if the amount of the loan is at least two hundred fifty

thousand dollars ($250,000).

(G) The attorney's opinion of titles or a certificate of title insurance on the real estate upon which the mortgage loan

is made.

(4) Loans made upon security of real estate are subject to the following restrictions:

(A) Real estate loans in which no principal amortization is required shall provide for the payment of interest at least

annually and shall mature within five (5) years of the date of the loan unless extended and shall not exceed fifty

percent (50%) of the fair cash value of the real estate used as security.

(B) Real estate loans on improved real estate, except for variable rate mortgage loans and rollover mortgage loans

provided for in subdivision (5), shall require substantially equal payments at successive intervals of not more than

one (1) year, shall mature within thirty (30) years, and shall not exceed one hundred percent (100%) of the fair

cash value of the real estate used as security.

(C) Real estate loans on unimproved real estate may be made. The terms of the loan shall:

(i) require substantially equal payments of interest and principal at successive intervals of one (1) year or less;

(ii) mature within ten (10) years; and

(iii) not exceed eighty-five percent (85%) of the fair cash value of the real estate used as security.

(D) Loans primarily secured by a mortgage which constitutes a second lien on improved real estate may be made

only if the aggregate amount of all loans on the real estate does not exceed one hundred percent (100%) of the

fair cash value of the real estate after such loan is made. Repayment terms shall be in accordance with

subdivision (2).

(E) Real estate loans may be made for the construction of improvements to real property. Funds borrowed may be

advanced as work on the improvements progresses. Repayment terms must comply with subdivision (2).

(5) Subject to the limitations of subdivision (3), variable rate mortgage loans and rollover mortgage loans may be made

under the same limitations and rights provided state chartered savings associations under IC 28-1-21.5 (before its

repeal) or IC 28-15 or federal credit unions.

(6) As used in this subdivision, "originating lender" means the participating lender with which the member contracts. A

credit union may participate with other state and federal depository financial institutions (as defined in IC 28-1-1-6)

or credit union service organizations in making loans to credit union members and may sell a participating interest in

any of its loans under written participation loan policies established by the board of directors. However, the credit

union may not sell more than ninety percent (90%) of the principal of participating loans outstanding at the time of

sale. A participating credit union that is not the originating lender may participate only in loans made to the credit

union's own members or to members of another participating state or federal credit union. A master participation

agreement must be properly executed. The agreement must include provisions for identifying, either through

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documents incorporated by reference or directly in the agreement, the participation loan or loans before the sale

of the loans.

(7) Notwithstanding subdivisions (1) through (6), a credit union may make any of the following:

(A) Any loan that may be made by a federal credit union. However, IC 24-4.5 applies to any loan that is:

(i) made under this clause; and

(ii) within the scope of IC 24-4.5.

Any provision of federal law that is in conflict with IC 24-4.5 does not apply to a loan made under this clause.

(B) Subject to subdivision (3), any alternative mortgage loan (as defined in IC 28-15-11-2) that may be made by a

savings association (as defined in IC 28-15-1-11) under IC 28-15-11. A loan made under this clause by a credit

union is subject to the same terms, conditions, exceptions, and limitations that apply to an alternative mortgage

loan made by a savings association under IC 28-15-11.

(8) A credit union may make a loan under either:

(A) subdivisions (2) through (6); or

(B) subdivision (7);

but not both. A credit union shall make an initial determination as to whether to make a loan under subdivisions (2)

through (6) or under subdivision (7). If the credit union determines that a loan or category of loans is to be made

under subdivision (7), the written loan policies of the credit union must include that determination. A credit union

may not combine the terms and conditions that apply to a loan made under subdivisions (2) through (6) with the

terms and conditions that apply to a loan made under subdivision (7) to make a loan not expressly described and

authorized either under subdivisions (2) through (6) or under subdivision (7).

(c) Nothing in this section prevents any credit union from taking an indemnifying or second mortgage on real estate as

additional security.

Ind. Code Ann. § 28-7-1-22. Authority to borrow money.

(a) A credit union may borrow from any source. The total borrowing of a credit union may not at any time exceed fifty per

cent (50%) of the unimpaired shares capital and surplus of the credit union.

(b) A credit union may receive deposits of state and federal public funds, including the right to pledge securities or other

assets for the repayment of the deposits if the pledge is permitted by applicable law or regulation.

Ind. Code Ann. § 28-7-1-31.3. Standards for discharge of duties by credit union officials -- Indemnification.

(a) As used in this section, "official" means an individual who is or who was a director, committee member, officer, or

employee of a credit union.

(b) An official of a credit union shall discharge the duties of the official's position in good faith and with the degree of

diligence, care, and skill that an ordinarily prudent person would exercise under similar circumstances in a like position.

In discharging the official's duties, an official may rely upon:

(1) the opinion of legal counsel for the credit union;

(2) the report of an independent appraiser selected with reasonable care by:

(A) the board; or

(B) an officer of the credit union; or

(3) financial statements of the credit union:

(A) represented to the official to be correct by the:

(i) chief executive officer; or

(ii) officer of the credit union having charge of the credit union's records; or

(B) stated in a written report by an independent public or certified public accountant or firm of accountants fairly to

reflect the financial condition of the credit union.

(c) As used in this section, "credit union" includes all other credit unions that become related to a credit union by a

consolidation or merger and the resulting or continuing credit union.

(d) A credit union may indemnify a director, a committee member, an officer, an employee, or an agent to the extent and

in the same manner that a corporation may indemnify a director, committee member, officer, employee, or agent

under IC 28-13-13-2 through IC 28-13-13-13.

Iowa Iowa Code § 533.301. Powers.

A state credit union shall have the power to do all of the following:

1. Receive payments for ownership shares, for other shares, or as deposits from any or all of the following:

a. Members of the state credit union.

b. Nonmembers as prescribed by rule where the state credit union is serving predominantly low-income members. Rules

adopted allowing nonmember deposits in state credit unions serving predominantly low-income members shall be

designed solely to meet the needs of the low- income members.

c. Other state credit unions.

d. Federal, state, county, and city governments.

2. Make loans or leases to members.

3. Make loans to a cooperative society or other organization having membership in the state credit union.

4. Make deposits in state and national banks, state and federal savings banks or savings and loan associations, and state

and federal credit unions, the accounts of which are insured by the federal deposit insurance corporation or the national

credit union share insurance fund.

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5. Make investments in any or all of the following:

a. Time deposits in state and national banks, state and federal savings banks or savings and loan associations, and state

and federal credit unions, the deposits of which are insured by the federal deposit insurance corporation or the

national credit union share insurance fund.

b. Obligations, participations, or other instruments of or issued by, or fully guaranteed as to principal and interest by the

United States government or any agency of the United States government, or any trust or trusts established for investing

directly or collectively in the United States government or any agency of the United States government.

c. General obligations of this state and any subdivision of this state.

d. Purchase of notes of liquidating credit unions with the approval of the superintendent.

e. Shares and deposits in other credit unions.

f. Shares, stocks, loans, and other obligations or a combination of shares, stocks, loans, and other obligations of a credit

union service organization, corporation, or association, provided the membership or ownership, as the case may be, of

the credit union service organization, corporation, or association is primarily confined or restricted to credit unions or

organizations of credit unions, and provided that the purpose of the credit union service organization, corporation, or

association is primarily designed to provide services to credit unions, organizations of credit unions, or credit union

members. However, the aggregate amount invested pursuant to this paragraph shall not exceed five percent of the

assets of the credit union.

g. Obligations issued by federal land banks, federal intermediate credit banks, banks for cooperatives, or any of the

federal farm credit banks.

h. Commercial paper issued by United States corporations as defined by rule.

i. Corporate bonds as defined by and subject to terms and conditions imposed by the superintendent, provided that

the superintendent shall not approve investment in corporate bonds unless the bonds are investment grade. For

purposes of this paragraph, “investment grade” means the issuer of a security has an adequate capacity to meet the

financial commitments under the security for the projected life of the asset or exposure, even under adverse

economic conditions. An issuer has an adequate capacity to meet the financial commitments if the risk of default by

the obligor is low and the full and timely repayment of principal and interest on the security is expected. A state credit

union may consider any or all of the following nonexhaustive or nonmutually exclusive factors, to the extent

appropriate, with respect to the credit risk of a security: (1) Credit spreads. (2) Securities-related research. (3) Internal

or external credit risk assessments. (4) Default statistics. (5) Inclusion on an index. (6) Priorities and enhancements. (7)

Price, yield, or volume. (8) Asset class-specific factors

j. Any permissible investment for federal credit unions, provided that this paragraph shall not permit a credit union to

invest in a credit union service organization except as provided in paragraph "f".

6. Borrow money as provided in this chapter.

7. Assess penalties as may be provided by the bylaws.

8. Sue and be sued.

9. Make contracts.

10. Purchase, hold, and dispose of property necessary and incidental to its operation, except that any property acquired

through foreclosure shall be disposed of within a period not to exceed ten years.

11. Exercise such incidental powers as may be necessary or requisite to enable the state credit union to carry on the

business effectively for which it is incorporated.

12. Apply for share account and deposit account insurance that meets the requirements of this chapter, and take all

actions necessary to maintain an insured status.

13. Serve a group of persons having an insufficient number of members to form or conduct the affairs of a separate credit

union, upon the approval of the superintendent. The existence of a common bond relationship between the group and

the credit union affecting that service shall not be required.

14. Deposit with a credit union that has been in existence for not more than a year, an amount not to exceed twenty-five

percent of the assets of the new credit union, but only one credit union may, at any time, make such a deposit.

15. Acquire the conditional sales contracts, promissory notes, or other similar instruments executed by its members, but the

rate of interest existing on the instruments shall not exceed the highest rate charged by the acquiring credit union on its

outstanding loans.

16. a. Sell, participate in, or discount the obligations of its members with or without recourse.

b. Purchase the obligations of credit union members, provided the obligations meet the requirements of this chapter.

17. Acquire and hold shares in a corporation engaged in providing and operating facilities through which a credit union and

its members may engage, by means of either the direct transmission of electronic impulses to and from the credit union

or the recording of electronic impulses or other indicia of a transaction for delayed transmission to the credit union, in

transactions in which such credit union is otherwise permitted to engage pursuant to applicable law, subject to the prior

approval of the superintendent.

18. Engage in any transaction otherwise permitted by this chapter and applicable law, by means of either the direct

transmission of electronic impulses to or from the state credit union or the recording of electronic impulses or other indicia

of a transaction for delayed transmission to the state credit union.

a. Subject to the provisions of chapter 527, a state credit union may utilize, establish, or operate, alone or with one or

more other credit unions, banks incorporated under chapter 524 or federal law, savings and loan associations

incorporated under chapter 534 or federal law, corporations licensed under chapter 536A, or third parties, the

satellite terminals permitted under chapter 527, by means of which the state credit union may transmit to or receive

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from any member electronic impulses constituting transactions pursuant to this subsection. However, such utilization,

establishment, or operation shall be lawful only when in compliance with chapter 527.

b. This subsection shall not be construed as authority for any person to engage in transactions not otherwise permitted

by applicable law, and shall not be deemed to repeal, replace, or in any other way affect any applicable law or rule

regarding the maintenance of or access to financial information maintained by any credit union.

19. Establish one or more state credit union offices other than its main office.

a. A state credit union may furnish at any of its offices all credit union services ordinarily furnished to the membership at

its principal place of business.

b. The central executive and official business and recordkeeping functions of a state credit union shall be exercised at its

principal place of business or at another state credit union office or a location authorized by the superintendent for

these functions.

c. A state credit union shall file an informational statement in the form prescribed by the superintendent prior to opening

a state credit union office.

d. A state credit union office shall not be opened without a certificate to establish a state credit union office issued by

the superintendent.

e. The establishment of a state credit union office must be reasonably necessary for service to, and in the best interests

of, the members of the state credit union, and shall not endanger the safety and soundness of the state credit union

opening the office.

f. A state credit union may join with one or more credit unions in the operation of an office facility to meet the service

needs of its members.

20. Contract with another credit union to furnish services which either could otherwise legally perform. Contracted services

provided under this subsection are subject to regulation and examination like other services.

21. Purchase insurance or make the purchase of insurance available for members.

22. Charge fees and penalties and apply them to income.

23. a. (1) Act as agent of the federal government when requested by the secretary of the United States department of

treasury.

(2) Perform such services as may be required in connection with the collection of taxes and other obligations due the

United States and the lending, borrowing, and repayment of moneys by the United States.

(3) Act as a depository of public money when designated for that purpose.

b. (1) Act as agent of this state when requested by the treasurer of state.

(2) Perform such services as may be required in connection with the collection of taxes and other obligations due this

state and the lending, borrowing, and repayment of moneys by this state.

(3) Act as a depository of public moneys when designated for that purpose.

24. Receive public funds pursuant to chapter 12C and pledge its assets to secure the deposit of public funds.

25. Engage in any activity authorized by the superintendent which would be permitted if the state credit union were

federally chartered and which is consistent with state law.

26. To promote the public welfare, make donations for religious, charitable, scientific, educational, or community

betterment purposes.

27. Set off a member's accounts against any of the member's debts or liabilities owed the state credit union pursuant to an

agreement entered into between the member and the state credit union. The state credit union shall also have a lien

on the shares and deposits of a member for any sum due to the state credit union from the member or for any loan

endorsed by the member.

28. Sell, to persons in the field of membership, negotiable checks, including traveler's checks; money orders; and other

similar money transfer instruments including international and domestic electronic fund transfers.

29. Cash checks and money orders, and receive international and domestic electronic fund transfers, for persons in the

field of membership.

Iowa Code § 533.312. Dividends and interest.

1. The board of directors may declare dividends at such rates and upon such classes of shares as are determined by the

board, at such intervals and for such periods as the board may authorize, and after provision for required reserves

pursuant to section 533.303.

2. Dividends shall be considered a normal operating expense of the state credit union and shall be paid on all paid-up

shares outstanding at the close of the period for which the dividend is declared and shall be available only from

undivided earnings.

3. The superintendent may restrict or prohibit the payment of a dividend or interest when an impairment of capital exists.

Kansas Kan. Stat. Ann. § 17-2204. Powers of credit unions.

A credit union shall have the following powers:

(a) It may receive the savings of its members in payment for shares, make contracts, sue and be sued, and provide

negotiable checks, money orders, travelers checks, any other money type instruments or transfer methods, safe deposit

boxes or similar safekeeping facilities to its members.

(b) It may make loans to members through the credit committee or authorized loan officer in the way and manner

provided in K.S.A. 17-2201 et seq., and amendments thereto.

(c) It may invest, through its board of directors and underwritten investment policies established by the board:

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(1) In all types of shares and accounts of a corporate credit union, located in the state of Kansas and under the

supervision of the administrator;

(2) in shares or accounts of any savings and loan association or mutual savings bank the accounts of which are insured

by an insurer approved by the state in which it operates for guaranteeing the shares or accounts of such institutions;

(3) in the bonds or other obligations of the United States of America, or securities fully guaranteed as to principal and

interest thereby;

(4) in obligations of, or obligations issued by, any state or political subdivision thereof, including any agency,

corporation or instrumentality of a state or political subdivision, except that no credit union may invest more than

10% of its shares, undivided earnings and reserves in the obligations of any one issuer exclusive of general

obligations of the issuer;

(5) in savings banks, state banks, trust companies and national banks, the accounts of which are insured by an insurer

approved by the state in which it operates for guaranteeing the shares or accounts of such institutions.

(6) Unless the administrator authorizes otherwise, the funds of the credit union shall be used first for loans to members

and preference shall be given to the smaller loans in the event the available funds do not permit all loans which

have been approved by a loan officer or have passed the credit committee to be made.

(d) It may enter into agreements with financial institutions or organizations for the extension of credit or debit services.

(e) It may do all things necessary to obtain, continue, pay for and terminate insurance of its shares and share certificates

with the national credit union share insurance fund or its successor or successors or with an insurer approved by the

state commissioner of insurance or guarantee corporation approved by the administrator under the provisions of this

act for such purpose.

(f) It may receive from its members or other insured credit unions payments on shares and share certificates and may

invest its funds in shares, share certificates or other accounts of insured credit unions. Except for investments in

corporate credit unions, such investments may not exceed 25% of the investing credit unions' shares, undivided

earnings and reserves.

(g) A corporate credit union, as defined by subsection (e) of K.S.A. 17-2231, and amendments thereto, may buy and sell

investment securities, as defined by the administrator, but the total amount of such investment securities of any one

obligor or maker held by such credit union shall at no time exceed 15% of the shares, undivided earnings and reserves

of the credit union except that this limit shall not apply to obligations of the United States government or any agency

thereof.

(h) Credit unions may enter into agreements to discount or sell student loans made pursuant to federally insured student

loan programs under public law 89-329, title IV part (b) of the higher education act of 1965 as amended.

(i) A credit union may discount or sell to such corporate credit union or any financial institution or organization any real

estate loan made by the credit union.

(j) Credit unions may enter into agreements with a corporate credit union to discount or sell to such corporate credit union

any obligation of the United States government or any agency thereof, or of any state, municipality or any agency

thereof, if the obligation at the time of purchase was a legal investment for credit unions.

(k) It may provide that shares and share certificates may be withdrawn for payment to the account holder or to third

parties, in such manner and in accordance with such procedures as may be established by the board of directors.

(l) Every credit union incorporated pursuant to or operating under the provisions of this act may exercise such powers,

including incidental powers, as shall be necessary or requisite to enable it to carry on effectively the purposes and

business for which it is incorporated.

(m) A credit union may receive from the national credit union central liquidity facility created by title III of the federal credit

union act, 12 U.S.C. 1795, et seq., payments on: (1) Shares which may be issued at varying dividend rates; (2) share

certificates which may be issued at varying dividend rates and maturities; and (3) investments in any other accounts of

the credit union. A credit union may invest its funds in the capital stock of the national credit union central liquidity

facility.

(n) Subject to written guidelines issued by the administrator, a credit union may purchase notes made by individual

borrowers to a financial institution at such prices as may be agreed upon by the board of directors of the purchasing

credit union. No purchase may be made, however, under authority of this subsection, unless approved in writing by the

administrator, if, upon the making of that purchase, the aggregate of the unpaid balances of notes of nonmembers

purchased under authority of this subsection would exceed 5% of the shares, undivided earnings and reserves of the

credit union.

(o) Subject to rules and regulations adopted by the administrator, a credit union, if designated by the administrator as a

low-income credit union, may accept payments to share accounts by nonmembers. Such rules and regulations shall

specify the maximum level of non-member shares, the use of such shares, the term of such accounts and other

requirements to address safety and soundness issues.

Non-member account holders do not have the same rights and privileges as members.

Kan. Stat. Ann. § 17-2204a. Investments; limitations; definition of credit union services corporation.

(a) Notwithstanding any other provision contained in the laws of this state providing for investments by credit unions, such

credit unions may invest, through their board of directors and underwritten investment policies established by the

board, in the bonds, debentures or other similar obligations issued under the authority of and pursuant to the act of

congress known as the farm credit act of 1971, as amended. The total amount of such bonds, debentures or other

similar obligations of any one obligor or maker shall at no time exceed 15% of the shares, undivided earnings and

reserves of the credit union.

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(b) Subject to rules and regulations of the administrator, credit unions may invest in a credit union services organization,

through their board of directors and underwritten investment policies established by the board, if the credit union

services organization is structured as a corporation, limited liability company or limited partnership. Subject to rules and

regulations of the administrator, credit unions may make loans to such credit union services organization, except that

any such investment in or loans to such credit union services organization shall not exceed, in the aggregate, 2% of the

credit union's unimpaired shares, reserves and undivided earnings. "Credit union services organization" means an

organization established to provide operational and financial services primarily to credit unions.

(c) Subject to written guidelines issued by the administrator, a credit union may invest its funds, through its board of

directors and underwritten investment policies established by the board, in investment securities defined by the

administrator. Except for obligations of wholly owned government corporations, or obligations which provide a return of

principal and interest which is guaranteed by an agency of the federal government, the total amount of such

investment securities of any one obligor or maker held by the credit union shall at no time exceed 15% of the shares,

undivided earnings and reserves of the credit union.

(d) Except as provided in subsection (g) of K.S.A. 17-2204, and amendments thereto, a credit union is prohibited from

participating directly or indirectly in: (1) The purchase or sale of a standby commitment; (2) a futures contract; (3) in

adjusted trading; or (4) in a short sale of a security. A credit union's directors, officials, committee members and

employees, and immediate family members of such individuals, may not receive pecuniary consideration in

connection with the making of an investment or deposit by the credit union.

(e) Nothing contained in this section shall be construed to prohibit any funds of a credit union from being invested as now

provided by law.

Kan. Stat. Ann. § 17-2215. Power to borrow money; ability to discount or sell to federal intermediate credit bank.

A credit union shall have the power to borrow from any source, subject to special orders of or in accordance with such

rules and regulations as may be prescribed by the administrator, but the total of such borrowing shall at no time exceed

50% of the capital, surplus and reserve fund of the borrowing credit union.

Any credit union may discount with or sell to any federal intermediate credit bank any eligible obligations up to the

amount of its shares and share certificates.

Kan. Stat. Ann. § 17-2218. Dividends.

After providing for required reserves, the board of directors may declare a dividend to be paid from the net earnings or

from other funds set aside for dividends at such intervals and in such a manner as the board of directors may authorize.

Kan. Stat. Ann. § 17-2226. Purchase of real estate, material, equipment or improvements; restrictions; lease and disposition of

property.

(a) Credit unions may purchase, lease, hold or rent real estate and improvements thereon for their current or future use

and occupancy. Without the written approval of the administrator, such expenditure shall not exceed 5% of total

shareholdings, reserves and undivided earnings.

(b) A credit union may purchase, rent, hold, contract for, acquire or lease any material, equipment or service which may

be necessary or incidental to its operation. The aggregate of all such purchases, rentals, holdings, contracts, acquisitions

or leases when required by generally accepted accounting principles to be entered as an asset or a liability shall not

exceed, when aggregated with amounts expended pursuant to subsection (a) of K.S.A. 17-2226, and amendments

thereto, 5% of the credit union's shares, reserves and undivided earnings without the written approval of the

administrator.

(c) A credit union may rent or lease a portion of its building, fixed assets or property and may acquire, lease, hold, assign,

pledge, sell or otherwise dispose of property or other assets, either in whole or in part, necessary or incidental to its

operations and purposes.

Kan. Stat. Ann. § 17-2229. Sale or purchase of assets to or of another credit union; agreement; approval of administrator;

approval of shareholders; effective date; dissolution of selling credit union; reserves.

(a) A credit union may sell all or any part of its assets to another credit union or it may purchase all or any part of the assets

of another credit union in accordance with this section.

(b) The purchasing credit union may assume, as part of the purchase price, any or all of the liabilities of the selling credit

union and may pay the balance in cash or by the issue of shares to the selling credit union of the members thereof

whether or not such members are members of the purchasing credit union.

(c) The selling credit union shall enter into an agreement with the purchasing credit union containing the terms and

conditions of the sale, and the selling credit union shall within one (1) month after the agreement is signed file a copy

thereof with the administrator. The agreement shall be approved or disapproved by the administrator within thirty (30)

days, otherwise the same shall be deemed approved.

(d) If and when the agreement is approved by the administrator, each of the credit unions shall submit it to a meeting of its

shareholders stating the purpose for which the meetings are called.

(e) If the agreement is approved by the shareholders of each of the credit unions by at least three-fourths (3/4) vote of the

shareholders present at each meeting, the secretary of each credit union shall certify on the agreement that it has

been so approved and shall forward a copy of the agreement so certified to the administrator.

(f) Upon the approval of the shareholders of each of the credit unions, the agreement is binding on each of the credit

unions and the sale shall thereafter be completed as of the effective date specified in the agreement which shall be a

date subsequent to the approval by the shareholders of each of the credit unions.

(g) In the event the agreement does not specify an effective date, the administrator may fix a date upon which it will

become effective.

https://www.lexis.com/research/buttonTFLink?_m=85ba37824c144d05124c1782f51986c6&_xfercite=%3ccite%20cc%3d%22USA%22%3e%3c%21%5bCDATA%5bK.S.A.%20%a7%2017-2204a%5d%5d%3e%3c%2fcite%3e&_butType=4&_butStat=0&_butNum=2&_butInline=1&_butinfo=KSCODE%2017-2204&_fmtstr=FULL&docnum=1&_startdoc=1&wchp=dGLzVzk-zSkAl&_md5=cb9b86817e9f6e76df88621faa18147c

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(h) If the selling credit union has disposed of all assets under the agreement, it shall cease to carry on business on the

effective date of agreement, except for the purpose of winding up its affairs, and it shall dissolve as soon as possible

thereafter, and all reserves shall go to the purchasing credit union under the terms and conditions of the agreement.

Kentucky Ky. Rev. Stat. § 286.6-075. General powers of credit union.

A credit union organized under this subtitle may:

(1) Make contracts;


(3) Adopt and use a common seal and alter same;

(4) Acquire, lease, hold, assign, pledge, hypothecate, sell and otherwise dispose of property, either in whole or in part,


(5) Offer its members and other credit unions various classes of shares, share certificates, deposits or deposit certificates,

upon written authorization of the commissioner;

(6) Lend its funds to its members as hereinafter provided;

(7) Borrow from any source provided that a credit union must secure approval from the commissioner in writing of its

intention to borrow in excess of an aggregate of forty percent (40%) of its capital;

(8) Discount or sell any of its assets, and purchase the assets of another credit union, subject to the approval of the

commissioner;

(9) Make deposits in legally chartered banks, savings banks, savings and loan associations, trust companies, and other

credit unions, including corporate credit unions, and invest funds as otherwise provided in KRS 286.6-585;

(10) Hold membership in other credit unions organized under this subtitle or other acts, and in associations and


under state or federal law;

(11) Engage in activities and programs as requested by the federal government or by this state or any agency or political

subdivision thereof, when approved by the commissioner and not inconsistent with this subtitle; and

(12) Act as fiscal agent for and receive payments on shares and deposits from the federal government, this state, or any

agency or political subdivision thereof.

Ky. Rev. Stat. § 286.6-085. Incidental powers.

A credit union may exercise such incidental powers as are granted corporations organized under the laws of this state,

including such as are convenient or useful to enable it to promote and carry on most effectively its purposes.

Ky. Rev. Stat. § 286.6-325. Dividends -- Approval of commissioner required prior to payment.

(1) At such intervals and for such periods as the board of directors may authorize, and after provision for the required

reserves, the board of directors may declare dividends to be paid on shares and share certificates from net earnings.

Prior approval of the commissioner shall be required for the payment of dividends in excess of net earnings, except that

if the excess is less than one percent (1%) of undivided earnings prior approval shall not be required.

(2) Dividends may be paid at various rates, or not paid at all, with due regard to the conditions that pertain to each class

of share.

Ky. Rev. Stat. § 286.6-445. Charges for failure to meet obligations.

A credit union may assess charges to members, in accordance with the bylaws, for failure to meet their obligations to the

credit union in a timely manner.

Ky. Rev. Stat. § 286.6-535. Insurance for members.

(1) A credit union may purchase or make available insurance for its members in amounts related to their respective ages,

shares, deposits or loan balances or to any combination of them.

(2) A credit union may enter into cooperative marketing arrangements to facilitate its members' voluntary purchase of

insurance, limited to credit life, accident and health insurance.

Ky. Rev. Stat. § 286.6-545. Insurance for credit union officials.


or agent of the credit union, or who is or was serving at the request of the credit union as a director, officer, employee, or

agent of another corporation, partnership, joint venture, trust or other enterprise against any liability asserted against the

person and incurred by the person in his official capacity or arising out of the person's status as such, whether or not the

credit union would have the power to indemnify the person against the liability.

Ky. Rev. Stat. § 286.6-565. Money transfers for convenience of members.

A credit union may collect, receive and disburse moneys in connection with the providing of negotiable checks, money

orders, travelers' checks, and other money-type instruments, and for such other purposes as may provide benefit or

convenience to its members, and charge a reasonable fee for such services.

Ky. Rev. Stat. § 286.6-585. Investments.

Funds not used in loans to members may be invested:

(1) In securities, obligations, or other instruments of or issued by or fully guaranteed as to principal and interest by the United

States of America or any agency thereof or in any trust or trusts established for investing directly or collectively in the

same;

(2) In obligations of any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and the

several territories organized by Congress, or any political subdivision thereof;

(3) In certificates of deposit or passbook-type accounts issued by a state or national bank, mutual savings bank, or savings

37

and loan association;

(4) (a) In loans, not to exceed twenty-five percent (25%) of capital at the lending credit union, to; or

(b) In shares or deposits, not to exceed twenty percent (20%) of the capital of the investing credit union, of other credit

unions, central credit unions, corporate credit unions, or a central liquidity facility established under state or federal

law;

(5) In shares, stocks, loans, or other obligations of any organization, corporation, or association, provided the membership or

ownership, as the case may be, of the organization, corporation, or association is primarily confined or restricted to

credit unions, or organizations of credit unions, and provided further the purpose for which it is organized is to strengthen

or advance the development of credit unions or credit union organizations;

(6) In shares of a cooperative society organized under the laws of this state or of the laws of the United States in the total

amount not exceeding ten percent (10%) of the shares, deposits, and surplus of the credit union;

(7) In stocks and bonds of corporations organized in any state of the United States, the District of Columbia, the

Commonwealth of Puerto Rico and the several territories organized by Congress to an aggregate maximum of five

percent (5%) of members' shares in stocks and an aggregate maximum of five percent (5%) of members' shares in

bonds, provided that investments shall be limited to stocks or bonds which appear on a list approved by the

commissioner and published quarterly or annually, the list to include not less than thirty (30) corporations.

Louisiana La. Rev. Stat. Ann. § 6:644. Powers

A. Every credit union incorporated pursuant to or operating under the provisions of this Chapter shall have all the powers

enumerated, authorized, and permitted by this Chapter and such other rights, privileges, and powers as may be

incidental to or reasonably necessary or appropriate for the accomplishment of the objects and purposes of the credit

union; to enter into such contracts, incur such obligations, and generally do anything necessary or appropriate to take

advantage of all membership, loans, subscriptions, contracts, grants, rights, or privileges whatsoever which at any time

may be available or inure to credit unions by virtue of any act or resolution of the Congress of the United States,

particularly any act of Congress creating a federal credit union system, and regulations issued pursuant thereto.

B. Among others, and except as otherwise limited by the provisions of this Chapter, every credit union shall have the

following powers:

(1) To receive the savings of its members in payment for shares.

(2) To make loans exclusively to members.

(3) To invest, through its board of directors, in:

(a) Bonds, certificates, notes, or other evidence of indebtedness of the United States, state of Louisiana, or any

municipality of Louisiana, including paving certificates of municipalities, and in federal farm loan bonds issued by

federal land banks, debentures issued by federal intermediate credit banks, and debentures issued by banks for

cooperatives; such investments may be by book entry and such book entry investments may be pledged as

security for loans.

(b) Homestead stock.

(c) The shares of other credit unions. It may deposit funds in savings banks, state banks, trust companies, and national

banks. The funds of the credit union shall be used first, however, for loans to members, and preference shall be

given to the smaller loan if available funds do not permit all loans to be made which have passed the credit

committee. Such investments or deposits may be by book entry and such investments or deposits in the U.S.

Central Credit Union and the Louisiana Corporate Credit Union may be pledged as security for loans.

(d) Shares, stocks, loans, or other obligations of any organization, corporation, limited liability company, or

association, provided the membership or ownership, as the case may be, of such organization, corporation,

limited liability company, or association is primarily confined or restricted to credit unions, or organizations of credit

unions, and provided further the purpose for which it is organized is to strengthen or advance the development of

credit unions or credit union organizations. No such investment shall exceed one percent of the credit union's

capital and surplus.

(e) Investments authorized by law for fiduciaries and approved by the commissioner of financial institutions.

(4) (a) When duly authorized by its board of directors, to lend to any other credit unions at such rates as shall be fixed and

determined by the board of directors, not exceeding twenty-five percent of the paid in and unimpaired capital and

surplus of the lending credit union.

(b) As evidence of its indebtedness, the borrowing credit union shall execute its promissory note or other written

agreement to pay, signed by two of its board officers and shall furnish a certified copy of the resolution of its

board of directors to the lending credit union, authorizing the borrowing. The borrowing credit union shall also

furnish a financial statement of its condition as of the last day of the preceding month of the application for such

loans.

(c) The limitation of Subparagraph (4)(a) that such loans not exceed twenty-five percent of the unimpaired capital

and surplus of the lending credit union shall not apply to credit unions commonly referred to as corporate credit

unions and central credit unions, which credit unions are defined as credit unions whose field of membership

primarily includes other credit unions, officers of other credit unions, or eligible employee groups, or both.

(d) Repealed by Acts 1992, No. 27, § 2.

(5) To purchase from any liquidating credit union notes made by individual members of the liquidating credit union at

such prices as may be agreed upon by the board of directors of the liquidating credit union and the board of

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directors of the purchasing credit union.

(6) To invest in and operate a credit union service center, either separately or in cooperation with other credit unions

and credit union organizations.

(7) To collect, receive, and disburse money in connection with the sale of money orders and travelers checks and other

money type instruments, and for other purposes as may provide benefit or convenience for its members.

(8) To obtain and maintain insurance of its member accounts or share accounts by the National Credit Union

Administration, or other federal agency, or state agency or state share insurance corporation of any state,

established for the purpose of insuring member accounts or share accounts of credit unions, including any

investment that may be required in a share insurance corporation.

(9) To purchase or otherwise provide insurance for the benefit or convenience of its members.

(10) To charge reasonable collection fee incurred in the collection of a delinquent loan to the delinquent member's loan

account.

(11) To exercise the powers granted corporations organized under the laws of the state of Louisiana and such incidental

powers as may be necessary or requisite to promote and carry on effectively its purposes.

(12) To receive from any officer, employee, or agent of those nonmember units of the United States, the state of

Louisiana, any parish, or municipality, and political subdivision thereof, payments on shares, share certificates and

share deposits.

(13) To act as trustee and custodian under the Employee Retirement Income Security Act of 1974 (P.L. 93-406), as

amended, and the Self- Employed Individuals Tax Retirement Act of 1962. The bylaws shall provide for

recordkeeping and segregation of assets and for credit union operations, consistent with the principles of sound

custodial administration.

(14) To become a member of the Central Liquidity Facility of the National Credit Union Administration.

(15) To become a member of any federal or state or private corporation that provides electronic funds transfer.

(16) To provide all types of transaction accounts for its members.

(17) To offer its members savings promotion raffles. The term "savings promotion raffle" means a contest in which the sole

consideration required for a chance of winning designated prizes is obtained by the deposit of a specified amount

of money in an interest-bearing share account, where each ticket or entry has an equal chance of being drawn.

La. Rev. Stat. §6:645. Membership

A. The membership shall consist of the incorporators and such natural persons as have been duly elected to membership

and have subscribed to one or more shares and have paid for the same in whole or in part with the entrance fee as

required by the charter and by-laws and have complied with such other requirements as the act of incorporation may

contain. Other organizations, incorporated or not, composed primarily of the same individuals who are eligible to

membership in the credit union are also eligible to membership.

B. Credit unions shall be organized only within groups that have a common bond of residence within a well defined

neighborhood, small community, or rural district, or occupation, or association, or any combination thereof. The minimum

potential of one hundred persons shall be required in groups having a common bond of occupation, and a potential of

two hundred families shall be required in other type groups. Employee groups with insufficient membership shall be

eligible in a central type credit union with the approval of the commissioner. Credit union membership shall consist of the

incorporators and such other persons and incorporated and unincorporated organizations, to the extent provided for in

the charter and bylaws, as may be elected to membership, and as such shall each subscribe to one share of its stock

and a uniform entrance fee if required by the board of directors. A person who has retired from active employment, but

receives retirement compensation, may continue to retain full membership.

C. Students who qualify for a student loan under the provisions of the Louisiana Higher Education Assistance Commission

Act1 shall be eligible for membership in any credit union domiciled in this state solely for the purpose of obtaining a

student loan under the provisions of the Louisiana Higher Education Assistance Commission Act.

D. Members of a federally chartered or state chartered credit union in liquidation in Louisiana, who are residents of

Louisiana, shall be eligible for membership in a central type credit union.

La. Rev. Stat. §6:654. Rates of interest

A. Notwithstanding any other provision of the law to the contrary, a credit union may lend to its members at such maximum

fixed rates or maximum variable rates of interest, as provided for in the bylaws of the credit union, which have been

approved by the commissioner of financial institutions. An endorser, guarantor, or co-maker shall be subject to the same

interest charge as a member of the credit union.

B. Notwithstanding any other provision of the law to the contrary, with respect to a loan to a member pursuant to an open-

end credit, revolving credit, or line of credit loan account, a credit union may contract to receive and collect a finance

charge, which may be such maximum fixed rates or maximum variable rates of interest in any amount, as provided for in

the credit union bylaws, which have been approved by the commissioner of financial institutions. The finance charge

may be added to the loan balance on the monthly due date or monthly billing date or the proportionate part due may

be added when a new advance is made.

C. Notwithstanding any other provision of the law to the contrary, a credit union may provide in the bylaws for fees and

costs incidental to the making of loans and for late charges, which have been approved by the commissioner of

financial institutions.

La. Rev. Stat. § 6:655. Power to borrow

A. A credit union may borrow from any source, but the total of such borrowing at no time shall exceed fifty percent of its

paid in and unimpaired capital and surplus.

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B. The limitation in Subsection A of this Section shall not apply to a central or corporate credit union. However, the

borrowing limitations of a central or corporate credit union shall be provided for in its bylaws as approved by the

commissioner.

La. Rev. Stat. § 6:658. Dividends

A. At such intervals as the board of directors may authorize and after provision for the required reserve and subject to

applicable federal regulations, the board of directors may declare a dividend to be paid, at different rates on different

types of shares, and at different rates and maturity dates in the case of share certificates, from the remaining net

earnings. Dividend credit may be accrued on various types of shares and share certificates as authorized by the board

of directors.

B. Provided no credit union shall declare or pay any dividends on its shares except from current net earnings, and

undivided profits. Provided, further, that in the event of delinquency in loans there shall be no dividends paid unless the

reserve fund shall be equal to or in excess of the sum of 10 percent of the unpaid balance of loans delinquent more than

two months and less than six months, plus twenty-five percent of the unpaid balances of loans delinquent from six

months to less than twelve months, plus fifty percent of the unpaid balances of loans delinquent from twelve months to

less than eighteen months, plus one hundred percent of the unpaid balances of loans delinquent eighteen months or

more; provided, further, that in the event the legal reserve fund does not equal the amount required as hereinabove set

forth, then and in that event the reserve fund shall be supplemented by a special reserve for delinquent loans in an

amount which will make the reserve fund and the special reserve equal to the sum required in accordance with the

schedule hereinabove set forth. La. Rev. Stat. § 6:662.1. Fiscal agents and depositories

Each credit union organized under this Chapter, when requested by the secretary of the treasury, may act as fiscal agent

of the United States and may perform such services as the secretary of the treasury may require in connection with the

collection of taxes and other obligations due the United States and the lending, borrowing and repayment of money by

the United States, including the issue, sale, redemption or repurchase of bonds, notes, treasury certificates of indebtedness,

or other obligations of the United States. Any credit union organized under this Chapter, when designated for that purpose

by the secretary of the treasury, may be a depository of public money, except receipts from customs, under such

regulations as may be prescribed by the secretary of the treasury.

Maine Me. Rev. Stat. Ann. tit. 9-B, § 821. Powers in general

In addition to all services to members and to nonmembers as provided in section 817 incidental to the powers granted

credit unions elsewhere in this Title, a credit union is empowered to do the acts set forth in this chapter, subject to the

conditions and limitations set forth herein.

Me. Rev. Stat. Ann. tit. 9-B, § 822. Borrowing

1. LIMITATION. A credit union may borrow moneys from any source; provided that its aggregate borrowing shall not exceed

50% of its paid-in share capital and total surplus.

2. EXCEEDING LIMITATION. Upon making application to and receiving the written approval of the superintendent, a credit

union may borrow in excess of the limitation set forth in subsection 1, but not in excess of the amount stated in such

approval.

Me. Rev. Stat. Ann. tit. 9-B, § 823. Services for members

1. SALE OF NEGOTIABLE CHECKS AND MONEY ORDERS. A credit union may engage directly in the business of selling, issuing

or registering checks or money orders to its members.

2. SAFE DEPOSIT BOXES. A credit union may own and maintain safe deposit vaults, with boxes, safes and other facilities

therein, for the use of its members and for the safekeeping or storage of personal property susceptible of being

deposited therein, subject to the general laws and regulations applicable to safe deposit boxes.

3. SAFEKEEPING. A credit union may receive on deposit from its members property for safekeeping.

4. FINANCIAL COUNSELING. A credit union may render, or participate in the rendering of, financial counseling services,

including budget planning, debt management and related services, to its members.

5. TRUSTEE, SELF-EMPLOYMENT RETIREMENT PLANS. A credit union shall have the power to act as trustee for a member under

a retirement plan subject to the conditions and limitations set forth in section 442.

Me. Rev. Stat. Ann. tit. 9-B, § 824. Participation in electronic funds transfer system

1. AUTHORIZATION. A credit union may issue cards or other devices to its members that permit the members to gain access

to or participate in an established electronic funds transfer system.

2. DELETED. Laws 2003, c. 322, § 16.

Me. Rev. Stat. Ann. tit. 9-B, § 825. Participation in public lotteries

A credit union may participate in public lotteries authorized pursuant to the laws of this State in the manner outlined in

guidelines and regulations promulgated pursuant to such laws; provided that the superintendent may promulgate

additional rules and regulations governing such participation.

Me. Rev. Stat. Ann. tit. 9-B, § 826. Offices and satellite facilities

A credit union may establish, relocate, close and operate a branch or satellite facility in accordance with chapter 33,

except that the limitation of section 337, subsection 2 does not apply. The limits of section 863 apply to credit union

investment in real estate for office facilities. The establishment, relocation or closing of a branch or facility must meet the

needs and convenience of the credit union's members.

Me. Rev. Stat. Ann. tit. 9-B, § 827. Accounts

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1. RECEIPT OF SAVINGS. Except as provided in subsection 4, a credit union may receive savings of its members in payment

for shares, Christmas clubs, special purpose clubs, tax clubs, deposit accounts and the like.

2. RECEIPT OF PAYMENTS FROM GOVERNMENT AGENCIES AND OTHER CREDIT UNIONS. A credit union may act as fiscal agent

for and receive payments on shares and deposits from the Federal Government, this State or any agency or political

subdivision or another federally insured credit union.

3. LIEN ON SHARES. A credit union may impress and enforce a lien on the shares and dividends of a member to the extent

of any loan made to and any dues or charges payable by that member. A credit union that has been designated a

community development credit union pursuant to section 817 may impress and enforce a lien on the shares and

dividends of a nonmember to the extent of any loan made to and any dues or charges payable by that nonmember.

4. NONMEMBER SHARES AND DEPOSIT ACCOUNTS. A community development credit union designated by the superintendent

as a community development credit union under section 817 may receive payments and savings from nonmembers

representing shares of a type approved by the National Credit Union Administration and deposit accounts of a type

approved by the superintendent.

Me. Rev. Stat. Ann. tit. 9-B, § 828. Powers of federally chartered credit unions

Notwithstanding any other provisions of law, a credit union has the power to engage in any activity that a credit union

chartered by or otherwise subject to the jurisdiction of the Federal Government may be authorized to engage in by federal

legislation or regulations issued pursuant to such legislation. In the event any law of this State is preempted or declared

invalid pursuant to applicable federal law, by a court of competent jurisdiction or by the responsible federal chartering

authority with respect to any power that may be exercised by a credit union chartered by or otherwise subject to the

jurisdiction of the Federal Government, that law is invalid with respect to credit unions authorized to do business in this

State. The superintendent may adopt rules to ensure that such powers are exercised in a safe and sound manner with

adequate consumer protections. Rules adopted pursuant to this section are routine technical rules as defined in Title 5,

chapter 375, subchapter II-A.

Me. Rev. Stat. Ann. tit. 9-B, § 833. Dividends and interest

1. REPEALED. Laws 2003, c. 322, § 22.

1-A. TIME FOR PAYMENT OF DIVIDENDS; METHOD. At such intervals as the board of directors may authorize and after the

credit union establishes and maintains adequate levels of net worth pursuant to section 831, the board of directors may

declare a dividend to be paid at different rates on different types of shares, at different rates and maturity dates in the

case of share certificates and at different rates on different types of share draft accounts. Dividends credited may be

accrued on various types of shares, share certificates and share draft accounts as authorized by the board of directors.

2. REPEALED. Laws 2003, c. 322, § 24.

3. REPEALED. Laws 1981, c. 501, § 35.

3-A. REPEALED. Laws 2003, c. 322, § 25.

4. TAX EXEMPTION. Shares in a credit union organized pursuant to this Part shall be exempt from taxes; and no taxes or

charges, except as otherwise provided, shall be levied against them.

Me. Rev. Stat. Ann. tit. 9-B, § 861. Investments in general

1. APPLICABLE LAW. In addition to the loans a credit union is authorized to make pursuant to chapter 85, a credit union may

invest its funds in accordance with the provisions of this chapter.

2. DIRECTOR APPROVAL REQUIRED. Investments pursuant to this chapter shall only be made with the approval of the board

of directors or executive committee of the credit union.

3. WRITTEN INVESTMENT POLICY. A credit union's board of directors shall establish a written investment policy, which must be

reviewed and ratified at least annually, that addresses at a minimum the following:

A. Investment quality parameters;

B. Investment mix and diversification;

C. Investment maturities; and

D. Delegation of authority to officers and committees responsible for administering the portfolio.

Me. Rev. Stat. Ann. tit. 9-B, § 862. Deposits, notes and bonds

A credit union may invest in:

1. DEPOSITS IN INSURED INSTITUTIONS. Deposits or share accounts in any financial institution or credit union, as long as

deposits or shares in the financial institution or credit union are insured by the Federal Deposit Insurance Corporation or

the National Credit Union Administration; 2. REPEALED. Laws 1987, c. 405, § 32.

2-A. OTHER LEGAL INVESTMENTS FOR CREDIT UNIONS. A credit union may legally invest in the following.

A. Credit unions are authorized to invest in government unit bonds:

1) The bonds and other obligations of the United States or the bonds and other obligations or participation certificates

issued by any agency, association, authority or instrumentality created by Congress or any executive order;

2) The bonds and other obligations issued or guaranteed by any state or by any instrumentality or agency of any state,

or by any political subdivision of any state; provided that such securities are rated within the 3 highest grades by any

rating service approved by the superintendent;

3) The bonds and other obligations issued or guaranteed by this State, or issued by an instrumentality or agency of this

State or any political subdivision of this State which is not in default on any of its outstanding funded obligations; and

4) The bonds and other obligations issued or guaranteed by the Dominion of Canada, or issued or guaranteed by any

province or political subdivision of a province; provided that such securities are rated within the 3 highest grades by

any rating service approved by the superintendent and are payable in United States funds.

B. Credit unions are allowed to invest in the bonds and other obligations of any United States corporation, provided that

41

such securities are rated within the 3 highest grades by any rating service approved by the superintendent. Not more

than 2% of the shares of a credit union shall be invested in the securities of any one such corporation and the total of

all such investments shall not exceed 20% of the shares of a credit union.

C. Credit unions are authorized to invest in the following:

1) The bonds, debentures, acceptances and commercial paper of any financial institution authorized to do business

within this State, incorporated under the laws of this State or the United States and of any financial institution holding

company registered under chapter 101. For the purposes of this subsection, the out-of-state owners of Maine

financial institutions or financial institution holding companies are not to be considered Maine financial institutions or

financial institution holding companies;

2) The bonds, debentures, acceptances and commercial paper of banks or bank holding companies principally

domiciled outside the State, provided that the bank's or holding company's bonds and debentures are rated in the

3 highest grades by a rating service approved by the superintendent. In the case of commercial paper, the

commercial paper should be rated in the 2 highest grades. In the case of acceptances, the bank's or holding

company's ratings of its other obligations so listed should be within the above parameter. These banks should also

be insured by the Federal Deposit Insurance Corporation and holding companies should be registered under the

Bank Holding Company Act of 1956; and 3) Capital notes or debentures issued by any savings bank or savings and loan association chartered under the laws of

any state, or of the United States, or of the Commonwealth of Puerto Rico, provided that these institutions are

insured by the Federal Deposit Insurance Corporation or Federal Savings and Loan Insurance Corporation or issued

by a thrift institution holding company registered under the United States Housing Act, Section 408. These obligations

shall be rated in the 3 highest grades by a rating service approved by the superintendent.

A credit union shall not acquire obligations described in this paragraph both by way of investment as security for loans

in excess of 30% of its shares; nor shall it acquire such obligations of anyone bank or thrift, or bank or thrift holding

company, not principally domiciled in this State in excess of 5% of its shares.

D. A credit union may invest in mutual funds or trusts, provided that all of the investments of those mutual funds or trusts

are permissible investments under this section.

E. A credit union may invest in United States or State Government guaranteed loans.

F. The superintendent may by rule, issued pursuant to section 251 raise or lower the limitations as to percentage of

securities prescribed under this section or prescribe such additional limitations as in his judgment conditions warrant.

3. NOTES OF LIQUIDATING CREDIT UNION; LIMITATION. The purchase of notes from a liquidating credit union; provided that

such purchase shall not exceed 5% of the purchasing credit union's share capital and surplus; and

4. REPEALED. Laws 2001, c. 211, § 20.

5. FEDERAL HOME LOAN BANK AND NATIONAL CREDIT UNION ADMINISTRATION CENTRAL LIQUIDITY FACILITY MEMBERSHIP. A

credit union may become a member and stockholder of the following:

A. A Federal Home Loan Bank within the Federal Home Loan Bank district where that credit union is located; and

B. The National Credit Union Administration Central Liquidity Facility, subject to the conditions and limitations prescribed

under the Federal Credit Union Act, 12 United States Code, Sections 1751 to 1795k (1988).

This section may not be construed to authorize a credit union to purchase or invest in the stock of any corporation, except

for the purchase of stock in the Federal Home Loan Bank or the National Credit Union Administration Central Liquidity

Facility for purposes of establishing membership in those systems.

Maryland Md. Code Ann. Fin. Inst. Law § 6-312. General powers

In addition to the powers set forth elsewhere in this title, a credit union may:

(1) Receive the shares and deposits of its members;

(2) Lend money to its members;

(3) Invest funds as provided in this title; and

(4) Undertake other activities that:

(i) Are consistent with this title;

(ii) Relate to its purposes; and

(iii) Are authorized by its bylaws.

Md. Code Ann. Fin. Inst. Law § 6-313. Powers authorized by federal law

(a) Additional activities. -- Notwithstanding any other provision of the laws or regulations of the State, on approval of the

Commissioner, a credit union may engage in any additional activity, service, or other practice in which, under federal

law or regulation, federal credit unions may engage.

(b) Scope of authority. -- The Commissioner may grant an approval under this section only if:

(1) The Commissioner determines that approval:

(i) Reasonably is required to protect the welfare of the general economy of the State and of credit unions; or

(ii) Is not detrimental to the public interest or to credit unions; and

(2) The approval imposes the same conditions that federal law or regulation requires or permits as to federal credit

unions.

Md. Code Ann. Fin. Inst. Law § 6-314. Capital

(a) Lien on shares. -- Without being required to take any action to perfect a lien, a credit union has a lien and a right to a

setoff on the shares and deposits of a member in any individual, multiple party, or other type of account, including any

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dividends or interest payable on those shares or deposits, to the extent of any delinquency or default of the member

on:

(1) Any outstanding loan, whether or not matured, on which the member is liable to the credit union as maker,

comaker, surety, or endorser; and

(2) Any dues, charges, fees, fines, or other amount payable by the member.

(b) Cancellation of shares. -- If a member resigns or is expelled, the credit union may cancel that member's shares and

apply their withdrawal value against any amount owed to the credit union by the member.

(c) Withdrawal of shares. -- A credit union may allow a withdrawal of a member's shares or deposits without affecting the

credit union's lien or right to a setoff.

(d) Refusal of withdrawal. -- A credit union may refuse to allow a withdrawal of a member's shares or deposits to the extent

of any delinquency or default of the member to the credit union.

Md. Code Ann. Fin. Inst. Law § 6-328. Directors -- Duties

(a) Additional duties. -- In addition to any power or duty provided for by law, the board shall:

(1) Act on each application for membership;

(2) Approve the amount of any blanket fidelity bond and any appropriate insurance or surety bond;

(3) Limit the number of shares or deposits that a member or depositor may hold;

(4) Limit the amount that the credit union may lend to any one member and establish the interest rate on all loans;

(5) Determine the interest rate on deposits and the manner of calculation;

(6) In the absence of a credit committee, appoint one or more loan officers and delegate to those officers the power

to approve or disapprove loans and lines of credit in accordance with written policies established by the board;

(7) In the absence of a credit committee and upon written request of a member, review a loan application denied by

a loan officer or establish a subcommittee of the board for this purpose;

(8) Fill any vacancy on the supervisory committee or, if any, a credit committee;

(9) Manage the investment of credit union funds in accordance with written investment policies established by the

board;

(10) Set the amount of compensation for the president;

(11) Appoint standing or special committees, as necessary, to carry on the business of the credit union and prescribe

conditions and limitations for any committee that the board appoints;

(12) Approve an annual operating budget for the credit union;

(13) Establish and adopt written policies necessary to implement the powers and duties of the credit union, including

policies on:

(i) Loans and lending;

(ii) Investments;

(iii) Employment and personnel;

(iv) Funds management;

(v) Collections;

(vi) Charge offs; and

(vii) Expulsion of members;

(14) Make adequate provision for:

(i) Investment losses;

(ii) The statutory reserve account;

(iii) Any special reserve account; and

(iv) The allowance for a loan and lease loss account;

(15) Determine the amount, if any, that may be assessed for late fees or other charges;

(16) Delegate to the officers, employees, or committees duties as the board may deem appropriate;

(17) Establish and maintain a system of internal controls consistent with safety and soundness and generally accepted

accounting principles; and

(18) Except for any instance where, in the judgment of the board, it would result in damage to the credit union's

financial soundness or would otherwise force the board to abrogate their fiduciary responsibility, perform every

other duty that the members require.

(b) Suspensions. --

(1) Subject to the provisions of paragraphs (2) and (3) of this subsection, the board may suspend a member of the

supervisory committee.

(2) The suspension:

(i) Shall be by a two-thirds vote of the board; and

(ii) Takes effect immediately and remains in effect until the board convenes a meeting of the members to vote on

the suspension.

(3) Immediately after the board votes to suspend a member of the supervisory committee, the board shall:

(i) Call a meeting of the members, to be held no later than 15 days after the date of the suspension, for the purpose

of voting on the suspension; and

(ii) Notify the Commissioner in writing about the suspension.

Md. Code Ann. Fin. Inst. Law § 6-502. Dividends

(a) Declaration and source. --

(1) Except as otherwise provided in this section, the board may declare and pay dividends from its available net

43

earnings or undivided earnings at the close of any accounting period after providing for accrued expenses and

interest.

(2) Dividends paid or accrued are to be treated as an expense.

(b) Dividend rate. -- The board shall set the dividend rate and any terms and conditions regarding the dividend.

(c) When not to be declared. -- A credit union may not declare a dividend:

(1) Unless the required amount of earnings has been credited to the reserve fund of the credit union; or

(2) If the known losses at the close of a fiscal year would exceed the sum of the balances of the reserve fund, surplus,

and undivided earnings after payment of the dividend.

Md. Code Ann. Fin. Inst. Law § 6-705. Permitted deposits and investments

(a) Generally. -- The assets of a credit union that are not committed for loans may be invested in:

(1) General obligations of or obligations guaranteed by the United States;

(2) Deposits, loans, shares, or stock of any federal reserve bank, federal home loan bank, or any central liquidity facility

established under state or federal law;

(3) Securities, obligations, or other instruments of or issued by or fully guaranteed as to principal and interest by the

federal government or a unit of the federal government;

(4) General obligations of a state or a federal territory or political subdivision, provided that the general obligation is

rated in one of the three highest rating categories of a nationally recognized statistical rating organization as

determined by the Commissioner;

(5) Deposits or federal funds of any financial institution that has federal deposit insurance;

(6) Shares or deposits of other credit unions;

(7) Mutual funds that invest solely in investments permissible for direct investment by the credit union;

(8) Repurchase transactions secured by investments permissible for direct investment by the credit union; or

(9) Any other investment that the Commissioner approves.

(b) Request for additional investments. --

(1) Subject to the provisions of paragraph (2) of this subsection, in addition to the investments authorized under

subsection (a) of this section, a credit union may request authority from the Commissioner to make other

investments, including investments authorized under the federal Credit Union Act or regulations of the National

Credit Union Administration, on an ongoing basis.

(2) To obtain the Commissioner's approval for additional investment authority under paragraph (1) of this subsection, a

credit union shall submit to the Commissioner an investment policy.

(c) Review of investment policies. -- The Commissioner may review the investment policies of the credit union and order

changes.

Md. Code Ann. Fin. Inst. Law § 6-707. Credit union facilities

(a) Acquisition of fixed assets. --

(1) In addition to any other investment authorized under this subtitle, a credit union may purchase, construct, or acquire

and hold, either individually or jointly with another credit union, fixed assets for the purpose of providing adequate

facilities for the transaction of present and future business.

(2) A credit union may use fixed assets acquired under this section for:

(i) The principal office functions;

(ii) Branches; and

(iii) Any other activities in which the credit union engages.

(3) A credit union may rent excess space in a fixed asset acquired under this section as a source of income.

(4) A credit union's investment in fixed assets acquired under this section:

(i) May exceed 4% of the total assets of the credit union only with the prior approval of the Commissioner; and

(ii) May not exceed 6% of the total assets of the credit union.

(b) Acquisition of personal property. -- A credit union may purchase, lease, or acquire and hold tangible personal property,

either individually or jointly with another credit union, as may be necessary or incidental to the operations of the credit

union.

Md. Code Ann. Fin. Inst. Law § 6-708. Power to borrow

(a) Fixed assets. --

(1) Subject to the provisions of paragraph (2) of this subsection, a credit union may borrow money for the purchase of

fixed assets.

(2) The term of the loan may not exceed:

(i) 15 years for borrowings secured by real or leasehold property; and

(ii) 5 years for borrowings secured by other fixed assets.

(b) Borrowing for other than fixed assets. -- A credit union may borrow money for a purpose other than the purchase of fixed

assets as long as the total borrowing does not exceed the greater of:

(1) Two times the net worth of the borrowing credit union; or

(2) 10% of the total assets of the borrowing credit union.

Md. Code Ann. Fin. Inst. Law § 6-713. Member insurance -- Notice to Commissioner

If a credit union files an application with the Maryland Insurance Commissioner to purchase or make available, as an

agent or otherwise, insurance for its members either on an individual or group basis, the credit union shall notify the

Commissioner, within 10 days after filing the application, that the credit union has filed the application.

Md. Code Ann. Fin. Inst. Law § 1-211. Savings promotion raffles

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(a)(1) In this section the following words have the meanings indicated.

(2) “Depository institution” means a financial institution that:

(i) Is located in this State or maintains a branch in this State; and

(ii)Is authorized to maintain qualifying accounts.

(3)“Eligible customer” means an individual who:

(i) Maintains a qualifying account at a depository institution;

(ii) Is an adult; and

(iii) Is a resident of this State.

(4)“Qualifying account” means a savings account, share account, or other savings product or program:

(i) Offered by a depository institution;

(ii) Insured by the Federal Deposit Insurance Corporation, the National Credit Union Administration, or a credit union

share guaranty corporation that is approved by the Commissioner; and

(iii) Through which eligible customers may obtain chances to win prizes in a savings promotion raffle.

(5) “Savings promotion raffle” means a contest in which:

(i) The sole consideration required for a chance of winning designated prizes is obtained by the deposit of a specified

amount of money in a qualifying account; and

(ii) Each ticket or entry has an equal chance of being drawn.

(b) A depository institution may conduct a savings promotion raffle for the exclusive benefit of eligible customers if:

(1) The depository institution maintains books and records relating to the savings promotion raffle; and

(2) The savings promotion raffle will not:

(i) Harm the depository institution’s ability to operate in a safe and sound manner; or

(ii) Mislead the depository institution’s customers.

(c) Except as preempted by federal law, the Commissioner may:

(1) Examine the conduct of a savings promotion raffle; and

(2) Issue a cease and desist order under § 5–808 of this article for a violation of this section.

Massachusetts Mass. Gen. Laws ch. 171, § 6A. State Chartered Credit Unions; Powers; Activities; Authorization by Commissioner.

Notwithstanding other provisions of this chapter, a credit union organized under the provisions of this chapter and insured

by the National Credit Union Share Insurance Fund may exercise any power and engage in any activity that is permissible

for a credit union organized under the provisions of the Federal Credit Union Act in accordance with regulations

promulgated by the commissioner pursuant to this section; provided, however, that any such activity is not otherwise

prohibited. In determining whether or not to authorize any such activity, the commissioner shall also determine whether or

not competition among credit unions will be unreasonably affected and whether public convenience and advantage will

be promoted. Said commissioner shall promulgate regulations necessary to carry out the provisions of this section. Except

for emergency regulations adopted pursuant to section 2 of chapter 30A, any such regulation, or any amendment or

repeal thereof, shall, after compliance with all applicable provisions of said chapter 30A except section 5, shall be

submitted to the general court.

Said commissioner shall file the proposed regulation, amendment or repeal with the clerk of the house of representatives,

together with a statement that the pertinent provisions of said chapter 30A have been complied with and a summary of

the regulations in layman's terms. Said clerk shall refer such filing to the joint committee on banks and banking within five

days of the filing thereof. No such regulation shall take effect until 90 days after it has been so filed; provided, however,

that such 90 day period shall not include days when the general court is prohibited by law or rule from meeting in formal

session.

Mass. Gen. Laws ch. 171, § 65E. Powers of credit unions

Every credit union, subject to limitations imposed by section 65 to section 65E, inclusive, or other general law, shall have the

following powers and whatever further incidental or complementary powers that may fairly be implied from those expressly

conferred and such as are reasonably necessary to enable it to exercise fully those powers according to common customs

and usages:

(1) to discount, buy, invest in, hold, assign, transfer, sell and negotiate promissory notes, drafts, bills of exchange,

mortgages, bonds, debentures, bonds or notes secured by mortgages, installment obligations and other evidences of

debt;

(2) to advance money or credits on real estate, on improvements thereto or on personal security, on terms to be agreed

upon; and

(3) to buy, sell or make loans as participation loans with any other federally-insured credit union, bank or insurance

company and to service any loans sold by it

Mass. Gen. Laws ch. 171, § 6B. Savings Promotion Raffles

(a) For the purposes of this section, the term "savings promotion raffle'' shall mean a contest in which the sole consideration

required for a chance of winning designated prizes is obtained by the deposit of a specified amount of money in a

savings account or other savings program where each ticket or entry has an equal chance of being drawn and where

the contest is subject to regulations that may be promulgated by the appropriate federal regulatory agency, as

defined by 12 U.S.C. 5481.

(b) A credit union may receive deposits in conjunction with a savings promotion raffle pursuant to the federal American

Savings Promotion Act, Public Law 113-251. A savings promotion raffle conducted pursuant to this section shall not be a

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violation of section 7 of chapter 271.

(c) The commissioner shall promulgate regulations necessary to implement and administer this section.

Mass. Gen. Laws ch. 171, § 9. By-Laws.

The shareholders of every such corporation shall make and adopt by-laws, consistent with law, for the government of its

affairs. The by-laws shall provide for and determine:

(a) The name of the corporation.

(b) The purposes for which it is formed.

(c) The condition of residence, occupation or association which qualify persons for membership.

(d) The conditions on which shares may be paid in, transferred and withdrawn.

(e) The conditions on which deposits may be received and withdrawn.

(f) The method of receipting for money paid on account of shares or deposits or repaid on loans.

(g) The number of directors and the number of years for each term.

(h) The number of members of the credit committee.

(i) The time of holding regular meetings of the board of directors, the credit committee and the auditing committee.

(j) The duties of the several officers.

(k) The entrance fees, if any, to be charged.

(l) The fines, if any, to be charged for failure to meet obligations to the corporation punctually.

(m) The date of the annual meeting.

(n) The manner in which members shall be notified of the annual meeting and special meetings.

(o) The number of members who shall constitute a quorum at all meetings.

(p) Such other policies as may be deemed to be necessary.

Mass. Gen. Laws ch. 171, § 24. Indemnification of Directors, Officers, Employees, etc.; Insurance.

A credit union may indemnify its directors, officers, employees and other agents to whatever extent specified in or

authorized by a by-law adopted pursuant to law. Such indemnification may include payment by the credit union of

expenses incurred in defending a civil or criminal action or proceeding in advance of the final disposition of such action or

proceeding upon receipt of an undertaking by the person indemnified to repay such payment if he shall be adjudicated

to be not entitled to indemnification under this section. Any such indemnification may be provided although the person to

be indemnified is no longer an officer, director, employee or agent of the credit union.

No indemnification shall be provided for any person with respect to any matter as to which he shall have been

adjudicated in any proceeding not to have acted in good faith in the reasonable belief that his action was in the best

interests of the credit union.

A credit union shall have power to purchase and maintain insurance on behalf of any person who is or was a director,

officer, employee or other agent of the credit union against any liability incurred by him in any such capacity or arising out

of his status as such, whether or not the credit union would have the power to indemnify him against such liability.

Mass. Gen. Laws ch. 171, § 25. Group Insurance.

A credit union may provide group life insurance, group accident and health insurance or group medical, surgical or

hospital insurance or benefits or all or any combination thereof, for its employees, officers, and directors. Directors ineligible

for the group benefit may be reimbursed up to the net dollar amount of the individual participant cost of the group

benefit. The commissioner may establish regulations necessary to provide reasonable restrictions in connection therewith.

The commissioner may also make adjustments and exceptions as in his judgment are necessary to carry out or facilitate

compliance with this section.

Mass. Gen. Laws ch. 171, § 29. Capital; Dividends.

The capital of a credit union shall be unlimited in amount and shall consist of shares and deposits. Shares shall be of a par

value of not less than five dollars but not more than twenty-five dollars each and shall be subscribed and paid for in such

manner as the by-laws of the credit union shall prescribe.

Dividends may be declared by the board of directors at least once every year for such periods as shall be determined by

the board of directors and paid from the earnings which actually have been collected during the dividend period next

preceding and which remain after the deduction of all expenses, interest on deposits and shares and the amounts

required to be set apart to the loan reserve and investment reserve or such dividend may be declared in whole or in part

from the undivided earnings of preceding years remaining after the aforesaid deductions for such years; provided,

however, that if the by-laws of the credit union so provide, a share purchased or deposit made on or before the tenth day

after the day on which shares or deposits begin to draw dividends or interest, as provided in the by-laws or regulations, or, if

such tenth day be a Saturday, Sunday or legal holiday, on or before the next business day succeeding such tenth day and

remaining in the credit union as shares or deposits through the balance of the monthly period, shall be construed as having

been on deposit as shares or deposits one full month within the meaning of this section.

Such dividends may be paid on fully paid shares outstanding at the close of the dividend period, but shares which

become fully paid during such dividend period shall be entitled only to a proportionate part of such dividend calculated

from the first day of the month following such payment in full. Dividends due to a member shall, at his election, be paid to

him in cash or credited to his account in either shares or deposits; provided, however, that dividends may not be declared

or paid on less than one full share.

Dividends may be paid at various rates based on the type and amount of an account or on the terms and conditions

applicable to said accounts.

The board of directors shall determine the rate of interest to be paid on deposits.

Mass. Gen. Laws ch. 171, § 30. Members May Hold Shares and Make Deposits; Limitations.

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Every member of a credit union shall hold 1 share and may hold shares or make deposits, or both, therein, in his own name

and he may jointly, with one or more persons, hold shares or make deposits, or both. An organizational member may

purchase shares or make deposits; provided, however, that the total of the payments by all organizational members shall

not exceed, at any time, 25 per cent of the assets of the credit union.

This section shall apply to members of credit unions which are insured by the National Credit Union Administration;

provided, however, that no such credit union shall accept deposits or payments for shares for the account of a

shareholder or depositor in excess of the amount which is insured by the National Credit Union Administration unless the

excess is insured by the Massachusetts Credit Union Share Insurance Corporation pursuant to section 6D of chapter 294 of

the acts of 1961.

Mass. Gen. Laws ch. 171, § 41A. Fees for Checks, Drafts or Money Orders Refused Because of Insufficient Funds or Absence of

Account.

No credit union shall assess any fee, charge or other assessment against any account, established for personal, family or

household purposes, of a depositor or shareholder who, as the payee of a check, draft or money order, of which the

payee is not also the maker, deposits the same therein and payment on any such instrument is refused by the depository

institution upon which it is drawn because of insufficient funds or because the maker thereof did not have an account at

such depository institution; provided, however, that a credit union may assess a reasonable fee, charge or assessment that

represents its direct costs, as established annually by the commissioner of banks, incurred for processing such check, draft

or money order.

Mass. Gen. Laws ch. 171, § 57. Loans to Members; Applications for Loans; Loan Preferences; Restriction on Loans.

The capital, deposits and surplus of a credit union shall be invested in loans to members, with approval of the credit

committee, as provided in section seventeen and, when so required herein, of the board of directors.

All applications for loans shall be made in writing and shall state the purpose for which the loan is desired and the security,

if any, offered.

Personal loans shall always be given the preference and, in the event there are not sufficient funds available to satisfy all

loan applications approved by the credit committee, preference shall be given to the smaller loan.

Whenever the liquidity reserve required by section seventy-one falls below five percent of the total assets of a credit union,

no further loans shall be made until the ratio as herein provided has been reestablished.

Mass. Gen. Laws ch. 171, § 67. Investment of Funds.

A credit union may make the following investments:

(a) in the shares of the Central Credit Union Fund, Incorporated, as authorized by section three of chapter two hundred and

sixteen of the acts of nineteen hundred and thirty-two;

(b) in the shares of any federally chartered corporate credit union provided, however, that not more than twenty-five

percent of the assets of a credit union shall be invested in such shares;

(c) in deposits in savings banks incorporated in the commonwealth;

(d) in paid-up shares and accounts of and in cooperative banks incorporated in the commonwealth;

(e) in the shares of savings and loan associations incorporated in the commonwealth;

(e) in deposits in the Reserve Fund of the Massachusetts Credit Union Share Insurance Corporation authorized by section 8A

of chapter 294 of the acts of 1961.

(f) in deposits in trust companies incorporated in the commonwealth;

(g) in deposits in banking companies incorporated in the commonwealth which are members of the Federal Deposit

Insurance Corporation;

(h) in the shares of federal savings and loan associations having a usual place of business within the commonwealth to an

amount not in excess of the insurance provided by the Federal Savings and Loan Insurance Corporation for a depositor

in any one of such association;

(i) in deposits in national banks located in the commonwealth;

(j) in bonds or notes of the United States or of any state or subdivision thereof;

(k) obligations of other federal agencies which appear on the list of legal investments prepared pursuant to section fifteen

A of chapter one hundred and sixty-seven;

(l) in repurchase agreements secured by government obligations up to one year maturity;

(m) in a common trust unit plan organized for the purchase of obligations of the United States or any subdivision thereof

which appear on the list of legal investments prepared pursuant to said section fifteen A of said chapter one hundred

and sixty-seven and which plan has as its custodian a banking institution authorized to accept deposits from a credit

union or from a savings bank;

(n) participate in federal funds with those banking corporations which are listed as eligible for such an investment, on the list

of legal investments prepared pursuant to said section fifteen A of said chapter one hundred and sixty-seven;

(o) in any obligations, bank stocks, bank holding company stocks, insurance stocks or preferred stocks of public utility

companies which appear on the list of legal investments prepared pursuant to said section fifteen A of said chapter

one hundred and sixty-seven.

Not more than ten percent of the assets of a credit union shall be invested in bank stocks or bank holding company stocks

or insurance stocks or preferred stocks of public utility companies or in all four of such types of stocks appearing on said

list and not more than fifteen thousand dollars or two percent of the assets of a credit union, whichever is greater, shall

be invested in the stock of any one such bank, bank holding company, insurance company or preferred stock of public

utility companies.

Not more than twenty percent of the assets of a credit union shall be invested in railroad obligations appearing on such list

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and not more than one and one-half percent of the shares and deposits of any such credit union shall be invested in the

obligations of any one operating railroad corporation.

Not more than twenty percent of the assets of a credit union shall be invested in the obligations of telephone companies

appearing on said list and not more than four percent of the shares and deposits of such credit union shall be invested

in the obligations of any one such company. Not more than twenty-five percent of the assets of a credit union shall be

invested in obligations of public utility companies appearing on said list and not more than four percent of the deposits

of such credit union shall be invested in the obligations of any one such company.

Not more than ten percent of the assets of a credit union shall be invested in interest bearing obligations authorized for

investment under the provisions of section fifteen B of chapter one hundred and sixty-seven and appearing on the list of

legal investments prepared pursuant to said section fifteen A of said chapter one hundred and sixty-seven. Not more

than one-half of one percent of the shares and deposits of such credit union shall be so invested in the obligations of any

one obligor, but the foregoing limitations shall not apply to obligations of telephone companies, of companies engaged

primarily in the distribution and sale of electricity or gas, or both, or of railroad companies other than terminal companies.

(p) in shares of one or more investment funds approved by the commissioner and appearing on the list prepared pursuant

to section fifteen A of said chapter one hundred and sixty-seven; provided, however, that not more than five percent of

assets of a credit union shall be invested in a single such investment fund, and not more than twenty percent of the

assets of a credit union shall be invested, in the aggregate, in such investment funds.

(q) in certificates of deposit having a maturity not in excess of two years of a banking corporation; provided, however, that

(i) either the banking corporation or a bank holding company as, defined by chapter one hundred and sixty-seven A

which owns two-thirds of the outstanding shares of each class of such banking corporation's voting stock has paid, in

each of the five years immediately preceding the date of investment dividends, in cash of not less than four percent of

its common stock without having reduced the aggregate par value thereof; (ii) the banking corporation has surplus at

least equal to fifty percent of its capital stock; (iii) the banking corporation has a combined total of capital stock,

surplus, undivided profits, capital debentures and reserve for contingencies at least equal to six percent of its

aggregate deposit liability at the end of the calendar year immediately preceding the date of investment; and (iv) the

banking corporation is, if its principal office is located outside the commonwealth, a member of the federal reserve

system; provided, however, that in the case of a banking corporation having a combined total of capital stock, surplus,

undivided profits and reserve for contingencies equal to at least five hundred million dollars, the said combined total

may be less than six percent, but not less than five percent, of its aggregate deposit liability at the end of the calendar

year immediately preceding the date of investment. The limitations imposed by clause (i) of this paragraph shall not

apply to an aggregate investment of not in excess of one hundred thousand dollars in certificates of deposit of a

banking corporation, the deposits of which banking corporation are insured by the Federal Deposit Insurance

Corporation;

(r) in bankers' acceptances of the kinds and maturities made eligible by law for rediscount with federal reserve banks;

provided, however, that the same are accepted by a bank, banking association or trust company incorporated under

the laws of the United States or of this commonwealth, and having its principal place of business within the

commonwealth.

Not more than ten percent of the assets of a credit union shall be invested in such bankers' acceptances, and not more

than five percent of the assets of such credit union shall be invested in the acceptances eligible by law for rediscount in

federal reserve banks of any one accepting bank or trust company; and the aggregate amount of bankers'

acceptances of any one bank, banking association or trust company held by any such credit union shall not exceed

twenty-five percent of the paid-up capital and surplus of such bank, banking association or trust company;

(s) in bonds of governments or countries friendly to the United States as defined by the United States Department of State;

(t) a credit union may contribute such sums as its board of directors may determine to be reasonable (i) to any private

nonprofit organization organized for the purpose of improving the social and economic conditions in the community

where such credit union is established, including any educational institution, and to any educational institution located

outside that community for the purpose of providing scholarships for the benefit of the residents of that community; or

(ii) to any fund being raised by a committee or agency for the purpose of relieving suffering or distress resulting from

disaster or other calamity occurring in any part of the commonwealth; and

(u) in the capital stock of the Federal Home Loan Bank of Boston.

(v) notwithstanding the provisions of paragraph (k), a credit union may invest in mortgage backed securities originated by

said credit union when such securities are guaranteed by the Federal National Mortgage Association or the Federal

Home Loan Mortgage Corporation.

For the purposes of paragraphs (a) to (i), inclusive, the words "shares, deposits and accounts" shall include any such term

share, term deposit, certificate of deposit, or term account with a maturity not to exceed three years.

Mass. Gen. Laws ch. 171, § 67A. Membership in Organizations; Contributions; Subscription for Services.

A credit union may, by vote of its board of directors, obtain membership in certain organizations and may make

contributions and subscribe for services subject to the conditions and requirements of this section.

(1) A credit union may become a member of any association organized to protect and promote the interest of credit

unions and may pay for such membership its proportionate share of expenses as is reasonable and necessary.

(2) A credit union may become a member of or contribute to any other association or organization in the commonwealth

if, in the opinion of its board of directors, such membership or contribution is reasonable and of substantial benefit to

such credit union and its members.

(3) For the purpose of promoting, protecting or conserving the assets of credit unions, a credit union may subscribe for

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services, including advertising and professional services, rendered or to be rendered collectively through an association

referred to in paragraph (1) or through any group of credit union institutions; and in each such case, the credit union,

with the approval of its board of directors, may pay for such services its proportionate share of the total cost thereof or

such other amount as the said board shall deem reasonable and proper.

Mass. Gen. Laws ch. 171, § 73. Authority of Board of Directors to Borrow Money.

The board of directors, with the approval of the commissioner, may borrow money for and in behalf of the credit union.

Said board may, if the credit union has a deposit or share account therein, borrow money for and on behalf

of the credit union, without the approval of the commissioner, from a savings bank, cooperative bank,

federal savings and loan association, national bank or trust company, the Central Credit Union Fund, Inc.,

or the Eastern Corporate Federal Credit Union; provided, however, that money borrowed from such

institution is in an amount not exceeding said deposit or share account and is for a time not extending

beyond the end of a one year period from the date on which the loan is made.

The board of directors shall forthwith report the terms and conditions of any such borrowing and of any

renewal, renegotiation or refinancing thereof to the commissioner, and if the credit union is a member

thereof, to the Massachusetts Credit Union Share Insurance Corporation. Said board shall provide such

reports, financial statements and other information as the commissioner or, if the credit union is a member

thereof, the Massachusetts Credit Union Share Insurance Corporation may from time to time request while

any such borrowing or portion thereof remains unpaid.

Mass. Gen. Laws ch. 171, § 74. Sale, Transfer and Assignment of Loans, Investments, and Other Assets.

A credit union by a vote of its directors may sell, transfer and assign any and all of its loans, investments or other assets;

provided, however, that (a) where loans are sold with recourse, a loan reserve shall be established consistent with the

applicable provisions of section sixty-nine and appropriate explanations shall be recorded on the statement of conditions

as the commissioner may prescribe; (b) in any case where the consideration to be received is other than cash, the written

approval of the commissioner shall first be obtained; (c) where the aggregate amount of sales of loans exceeds twenty

percent of the total loans outstanding, the prior written approval of the commissioner for any amount in excess thereof

shall be obtained; and (d), no loans, investments or other assets shall be sold, transferred or assigned to another credit

union chartered in the commonwealth without the prior written approval of the commissioner.

A credit union may continue to service any loans that it sells and may collect a service charge for such service provided

that a formal agreement is effected between both parties.

Any such assignment given as security for borrowing shall constitute a debt which shall be satisfied in the event of the

liquidation of the affairs of a credit union before any distribution of its assets to shareholders or holders of other accounts.

Mass. Gen. Laws ch. 171, § 75. Investments in Building, Improvements and Equipment; Purchase of Insurance covering

debtors; Safe Deposit vaults.

Subject to the approval of the commissioner, a credit union may invest a sum not exceeding its loan reserve, investment

reserve, undivided earnings and other surplus accounts for the purchase of a suitable site and the erection or

preparation of a suitable building or for alterations, improvements or additions thereto for the convenient transactions of

its business. There may be included in such a purchase, erection, or preparation, subject to the approval of the

commissioner, rental property in a reasonable amount; provided, however, that said rental property is necessary to

complete said purchase, erection or preparation.

A credit union whose assets aggregate one million dollars or more may, during any period of twenty-four consecutive

months, expend a sum not exceeding, in the aggregate, twenty thousand dollars on any one parcel of real estate

owned by it for necessary alterations, improvements or additions for the convenient transaction of its business.

Subject to the approval of the commissioner, a credit union may invest a sum not exceeding its loan reserve, investment

reserve, undivided earnings and other surplus accounts for the alterations, improvement and additions to any premises

leased by it for the convenient transaction of its business. A credit union whose assets aggregate one million dollars or

more may, during any period of twenty-four consecutive months, expend a sum not exceeding, in the aggregate, ten

thousand dollars on any one parcel of real estate leased by it.

A credit union may expend for any one parcel of real estate, improved with a dwelling designed to be occupied by not

more than four families and to which it has acquired title by exercise of a power of sale contained in a mortgage held

by it on said real estate and foreclosure thereof, a sum not to exceed five thousand dollars as determined by the

directors for repairs thereto for the purpose of the sale of said real estate. Any expenditure greater than five thousand

dollars shall require the prior written approval of the commissioner.

Subject to the approval of the commissioner, a credit union may invest a sum in excess of fifty thousand dollars for the

purchase of electronic data processing equipment.

A credit union may invest an amount to be approved by the commissioner, subject to such regulations, if any, as he may

deem necessary, in a corporation or association formed for the purpose of furnishing to such credit union, or to other

credit unions or banks as hereinafter provided, statistical or bookkeeping services or information of the kind generally

required by a credit union. A credit union may also, in participation with any other credit union, bank or national banking

association, invest its shares or deposits in such corporation or association, subject however to the same approval and

regulation, if any, as above provided. The provisions of section two of chapter one hundred and sixty-seven shall apply

to such corporations or associations. Nothing contained herein shall be construed to preclude a credit union from

renting or subscribing for the services of such corporations or association or any other corporation or association

rendering such services.

A credit union may purchase by itself or with other credit unions or banks, group life insurance on the lives of debtors who

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request such insurance. The premium for such insurance, or the premium on an individual life insurance policy held to

cover the indebtedness, may be added to the payments required of those who elect to become insured. In the event of

the death of any debtor so insured, the insurance proceeds shall be applied to reduce or extinguish the unpaid

indebtedness to the extent of such payment.

No director, officer or employee of such credit union shall benefit financially, directly or indirectly from the sale of such

insurance.

A credit union may purchase by itself or with a group of credit unions or banks, group accident and health insurance

covering debtors of such credit union or group of credit unions if the debtors request such insurance. Such insurance

shall cover all or part of the indebtedness of such debtors. The premium for such insurance or the premium on an

individual accident and health insurance policy held to cover the indebtedness, may be added to the payments

required of any such debtor who elects to become insured. No director, officer or employee of such credit union shall

benefit financially, directly or indirectly, from the sale of such insurance.

A credit union may engage directly in the business of selling, issuing or registering checks, traveler's checks or money orders

and may cash any check or money order whatsoever and may make charges for any of the foregoing.

A credit union may collect payments on bills representing indebtedness to a utility company doing business in the

commonwealth, at its main office or at a branch office, with the written approval of the utility company.

A credit union may establish and maintain safe deposit vaults and rent boxes or storage space therein under conditions

prescribed by the commissioner.

For the purposes of this section "safe deposit box" shall mean a box or safe in the vaults of any credit union; "lessee" shall

mean the person in whose name a safe deposit box stands on the books of a credit union; and "rent" shall mean the

amount due to a credit union for the rental or use of a safe deposit box.

A credit union which leases a safe deposit box for rent shall advise the lessee in writing that insurance coverage for the

contents of such safe deposit box is not provided by such credit union, but that the lessee may, at his own expense,

insure said contents with an insurance company of his own selection. The commissioner shall establish such rules and

regulations as he deems necessary to carry out the provisions of this paragraph.

If the rent for a safe deposit box has not been paid for one year after being due, the credit union may mail, postage

prepaid, to the lessee at his address shown on its books, a notice stating that if the rent for such safe deposit box is not

paid within sixty days from the date of such notice, the credit union may cause such safe deposit box to be opened and

the contents to be disposed of in accordance with the provisions of this section. Upon the expiration of sixty days from

the date of such notice, if the lessee has failed to pay the rent for such safe deposit box in full to the date of such notice,

all rights of the lessee in the safe deposit box and of access thereto shall cease and such credit union may, at any time

thereafter in the presence of one of its officers and of a notary public not in the general employ of such credit union,

cause such safe deposit box to be opened and such notary public shall remove the contents thereof, list the same and

seal such contents in a package, marking thereon the name of the lessee and his address as shown on the books of the

credit union. An affidavit setting forth the facts concerning the entry and listing the contents of the safe deposit box shall

be signed by the officer and the notary public and shall be retained by the credit union. Such affidavit shall be prima

facie evidence of the facts set forth therein in all proceedings at law and equity wherein evidence of such facts would

be admissible.

The package containing the contents of any safe deposit box opened as aforesaid shall be retained on special deposit by

the credit union subject to payment of rent due for such safe deposit box, all expenses incurred in connection with

opening such safe deposit box and charges for the safekeeping of such package. If such package remains unclaimed

for seven years and the amounts due as above provided remain unpaid, the credit union may mail, postage prepaid, to

the person to whom, and at the address at which, the notice provided for above was mailed, a notice stating that if

such amounts shall not be paid within sixty days from the date of such notice, the credit union will turn over the contents,

less the rental charge, to the state treasurer as unclaimed and abandoned property, to be held by him subject to the

provisions of chapter two hundred A. The credit union may sell, assign or deliver so much of the contents of such

package, at either public or private sale, as will enable it to realize such amount as will compensate such credit union for

said charges.

Mass. Gen. Laws ch. 171, § 75B. Sale of Insurance Products.

(a) For purposes of this section, the word "company" shall mean an insurance company licensed pursuant to chapter 175

and the word "affiliate" shall mean a credit union service organization as established pursuant to 12 U.S.C. section

1786a(e)(1) or by section 6A of chapter 171 and by regulations promulgated thereunder by the commissioner.

(b) A credit union shall have the power to sell, either directly or indirectly through an affiliate established for the purpose or

a third party agreement, and acting either as an agent licensed pursuant to section 163 of chapter 175 or a broker

licensed pursuant to section 166 of said chapter 175, insurance products as a company, for which the credit union,

affiliate or third party acts as agent or broker, is authorized to issue in the commonwealth. No credit union exercising the

power shall assume or guarantee the payment on any premiums on the products or guarantee the truth of any

statement contained in the application therefor. The sales shall be conducted in accordance with conditions and

limitations that the commissioner shall promulgate by regulation which shall reflect the substance of conditions

established by the National Credit Union Administration and other federal regulatory agencies governing the sale of

insurance products. The conditions and limitations shall be in addition to and consistent with said chapter 175 and

regulations promulgated thereunder by the commissioner of insurance with respect to the licensing of insurance agents

and brokers and the sale of insurance products. The conditions and limitations shall include, but not be limited to, the

following:

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(1) No credit union, except a credit union licensed as an agent for the Savings Bank Life Insurance Company of

Massachusetts and only to the extent of the authority granted under the license, shall undertake to act directly or

indirectly as an insurance agent or broker, in any manner permitted by this section, until the commissioner approves

a general plan of operation submitted by the credit union that conforms with the regulations promulgated pursuant

to this section. The plan shall include a detailed description of the complaint resolution procedure, including credit

union personnel designated for its enforcement, required pursuant to paragraph (9).

(2) Officers, tellers and other employees of a credit union who are not licensed as insurance agents may refer a

member of the credit union to a licensed insurance agent of the credit union only when the member initiates an

inquiry relative to the availability or acquisition of insurance products. No such officer, teller or other employee shall

be further or additionally compensated for making the referrals.

(3) The solicitation or sale of insurance products shall be permitted at the main office of a credit union, or at any

branch thereof established pursuant to chapter 171 or 12 U.S.C. section 1752(9), or at any other credit union office,

not including an electronic branch established pursuant to chapter 167B. The solicitation or sale shall be conducted

on the premises of a credit union in a distinctly designated area which is separate and apart from any physical

setting in which services for insured deposit account transactions or transactions involving applications for the

extension of credit are conducted. The commissioner may waive the requirement for the physical separation of

credit union and insurance services only upon a demonstration by a credit union that space considerations, such as

the size or design of the credit union premises, preclude such separation. The commissioner may allow for such use

of a common area for both purposes if, subject to notice and hearing at the commissioner's discretion, the waiver

application demonstrates physical constraints that are consistent with criteria the commissioner shall establish for the

waivers. In any instance where a waiver is granted, a credit union employee, licensed as an insurance agent, shall

not, in any manner involving the application by a member for an extension of credit by the credit union, act as the

representative of the credit union both with respect to the application and with respect to the solicitation and sale

of insurance products to the member, whether or not the insurance is required for the extension of credit. It shall be

the responsibility of a credit union to institute procedures to eliminate member misunderstanding or confusion as to

the distinction between insurance products and other credit union functions, and to prevent any misrepresentation

thereof. Notwithstanding the foregoing, any premises constructed, purchased, leased or acquired by a credit union

on and after the effective date of this section for the conduct of its authorized business, including the solicitation

and sale of insurance, shall not be eligible for the waiver provided for herein, unless the acquisition results from a

merger or consolidation pursuant to chapter 171.

(4) (A) A credit union is hereby prohibited from tying the availability and extension of credit by a credit union to the

purchase of insurance products from the credit union.

(B) No solicitation for the sale of insurance in conjunction with any application for the extension of credit shall be

permitted until the application has been approved, approval and the disclosures required by this section have

been provided to the applicant in writing, and the receipt of both the approval and disclosures has been

acknowledged in writing by the applicant. The date, time and method of the communication of the approval

and disclosures to the applicant, together with the applicant's acknowledgment of the receipt thereof, shall be

made a permanent part of the credit union record of the extension of credit. This paragraph shall not apply in

situations where a credit union contacts a member in the course of direct or mass marketing of insurance

products to a group of persons in a manner that bears no relation to a member's loan application or credit

decision.

(C) In the instance of an application to a credit union for an extension of credit to be secured by a mortgage on

real estate and in which it is necessary for the applicant to obtain a policy insuring said premises against loss and

designating the credit union as loss payee, (i) the credit union shall make the initial disclosure of the necessity of

insurance in its letter of commitment to the applicant approving the requested extension of credit; (ii) the credit

union shall not, in any manner, solicit the applicant member to purchase the required insurance from the credit

union until the commitment has been accepted by the applicant member; and (iii) the credit union shall not

reject any policy, so long as it satisfies the required insurance, because the policy was issued by a company

other than that for which the credit union acts as agent in the sale of insurance products.

(5) Rebates shall be regulated pursuant to section 183 of chapter 175.

(6) A credit union, through its licensed insurance agents or brokers, shall disclose in writing to a member who is a

potential insurance purchaser that: (i) the insurance products which are available are not deposits of the credit

union, are not protected by the national credit union share insurance fund or any other type of deposit insurance,

are not an obligation of or guaranteed by the credit union, and may be subject to risk; (ii) any insurance required as

a condition of the extension of credit by the credit union need not be purchased from the credit union but may,

without affecting the approval of the application for an extension of credit, be purchased from an agent or

insurance company of the member's choice; and (iii) the member may file any complaints with the office of

consumer affairs and business regulations as hereinafter provided. The disclosures required by this section shall be

provided in writing, and receipt thereof shall be acknowledged in writing by the member.

(7) Credit union member information security and confidentiality shall be regulated pursuant to chapter 175I and the

federal Fair Credit Reporting Act.

(8) No credit union engaged in the direct sales of insurance products shall discriminate against an applicant member

or allow an affiliate established for the purpose or a third party acting on its behalf to discriminate against an

applicant for any insurance products offered by it based upon the race, color, national origin or residence of the

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applicant, or on such other basis as the commissioner may determine. No credit union offering insurance products at

its main office or any branch thereof established pursuant to chapter 171 or 12 U.S.C. section 1752(9), shall refuse to

offer the same at every such branch of the credit union.

(9) A credit union engaged in the direct sale of insurance products, or an affiliate or third party acting on its behalf,

and whether acting as insurance agent or broker, shall forthwith forward copies of all member complaints relative

to its insurance sales activities to the office of consumer affairs and business regulation established by section 1 of

chapter 24A. The director of the office shall cause a record of all complaints received to be maintained and shall,

depending upon the nature of the complaint, refer any complaint for resolution to the appropriate banking or

insurance regulator in the division of banks and loan agencies or the division of insurance. The commissioner, in

conjunction with the commissioner of insurance, shall establish a procedure for the prompt resolution of member

complaints. Regulations promulgated by the commissioner under this section shall include provisions for investigation

and resolution by a credit union of member complaints and for the requirement to forward all complaints so

received to the office of consumer affairs and business regulation.

(c) Any violations of the provisions contained in this section shall be subject to chapter 167, including, but not limited to,

sections 2A to 2G, inclusive, and to applicable chapter 175 and chapter 176D, including, but not limited to, penalties,

cease and desist orders, and suspension or loss of license.

(d) This section shall not apply to the authority granted by the seventh and ninth paragraphs of section 75 of chapter 171

and section 12G of chapter 255.

(e) The commissioner shall promulgate regulations necessary to carry out this section.

(f) Notwithstanding any other law to the contrary, the commissioner, in his discretion, may furnish to the commissioner of

insurance information, reports and statements relating to the sale of insurance by credit unions under his supervision

which are licensed by the division of insurance pursuant to section 209 of chapter 175.

(g) In the event that any of the provisions of this section or of section 2A of chapter 167F, are preempted by the National

Credit Union Administration, by the Comptroller of the Currency of the United States pursuant to section 114 of the

federal Reigle-Neal Interstate Banking and Branching Efficiency Act of 1994 (P.L.103-328), by section 104 of the federal

Gramm-Leach-Bliley Act of 1999 (P.L. 106-102), by a court of competent jurisdiction or by any other applicable law, the

commissioner of banks, with respect to this section, and the commissioner of insurance, with respect to sections 209 and

210 of chapter 175 may waive, in writing, the applicability of the preempted provisions to credit unions and to federal

credit unions if it is determined the waiver is necessary in order to permit the entities to engage in the solicitation and

sale of insurance under similar laws as banks chartered by the commonwealth pursuant to chapter 168, 170 or 172 or

chartered by the laws of the United States. The waiver shall be filed with the state secretary and shall, unless otherwise

provided by law, become effective on the sixtieth day following the date of the filing. A copy of the waiver shall be

filed simultaneously with the committee on financial services of the general court.

Mass. Gen. Laws ch. 171, § 76. Membership of Credit Union in National Credit Union Administrative Central Liquidity Facility.

A credit union may, with the approval of the commissioner, become a regular member of the National Credit Union

Administration Central Liquidity Facility, established by 12 USC 1795b and may invest in the shares of the National Credit

Union Administration Central Liquidity Facility; provided, however, that such investment shall not exceed the amount

necessary to become a member of such facility.

A credit union may, with the approval of the commissioner become a member of any corporate credit union which has

been approved to act as an agent of the National Credit Union Administration Central Liquidity Facility.

Michigan Mich. Comp. Laws § 490.361. Capital; share payments; entrance fee; secondary capital; liability of member for acts, debts, or

obligations of domestic credit union; placement of lien on member account.

(1) The capital of a domestic credit union consists of the payments that have been made to it by the members for shares. If

authorized by the bylaws, a domestic credit union may charge an entrance fee.

(2) If at any time after the effective date of this act a federal credit union is authorized by the federal regulatory authority

with jurisdiction and by federal law to utilize 1 or more forms of secondary capital other than capital stock, the

commissioner may by rule, order, or declaratory ruling allow a domestic credit union to utilize 1 or more forms of

secondary capital other than capital stock. The rule, order, or declaratory ruling must include disclosure requirements

concerning the conditions for return of the secondary capital and its liquidation priority.

(3) Unless otherwise provided by law or by agreement between the member and the domestic credit union, a member of

a domestic credit union is not liable for the acts, debts, or obligations of the domestic credit union.

(4) Except as provided in this subsection or where prohibited by applicable state or federal law or otherwise agreed by

contract, a domestic credit union has a lien on any share of a member, or any deposit account from which a member

may withdraw for his or her own benefit without the consent of another person, for any obligation owed to the

domestic credit union by that member or for any loan cosigned or guaranteed by that member. A domestic credit

union does not have a lien on any individual retirement account or other account permitting tax deferrals or providing

other tax benefits under state or federal law. A domestic credit union may refuse to allow a withdrawal from any

account on which it has a lien if the member is delinquent in any outstanding obligation to the domestic credit union at

the time of the withdrawal.

Mich. Comp. Laws § 490.362. Dividend; declaration; payment; rate; amount.

A credit union board may declare and pay a dividend on shares from current or accumulated net earnings, or both, but

only after providing for required reserves, accrued and unpaid expenses, and established loan and lease losses. A

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domestic credit union may pay a dividend on partial or full shares and may pay the dividend at differing levels and at

differing intervals based on the type of share accounts owned by a member, the liquidation priority of the share accounts,

and the balances of the member's share accounts. A domestic credit union may determine the rate and amount of a

dividend before the end of the dividend period involved. A domestic credit union shall not pay a dividend if payment

would result in the insolvency of the domestic credit union.

Mich. Comp. Laws § 490.401. Domestic credit union; powers.

(1) A domestic credit union has the powers described in this section, specified or implied by this act, and specified in any

other law of this state.

(2) A domestic credit union has all of the following powers:

(a) To enter into contracts.

(b) To sue and be sued.

(c) To adopt and alter a seal.

(d) To individually or jointly with other credit unions, purchase, lease, or otherwise acquire and hold tangible personal

property necessary or incidental to its operations. A domestic credit union shall depreciate or appreciate personal

property in the manner and at the rates the commissioner prescribes by rule, order, or declaratory ruling.

(e) To sell, convey, lease, or otherwise dispose of, or assign, pledge, or create a security interest in, all or part of its

tangible personal property, including property obtained as a result of a default of an obligation owed to the

domestic credit union. A domestic credit union may finance the sale of its personal property to a person at a rate of

interest that does not exceed the rate of interest permitted by the credit reform act, 1995 PA 162, MCL 445.1851 to

445.1864, for loans to its members for the purchase of equivalent property.

(f) To incur and pay necessary and incidental operating expenses.

(g) To receive the funds of its members either as payment on shares or as deposits. Subject to the limitation on payment

of dividends in section 362, a domestic credit union may have 1 or more classes of share or deposit accounts in the

classifications and form, under the terms and conditions and with liquidation priorities authorized by the credit union

board, unless otherwise prescribed by law. A domestic credit union shall provide for the transfer and withdrawal of

funds from accounts by the means and through the payment systems that the credit union board determines best

serve the convenience and needs of its members.

(h) To charge fees in connection with shares, savings, extensions of credit, and other services by contract or

agreement.

(i) To make secured or unsecured loans to any member, at fixed or variable interest rates, and take and hold any real

or personal property as security. In establishing an interest rate, the domestic credit union shall consider the collateral

provided, the creditworthiness of the borrower, the duration of the loan, and any other factor reasonably

determined by the domestic credit union to affect the risks related to the loan.

(j) To borrow funds from any source. Funds borrowed under this subdivision are not deposits. The domestic credit union

may secure a loan described in this subdivision with a pledge of some or all of the domestic credit union's assets.

(k) To make loans to a trade association of which it is a member.

(l) To provide debt counseling and other financial counseling services to its members. If the counseling includes debt

management for a member and the member is delinquent in any indebtedness owed to the domestic credit union,

the domestic credit union shall not charge that member, directly or indirectly, a fee for providing the counseling

services.

(m) To disburse loan proceeds as the borrower directs.

(n) To act as trustee or custodian of and administer, for individuals or as part of an employer group plan, retirement

accounts or other accounts that permit tax deferrals or provide other tax benefits under federal or state law.

(o) To act as agent for its members and depositors in the purchase, sale, or other disposition of securities, interests in

mutual funds, and interests or participations in any other type of investment, if the purchase, sale, or other disposition

is done solely for the accounts of its members and depositors and is done on a nonrecourse basis.

(p) To discount, sell, convey, or otherwise dispose of, or assign, pledge, or create a security interest in, all or part of its

intangible personal property.

(q) To purchase any of the assets of another domestic credit union, or with the approval of the commissioner assume

any of the liabilities of another domestic credit union.

(r) To make deposits in or loans to banks, savings banks, savings and loan associations, trust companies, and other

credit unions, or purchase shares of mutual savings banks, mutual savings and loan associations, and other credit

unions. A domestic credit union may also make deposits in, loans to, or purchase shares of a corporate credit union

and invest funds as provided in section 431.

(s) To join, make deposits in or loans to, or purchase shares of any federal reserve bank, federal home loan bank, or

central liquidity facility established under federal or state law.

(t) To hold membership in associations and organizations controlled by or fostering the interests of credit unions or in a

central liquidity facility organized under federal or state law.

(u) To, if approved by the credit union board and not inconsistent with this act, engage in activities and programs of

the federal government, a state, a territory of the United States, or an agency or political subdivision of the federal

government or a state or territory of the United States.

(v) To receive funds as shares or deposits from a credit union, bank, savings bank, savings and loan association, or any

other type of depository institution.

(w) To receive funds as shares or deposits from a retirement plan that serves all or any of the domestic credit union's

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members or potential members.

(x) To receive funds as shares or deposits from a public employee retirement system or plan.

(y) To lease tangible personal property to its members.

(z) To purchase, sell, pledge, discount, or otherwise acquire, or dispose of all or part of the obligations of its members in

accordance with section 432. This subdivision does not apply to participation loans originated pursuant to section

423(7).

(aa) At the domestic credit union's expense, to purchase insurance for its members in connection with share, deposit,

loan, or other accounts.

(bb) To establish, operate, participate in, or hold membership in systems that allow the transfer of credit union funds and

funds of its members or other account holders by electronic or other means, including clearinghouse associations,

data processing and other electronic networks, the federal reserve system, or any other payment or liquidity

program and contract with outside vendors to process member payments, send or receive funds for member

investments, or initiate and execute electronic funds transfers on behalf of its members.

(cc) To service loans sold by the domestic credit union, in whole or in part, to a third party.

(dd) To receive payments on shares or deposits from or make loans to the United States or an agency or instrumentality

of the United States.

(ee) To act as a fiscal agent and maintain treasury tax and loan accounts of the United States.

(ff) To receive payments on shares or deposits from a state, a territory of the United States, or from an agency, political

subdivision, or instrumentality of a state or territory of the United States. A domestic credit union may act as fiscal

agent for, maintain tax and loan accounts of, and make loans to, an entity that the domestic credit union has

authority to receive payments from under this subdivision.

(gg) To organize, invest in, and make loans to credit union service organizations. In addition to the activities described in

section 407(1) or (2) for credit union service organizations, the commissioner shall determine the activities and

services that fall within the meaning of this subdivision. Investments and loans described in this subdivision shall not

in the aggregate exceed 12% of the assets of the domestic credit union, and without the prior approval of the

commissioner shall not in the aggregate exceed 6% of the assets of the domestic credit union. A domestic credit

union may not invest in or make loans to a credit union service organization under this subdivision unless the credit

union service organization agrees in writing to allow the commissioner to conduct an examination of the credit

union service organization to the same extent that the commissioner is authorized to examine credit unions and

agrees in writing to make any reports to the commissioner that he or she requires.

(hh) To individually or jointly with other credit unions or other financial organizations, purchase, lease, construct, or

otherwise acquire and hold land and buildings for the purpose of providing adequate facilities for the transaction

of present and potential business. A domestic credit union may use land and buildings for its principal place of

business functions, a branch, a service center, or another facility used to conduct an activity in which it engages. A

domestic credit union may rent excess space as a source of income. A domestic credit union shall depreciate or

appreciate buildings owned by it in the manner and at the rates the commissioner may prescribe by rule, order, or

declaratory ruling. A domestic credit union's investment or contractual obligations, direct, indirect, or contingent, in

land and buildings under this subdivision may not exceed 5% of its assets without the prior approval of the

commissioner. An agreement to acquire and hold buildings or land jointly with other credit unions or other financial

organizations requires the prior approval of the commissioner. The commissioner shall act on a completed

application within 30 days after the application is filed. A domestic credit union's investment or contractual

obligations, direct, indirect, or contingent, in land and buildings under this subdivision may not exceed 5% of its

assets without the prior approval of the director, unless all of the following requirements are met:

(i) Pro forma projections over the next 3 years are reasonably estimated to provide positive earnings and

document the ability of the credit union to meet its short- and long-term liquidity obligations.

(ii) The director has determined that the credit union is well capitalized.

(iii) The credit union has not been the subject of a cease and desist order, or placed in receivership or

conservatorship, by the director within the preceding 3 years.

(iv) The director has determined that the credit union is in overall sound or fundamentally sound condition.

(ii) To own stock in a corporation that owns land or buildings used to provide a facility described in subdivision (hh), but

ownership of the stock is an investment in the land and buildings for all purposes under subdivision (hh). If a domestic

credit union owns less than 100% of the stock in a corporation described in this subdivision, the investment is a joint

agreement that requires the commissioner's approval under subdivision (hh).

(jj) To sell, convey, lease, or otherwise dispose of, or assign, mortgage, pledge, or create a lien in, all or part of its land

and buildings, including land and buildings obtained as a result of a default of an obligation owed to it, or stock in

a corporation described in subdivision (ii). A domestic credit union may finance the sale of its land and buildings to

any person at a rate of interest that does not exceed the rate of interest permitted by the credit reform act, 1995

PA 162, MCL 445.1851 to 445.1864, for loans to its members for the purchase of land and buildings.

(kk) Pursuant to a written agreement, to perform services for members of other domestic or foreign credit unions. A

domestic credit union may allow other credit unions to perform services for its members pursuant to a written

agreement. A domestic credit union shall perform services described in this subdivision in accordance with the

laws of this state.

(ll) To engage in any aspect of the insurance and surety business as an agent, broker, solicitor, or insurance counselor

as provided under the insurance code of 1956, 1956 PA 218, MCL 500.100 to 500.8302.

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(mm) To own an insurance agency in whole or in part as provided under the insurance code of 1956, 1956 PA 218, MCL

500.100 to 500.8302.

(nn) To make charitable contributions if the individual contributions and the aggregate amount of the contributions are

reasonable in amount.

(oo) To offer tax return preparation and filing services.

(pp) To contract with entities offering funds transfer services and provide those services to any person.

(qq) To receive payments on shares or deposits or make loans to corporations that are wholly owned by 1 or more of

the types of entities from which the domestic credit union may receive payments on shares under subdivision (dd)

or (ff).

(rr) To enter into marketing and other support arrangements to facilitate members' purchases of goods and services

from third parties that may include compensation to the domestic credit union.

(ss) To purchase insurance policies and other investment products to fund deferred compensation arrangements for its

employees. If the deferred compensation arrangement does not present a risk to the safety and soundness of the

domestic credit union, the purchase of those investment products is not subject to the limitations of this act.

(tt) Subject to section 352, to establish and revise its field of membership.

(uu) Guarantee the signature of a member in connection with a transaction involving tangible or intangible property in

which a member has or seeks to acquire an interest.

(vv) Perform any of the following services for a person who is not a member of the credit union if the service is

performed under a contractual arrangement in which another financial organization performs the same service for

the credit union's members:

(i) Cash advances.

(ii) Funds transfers.

(iii) Cashing travelers checks.

(iv) Any other service specified by the commissioner by rule, order, or declaratory ruling.

(ww) To perform any of the following services for any person in an underserved area or who does not have an

established relationship with a financial institution:

(i) Cashing and selling checks, drafts, or money orders.

(ii) Purchasing and selling foreign currencies in exchange for United States currency.

(iii) Wire transfers.

(iv) Financial counseling services.

(xx) To provide educational scholarships.

(yy) To invest in interest rate derivatives for the purpose of mitigating portfolio risk. A domestic credit union must notify

the director at least 60 days before it begins a program to invest in interest rate derivatives under this subdivision.

A domestic credit union must conduct an investment program described in this subdivision in a safe and sound

manner, and any investments in interest rate derivatives must meet the standards for an obligation described in

section 431(1)(d).

Mich. Comp. Laws § 490.431. Investment of funds not used in member loans; limitations; maintenance of files.

(1) A domestic credit union may invest funds not used in loans to members in any of the following:

(a) Securities, obligations, or other instruments of or issued by or fully guaranteed as to principal and interest by the

United States or an agency or instrumentality of the United States, or in any trust or trusts established for investing

directly or collectively in those securities, obligations, or instruments.

(b) Securities, obligations, or other instruments of or issued by any state of the United States, the District of Columbia, the

Commonwealth of Puerto Rico, or a territory organized by Congress, or any of their political subdivisions.

(c) Securities, obligations, or other instruments of any central liquidity facility or corporate credit union established under

the laws of this state, the laws of another state or territory of the United States, or the laws of the United States, or any

federal reserve bank.

(d) An obligation that meets all of the following:

(i) In the domestic credit union's prudent judgment, which may be based in part upon estimates which it believes

are reliable, there is adequate evidence that the obligor of the obligation will be able to perform all it undertakes

to perform in connection with the obligation, including all debt service requirements, and that the obligation may

be sold with reasonable promptness at a price that corresponds to its fair value.

(ii) The investment characteristics of the obligation are not considered distinctly or predominantly speculative.

(iii) The obligation is not in default in the payment of principal or interest.

(iv) The obligation is a marketable obligation in the form of a bond, note, or debenture, commonly regarded as an

investment security, and salable under ordinary circumstances with reasonable promptness at a fair value.

(e) Shares or certificates of an open-end management investment company registered with the securities and

exchange commission under the investment company act of 1940, title I of chapter 686, 54 Stat. 789, 15 U.S.C. 80a-1

to 80a-3 and 80a-4 to 80a-64, if all of the following conditions are met:

(i) At least 90% of the fund's assets consist of and are limited to securities in which a domestic credit union may

invest directly.

(ii) The domestic credit union has an equitable and undivided interest in the underlying assets of the fund.

(iii) The domestic credit union is not liable for acts or obligations of the fund.

(iv) The domestic credit union's investment in any 1 fund does not exceed the amount of its net worth.

(f) Investments in mortgage-backed securities either issued by or guaranteed by a private organization if the securities

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involved meet the investment standards for an obligation described in subdivision (d).

(2) A domestic credit union other than a corporate credit union shall not invest an amount that exceeds 25% of its net

worth in an obligor or affiliate of the obligor. This subsection does not apply to the extent that the investment is insured

or guaranteed by the United States government or an agency of the United States government or a state or local

government, or the investment is in a corporate credit union.

(3) A domestic credit union may not invest in or hold common stock or another equity investment except as provided in

section 401(2), or in bank and bank holding company stock legally acquired before December 19, 1986. If a domestic

credit union possesses capital stock or another equity investment as the result of a loan default, it shall dispose of that

investment within a reasonable period of time that does not exceed 1 year, or a longer period of time approved by the

commissioner for that domestic credit union.

(4) In addition to investments authorized by this act, a domestic credit union may make any other type of investment

approved by the commissioner by rule, order, or declaratory ruling.

(5) A domestic credit union shall maintain files containing credit and other information adequate to demonstrate evidence

of prudent business judgment in exercising the investment powers granted under this act or by rule, order, or

declaratory ruling of the director.

(6) If a domestic credit union invests funds in a security, obligation, or other instrument that at the time is permitted under

this section, the investment subsequently becomes impermissible because of a change in circumstances or law, and

the director finds that continuing to hold the investment will have an adverse effect on the safety and soundness of the

credit union, the director may require that the credit union develop a reasonable plan for the divestiture of the

investment.

Mich. Comp. Laws § 490.432. Purchase of obligation of member.

(1) If the purchase meets the conditions of a written policy of the credit union board, a domestic credit union may

purchase 1 or more of the following obligations:

(a) An obligation of a member that satisfies this act, the bylaws, and the lending policies established by the credit union

board, other than any annual percentage interest rate requirement.

(b) An obligation of a member if before the domestic credit union agrees to purchase the obligation the member

agrees in writing to refinance the obligation within 60 days after the purchase in a manner that will result in the

obligation meeting subdivision (a).

(2) A domestic credit union may purchase an obligation of a member under this section if the credit union board approves

the purchase of the obligation or a class of obligations that includes the obligation, there is a written agreement for the

purchase, and the domestic credit union retains the written agreement and a schedule of the obligations covered by

the agreement at its principal place of business.

(3) If a domestic credit union agrees to purchase a partial interest in an obligation of a member, the agreement shall

disclose the responsibilities of each party if the obligation is subject to collection, loss, or foreclosure and shall provide

that in the event of a loss each owner shares in the loss in proportion to the owner's interest in the obligation.

(4) A domestic credit union may purchase an obligation of a member at a discount or premium if the discount or premium

is amortized monthly over the remaining term of the obligation.

(5) A domestic credit union may sell all or part of an obligation of a member if all of the following are met:

(a) The sale meets the conditions of the sale policy adopted by the credit union board.

(b) The credit union board approves the sale or the sale is approved by senior management employees to whom the

credit union board has, in a written board policy, delegated the authority to approve sales described in this

subsection.

(c) There is a written agreement for the sale, and the domestic credit union retains the written agreement and a

schedule of the obligations covered by the agreement at its principal place of business.

(6) An agreement to sell a partial interest in an obligation of a member shall not include a recourse or repurchase provision

other than 1 or more of the following:

(a) A provision that requires the seller to repurchase the obligation because of a breach of warranty or

misrepresentation.

(b) A provision that allows the domestic credit union to repurchase the obligation at its discretion.

(c) A provision that allows substitution of 1 loan for another loan.

(7) A domestic credit union may pledge all or any part of an obligation of a member if either of the following is met:

(a) The pledge meets the conditions of the pledge policy adopted by the credit union board and the credit union

board approves the pledge.

(b) The pledge meets the conditions of the pledge policy adopted by the credit union board and the pledge is

approved by senior management employees to whom the credit union board has, in a written board policy,

delegated the authority to approve pledges described in this subdivision. If 1 or more pledges are approved by a

senior management employee under this subdivision, he or she shall provide a summary of the pledges to the credit

union board at the next regularly scheduled meeting of the credit union board.

(8) An agreement to pledge an obligation of a member shall identify the obligations covered by the agreement and set

forth the responsibilities of each party if an obligation covered by the agreement is subject to collection, loss,

foreclosure, or default.

(9) This section does not permit a domestic credit union to pledge an obligation of a member unless authorized in section

401(2).

(10) For a fee, a domestic credit union may agree to service all or part of an obligation it purchases or sells.

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(11) A member shall not directly or indirectly give and a senior management employee shall not directly or indirectly

receive a fee, compensation, commission, gift, or other consideration as an inducement to purchase, sell, or pledge

an obligation of a member.

Minnesota Minn. Stat. § 52.04. POWERS

Subdivision 1. Generally. --A credit union has the following powers:

(1) to offer its members and other credit unions various classes of shares, share certificates, deposits, or deposit

certificates;

(2) to receive the savings of its members either as payment on shares or as deposits, including the right to conduct Christmas

clubs, vacation clubs, and other thrift organizations within its membership. Trust funds received by a real estate broker

or the broker's salespersons in trust may be deposited in a credit union;

(3) to make loans to members for provident or productive purposes as provided in section 52.16;

(4) to make loans to a cooperative society or other organization having membership in the credit union;

(5) to deposit in state and national banks and trust companies authorized to receive deposits;

(6) to invest in any investment legal for savings banks or for trust funds in the state and, notwithstanding clause (3), to invest

in and make loans of unsecured days funds (federal funds or similar unsecured loans) to financial institutions insured by

an agency of the federal government and a member of the Federal Reserve System or required to maintain reserves at

the Federal Reserve;

(7) to borrow money as hereinafter indicated;

(8) to adopt and use a common seal and alter the same at pleasure;

(9) to make payments on shares of and deposit with any other credit union chartered by this or any other state or

operating under the provisions of the Federal Credit Union Act, in amounts not exceeding in the aggregate 25

percent of its unimpaired assets. However, payments on shares of and deposit with credit unions chartered by other

states are restricted to credit unions insured by the National Credit Union Administration. The restrictions imposed by

this clause do not apply to share accounts and deposit accounts of the Minnesota corporate credit union in United

States central credit union or to share accounts and deposit accounts of credit unions in the Minnesota corporate

credit union;

(10) to contract with any licensed insurance company or society to insure the lives of members to the extent of their share

accounts, in whole or in part, and to pay all or a portion of the premium therefor;

(11) to indemnify each director, officer, or committee member, or former director, officer, or committee member against

all expenses, including attorney's fees but excluding amounts paid pursuant to a judgment or settlement agreement,

reasonably incurred in connection with or arising out of any action, suit, or proceeding to which that person is a party

by reason of being or having been a director, officer, or committee member of the credit union, except with respect

to matters as to which that person is finally adjudged in the action, suit, or proceeding to be liable for negligence or

misconduct in the performance of duties. The indemnification is not exclusive of any other rights to which that person

may be entitled under any bylaw, agreement, vote of members, or otherwise;

(12) upon written authorization from a member, retained at the credit union, to make payments to third parties by

withdrawals from the member's share or deposit accounts or through proceeds of loans made to such member, or by

permitting the credit union to make those payments from the member's funds prior to deposit; to permit draft

withdrawals from member accounts, but a credit union proposing to permit draft withdrawals shall notify the

commissioner of commerce, in the form prescribed, of its intent not less than 90 days prior to authorizing draft

withdrawals. The board of directors of a credit union may restrict one class of shares to the extent that it may not be

redeemed, withdrawn, or transferred except upon termination of membership in the credit union;

(13) to inform its members as to the availability of various group purchasing plans which are related to the promotion of

thrift or the borrowing of money for provident and productive purposes by means of informational materials placed in

the credit union's office, through its publications, or by direct mailings to members by the credit union;

(14) to facilitate its members' voluntary purchase of types of insurance incidental to promotion of thrift or the borrowing of

money for provident and productive purposes including, but not limited to the following types of group or individual

insurance: Fire, theft, automobile, life and temporary disability; to be the policyholder of a group insurance plan or a

subgroup under a master policy plan and to disseminate information to its members concerning the insurance

provided thereunder; to remit premiums to an insurer or the holder of a master policy on behalf of a credit union

member, if the credit union obtains written authorization from the member for remittance by share or deposit

withdrawals or through proceeds of loans made by the members, or by permitting the credit union to make the

payments from the member's funds prior to deposit; and to accept from the insurer reimbursement for expenses

incurred or in the case of credit life, accident and health, and involuntary unemployment insurance within the

meaning of chapter 62B commissions for the handling of the insurance. The amount reimbursed or the commissions

received may constitute the general income of the credit union. The directors, officers, committee members and

employees of a credit union shall not profit on any insurance sale facilitated through the credit unions;

(15) to contract with another credit union to furnish services which either could otherwise perform. Contracted services

under this clause are subject to regulation and examination by the commissioner of commerce like other services;

(16) in furtherance of the twofold purpose of promoting thrift among its members and creating a source of credit for them

at legitimate rates of interest for provident purposes, and not in limitation of the specific powers hereinbefore

conferred, to have all the powers enumerated, authorized, and permitted by this chapter, and such other rights,

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privileges and powers incidental to, or necessary for, the accomplishment of the objectives and purposes of the credit

union;

(17) to rent safe deposit boxes to its members if the credit union obtains adequate insurance or bonding coverage for

losses which might result from the rental of safe deposit boxes;

(18) notwithstanding the provisions of section 52.05, to accept deposits of public funds in an amount secured by insurance

or other means pursuant to chapter 118A or section 9.031 or other applicable law and to receive deposits of trust funds

provided that either the provider or the beneficial owner of the funds is a member of the credit union accepting the

deposit;

(19) to accept and maintain treasury tax and loan accounts of the United States and to pledge collateral to secure the

treasury tax or loan accounts, in accordance with the regulations of the Department of Treasury of the United States;

(20) to accept deposits pursuant to section 149A.97, subdivision 5, notwithstanding the provisions of section 52.05, if the

deposits represent funding of prepaid funeral plans of members;

(21) to sell, in whole or in part, real estate secured loans provided that:

(a) the loan is secured by a first lien;

(b) the board of directors approves the sale;

(c) if the sale is partial, the agreement to sell a partial interest shall, at a minimum:

(i) identify the loan or loans covered by the agreement;

(ii) provide for the collection, processing, remittance of payments of principal and interest, taxes and insurance

premiums and other charges or escrows, if any;

(iii) define the responsibilities of each party in the event the loan becomes subject to collection, loss or foreclosure;

(iv) provide that in the event of loss, each owner shall share in the loss in proportion to its interest in the loan or loans;

(v) provide for the distribution of payments of principal to each owner proportionate to its interest in the loan or

loans;

(vi) provide for loan status reports;

(vii) state the terms and conditions under which the agreement may be terminated or modified; and

(d) the sale is without recourse or repurchase unless the agreement:

(i) requires repurchase of a loan because of any breach of warranty or misrepresentation;

(ii) allows the seller to repurchase at its discretion; or

(iii) allows substitution of one loan for another;

(22) in addition to the sale of loans secured by a first lien on real estate, to sell, pledge, discount, or otherwise dispose of, in

whole or in part, to any source, a loan or group of loans, other than a self-replenishing line of credit; provided, that

within a calendar year beginning January 1 the total dollar value of loans sold, other than loans secured by real estate

or insured by a state or federal agency, shall not exceed 25 percent of the dollar amount of all loans and

participating interests in loans held by the credit union at the beginning of the calendar year, unless otherwise

authorized in writing by the commissioner;

(23) to designate the par value of the shares of the credit union by board resolution;

(24) to exercise by resolution the powers set forth in United States Code, title 12, section 1757. Before exercising each power,

the board must submit a plan to the commissioner of commerce detailing implementation of the power to be used;

(25) to offer self-directed individual retirement accounts and Keogh accounts and act as custodian and trustee of these

accounts if:

(1) all contributions of funds are initially made to a deposit, share or share certificate account in the credit union;

(2) any subsequent transfer of funds to other assets is solely at the direction of the member and the credit union

exercises no investment discretion and provides no investment advice with respect to plan assets; and

(3) the member is clearly notified of the fact that National Credit Union Share Insurance Fund coverage is limited to

funds held in deposit, share or share certificate accounts of National Credit Union Share Insurance Fund-insured

credit unions;

(26) to impose reasonable charges for the services it provides to its members;

(27) to impose financing charges and reasonable late charges in the event of default on loans, and recover reasonable

costs and expenses, including, but not limited to, actual collection costs and attorneys' fees incurred both before and

after judgment, incurred in the collection of sums due, if provided for in the note or agreement signed by the

borrower; and

(28) to acquire, lease, hold, assign, pledge, sell, or otherwise dispose of interests in a loan or groups of loans other than a

self-replenishing line of credit.

(29) To conduct savings promotion raffles in the manner and subject to the requirements set forth in section 609.761,

subdivision 6.

Subd. 2. [Repealed, 1985 c 137 s 3]

Subd. 2a. Credit sales or service contracts. --A person may enter into a credit sale or service contract for sale to a state or

federal credit union doing business in this state, and a credit union may purchase and enforce the contract under

the terms and conditions set forth in section 47.59, subdivisions 4 to 14.

Subd. 3. Parity. --Notwithstanding any other provision of law, and in addition to all powers and activities, express, implied, or

incidental, that a credit union has under the laws of this state, a credit union may exercise the powers and activities

of, or take any action permitted for, a federal credit union, upon approval of the commissioner. The commissioner

must approve or deny a request under this subdivision within 60 days after submission of the request by a credit

union. The commissioner may not authorize state credit unions subject to this chapter to engage in credit union

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activity prohibited by the laws of this state.

Minn. Stat. § 52.12. 52.12 CAPITAL; ENTRANCE FEES; CREDIT UNION TO HAVE LIEN

The capital of a credit union includes shares, share certificates, any special class of shares, undivided earnings, reserves,

member investment shares, nonmember subordinated debt, member paid-in capital, and any entrance or membership

fees. The credit union shall have a lien on the shares and deposits of a member for any sum due to the credit union from

the member, or for any loan endorsed by that member. In addition to any other statutory right of setoff or lien and subject

to any contractual provision, if any party to an account is indebted to a credit union, the credit union has a right to setoff

against any account in which the party has or had immediately before death a present right of withdrawal. A credit union

may, at its discretion, charge an entrance or annual membership fee if authorized by the bylaws.

Minn. Stat. § 52.15. BORROWING; LIMITATION

Subdivision 1. Fifty percent of unimpaired assets. --A credit union may borrow from any source, or sources, sums not

exceeding in the aggregate 50 percent of its unimpaired assets. For the purposes of this subdivision,

"unimpaired assets" mean total assets less borrowings, including all forms of indebtedness, accounts payable,

and any amount by which reserves and undivided earnings will not be adequate to meet the reserve

requirements caused by classified assets.

Subd. 2. More borrowing for liquidity needs. --Notwithstanding the provisions of subdivision 1, a credit union, with the prior

written approval of the commissioner of commerce, may borrow additional sums to meet its liquidity needs.

For purposes of this subdivision, "liquidity needs" means the needs of a credit union for:

(a) Short-term adjustment credit to cushion deposit or share outflows pending an orderly adjustment of assets

and liabilities;

(b) Seasonal needs arising from a combination of expected patterns of movement in share and deposit

accounts and loans; and

(c) Protracted adjustment needs in the event of unusual or emergency circumstances of a longer-term

nature resulting from national, regional or local difficulties. Applications for written approval shall include

the specific dollar amount or increase in the aggregate percentage with respect to unimpaired assets

that may be borrowed by the credit union and the period of time the additional borrowed sums will be

needed. The commissioner's approval must state the specific dollar amount or increase in the aggregate

percentage being approved and the period of time for which the approval is effective.

Mississippi Miss. Code Ann. § 81-13-11. Power

In addition to the general powers authorized for corporations in Section 79-3-7, a credit union shall have the following

specific powers:

(a) It may receive the savings of its members in payment for shares and on deposit and investments by other credit unions

on deposit.

(b) It may make loans to members, authorized by the credit committee, and may make loans to other

credit unions, committee members and directors, as authorized by the board of directors.

(c) It may invest, through the board of directors, only in accordance with NCUA's rules and regulations,

Federal Credit Union Act, and any interpretive rulings issued by the NCUA.

The funds of the credit union shall be used first, however, for loans to members and preference shall be given

to the smaller loan in the event the available funds do not permit all loans to be made which have been

approved by the credit committee or loans officers.

Miss. Code Ann. § 81-13-13. Membership

Membership shall consist of the incorporators and such natural persons as have been duly elected to membership and

have paid the entrance fee as required by the bylaws, and have complied with such other requirements as the certificate

of organization may contain, and successors- in-law to accounts of deceased members subject to individual approval by

the board of directors. One entrance fee will be required for each account regardless of the number of joint owners. Other

organizations (whether incorporated or not) composed primarily of the same individuals who are eligible to join the credit

union are also eligible for membership. Credit unions shall be organized within groups which have a common bond of

occupation, association, or residence; provided that one (1) corporate central credit union sponsored by the Mississippi

Credit Union League may accept as members the credit unions that are members of the Mississippi Credit Union League

and shall include in its title the words "corporate central"; and provided further that one (1) credit union sponsored by the

Mississippi Credit Union League may accept as members the members of credit unions holding membership in the

Mississippi Credit Union League, the members of their immediate families, the employees of the Mississippi Credit Union

League and the members of their immediate families, organizations or associations of such persons, and other persons

residing in this state who do not have the services of a credit union available to them, such credit union to be known as the

Mississippi League Central Credit Union, subject to such limitations on membership as may be from time to time adopted

by the board of directors in the minutes of the central credit union.

Miss. Code Ann. § 81-13-39. Authority to lend or invest funds; interest rates

A credit union may lend to its members at reasonable rates of interest, which shall not exceed one and three-fourths

percent (1- 3/4%) per month, computed on unpaid balances, or invest the funds accumulated as herein provided. Fines

and penalties shall not be considered as interest. A charge of Ten Dollars ($ 10.00) in lieu of interest may be made on any

loan payable in a single payment, and a charge of Fifteen Dollars ($ 15.00) in lieu of interest may be made on any loan

payable in installments.

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Miss. Code Ann. § 81-13-41. Power to borrow

A credit union shall have the power to borrow from any source, but the total of such borrowing shall at no time exceed fifty

percent (50%) of the capital and surplus of the borrowing credit union.

Miss. Code Ann. § 81-13-53. Dividends

The board of directors of a credit union may declare and pay a dividend from net earnings or accumulated net undivided

earnings remaining after the statutory reserve has been set aside.

Miss. Code Ann. § 81-13-62. Electronic banking terminals

(1) For the purposes of this section, the following words shall have the meanings provided in this subsection unless the

context otherwise requires:

(a) "Electronic terminal" means an unmanned electronic device owned or operated by a federally insured credit union

through which a consumer may initiate an electronic fund transfer.

(b) "Electronic fund transfer" means any of the following:

(i) The withdrawal of cash from or the deposit of cash or checks into an unmanned electronic device, such as an

automatic teller machine, but not including night depositories;

(ii) An application for or acceptance of a loan through use of an unmanned electronic device;

(iii) The transfer of funds between accounts through use of an unmanned electronic device; or

(iv) The issuance of a check by an unmanned electronic device.

(2) Any state credit union may apply to the Commissioner of Banking and Consumer Finance for permission to establish

electronic terminals. The application shall be in such a form as may be prescribed by the commissioner. The

commissioner shall approve the electronic terminal when all of the following criteria are met:

(a) The applicant has an examination rating of two (2) or higher;

(b) The applicant has capital ratios equal or exceeding the amount required by the insurer of deposit accounts;

(c) The applicant has no formal or informal enforcement actions outstanding; and

(d) The applicant has demonstrated that its members would be well served by the electronic terminal.

(3) For the use of its electronic terminals connected to sharing networks or systems, a credit union may impose a fee if

imposition of the fee is disclosed at a time and in a manner that allows a user to terminate or cancel the transaction

without incurring the transaction fee. Such fee shall not exceed Two Dollars ($ 2.00) or four percent (4%) of the gross

amount of the transaction, whichever is greater. An agreement to share electronic terminals shall not prohibit, limit or

restrict the right of a credit union to charge such fees for the use of its electronic terminals as allowed by state or federal

law, or require a credit union to limit or waive its rights or obligations under this section.

Missouri Mo. Rev. Stat. § 370.070. Powers of a credit union

A credit union has the following powers:

(1) To receive the savings of its members in payment for shares; and in addition to membership shares and general shares,

there may also be created various classes of special shares, which special shares, notwithstanding any other provisions

of this chapter, may be issued upon such terms, rates of interest and conditions as the board of directors may provide;

(2) To make loans to members;

(3) To deposit its funds and purchase certificates of deposit in state and national banks;

(4) To invest its funds in securities as provided in this chapter. The funds of the credit union shall be used first, however, for

loans to members in the way and manner hereinafter provided, and preference shall be given to the small loan in the

event the available funds do not permit all loans which have been approved by the credit committee;

(5) To purchase, hold and dispose of property, real and personal, necessary and incidental to its operation. Any property,

real or personal, not used in the business but acquired by way of pledge or foreclosure in the collection of loans or

accounts, may be held by the credit union, provided any real estate so acquired shall be sold by it within six years

from the date on which it was acquired;

(6) To purchase insurance for the benefit of the credit union and its members;

(7) To make contracts, sue and be sued;

(8) With the approval of the director of the division of credit unions, to make loans to other credit unions, in the total

amount not exceeding twenty percent of its capital, surplus and reserve funds;

(9) To provide for such special thrift accounts on such terms and conditions as the board of directors may determine not

inconsistent with the bylaws;

(10) With the prior approval of the director of the division of credit unions, to provide to members fiscal and financial

services, including temporary services to bona fide members of other credit unions, and to exercise such other

incidental powers as are granted to general business corporations organized under the laws of this state, including

such powers as are convenient or useful to enable it to promote and carry on most effectively its purposes, and all at a

fee to be determined by the board of directors;

(11) To participate with another lender or other lenders in making loans. Such loans may be made on a secured or

unsecured basis upon such terms and conditions as the board of directors of the credit union shall authorize;

(12) To purchase from or sell to other lenders or holders of loans any loan or loan participation interest in loans made by

another lender;

(13) To lend, in an amount not to exceed two percent of the shares and deposits of the credit union, to any credit union

association of which the credit union is a member or any subsidiary of such credit union association.

Mo. Rev. Stat. § 370.071. Additional powers of a credit union--membership fee allowed, when A credit union may have the

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following additional powers:

(1) To contract for group insurance plans, approved by the state of Missouri, on behalf of members electing to participate

in such insurance programs and to charge a fee for providing such services;

(2) To exercise such additional powers, with the approval of the director, as federally chartered credit unions may be

authorized under federal statutes; however, this section shall not apply to field of membership provisions within this

chapter;

(3) To hold membership in central credit unions whose field of membership includes credit unions, and to invest funds in

shares of corporations to aid the liquidity of credit unions;

(4) To act as the fiscal or transfer agent of the United States, of any state, municipality, or political subdivision and in such

capacity to receive and disburse money, to transfer, register and countersign certificates of stock, bonds and other

evidences of indebtedness;

(5) Notwithstanding any other law to the contrary, a credit union may charge initial and/or recurring membership fees,

provided such fees have been approved by a majority of the membership in attendance at any regular or special

meeting or by a mail ballot as provided in the credit union bylaws, after notice of the purpose thereof shall have been

mailed at least seven days and no longer than sixty days prior to the date of such meeting. Such membership fees shall

not be construed as reserve income but shall be used at the sole discretion of the board of directors for the benefit of

the credit union.

Mo. Rev. Stat. § 370.075. Investment of credit union funds

1. A credit union by action of its board of directors or the executive committee of the board of directors or an investment

committee of the credit union, if the power has been delegated to either committee, may invest its funds in any of the

following designated securities:

(1) Obligations of the United States of America or securities fully guaranteed as to principal and interest thereby;

(2) Bonds of the state of Missouri or bonds of any other state in the union provided that the state has not, within ten years

previous to the making of the investments by the credit union, defaulted in the payment of any part of either principal

or interest thereon;

(3) Bonds of any town, city, county or school district of this state that has not, within ten years previous to the making of

the investment by the credit union, defaulted in the payment of any part of either principal or interest thereof

provided the town, city, county or school district has been in existence for a period of at least ten years;

(4) Saving share accounts of federal and state chartered savings and loan associations holding certificates of insurance

from the Federal Savings and Loan Insurance Corporation;

(5) Shares of other credit unions or credit union associations incorporated under the laws of this state, or of the United

States, including shares of a credit union financial agency organized under the laws of this state or of the United

States;

(6) Capital stocks of corporations solely and exclusively established to assist credit union operation in bookkeeping and

accounting, consumer counseling for members and the insuring of member accounts;

(7) Such other securities and in such amounts as may be approved from time to time by the director of the division of

credit unions. Any securities purchased while so approved may be retained if the approval is later withdrawn.

2. No investment in any single type of securities specified in this section, except funds in central credit unions and those

securities specified in subdivision (1) of subsection 1 of this section, shall exceed twenty-five percent of the capital,

surplus, and reserve fund of the credit union making the investment, nor shall any credit union invest more than five

percent of its capital, surplus, and reserve funds in capital stocks specified in subdivision (6) of subsection 1 of this section.

Mo. Rev. Stat. § 370.290. Power to borrow money from any source

A credit union shall have the power to borrow from any source, but the total of such borrowing shall at no time exceed fifty

percent of the capital, surplus and reserve fund of the borrowing credit union.

Mo. Rev. Stat. § 370.330. Dividends, when declared--how paid

After allocations to required reserves, a credit union may declare dividends on general shares, membership shares, or both,

at the discretion of its board of directors and as its bylaws provide.

Montana Mont. Code Ann. § 32-3-306. Other credit unions.

Any credit union organized under this chapter may permit membership of any other credit union organized under this

chapter or other laws.

Mont. Code Ann. § 32-3-401. General powers.

A credit union may:

(1) make contracts as provided for in this chapter;


(3) adopt and use a common seal and alter the seal;

(4) acquire, lease, hold, and dispose of property, either in whole or in part, necessary or incidental to its operations;

(5) at the discretion of the board of directors, require the payment of an entrance fee or annual membership fee, or both,

of any person admitted to membership;

(6) receive savings from its members in the form of shares or special-purpose thrift accounts;

(7) lend its funds to its members as hereinafter provided;

(8) borrow from any source up to 50% of total assets, after deduction of the notes payable account;

(9) discount and sell any eligible obligations, subject to rules prescribed by the department of administration;

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(10) sell all or substantially all of its assets or purchase all or substantially all of the assets of another credit union, subject to

the approval of the department;

(11) invest surplus funds as provided in this chapter;

(12) make deposits in legally chartered banks, savings banks, building and loan associations, savings and loan associations,

trust companies, and central type credit union organizations;

(13) assess charges to members in accordance with the bylaws for failure to meet promptly their obligations to the credit

union;

(14) hold membership in other credit unions organized under this chapter or other laws and in other associations and

organizations composed of credit unions;

(15) declare dividends and pay interest refunds to borrowers as provided in this chapter;

(16) collect, receive, and disburse money in connection with the sale of negotiable checks, money orders, and other

money type instruments and for such other purposes as may provide benefit or convenience to its members and

charge a reasonable fee for the services;

(17) perform tasks and missions that are requested by the federal government or this state or any agency or political

subdivision of the federal government or this state, when approved by the board of directors and not inconsistent with

this chapter;

(18) contribute to, support, or participate in any nonprofit service facility whose services will benefit the credit union or its

membership, subject to regulations prescribed by the department;

(19) make donations or contributions to any civic, charitable, or community organizations as authorized by the board of

directors, subject to regulations prescribed by the department;

(20) purchase or make available insurance for its directors, officers, agents, employees, and members;

(21) act as custodian or trustee of individual retirement accounts, as custodian or trustee of pension funds of self-employed

individuals or of the sponsor of the credit union, or as custodian or trustee under any other pension or profit-sharing

plan if the funds of the accounts are invested in shares of the credit union; or

(22) act as custodian or trustee for medical care savings accounts as provided in 15-61-204 or health savings accounts if

qualified as provided in 26 CFR 1.408-2; or

(23) act as fiscal agent for and receive deposits from the federal government, this state, or any agency or political

subdivision of the federal government or this state. Mont. Code Ann. § 32-3-402. Incidental powers.


including those that are necessary to enable it to promote and carry on most effectively its purposes.

Mont. Code Ann. § 32-3-502. Dividends.

At the intervals and for the periods that the board of directors authorizes and after providing for the required reserves, the

board of directors may declare dividends to be paid from the undivided earnings at the rates and upon the classes of

shares that the board determines. The dividends must be paid on all shares according to any method of calculation

allowed by law.

Mont. Code Ann. § 32-3-609. Insurance for members -- debt cancellation and suspension programs.

(1) A credit union may purchase or make available insurance for its members in amounts related to their respective ages,

shares, or loan balances or to any combination of them.

(2) A credit union may, upon application to and approval by the department of administration pursuant to 32-3-206, offer

debt cancellation and suspension programs. Debt cancellation or suspension programs offered pursuant to this

subsection are not insurance products subject to the provisions of Title 33. The department shall adopt rules to

implement this subsection that must be substantially equivalent to or more stringent than federal laws, regulations, and

regulatory guidelines that are applicable to debt cancellation or suspension programs offered by federal credit unions.

Mont. Code Ann. § 32-3-610. Liability insurance for officers.


or agent of the credit union or who is or was serving at the request of the credit union as a director, officer, employee, or

agent of another corporation, partnership, joint venture, trust, or other enterprise against any liability asserted against such



Mont. Code Ann. § 32-3-701. Investment of funds.

Funds not used in loans to members may be invested in:

(a) securities, obligations, or other instruments issued by or fully guaranteed as to principal and interest by the United

States of America or any agency of the United States government or in any trust established for investing directly or

collectively in securities, obligations, or other instruments issued by or fully guaranteed as to principal and interest by

the United States government;

(b) general obligations of any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico,

and the several territories organized by congress, or any political subdivisions of entities listed in this subsection (1)(b);

(c) certificates of deposit or passbook type accounts issued by a state or national bank, mutual savings bank, building

and loan association, or savings and loan association;

(d) loans to or in shares or deposits of other credit unions;

(e) the capital shares, obligations, or preferred stock issues of any agency or association organized either as a stock

company, mutual association, or membership corporation, provided the membership or stockholdings, as the case

may be, of the agency or association are primarily confined or restricted to credit unions or organizations of credit

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62

unions and provided the purposes for which the agency or association is organized are designed primarily to service

or otherwise assist credit union operations;

(f) shares of a cooperative society organized under the laws of this state or of the laws of the United States in the total

amount not exceeding 10% of the shares and surplus of the credit union;

(g) loans to any credit union association or corporation, national or state, of which the credit union is a member, except

that the investments authorized under this subsection (1)(g) must be limited to 2% of the assets of the credit union.

(2) A credit union may purchase, sell, underwrite, and hold other investment securities that are obligations in the form

of bonds, notes, or debentures, as provided in rules adopted by the department. However, a credit union may

not purchase, sell, underwrite, or hold investment securities that are derivative transactions.

(3) The department shall adopt rules to implement this section.

Nebraska Neb. Rev. Stat. § 21-1740. Credit union; powers

(1) A credit union shall have all the powers specified in this section and all the powers specified by any other provision of

the Credit Union Act.

(2) A credit union may make contracts.

(3) A credit union may sue and be sued.

(4) A credit union may adopt a seal and alter the same.

(5) A credit union may individually or jointly with other credit unions purchase, lease, or otherwise acquire and hold

tangible personal property necessary or incidental to its operations. A credit union shall depreciate or appreciate such

personal property in the manner and at the rates the director may prescribe by rule or order from time to time.

(6) A credit union may, in whole or part, sell, lease, assign, pledge, hypothecate, or otherwise dispose of its tangible

personal property, including such property obtained as a result of defaults under obligations owing to it.

(7) A credit union may incur and pay necessary and incidental operating expenses.

(8) A credit union may receive, from a member, from another credit union, from an officer, or from an employee,

payments representing equity on (a) share accounts which may be issued at varying dividend rates, (b) share

account certificates which may be issued at varying dividend rates and maturities, and (c) share draft accounts,

subject to such terms, rates, and conditions as may be established by the board of directors, within limitations

prescribed by the department. A credit union shall provide for the transfer and withdrawal of funds from accounts by

the means and through the payment system that the board of directors determines best serves the convenience and

needs of members.

(9) A credit union may lend its funds to its members as provided in the Credit Union Act.

(10) A credit union may borrow from any source in an amount not exceeding fifty percent of its capital and deposits.

(11) A credit union may provide debt counseling and other financial counseling services to its members.

(12) A credit union may, in whole or in part, discount, sell, assign, pledge, hypothecate, or otherwise dispose of its intangible

personal property. The approval of the director shall be required before a credit union may discount, sell, assign,

pledge, hypothecate, or otherwise dispose of twenty percent or more of its intangible personal property within one

month unless the credit union is in liquidation.

(13) A credit union may purchase any of the assets of another credit union or assume any of the liabilities of another credit

union with the approval of the director. A credit union may also purchase any of the assets of a credit union which is in

liquidation or receivership.

(14) A credit union may make deposits in or loans to banks, savings banks, savings and loan associations, and trust

companies, purchase shares in mutual savings and loan associations, and make deposits in or loans to or purchase

shares of other credit unions, including corporate central credit unions, if such institutions are either insured by an

agency of the federal government or are eligible under the laws of the United States to apply for such insurance and

invest funds as otherwise provided in sections 21-17,100 to 21-17,102.

(15) A credit union may make deposits in, make loans to, or purchase shares of any federal reserve bank or central liquidity

facility established under state or federal law.

(16) A credit union may hold membership in associations and organizations controlled by or fostering the interests of credit

unions, including a central liquidity facility organized under state or federal law.

(17) A credit union may engage in activities and programs of the federal government, any state, or any agency or political

subdivision thereof when approved by the board of directors and not inconsistent with the Credit Union Act.

(18) A credit union may receive funds either as shares or deposits from other credit unions.

(19) A credit union may lease tangible personal property to its members if the credit union acquires no interest in the

property prior to its selection by the member.

(20) A credit union may, in whole or in part, purchase, sell, pledge, discount, or otherwise acquire and dispose of

obligations of its members in accordance with the rules and regulations promulgated by the director. This subsection

shall not apply to participation loans originated pursuant to section 21-1794.

(21) A credit union may, at its own expense, purchase insurance for its members in connection with its members' shares,

loans, and other accounts.

(22) A credit union may establish, operate, participate in, and hold membership in systems that allow the transfer of credit

union funds and funds of its members by electronic or other means, including, but not limited to, clearinghouse

associations, data processing and other electronic networks, the federal reserve system, or any other government

payment or liquidity program.

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(23) A credit union may issue credit cards and debit cards to allow members to obtain access to their shares and extensions

of credit if such issuance is not inconsistent with the rules of the department. The department may by rule or regulation

allow the use of devices similar to credit cards and debit cards to allow members to access their shares and extensions

of credit.

(24) A credit union may service the loans it sells, in whole or in part, to a third party.

(25) In addition to loan and investment powers otherwise authorized by the Credit Union Act, a credit union may organize,

invest in, and make loans to corporations or other organizations (a) which engage in activities incidental to the

conduct of a credit union or in activities which further or facilitate the purposes of a credit union or (b) which furnish

services to credit unions. The director shall determine by rule, regulation, or order the activities and services which fall

within the meaning of this subsection. A credit union shall notify the director of any such investment or loan if it would

cause the aggregate of such investments and loans to exceed two percent of the credit union's capital and deposits.

Such investments and loans may not, in the aggregate, exceed five percent of the capital and deposits of the credit

union.

(26) A credit union may purchase, lease, construct, or otherwise acquire and hold land and buildings for the purpose of

providing adequate facilities for the transaction of present and potential future business. A credit union may use such

land and buildings for the principal office functions, service facilities, and any other activity in which it engages. A

credit union may rent excess space as a source of income. A credit union shall depreciate or appreciate such

buildings owned by it in the manner and at the rates the director may prescribe by rule, regulation, or order from time

to time. A credit union's investment and contractual obligations, direct, indirect, or contingent, in land and buildings

under this subsection shall not exceed seven percent of its capital and deposits without prior approval of the director.

This subsection shall not affect the legality of investments in land and buildings made prior to October 1, 1996.

(27) A credit union may, in whole or in part, sell, lease, assign, mortgage, pledge, hypothecate, or otherwise dispose of its

land and buildings, including land and buildings obtained as a result of defaults under obligations owing to it.

Neb. Rev. Stat. § 21-1741. Safety deposit box service

A credit union, by action of its board of directors, may, to the same extent as a bank organized under the laws of this state,

operate a safety deposit box service for its members pursuant to sections 8-501 and 8-502.

Neb. Rev. Stat. § 21-1742. Incidental Powers

A credit union may exercise all incidental powers that are suitable and necessary to enable it to carry out its purpose.

Neb. Rev. Stat. § 21-1744. Fees

A credit union may charge an entrance fee as determined by its board of directors. A credit union may also charge

periodic membership fees as determined by its board of directors.

Neb. Rev. Stat. § 21-1763. Indemnification

A credit union may indemnify any or all of its officials and employees or former officials or employees against expenses

actually and necessarily incurred by them in connection with the defense or settlement of any action, suit, or proceeding

in which they, or any of them, are made a party or parties thereto by reason of being or having been an official or

employee of the credit union. A credit union may not indemnify any or all of its officials and employees or former officials or

employees against expenses actually and necessarily incurred by them in relation to matters as to which any such official

or employee shall be adjudged in such action, suit, or proceeding to be liable for willful misconduct in the performance of

duty and to such matters as are settled by agreement predicated on the existence of such liability.

Neb. Rev. Stat. § 21-1776. Dividends

(1) The board of directors may periodically authorize and declare dividends to be paid on share accounts and

membership shares, if any, from the credit union's undivided earnings after provisions have been made for the required

reserves. Share accounts within the same class and of different classes may be paid dividends at differing rates

depending on the amounts in the account or the contractual terms applicable to the account.

(2) Dividends shall not be declared or paid at a time when the credit union is insolvent or when payment thereof would

render the credit union insolvent.

Neb. Rev. Stat. § 21-1780. Fees related to member accounts

(1) A credit union may collect reasonable fees and charges with respect to member accounts. The fees may be for:

(a) Additional copies of periodic statements;

(b) Various types of transactions on a per-transaction basis;

(c) A check or draft returned to the credit union by another financial institution because it was drawn against a closed

account or an account with insufficient funds or for any other reason;

(d) Stop-payment orders;

(e) Any form of members' initiated withdrawal requests which the credit union rejects for any justifiable reason; and

(f) Any other service or activity relating to member share accounts.

(2) No credit union shall impose or increase any fee after October 1, 1996, until thirty calendar days after notification has

been provided or made available to credit union members.

Neb. Rev. Stat. § 21-1798. Money-type instruments

A credit union may collect, receive, and disburse money in connection with the providing of negotiable checks, money

orders, traveler's checks, and other money-type instruments, for the providing of services through automatic teller

machines, and for such other purposes as may provide benefit or convenience to its members. A credit union may charge

fees for such services.

Neb. Rev. Stat. § 21-1799. Federally authorized plans; powers; treatment.

(1) All credit unions chartered under the laws of Nebraska shall be qualified to act as a trustee or custodian within the

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provisions of the federal Self-Employed Individuals Tax Retirement Act of 1962 or under the terms and provisions of

section 408(a) of the Internal Revenue Code if the provisions of such retirement plan require the funds of such trust or

custodianship to be invested exclusively in shares or accounts in the credit union or other credit unions.

(2) All credit unions chartered under the laws of Nebraska are qualified to act as trustee or custodian of a medical savings

account created within the provisions of section 220 of the Internal Revenue Code and a health savings account

created within the provisions of section 223 of the Internal Revenue Code. Except for judgments against the medical

savings account holder or health savings account holder or his or her dependents for qualified medical expenses as

defined under section 223(d)(2) of the Internal Revenue Code, funds credited to a medical savings account or health

savings account below twenty-five thousand dollars are not susceptible to levy, execution, judgment, or other

operation of law, garnishment, or other judicial enforcement and are not an asset or property of the account holder for

purposes of bankruptcy law.

(3) All credit unions chartered under the laws of Nebraska are qualified to act as trustee or custodian of an education

individual retirement account created within the provisions of section 530 of the Internal Revenue Code.

(4) All credit unions chartered under the laws of Nebraska are qualified to act as trustee or custodian of a Roth IRA created

within the provisions of section 408A of the Internal Revenue Code.

(5) If any such plan, in the judgment of the credit union, constitutes a qualified plan under the federal Self-Employed

Individuals Tax Retirement Act of 1962, or under the terms and provisions of section 220, 223, 408(a), 408A, or 530 of the

Internal Revenue Code, and the regulations promulgated thereunder at the time the trust was established and

accepted by the credit union is subsequently determined not to be such a qualified plan, or subsequently ceases to be

such a qualified plan, in whole or in part, the credit union may continue to act as trustee of any deposits which have

been made under such plan and to dispose of such deposits in accordance with the directions of the member and

beneficiaries thereof.

(6) No credit union, with respect to savings made under this section, shall be required to segregate such savings from other

assets of the credit union, but the credit union shall keep appropriate records showing in detail all transactions

engaged in pursuant to this section.

Neb. Rev. Stat. § 21-17,102. Authorized investments

(1) Funds not used in loans to members may be invested:

(a) In securities, obligations, or other instruments of or issued by or fully guaranteed as to principal and interest by the

United States of America or any agency or instrumentality thereof or in any trust or trusts established for investing

directly or collectively in the same;

(b) In securities, obligations, or other instruments of any state of the United States, the District of Columbia, the

Commonwealth of Puerto Rico, and the several territories organized by Congress or any political subdivision thereof;

(c) In deposits, obligations, or other accounts of financial institutions organized under state or federal law;

(d) In loans to or in share accounts of other credit unions or corporate central credit unions;

(e) In obligations issued by banks for cooperatives, federal land banks, federal intermediate credit banks, federal home

loan banks, the Federal Home Loan Bank Board, or any corporation designated in 31 U.S.C. 9101 as a wholly owned

government corporation; in obligations, participation certificates, or other instruments of or insured by or fully

guaranteed as to principal and interest by the Federal National Mortgage Association or the Government National

Mortgage Association; in mortgages, obligations, or other securities which are or ever have been sold by the

Federal Home Loan Mortgage Corporation pursuant to section 305 or section 306 of the Federal Home Loan

Mortgage Corporation Act, 12 U.S.C. 1454 et seq.; in obligations or other instruments or securities of the Student Loan

Marketing Association; or in obligations, participation, securities, or other instruments of or issued by or fully

guaranteed as to principal and interest by any other agency of the United States. A state credit union may issue

and sell securities which are guaranteed pursuant to section 306(g) of the National Housing Act, 12 U.S.C. 1721(g);

(f) In participation certificates evidencing a beneficial interest in obligations or in a right to receive interest and

principal collections therefrom, which obligations have been subjected by one or more government agencies to a

trust or trusts for which any executive department, agency, or instrumentality of the United States or administrator

thereof has been named to act as trustee;

(g) In share accounts or deposit accounts of any corporate central credit union in which such investments are

specifically authorized by the board of directors of the credit union making the investment;

(h) In the shares, stock, or other obligations of any other organization, not to exceed ten percent of the credit union's

capital and not to exceed five percent of the credit union's capital in any one corporation's stock, bonds, or other

obligations, unless otherwise approved by the director. Such authority shall not include the power to acquire

control, directly or indirectly, of another financial institution, nor invest in shares, stocks, or obligations of any

insurance company or trade association except as otherwise expressly provided for or approved by the director;

(i) In the capital stock of the National Credit Union Administration Central Liquidity Facility;

(j) In obligations of or issued by any state or political subdivision thereof, including any agency, corporation, or

instrumentality of a state or political subdivision, except that no credit union may invest more than ten percent of its

capital in the obligations of any one issuer, exclusive of general obligations of the issuer;

(k) In securities issued pursuant to the Nebraska Business Development Corporation Act; and

(l) In participation loans with other credit unions, credit union organizations, or other organizations.

(2) In addition to investments expressly permitted by the Credit Union Act, a credit union may make any other type of

investment approved by the department by rule, regulation, or order.

Neb. Rev. Stat. § 9-701. Conduct of gift enterprises; conditions; prohibited acts; violation; penalties; venue; enforcement.

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(1) For purposes of this section:

(a) Financial institution means a bank, savings bank, building and loan association, or savings and loan association,

whether chartered by the United States, the Department of Banking and Finance, or a foreign state agency as

defined in section 8-101.03; or any other similar organization which is covered by federal deposit insurance;

(b) Gift enterprise means a contest, game of chance, savings promotion raffle, or game promotion which is conducted

within the state or throughout the state and other states in connection with the sale of consumer or trade products

or services solely as business promotions and in which the elements of chance and prize are present. Gift enterprise

does not include any scheme using the game of bingo or keno; any non- telecommunication-related, player-

activated electronic or electromechanical facsimile of any game of chance; or any slot machine of any kind. A gift

enterprise shall not utilize pickle cards as defined in section 9-315. Promotional game tickets may be utilized subject

to the following:

(i) The tickets utilized shall be manufactured or imprinted with the name of the operator on each ticket;

(ii) The tickets utilized shall not be manufactured with a cost per play printed on them; and

(iii) The tickets utilized shall not be substantially similar to any type of pickle card approved by the Department of

Revenue pursuant to section 9-332.01;

(c) Operator means any person, firm, corporation, association, governmental entity, or agent or employee thereof who

promotes, operates, or conducts a gift enterprise. Operator does not include any nonprofit organization or any

agent or employee thereof, except that operator includes any credit union chartered under state or federal law or

any agent or employee thereof who promotes, operates, or conducts a gift enterprise; and

(d) Savings promotion raffle means a contest conducted by a credit union chartered under state or federal law or any

agent or employee thereof in which a chance of winning a designated prize is obtained by the deposit of a

specified amount of money in a savings account or other savings program if each entry has an equal chance of

winning.

(2) Any operator may conduct a gift enterprise within this state in accordance with this section.

(3) An operator shall not:

(a) Design, engage in, promote, or conduct a gift enterprise in connection with the promotion or sale of consumer

products or services in which the winner may be unfairly predetermined or the game may be manipulated or

rigged;

(b) Arbitrarily remove, disqualify, disallow, or reject any entry;

(c) Fail to award prizes offered;

(d) Print, publish, or circulate literature or advertising material used in connection with such gift enterprise which is false,

deceptive, or misleading; or

(e) Require an entry fee, a payment or promise of payment of any valuable consideration, or any other consideration

as a condition of entering a gift enterprise or winning a prize from the gift enterprise, except that a contest, game of

chance, or business promotion may require, as a condition of participation, evidence of the purchase of a product

or service as long as the purchase price charged for such product or service is not greater than it would have been

without the contest, game of chance, or business promotion. For purposes of this section, consideration shall not

include (i) filling out an entry blank, (ii) entering by mail with the purchase of postage at a cost no greater than the

cost of postage for a first-class letter weighing one ounce or less, (iii) entering by a telephone call to the operator of

or for the gift enterprise at a cost no greater than the cost of postage for a first-class letter weighing one ounce or

less. When the only method of entry is by telephone, the cost to the entrant of the telephone call shall not exceed

the cost of postage for a first-class letter weighing one ounce or less for any reason, including (A) whether any

communication occurred during the call which was not related to the gift enterprise or (B) the fact that the cost of

the call to the operator was greater than the cost to the entrant allowed under this section, or (iv) the deposit of

money in a savings account or other savings program, regardless of the interest rate earned by such account or

program.

(4) An operator shall disclose to participants all terms and conditions of a gift enterprise.

(5) (a) The Department of Revenue may adopt and promulgate rules and regulations necessary to carry out the operation

of gift enterprises.

(b) Whenever the department has reason to believe that a gift enterprise is being operated in violation of this section or

the department's rules and regulations, it may bring an action in the district court of Lancaster County in the name

of and on behalf of the people of the State of Nebraska against the operator of the gift enterprise to enjoin the

continued operation of such gift enterprise anywhere in the state.

(6) (a) Any person, firm, corporation, association, or agent or employee thereof who engages in any unlawful acts or

practices pursuant to this section or violates any of the rules and regulations promulgated pursuant to this section shall

be guilty of a Class II misdemeanor.

(b) Any person, firm, corporation, association, or agent or employee thereof who violates any provision of this section or

any of the rules and regulations promulgated pursuant to this section shall be liable to pay a civil penalty of not

more than one thousand dollars imposed by the district court of Lancaster County for each such violation which

shall be remitted to the State Treasurer for distribution in accordance with Article VII, section 5, of the Constitution of

Nebraska. Each day of continued violation shall constitute a separate offense or violation for purposes of this

section.

(7) A financial institution or credit union may limit the number of chances that a participant in a savings promotion raffle

may obtain for making the required deposits but shall not limit the number of deposits.

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(8) In all proceedings initiated in any court or otherwise under this section, the Attorney General or appropriate county

attorney shall prosecute and defend all such proceedings.

(9) This section shall not apply to any activity authorized and regulated under the Nebraska Bingo Act, the Nebraska

County and City Lottery Act, the Nebraska Lottery and Raffle Act, the Nebraska Pickle Card Lottery Act, or the

Nebraska Small Lottery and Raffle Act.

Nevada Nev. Rev. Stat. § 678.460. General powers; waiver or modification of law by commissioner.

Every credit union organized under the provisions of this chapter:

1. Has all the powers granted by NRS 81.500 that are not inconsistent with the provisions of this chapter and in addition

thereto, the powers enumerated in NRS 678.470 to 678.500, inclusive; and

2. May exercise any authority and perform all acts that a federal credit union may exercise or perform, with the consent

and written approval of the commissioner. The commissioner may, by regulation, waive or modify a requirement of

Nevada law if the corresponding requirement for federal credit unions has been or is eliminated or modified.

Nev. Rev. Stat. § 678.470. Receiving and paying out deposits; borrowing, selling and purchasing assets.

A credit union may, subject to the regulations or approval of the commissioner:

1. Receive from its members or from the members of another credit union deposits which are payable on demand and

honor requests for withdrawals in the form of checks or drafts.

2. Receive deposits from the state treasurer which are payable on demand pursuant to the provisions of chapter 356 of

NRS.

3. Borrow from any source in accordance with the policy established by the board of directors and discount and sell any

eligible obligations.

4. Sell all or any part of its assets or purchase all or any part of the assets of another credit union.

Nev. Rev. Stat. § 678.480. Fees and assessments.

A credit union may:

1. Require, at the discretion of the directors, the payment of an entrance fee or annual membership fee of any person

admitted to membership;

2. Collect, receive and disburse moneys and charge a fee for services rendered in connection with the sale of negotiable

checks, money orders and other money-type instruments and for such other purposes as may provide benefit or

convenience to its members; and

3. Assess charges to members in accordance with the bylaws for failure to promptly meet their obligations to the credit

union.

Nev. Rev. Stat. § 678.490. Membership in other credit union or organization; performance of certain services.

A credit union may:

1. Hold membership in other credit unions organized under this chapter, in the Nevada Credit Union League and in other

organizations composed of credit unions;

2. Perform such tasks and missions as may be requested by the Federal Government, the State of Nevada or any agency

or political subdivision thereof, including, without limitation, a city, county or school district, when approved by the board

of directors and not inconsistent with the provisions of this chapter;

3. Act as fiscal agent for and receive deposits from the Federal Government, the State of Nevada or an agency or political

subdivision thereof, including, without limitation, a city, county or school district; and

4. Perform trust services for its members, including the trust estates of deceased members, and act as a custodian of

qualified pension funds of self-employed individuals under the provisions of 26 U.S.C. §§ 861 et seq.

Nev. Rev. Stat. § 678.500 Donations and contributions.

A credit union may:

1. Contribute to, support or participate in any nonprofit service facility whose services will benefit the credit union or its

membership; and

2. Make donations or contributions to any nonprofit civic, charitable or community organization as authorized by the board

of directors.

Nev. Rev. Stat. § 678.510. Eligibility for membership.

1. The membership of a particular credit union shall be limited to the subscribers to the articles of incorporation and such

other persons who have:

(a) The common bond set forth in the bylaws;

(b) Paid the entrance fee provided in the bylaws;

(c) Subscribed for one or more shares and have paid the initial installment thereon; and

(d) Complied with other requirements specified in the articles of incorporation or bylaws.

2. The common bond required for membership in credit unions organized under the provisions of this chapter may include,

but are not limited to persons who: (a) Have a similar occupation, association or interest;

(b) Reside within an identifiable neighborhood, community or rural district; or

(c) Are employed by the same employer, and members of the immediate families of such persons.

3. Any member of a credit union who loses the bond that is characteristic of all other members may be permitted to retain

his or her membership in the credit union at the discretion of the board of directors.

Nev. Rev. Stat. § 678.700. Dividends.

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1. The board may, after provision for the required reserves, declare a dividend to be paid from the remaining net earnings

at a rate, interval and upon such shares as they determine. Dividends shall be paid on all paid-up shares outstanding at

the close of the period for which the dividend is declared.

2. Shares which become fully paid-up during such dividend period and are outstanding at the close of the period are

entitled to a proportional part of such dividend.

3. Dividend credit for a month may be accrued on shares which are or become fully paid up during that month.

Nev. Rev. Stat. § 678.710. Loans to members: Application; approval; limitations; participation loans; payment.

1. A credit union may make loans to members in accordance with the provisions of the bylaws upon receipt of approval by

the credit committee or loan officer at a rate of interest agreed upon by the credit union and member.

2. Every application for a loan must be made in writing upon a form furnished by the credit union which has been approved

by the board. The application must include the purpose for which the loan is desired and the security, if any, offered.

3. A loan must not be made to any member in an aggregate amount in excess of 10 percent of the credit union's

unimpaired capital and surplus.

4. A credit union may participate with other credit unions, corporations or financial institutions in making loans to credit

union members.

5. A member may receive a loan in installments or in one sum and may pay the whole or any part of his or her loan on any

day on which the office of the credit union is open for business.

Nev. Rev. Stat. § 678.750. Insurance of members and accounts.

1. A credit union may purchase insurance on the lives of its members in an amount equal to their respective shares, deposits

and balances on a loan or any of them.

2. A credit union may enter into cooperative marketing arrangements for its members covering such services as group life

insurance, coverage for temporary disability, plans for health and accident and such other programs which are

demonstrated to be in the interest of improving the economic and social conditions of the credit union's members.

3. A credit union must apply to the commissioner for approval of a plan of insurance for members' accounts, either

pursuant to the Federal Credit Union Act of 1934, as amended, ( 12 U.S.C. §§ 1781 et seq.), or under a contract of

insurance issued by an insurer, which must be approved by the commissioner and the commissioner of insurance

pursuant to NRS 678.755. The issuance of such a contract is not transacting insurance under Title 57 of NRS.

4. The commissioner shall make available reports of the financial condition of credit unions, reports of examinations made

pursuant to NRS 678.790 and any other reports that may be required by the insurer and deemed appropriate by the

commissioner.

Nev. Rev. Stat. § 678.760. Authorized investments.

Money not used in loans to members may be invested in:

1. Securities, obligations, participations or other instruments of or issued by or fully guaranteed as to principal and interest by

the United States of America or any agency thereof or in any trust or trusts established for investing directly or collectively

in these instruments;

2. Obligations of this state or any political subdivision thereof, including, without limitation, a city, county or school district;

3. Certificates of deposit or passbook type accounts issued by a state or national bank, mutual savings bank or savings and

loan association;

4. Loans to or shares or deposits of other credit unions as permitted by the bylaws;

5. Capital shares, obligations or preferred stock issues of any agency or association organized either as a stock company,

mutual association or membership corporation if the membership or stockholdings, as the case may be, of the agency

or association are confined or restricted to credit unions or organizations of credit unions, and the purposes for which the

agency or association is organized are designed to service or otherwise assist credit union operations;

6. Shares of a cooperative society organized under the laws of this state or the United States in a total amount not

exceeding 10 percent of the shares, deposits and surplus of the credit union;

7. Stocks and bonds of United States corporations to a maximum of 5 percent of unallocated reserves, except that such an

investment must be limited to stocks or bonds yielding income which are approved by the Commissioner;

8. Loans to any credit union association, national or state, of which the credit union is a member, except that such an

investment must be limited to 1 percent of the shares, capital deposits and unimpaired surplus of the credit union; and

9. Negotiable obligations of federal or state banks.

New Hampshire N.H. Rev. Stat. Ann. § 383-E:4-401. Deposits: Loans

A credit union may receive the money of its members on deposit and in payment of shares, upon such terms and is such

amounts as its board of directors may prescribe. It may make loans to its members on such terms and upon such security,

real or personal, as its written lending policy may prescribe.

N.H. Rev. Stat. Ann. § 383-E:4-402. Use of Funds.

While awaiting call of its members for loans, a credit union may make use of its funds as described in and according to the

limitations of the following subsections:

(a) It may deposit its money in any corporate credit union whose shares and deposits are insured by the National Credit

Union Administration or other qualified share and deposit insurance fund deemed acceptable by the commissioner,

and may deposit its money in any federally insured bank.

(b) It may invest any surplus in obligations of the United States government, including any loans included in the

Participation Sales Act of 1966, 12 U.S.C. section 1701, or of the state, or of any county, city or town of the state issued

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under authority of law.

(c) It may invest in securities, obligations, participations, or other instruments of or issued by or fully guaranteed as to

principal and interest by the United States or any agency thereof or in any trust or trusts established for investing directly

or collectively in the same.

(d) Any credit union with assets of $3,000,000 or more may purchase real estate mortgages secured by real estate

wherever situate which are guaranteed by the Federal Housing Administration and may purchase real estate

mortgages secured by real estate in this state and in any state which are guaranteed by the United States government

through the insured loan program of the Farmer's Home Administration. It may be an originator or participating lender in

participating loans as defined in RSA 383-B:3-303(d)(8), provided that its participation in such loans shall be within such

limits as are prescribed in RSA 383-E:4-403.

(e) The board of directors shall establish and maintain a written investment policy which shall be reviewed not less than

annually. The board of directors may, by majority vote of such board, delegate investment authority as prescribed in

the credit union's written investment policy to a committee established by, or officers designated by, the board for such

purpose. All investments will be reviewed in every meeting of the board of directors.

(f) All investments in securities shall be supported by a documented credit and risk analysis. Such analysis shall be applied

to securities as a part of a pre-purchase and ongoing due-diligence process. Assessments of creditworthiness and risk

shall not be solely reliant on external credit ratings, if any, provided by one or more NRSROs. Any investment in a debt

security shall meet the investment grade debt security standard.

N.H. Rev. Stat. Ann. § 383-E4-403. Limitations.

The following limitations shall be observed with respect to the investments of credit unions:

(a) Not exceeding 5 percent of total assets shall be invested in preferred or common stock.

(b) Not exceeding 5 percent of total assets shall be invested in bonds of the Dominion of Canada, its provinces and cities.

(c) Not exceeding 20 percent in aggregate of the total assets shall be invested in corporate securities, New Hampshire

securities, banks and bank holding company securities, and investment trust shares; provided, however, that not

exceeding 5 percent of the total assets may be invested in preferred and common stock, including shares of

investment trusts.

(d) Unless the value of a credit union's assets as determined by the commissioner shall exceed the amount of the shares

and deposits by at least 5 percent, it shall be unlawful for such credit union to invest in any preferred or common stocks,

including shares of investment trusts, without the written permission of the commissioner.

(e) Whenever in the opinion of the commissioner the condition of any credit union is such that the commissioner deems it

unwise for the credit union to invest in any preferred or common stocks, including shares of investment trusts, he or she

may by written order forbid such credit union to make such investment, and said credit union shall not thereafter make

such investment until such order shall be revoked in writing.

(f) No investment shall be made which, when added to investments of the same category then held, shall cause the

investments in that category to exceed the percentages permitted for such category.

(g) In determining whether an investment complies with the limitations imposed by this section, the applicable limitation

shall be applied to the condition of the credit union at the time of making such investment. N.H. Rev. Stat. Ann. § 383-E:4-404. Public Obligations

The following described securities are legal investments:

(a) The authorized bonds and notes of the state of New Hampshire or of any municipal government in New Hampshire,

including all authorities, commissions, districts or similar divisions of state or municipal government, provided that:

(1) The direct obligations of the state of New Hampshire or any state entity in New Hampshire are backed by the

issuer's ability to levy taxes for the repayment of principal and interest.

(2) Obligations secured by the revenues of any authorities, commissions, districts or similar divisions of state or municipal

government are ranked among the 4 highest ratings of any NRSRO.

(b) The authorized bonds and notes of any other state, commonwealth or territory of the United States or any municipality

therein or authorities, commissions, districts or similar divisions of state or municipal government therein, provided:

(1) The direct obligations of any state, commonwealth or territory of the United States or any municipality located

therein are backed by the issuer's ability to levy taxes for repayment of principal and interest and are ranked

among the 3 highest ratings of any NRSRO.

(2) Obligations secured by the revenue of any authorities, commissions, districts or similar divisions of state or municipal

government are ranked among the 3 highest ratings of any NRSRO.

N.H. Rev. Stat. Ann. § 383-E:4-405. Corporate Securities


(a) Obligations in the form of bonds and notes issued, assumed, or guaranteed by entities incorporated in the United States

of America. The obligations shall be among the 3 highest ratings of any NRSRO. Convertible bonds of a lesser rating will

be legal if the common stock would otherwise qualify.

(b) All preferred stocks issued, assumed or guaranteed by entities incorporated in the United States. The obligations shall be

rated among the 3 highest ratings of any NRSRO.

(c) The common stock or senior securities convertible into common stock of entities incorporated in the United States of

America provided:

(1) The stock is listed on an exchange and is ranked among the 3 highest ratings of any NRSRO.

(2) At the time of purchase, any common stock investment under this section when added to the book value of all

other common stock securities presently owned of the same entity shall not exceed 5 percent of a credit union's

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capital funds.

(d) The bonds and notes issued, assumed or guaranteed by any entity organized under the laws of this state or carrying on

its principal manufacturing within this state, provided that:

(1) The entity shall have, at the date of investment, a net worth of at least $1,000,000; and

(2) In at least 4 of the 5 years next preceding the date of investment, the net income available for interest plus the

federal income tax of the entity shall have been not less than twice the interest on its obligations.

(e) The dividend-paying capital stock of any entity organized under the laws of this state or carrying on its principal

manufacturing within this state, provided:

(1) All securities, if any, senior to such stock are legal investments hereunder, and the entity shall have at the date of

such investment a net worth of at least $1,000,000.

(2) In at least 4 of the 5 years next preceding the date of investment, the entity shall have earned net income available

for dividends on the entire outstanding issue of the stock in question of not less than 4 percent on the par or stated

value of such stock.

(3) No credit union shall hold more than 5 percent of the outstanding stock of any entity.

N.H. Rev. Stat. Ann. § 383-E:4-406. Bank Stock


(a) The securities of any bank or bank holding company incorporated in the United States, provided that:

(1) Such bank or bank holding company shall have a total capital and surplus of at least $50,000,000.

(2) The capital and surplus shall represent not less than 4 percent of the total assets in at least 4 of the 5 years

immediately preceding investment.

(3) Net earnings shall have averaged not less than 4/10 of one percent of average total assets over the same 5 years

immediately preceding investment.

(4) The total loans to total deposits shall not be greater than 80 percent.

(b) The securities of any bank or trust company, or the special deposits of any investor-owned savings bank incorporated

under the laws of this state and doing business herein, and the capital notes and the capital stock of any federally

chartered bank in this state; but the amount of such notes or stock or special deposits held by any credit union as an

investment and as collateral for loans shall not exceed 1/4 of the total capital notes and capital stock of the bank,

except if held on or before June 1, 1979.

(c) The securities of any New Hampshire bank holding company which is registered with the board of governors of the

Federal Reserve System under 12 U.S.C. section 1844, but the amount of capital stock held by any credit union in legal

form or represented by voting trust certificates as an investment and as collateral for loans shall not exceed 1/4 of the

total capital stock of such New Hampshire bank holding company.

N.H. Rev. Stat. Ann. § 383-E:4-407. Investment Trust Shares

The following described shares or units are legal investments if listed on an exchange or authorized for sale in this state by

the bureau of securities regulation of the secretary of state:

(a) The shares of any management type investment company, either open-end or close-end, provided that:

(1) If the company acts as its own investment manager it must have been in business for at least 5 years, have at least

$50,000,000 of net assets and have paid dividends for at least 4 of the 5 years immediately preceding investment.

(2) In the event that the company employs outside investment management then those investment managers must

have a total of at least $100,000,000 under management and the fund must have been in business for at least 5

years, have net assets of $50,000,000 and have paid dividends for at least 4 of the 5 years immediately preceding

investment.

(b) The shares of any management type investment company that is a member of a group of 3 or more mutual funds

under the same investment manager, provided that:

(1) Such manager has at least $100,000,000 of assets under management, and

(2) The Company has at least $10,000,000 of net assets.

(c) Unit investment trusts with principal of at least $1,000,000, if authorized for sale in this state.

N.H. Rev. Stat. Ann. § 383-E:4-408. Other Legal Investments


(a) Acceptances of member banks of the Federal Reserve System of the times and maturities made eligible for rediscount

and purchased by Federal Reserve Banks.

(b) Advances of federal funds to banks which also qualify as cash depositories under RSA 383-B:3-301(k), provided that

total advances of federal funds under this subsection shall not exceed 20 percent of the credit union's shares and

deposits, and the total of such advances by a credit union to any one bank shall not exceed 10 percent of the bank's

capital funds.

(c) The obligations issued or guaranteed by the International Bank for Reconstruction and Development provided that

such obligations are payable in dollars in the United States, and that the principal office of the obligor is, at the time of

making such investment, located within the United States.

N.H. Rev. Stat. Ann. § 383-E:4-409. Loan Securities

In order to increase income from investment securities, any credit union may loan to brokerage firms which are members of

an exchange any stocks, bonds or other securities in which the credit union has invested under this chapter provided that:

(a) Each loan shall be executed through a correspondent bank having assets of not less than $500,000,000;

(b) At the inception of the loan at least 100 percent of the market value of the securities lent shall be secured by cash or

debt obligations of the United States or debt obligations for which the faith and credit of the United States is pledged

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for the payment of the principal and interest thereof;

(c) At all times during the term of the loan the collateral securing the same shall be equal in value to not less than 95

percent of the market value of the securities loans by the credit union;

(d) The market value of the securities loaned by the credit union under the authority of this action shall not, at any one

time, exceed 10 percent of the aggregate market value of all stocks, bonds or other securities then held by the credit

union as investments under this chapter; and

(e) No loan shall be made to any brokerage firm which is then listed for and under special surveillance by an exchange in

the belief that such brokerage firm is in or is approaching financial difficulty, and which is, at the time, the subject of

any pending notice given by any exchange to the Securities Investor Protection Corporation and the Securities and

Exchange Commission under 15 U.S.C. section 78eee(a)(1).

(f) Every brokerage firm receiving the loan under this section shall be registered, and every agent soliciting the loan shall be

licensed, with the bureau of securities regulation of the secretary of state.

N.H. Rev. Stat. Ann. § 383-E:4-410. Retention of securities

Any security held under RSA 383-E:4-404 through 409 which becomes nonlegal because of changes in the law relating to

legal investments or because of conditions arising subsequent to the purchase of such security, may be retained upon

application to the commissioner for approval to retain the security.

N.H. Rev. Stat. Ann. § 383-E:4-411. Advantageous Federal Powers.

A credit union shall have and may exercise any power, right, benefit or privilege, now or hereafter authorized for federal

credit unions by federal legislation, regulation or ruling, provided that, if federal law requires a federal credit union to apply

to the National Credit Union Administration before exercising a power, the credit union shall make the same application to

the commissioner for permission to exercise such power.

N.H. Rev. Stat. Ann. § 383-E:4-416. Safe Deposit Boxes Safe deposit boxes of credit unions, federal credit unions, and foreign credit unions having safe deposit boxes in this state

shall be subject to Article 5 of RSA 383-B. N.H. Rev. Stat. Ann. § 383-E:5-508. Borrowing

The board of directors at any regular or special meeting may, by majority vote, authorize borrowing of specified amounts

of money. At no time may the total borrowing exceed 30 percent of its total paid-in shares and deposits, guaranty fund,

and undivided earnings without approval of the commissioner. N.H. Rev. Stat. Ann. § 383-E:5-509. Dividends

At such intervals and for such periods as the board of directors may authorize, and after any required transfers to the

required reserves, the board of directors may declare dividends on shares and interest on deposits from current earnings.

Dividends may be paid at various rates with due regard to the conditions that pertain to each type of share or deposit

account such as minimum balance, notice and time requirements. Dividends may be paid from the undivided earnings of

previous years if the payment of the dividends does not cause the net worth of the credit union to fall below "Well

Capitalized," as set forth in 12 C.F.R. part 702 Prompt Corrective Action (PCA). Payment of these dividends from prior years'

undivided earnings shall be reported to the commissioner within 30 days of dividend declaration. With prior approval of the

commissioner, dividends may be paid from the undivided earnings of previous years if the payment of the dividends does

cause the credit union's net worth to fall below "Well Capitalized" as set forth in 12 C.F.R. part 702 Prompt Corrective Action

(PCA).

New Jersey N.J. Rev. Stat. § 17:13-89. Powers

A credit union's powers shall include, but not be limited to, the power to:

a. Make contracts;

b. Sue and be sued;

c. Adopt and use a common seal and alter same;

d. Acquire, lease, hold, assign, pledge, hypothecate, sell and otherwise dispose of property, either in whole or in part,


e. Offer its members and other credit unions, shares, share certificates, deposits, deposit certificates, or share drafts as

provided in this act;

f. Lend its funds to its members as hereinafter provided;

g. Borrow money from any source, provided that a credit union shall notify the commissioner in writing of its intention to

borrow in excess of an aggregate of 50% of its shares and undivided earnings;

h. Discount or sell any of its assets, and purchase the assets of another credit union, subject to the approval of the

commissioner;

i. Make deposits and invest in legally chartered banks, savings banks, savings and loan associations, trust companies, and

other credit unions, including corporate credit unions, and invest funds as otherwise provided in this act;

j. Hold membership in other credit unions organized under this act, and in associations and organizations controlled by or

fostering the interests of credit unions, including a central liquidity facility organized under state or federal law;

k. Act as fiscal agent for and receive payment on shares or deposits, or both, from the federal government, this State, or

any agency or political subdivision thereof;

l. Have and exercise all the powers of corporations organized under Title 14A of the New Jersey Statutes which are not

inconsistent with this act;

m. Maintain service facilities, including automated terminals at locations other than its principal office upon the approval of

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the commissioner. The maintenance of these facilities shall be reasonably necessary to furnish service to its members. A

credit union may join with one or more financial institutions in the operation of a service facility to meet member needs;

n. Contract with outside vendors to make insurance and group purchasing plans available to its members and receive

compensation from the vendors in return for performing administrative functions on their behalf;

o. Participate in loans to credit union members jointly with other credit unions, credit union organizations, or financial

institutions, provided that the originating credit union retains an interest of at least 10% of the face amount of the loan;

p. Participate in any guaranteed loan program of the federal or state government;

q. Purchase the conditional sales contracts, notes, and similar instruments of its members;

r. Purchase and maintain insurance on behalf of any person who is an officer, director, employee, or agent of the credit

union;

s. Collect, receive and disburse monies in connection with the providing of negotiable checks, money orders, travelers'

checks, and similar instruments, and for any other purposes which may provide benefit or convenience to its members,

and to charge a reasonable fee for these services;

t. Declare dividends to its members, as provided in the bylaws or by rules and regulations of the commissioner;

u. Participate in government programs designed to alleviate social and economic problems at the community, state, or

regional levels; and

v. Act as a public depository pursuant to the provisions of the "Governmental Unit Deposit Protection Act," P.L.1970, c.236

(C.17:9-41 et seq.).

N.J. Rev. Stat. § 17:13-92. Membership of credit union; regulations

a. The membership of a credit union shall be limited to and consist of the incorporators and other persons that are

members of any group, combination of groups, organization, combination of organizations or natural persons specified

in the certificate of incorporation, or any group, combination of groups, organization, combination of organizations or

natural person that has been added to the membership by amendment to the credit union's bylaws, who have paid

any required entrance fee or membership fee, or both, have subscribed to one or more shares, have paid the initial

installment thereon, and have complied with any other requirements as the certificate of incorporation or bylaws specify.

b. Except as otherwise provided in this section, credit union membership shall be limited to the types of membership

described in one of the following categories:

(1) one group which has a common bond of occupation or association; or

(2) more than one group with each group having within that group a common bond of occupation or association and a

membership of less than 3,000 members at the time that group is first included within the field of membership of a

credit union made up of more than one group; or

(3) persons or organizations, or any combination of organizations within a well-defined neighborhood, local community

or rural district; or

(4) any combination of membership fields from paragraphs (1), (2) and (3) of this subsection b., provided, however, that

the combining of membership fields pursuant to this paragraph shall only be used with respect to an existing credit

union and only if, in the determination of the commissioner, it is found that the combination is necessary to maintain

the safety and soundness of that existing credit union and, with respect to any group eligible to be part of a credit

union pursuant to paragraph (2) or organization eligible to be part of a credit union pursuant to paragraph (3) of this

subsection which is to be combined, the membership of that group or organization shall be subject to the same

limitation on the number of members as provided for groups under paragraph (2) of this subsection; and

(5) members of the immediate family of persons in a credit union or in any group or organization which makes up the

membership of a credit union.

c. Societies and copartnerships composed primarily of persons who are eligible for membership, and corporations,

including cooperative organizations, whose stockholders are composed primarily of persons who are eligible for

individual membership, may be admitted to membership. Any entity thus admitted to membership shall not borrow in

excess of its shareholdings unless at least 10% of its members are qualified members of the credit union.

d. Members who leave the field of membership may be permitted to retain their memberships in the credit union under

reasonable standards established by the board.

e. Members of the credit union shall not be personally or individually liable for the payment of the credit union's debts.

f. (1) The commissioner may, by regulation, provide that a credit union may add to its field of membership any natural

person who resides in a primary metropolitan statistical area in which the credit union is located and meets at least one

of the following criteria:

(a) is a person of low income as defined pursuant to 42 U.S.C. § 5302(a)(20)(A);

(b) resides in a low median income census tract as defined by the commissioner pursuant to 12 C.F.R. s.228.12; or

(c) has been or is the recipient of State or federally funded public assistance.

(2) The commissioner may require that a natural person meet more than one of the criteria established under paragraph

(1) of this subsection f.;

(3) If a natural person who is a member of a credit union has immediate family members living in the same primary

metropolitan statistical area as that natural person, a credit union may also add any member of that immediate

family to its field of membership;

(4) A credit union may establish areas within a primary metropolitan statistical area for purposes of paragraphs (1) and

(3) of this subsection f.

g. (1) For a credit union whose field of membership is described under paragraph (2) of subsection b. of this section, the

requirement that a group have a membership of less than 3,000 members shall not apply if the commissioner determines,

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in writing and in accordance with the guidelines and regulations issued pursuant to paragraph (2) of this subsection, that

the group could not feasibly or reasonably establish a new single common-bond credit union pursuant to paragraph (1)

of subsection b. of this section, because:

(a) the group lacks sufficient volunteer and other resources to support the efficient and effective operation of a

single common-bond credit union;

(b) the group does not meet the criteria that the commissioner has determined to be important for the likelihood of

success in establishing and managing a new single common-bond credit union, including the demographic

characteristics such as geographical location of members, diversity of ages and income levels, and other factors

that may affect the financial viability and stability of a single common-bond credit union; or

(c) the group would be unlikely to operate a safe and sound single common-bond credit union.

(2) The commissioner shall promulgate regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410

(C.52:14B-1 et seq.), setting forth the criteria that the commissioner shall apply in determining whether a credit union

may be established as provided pursuant to paragraph (2) of subsection b. of this section, which regulations shall be

directed at assuring substantial parity between the field of membership standards and requirements of State and

federal credit unions.

N.J. Rev. Stat. § 17:13-104. Loans to members; security; interest; fees; lien on accounts

a. A credit union may make loans to its members, evidenced by a written instrument, upon terms and upon any security,

including, but not limited to, the endorsement of a note by a surety, comaker, or guarantor, assignment of an interest in

real or personal property, or assignment of shares, as the board may provide. The adequacy of any security shall be

determined by the credit committee. No loan shall be made to any member when the aggregate amount of all that

member's loans outstanding exceeds 10% of the credit union's total assets. The board, in its discretion, may fix a lower

amount.

b. Notwithstanding the provisions of R.S. 31:1-1 to the contrary, a credit union may charge, contract for, and receive

interest on loans at a rate or rates agreed to by the credit union and the member. A credit union may charge late fees

and lawful fees paid to any public officer for filing, recording, or releasing a document, and may charge collection fees,

not to exceed 20% of the principal balance and interest outstanding, which may be added to the principal balance of

any loan placed for collection after default thereon.

c. A credit union shall have a lien on the shares, share certificates, deposits, deposit certificates, and accumulated interest

or dividends of a member in any individual, joint, or trust account, for any sum past due the credit union from the

member or for any loan endorsed by him. The credit union shall have a right of immediate set-off with respect to these

accounts.

N.J. Rev. Stat. § 17:13-107. Investment of funds


a. In securities, obligations, or other instruments of or issued by or fully guaranteed as to principal and interest by the United

States of America or any agency thereof or in any trust or trusts established for investing directly or collectively in the

same;

b. In obligations of any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and the

several territories organized by Congress, or any political subdivision thereof;

c. In certificates of deposit or passbook-type accounts issued by a state or federally chartered bank, savings bank, or

savings and loan association;

d. In loans to or in shares or deposits of other credit unions, corporate central credit unions, or a central liquidity facility

established under any state or federal law;

e. In shares, stocks, loans or other obligations of any organization, corporation, or association membership or ownership of

which is primarily confined or restricted to credit unions, or organizations of credit unions, and the purpose of which is to

strengthen or advance the development of credit unions or credit union organizations;

f. In shares of a cooperative society organized under the laws of this State or of the laws of the United States in a total

amount not exceeding 10% of the shares, deposits, and surplus of the credit union.

New Mexico N.M. Stat. Ann. § 58-11-18. Powers of credit unions

In addition to the powers authorized elsewhere in the Credit Union Act [58-11-1 NMSA 1978], a credit union may:

A. enter into contracts of any nature;

B. sue and be sued;

C. adopt, use and display a corporate seal;

D. acquire, lease, hold, assign, pledge, hypothecate, sell and discount or otherwise dispose of property or assets, either in

whole or in part, necessary or incidental to its operations;

E. lend funds to members;

F. borrow from any source; provided that a credit union shall have prior approval of the director before borrowing in

excess of an aggregate of fifty percent of its capital;

G. purchase the assets of another credit union, subject to the approval of the director;

H. offer various financial services approved by the director;

I. hold membership in other credit unions organized under the Credit Union Act [58-11-1 NMSA 1978], the Federal Credit

Union Act [12 USCS § 1751 et seq.] or other acts and in associations and organizations controlled by or fostering the

interests of credit unions, including a central liquidity facility organized under state or federal law;

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J. engage in activities and programs as requested by any governmental unit;

K. act as fiscal agent and receive payments on deposit accounts from a governmental unit;

L. sell or offer to sell insurance to the same extent allowed by law to other state chartered lending institutions; and

M. provide services to persons within the credit union's field of membership, including electronic funds transfers and the

sale and negotiation of instruments, including money orders, traveler's checks and stored value cards.

N.M. Stat. Ann. § 58-11-21. Membership

A. The membership of a credit union shall consist of those persons who share a common bond set forth in the bylaws, have

been duly admitted members, have paid any required one-time or periodic membership fee, or both, have paid for in

cash or its equivalent one or more shares and have complied with such other requirements as the articles of organization

and the bylaws specify.

B. Credit union membership may include persons within one or more groups having a common bond of similar occupation,

association or interest, or persons who reside or belong to one or more groups that are based within an identifiable

neighborhood, community or rural district, or employees of a common employer, or persons employed within a defined

business district, industrial park or shopping center and members of the immediate family of such persons.

C. Organizations in which majority ownership or control is vested in persons eligible for membership in a credit union, may

be admitted to membership in that credit union. Also, organizations one of whose principal functions is to provide

services to persons who are eligible for membership in the credit union may be admitted to membership. Other

organizations having a commonalty [commonality] of interest with the credit union may be admitted to membership

with the approval of the director.

N.M. Stat. Ann. § 58-11-40. Dividends and interest

A. Periodically, and after provision for the required reserves, the board of directors may declare, dividends to be paid on

share accounts and membership shares. Dividends may be paid from the credit union's undivided earnings; provided, no

such payment shall result in or increase a debit balance in the undivided earnings account.

B. Dividends may be paid at various rates with due regard to the conditions that pertain to each type of account, such as

minimum balance, notice and time requirements.

C. Dividends need not be paid on membership shares, but if such a dividend is paid, it shall be added to the membership

share held by each member.

D. A credit union may receive payments on deposit accounts from its members and other credit unions subject to such

terms, rates and conditions as the board of directors establishes.

E. Interest may be paid on deposit accounts at various rates with due regard to the conditions that pertain to each type of

account, such as minimum balance, notice and time requirements.

N.M. Stat. Ann. § 58-11-50. Insurance for members

A credit union may purchase or make available insurance for its members either on an individual or group basis, subject to

the insurance laws of this state and the rules and regulations established by the superintendent of insurance.

N.M. Stat. Ann. § 58-11-51. Liability and fidelity insurance for officials and employees

A credit union shall, unless otherwise specified by the director, purchase and maintain liability and fidelity insurance

coverage on behalf of a person who is or was a board member, committee member, executive officer, employee or

agent of the credit union or who is or was serving at the request of the credit union as a director, committee member,

executive officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against

any liability asserted against that person and incurred by that person in any such capacity or arising out of that person's

status whether or not the credit union would have the power to indemnify that person against such liability; provided, a

credit union shall not provide for the indemnification of personnel who are adjudged guilty of or liable for willful

misconduct, gross neglect of duty or criminal acts.

N.M. Stat. Ann. § 58-11-53. Money-type instruments

A credit union may collect, receive and disburse money in connection with the providing of negotiable checks, money

orders, travelers checks and other money-type instruments for its members and other persons within the credit union's field

of membership and in connection with the providing of services through service facilities, including automated terminal

machines, and for such other purposes as may provide benefit or convenience to its members. A credit union may charge

reasonable fees for those services.

N.M. Stat. Ann. § 58-11-56. Investments

A. Funds not required to satisfy member demands for extensions of credit may be invested in:

(1) securities, obligations or other instruments of or issued by or fully guaranteed as to principal and interest by the

United States or any agency of the United States or in any trust investing solely, directly or indirectly, in the same;

(2) securities, obligations or other instruments of this state or any political subdivision of this state;

(3) deposits or other accounts of state or federally chartered financial institutions, the accounts of which are insured by

an agency of the United States;

(4) loans or extensions of credit to or shares or deposits of other credit unions, central credit unions or corporate credit

unions, the accounts of which are insured by the national credit union administration's share insurance fund;

(5) deposits in, loans to or shares of any federal reserve bank or of any central liquidity facility established under federal

law;

(6) shares, stocks, loans or extensions of credit to or other obligations of any organization, corporation or association

providing services that are associated with the general purposes of the credit union or that engage in activities

incidental to the operations of a credit union. Those investments in the aggregate shall not exceed five percent of

the credit union's capital;

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(7) shares of a cooperative society organized under the laws of this state or of the laws of the United States in a total

amount not exceeding ten percent of the capital of the credit union, subject to prior approval by the director;

(8) fixed assets, not to exceed six percent of the credit union's capital and deposits, unless with the written approval of

the director. For the purpose of this subsection, "fixed assets" means structures, land, computer hardware and

software and heating and cooling equipment that are affixed to the premises;

(9) common trusts or mutual funds whose investment portfolios consist of mortgages, securities and obligations and

bonds of the federal national mortgage association, federal home loan mortgage corporation, government

national mortgage association and other government- sponsored enterprises;

(10) other investments, or in amounts in excess of the thresholds listed in this section, as approved by the director in

written application; and

(11) activities that the director determines are a part of or incidental to the operations of a credit union notwithstanding

any provision to the contrary in the Credit Union Act [58-11-1 NMSA 1978].

B. Credit unions with minimum undivided earnings of one million dollars ($ 1,000,000) and with capital in excess of seven

and one-half percent after required reserves may also invest funds not required to satisfy member demands for

extensions of credit. The aggregate of a credit union's investments as provided in this subsection shall not exceed ten

percent of the credit union's undivided earnings. Such investments may only be in or through:

(1) common trusts or mutual funds whose investment portfolios consist of the bonds or other obligations of insured

financial institutions organized pursuant to the laws of another state or the United States, or corporations organized in

any state, the District of Columbia, the commonwealth of Puerto Rico or the territories organized by congress;

provided that the investment portfolios are representative of a recognized broadly traded bond index, as defined in

the credit union's board-approved investment policy, and provided that the portfolios shall be limited to such bonds

and other obligations having maturities of less than fifteen years with an average weighted life not to exceed seven

years and being rated among the three highest ratings established by one or more national rating services; and

(2) common trusts or mutual funds whose investment portfolios consist of the stock of corporations organized in any

state, the District of Columbia, the commonwealth of Puerto Rico or the territories organized by congress, provided

that the investment portfolios of such common trusts or mutual funds are representative of a recognized broadly

traded stock index as defined in the credit union's board-approved investment policy.

New York N.Y. Bank Law § 454. General powers

In addition to the powers conferred by the provisions of this chapter, a credit union shall, subject to the restrictions and

limitations contained in this article, in its bylaws, and in any regulations promulgated by the superintendent, or in any

regulations of the [fig 1] superintendent of financial services as may be specifically authorized under this section, have the

following powers:

1. To issue and receive payments on, shares, share drafts, and share certificates, subject to such terms, rates, and conditions

as are established by its board of directors, from its members and from other credit unions, both state and federally

chartered. A member may designate any person or persons to own shares or share certificates with him or her in joint

tenancy with the right of survivorship, but no joint tenant shall be permitted to vote, obtain loans, or hold office, unless he

or she is within the field of membership and is a qualified member. 2. To act as trustee under a retirement plan established pursuant to the provisions of the act of congress entitled "Self-

employed Individuals Tax Retirement Act of 1962," and provisions of law contained therein, as amended [fig 2] ;

provided that the provisions of such retirement plan require the funds of such trust to be invested exclusively in share

accounts of insured state and federally chartered credit unions. In the event that any such retirement plan, which, in the

judgment of the credit union, constituted a qualified plan under the provisions of said self-employed individuals tax

retirement act of nineteen hundred sixty-two, and provisions of law contained therein, as amended, and the regulations

promulgated thereunder at the time the trust was established and accepted by the credit union, is subsequently

determined not to be such a qualified plan or subsequently ceases to be such a qualified plan, in whole or in part, the

credit union may, nevertheless, continue to act as trustee of any shares theretofore made under such plan and to

dispose of the same in accordance with the directions of the shareholders and the beneficiaries thereof. No credit

union, in respect to shares purchased under this subdivision, shall be required to segregate such shares from other shares

of such credit union [fig 3] ; provided, however, that the credit union shall keep appropriate records showing in proper

detail all transactions engaged in under the authority of this subdivision.

3. To act as trustee of an individual retirement account established pursuant to the provisions of the act of congress

entitled "Employee Retirement Income Security Act of 1974," and provisions of law contained therein, as amended;

provided that the provisions of the written governing instrument creating the trust require the funds of such trust to be

invested exclusively in share accounts of insured state and federally chartered credit unions. In the event that any such

individual retirement account, which, in the judgment of the credit union, constituted a qualified individual retirement

account under the provisions of said employee retirement income security act of 1974, and provisions of law contained

therein, as amended, and the regulations promulgated thereunder at the time the trust was established and accepted

by the credit union, is subsequently determined not to be such a qualified individual retirement account or subsequently

ceases to be such a qualified individual retirement account, in whole or in part, the credit union may, nevertheless,

continue to act as trustee of any shares theretofore purchased under such individual retirement account and to dispose

of the same in accordance with the directions of the shareholder and the beneficiaries thereof. No credit union, in

respect to shares purchased under this subdivision, shall be required to segregate such shares from other shares of such

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credit union [fig 3] ; provided, however, that the credit union shall keep appropriate records showing in proper detail all

transactions engaged in under the authority of this subdivision.

4. To charge an entrance fee to any person who has applied for and been elected to membership.

5. To charge a reasonable fee for the transfer of its shares.

6. (a) To lend money to its members at the rate or rates agreed to by the credit union and the borrower upon such terms

and conditions as are established by its board of directors and subject to such regulations and restrictions as the [fig 1]

superintendent of financial services finds necessary and proper.

(b) The knowingly taking, receiving, reserving, or charging a greater rate of interest than permitted by law shall be held

and adjudged a forfeiture of the entire interest which the note or other evidence of debt carries with it, or which has

been agreed to be paid thereon. If such greater rate of interest has been paid, the person paying the same or his

legal representatives may recover twice the entire amount of the interest thus paid from the credit union.

(c) (i) No credit union may make any member business loan that would result in a total amount of such loans

outstanding at that credit union at any one time equal to more than the lesser of 1.75 times the actual net worth of

the credit union, or 1.75 times the minimum net worth required under 12 U.S.C. 1790d(c)(1)(A) for a credit union to be

well capitalized.

(ii) Subparagraph (i) of this paragraph does not apply in the case of: (A) a credit union chartered for the purpose of

making, or that has a history of primarily making, member business loans to its members, as determined by the

superintendent; or (B) a credit union that serves predominantly low-income members, as defined by the

superintendent, or which is a community development financial institution as defined in 12 U.S.C. 4702; or (C) a

credit union excepted from the requirements of such subparagraph (i) by the superintendent where such credit

union is seeking an exception from any federal limits on member business loans to the same extent as permitted

to federally-insured state credit unions pursuant to the Federal Credit Union Act and regulations related thereto,

provided that such credit union demonstrates to the satisfaction of the superintendent that such exception would

be consistent with the declaration of policy as set forth in section ten of this chapter.

(iii) For purposes of this paragraph the term "member business loan" and the term "net worth" shall have the same

meaning as such terms are defined in 12 U.S.C. 1757a.

7. (a) To issue credit cards, debit cards, and similar devices to allow members to make purchases and to access their loans,

lines of credit, shares and deposits ;

(b) To collect, receive and disburse funds in connection with the issuance of negotiable checks, money orders, travelers

checks and other payment instruments to members, and to charge a fee for such services;

(c) To rent safe deposit boxes to members; and

(d) To provide any related financial services to members which are not expressly authorized pursuant to this article,

including but not limited to electronic funds transfers and correspondent services; provided, however, that any credit

union which seeks to offer any such related financial services which it has not offered prior to June twentieth, two

thousand three shall, not less than sixty days prior to offering such services, notify the superintendent in writing of its

intention to offer such services. If the superintendent does not object in writing to the offering of such services within

sixty days after the receipt of the notice, the credit union may offer such services to its members.

8. To deposit any moneys received by it, and not lent to members, in one or more state or federally chartered banking

organizations or branches of foreign banking corporations which are insured by the Federal Deposit Insurance

Corporation, by the National Credit Union Share Insurance Fund, or by another agency of the United States

government.

9. To borrow money subject to such regulations and restrictions as the [fig 1] superintendent of financial services finds

necessary and proper from any source in an aggregate amount not exceeding fifty percent of assets without the

written approval of the superintendent.

10. To impose financing charges and late charges in the event of late payment or default on loans and recover

reasonable costs and expenses, including collection costs and reasonable attorneys' fees incurred both before and

after judgment.

11. To suspend or expel members, as provided in section four hundred sixty-four of this article.

12. To impress and enforce a lien upon the shares, share accounts, share certificates, deposits, dividends, and

accumulation of interest on the shares, accounts, certificates, and deposits of any member to the extent of any sums

owed the credit union by said member and any loans made to him or her directly or indirectly or on which he or she is

surety, guarantor, or endorser.

13. To cancel the shares of any member who withdraws or is expelled [fig 1] and apply the withdrawal value thereof to the

liquidation of such member's indebtedness to the corporation.

14. Subject to the limitations contained in subdivision seven of section four hundred fifty-six of this article, to hold shares in

and make loans to other credit unions, whether state or federally chartered.

15. To conduct its business at automated teller machines, point-of-sale terminals, shared service centers, and similar

facilities subject to regulations which may be promulgated by the [fig 1] superintendent of financial services. Such

facilities shall not be deemed to be stations and shall not be subject to any of the provisions of this chapter applicable

to stations.

16. To issue shares to and accept deposits from a member in the name of a minor. Such shares and deposits shall be held

for the minor's exclusive right and benefit [fig 1] and free from control or lien of all other persons, except creditors. The

withdrawal value of such shares or deposits shall be paid to the person in whose name such shares or deposits are held.

A receipt or acquittance of a minor shall be valid and sufficient release and discharge to such credit union for all

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payments made on account of such shares or deposits.

17. To issue shares to and accept deposits from a member, which are held in the name of a member in trust for a

beneficiary [fig 1] or in the name of a non-member in trust for a beneficiary who is a member. No beneficiary, unless a

member in his or her own right, shall be permitted to vote, obtain loans, or hold office or be required to pay an

entrance or membership fee. Payment of part or all of such a trust account to the party in whose name the account is

held shall, to the extent of such payment, discharge the liability of the credit union to that party and to the beneficiary,

and the credit union shall be under no obligation to see to the application of such payment. In the event of the death

of the party who owns a trust account, if the credit union has been given no other written notice of the existence or

terms of any trust and has not received a court order as to disposition of the account, the account's funds and any

dividends or interest thereon shall be paid to the beneficiary.

18. (a) To invest its funds in:

(i) Those securities authorized as permissible investments for savings banks by subdivisions one, two, three, four,

twelve, paragraph (a) of subdivision twelve-a, and subdivisions fifteen, seventeen, twenty-seven and twenty-

eight-a of section two hundred thirty-five of this chapter.

(ii) Advances of federal funds as authorized for savings banks by subdivision twelve-b of section two hundred thirty-

five of this chapter.

(iii) Common trust units of a credit union investment pool organized for the purchase of:

(A) obligations of the United States of America, or securities fully guaranteed as to principal and interest thereby

[fig 1] ;

(B) obligations issued by banks for cooperatives, federal land banks, federal intermediate credit banks, federal

home loan banks, the Federal Home Loan Bank Board, or any corporation designated in section 846 of Title

31 of the United States Code as a wholly owned government corporation, or in obligations, participations, or

other instruments of or issued by, or fully guaranteed as to principal and interest by, the Federal National

Mortgage Association or the Government National Mortgage Association, or in mortgages, obligations, or

other securities which are or ever have been sold by the Federal Home Loan Mortgage Corporation pursuant

to section 1454 or 1455 of Title 12 of the United States Code, or in obligations or other instruments or securities

of the Student Loan Marketing Association [fig 1] ;

(C) participation certificates evidencing beneficial interests in obligations, or in the right to receive interest and

principal collections therefrom, which obligations have been subjected by one or more government

agencies to a trust or trusts for which any executive department, agency, or instrumentality of the United

States (or the head thereof) has been named to act as trustee [fig 1] ; provided that such investment pool

has been approved by the superintendent; or

(D) securities, obligations or other instruments of, or issued by, any agency of the United States.

(iv) Where the assets of a credit union are in excess of three million dollars, such credit union is further authorized to

invest its funds in the securities enumerated in subdivisions thirteen and fourteen of section two hundred thirty-five

of this chapter, subject in each case to those limitations applicable to such investment in the case of savings

banks.

(b) All such securities, except those purchased in a common trust unit pursuant to subparagraph (iii) of paragraph (a)

of this subdivision, must be registered in the name of the credit union [fig 1] ; provided that where any such

securities are non-registerable, except those purchased in a common trust investment pool, as hereinbefore

provided, they shall be placed in the custody of a bank, trust company, national bank, or state or federal

corporate credit union in the name of the credit union, and shall be retained by such bank, trust company,

national bank, or state or federal corporate credit union until such securities are liquidated at maturity or sold, in

either of which events the proceeds of such securities shall be deposited in the name of the credit union in any

institution specified in subdivision eight of this section.

(c) Notwithstanding the provisions of this subdivision, a credit union may invest the lesser of ten percent of its capital or

net worth, but at least ten thousand dollars, in the shares of investment companies; provided that the portfolio of

such investment company consists solely of securities in which credit unions are permitted to invest directly. The

term "investment companies" means open-end and close-end investment companies and unit investment trusts as

these terms are used in an Act of Congress entitled "Investment Company Act of 1940." [fig 1]

19. Subject to regulations and restrictions of the banking board, a credit union may invest its funds in and make loans to

credit union organizations; provided that such loans or investments shall be approved by the board of directors. No

such loan or investment shall be made by a credit union pursuant to this subdivision if the amount of such loan or

investment exceeds [fig 1] three per centum of the total sum due to the members on shares and deposits. For the

purpose of this subdivision, a credit union organization is any organization established primarily to serve the needs of its

member state and federal credit unions, and whose business relates to the daily operations of the credit unions it

serves.

20. To purchase, sell, service, pledge or discount, or otherwise receive or dispose of, eligible obligations to the same extent

as authorized pursuant to Title 12 U.S.C. section 1757(13) and any regulations promulgated thereunder, as such laws or

regulations may be amended from time to time.

21. To purchase, hold, lease and convey a plot whereon there is or may be erected a building suitable for the transaction

of its business, from portions of which not required for its own use a revenue may be derived, and a plot whereon

parking accommodations are or are to be provided, with or without charge, primarily for its members or employees or

both; provided that the net aggregate of all investments of any credit union in such plots and building shall be limited

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to [fig 2] six per centum of the [fig 3] capital and retained earnings of such credit union, except with the approval of

the superintendent.

22. To enter into contracts.

23. To sue and to be sued in all courts and to participate in actions and proceedings, whether judicial, arbitrative, or

otherwise, in like cases as natural persons.

24. To have a corporate seal, and to alter such seal at pleasure, and to use it by causing it or a facsimile to be affixed or

impressed or reproduced in any other manner.

25. To make donations, irrespective of corporate benefit, for the public welfare or for community fund, hospital, charitable,

educational, scientific, civic, or similar purposes, and, in time of war or other national emergency, in aid thereof.

26. To elect or appoint officers, employees, and other agents of the credit union, define their duties, fix the compensation of

employees and other agents, and to indemnify [fig 1] credit union officials, committee members, and employees.

27. To have perpetual existence.

28. To honor requests for withdrawals of member accounts, whether shares or deposits, in any manner approved by the

credit union's board of directors, including, without limitation because of enumeration, requests in person, by

telephone, by mail, by negotiable or non-negotiable order, by electronic communication, or otherwise. The board of

directors may, at any time, require members to give, in writing, not more than sixty days' notice of intention to withdraw

the whole or any part of the amounts paid in by them, except that this requirement shall not apply to amounts in a share

draft or checking account. In the event that any credit union shall require that notice be given before such amounts

may be withdrawn, it shall, before or upon the day such requirement is made effective, notify the superintendent by

telephone, other electronic means or in writing that such requirement has been made.

29. To, either on an individual or participation basis, establish or maintain an accounting service center, the functions,

facilities, and operations of which are limited to providing data processing services. As used in this subdivision, the term

"data processing services" means the maintenance of bookkeeping, accounting, or other records related to the

purposes and functions of a credit union, primarily by mechanical or electronic methods, and the furnishing of reports

and information derived from such records. Participation in the accounting service center may be by means of a

partnership or other non-corporate arrangement between or among the participating entities or by participation in an

accounting service center corporation organized for the sole purpose of providing data processing services. A credit

union's individual or proportionate ownership of the accounting service center shall not exceed two percent of its

members' shareholdings.

30. To acquire and lease personal property, and to hold, assign, pledge, sell or otherwise dispose of such personal property,

to the same extent as authorized under subdivision twelve of section ninety-six of this chapter, subject to such limitations

and conditions as the [fig 1] superintendent of financial services may from time to time prescribe by general regulation.

31. To hold membership in other credit unions organized under this article or under federal law or any other credit union

act, and in associations and organizations controlled by or fostering the interests of credit unions, including a central

liquidity facility organized under state or federal law. 32. To execute and deliver for its members such guarantees as may be incidental or usual in the transfer of investment

securities.

33. Notwithstanding any other provision of this article to the contrary, to participate in the minority - and women-owned

business development and lending program, as established in section 16-c of section 1 of chapter 174 of the laws of

1968, constituting the urban development corporation act, to the extent that such program allows participation by

credit unions.

34. To have and exercise all other powers that are necessary or appropriate to enable it to carry out its purpose.

35. To participate in loans to credit union members jointly with other credit unions, credit union organizations, or other

banking organizations pursuant to written policies established by the board of directors; provided that a credit union

which originates a loan for which participation arrangements are made shall retain an interest in at least ten percent of

the face amount of the loan. The member of the originating credit union benefiting from the proceeds of the loan need

not be within the field of membership of the other credit unions participating in the loan.

36. To invest its funds in a collateralized mortgage obligation/real estate mortgage investment conduit. A credit union may

invest in a fixed or variable rate collateralized mortgage obligation/real estate mortgage investment conduit, subject to

the same extent and under the same conditions as federal credit unions are authorized to so invest, pursuant to the

Federal Credit Union Act (12 U.S.C 1757(15)(B)) and any regulations related thereto, as amended.

37. To engage in a "savings promotion" in accordance with section nine-v of this chapter and subject to any regulations

promulgated by the superintendent. The superintendent shall consult with the state gaming commission before

proposing any such regulations or any amendments thereto. Such regulations shall ensure that:

a. no participant in a savings promotion is charged any fee that would constitute, directly or indirectly, consideration for

participation in such savings promotion; and

b. no participant in a savings promotion foregoes, directly or indirectly, any interest that would constitute

consideration for participation in such savings promotion.

N.Y. Bank Law § 460. Dividends to shareholders; conditions precedent

1. The board of directors of any credit union may declare a dividend from the credit union's undivided profits calculated as

provided in this article for any period determined by the board of directors.

2. Earnings from all sources for the period for which a dividend is to be paid, except as provided in section four hundred

fifty-eight of this article, may be credited to the profit and loss account of the credit union and the following items shall

be charged against such account in the determination of the amount available for dividends to shareholders:

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(a) All expenses paid or incurred by the credit union in the management of its affairs, the collection of its debts or the

transaction of its business.

(b) The interest paid or accrued on debts owed by the credit union.

(c) All losses incurred on loans in excess of the allowance for loan loss account.

(d) Any interest collected in advance shall be considered unearned at the end of the fiscal period, and shall be set aside

in an account called "unearned interest".

The credit balance of the profit and loss account as thus determined shall constitute the undivided profits of the credit

union at the close of such period, and shall be applicable to the payment of dividends except as provided in

subdivision three of this section.

3. No dividend shall be credited or paid unless the credit union has:

(a) Made good any existing impairment of its capital [fig 1] ; and

(b) Carried to its allowance for loan loss account such part of its earnings as is required by section four hundred fifty-

nine of this article.

4. Dividends may be paid on shares and share certificates at various rates with due consideration of the conditions that

pertain to each type of account such as minimum balance, notice and time requirements.

5. When any dividend shall be declared in excess of the amount available for dividends as determined in accordance with

the provisions of this section, the directors voting for such dividend may be held jointly and severally liable to the credit

union for the amount of the excess so declared.

North Carolina N.C. Gen. Stat. § 54-109.2. General powers

A credit union may:

(1) Make contracts;


(3) Adopt and use a common seal and alter the seal;

(4) Acquire, lease, hold and dispose of property, either in whole or in part, necessary or incidental to its operations;

(5) At the discretion of the board of directors, require the payment of an entrance fee or annual membership fee, or

both, of any person admitted to membership;

(6) Receive savings from its members in the form of shares, deposits, or special-purpose thrift accounts;

(7) Lend its funds to its members as provided in Articles 14A to 14L of this Chapter;

(8) Borrow from any source in accordance with policy established by the board of directors;

(9) Discount and sell any eligible obligations, subject to rules adopted by the Administrator;

(10) Sell all or substantially all of its assets or purchase all or substantially all of the assets of another financial institution,

subject to the approval of the Administrator of Credit Unions;

(11) Invest surplus funds as provided in Articles 14A to 14L of this Chapter;

(12) Make deposits in legally chartered banks, savings institutions, trust companies and central-type credit union

organizations;

(13) Assess charges to members in accordance with the bylaws for failure to meet properly their obligations to the credit

union;

(14) Hold membership in other credit unions organized under Articles 14A to 14L of this Chapter or other acts, and in other

associations and organizations composed of credit unions;

(15) Declare dividends; pay interest on deposits and pay interest refunds to borrowers as provided in Articles 14A to 14L of

this Chapter;

(16) Sell travelers checks and money orders and charge a reasonable fee for such services, provided the travelers checks

are payable at institutions other than a credit union;

(17) Perform tasks and missions requested by the federal government or this State or any agency or political subdivision

thereof, when approved by the board of directors and not inconsistent with Articles 14A to 14L of this Chapter;

(18) Act as fiscal agent for and receive deposits from the federal government, this State, or any agency or political

subdivision thereof;

(19) Contribute to, support, or participate in any nonprofit service facility whose services will benefit the credit union or its

membership subject to rules adopted by the Administrator;

(20) Make donations or contributions to any civic, charitable or community organization as authorized by the board of

directors, subject to such regulations as are prescribed by the Administrator;

(21) Act as a custodian of qualified pension funds if permitted by federal law;

(22) Purchase or make available insurance for its directors, officers, agents, employees, and members; insurance may be

provided through any insurance company or through any subsidiary insurance company owned by the credit union;

and

(23) Facilitate its members' purchase of goods and services in a manner which promotes the purposes of the credit union.

(24) The board of directors may expel from the corporation any member who has not carried out the engagement the

member made with the corporation, has been convicted of a felony or crime involving moral turpitude, or neglects or

refuses to comply with the provisions of this Article or of the bylaws. The Board may, after notice and hearing as

provided in this subdivision, expel from the corporation any member who because of the member's intemperance

disrupts the activities of the credit union or who because of the member's habitual neglect of financial obligations

reflects discredit upon the credit union. No member shall be expelled until informed in writing of the charges made

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and given an opportunity, after reasonable notice, to be heard.

(25) Engage in activity permitted under this subdivision. Notwithstanding any other provision of this Chapter, the

Administrator of Credit Unions, subject to the advice and consent of the Credit Union Commission, and upon a finding

that action is necessary to preserve and protect the welfare of credit unions and to promote the general economy of

the State, may adopt rules allowing State-chartered credit unions to engage in any activity in which they could

engage if they were federally chartered credit unions.

(26) Subject to rules adopted by the Administrator, act as trustee or custodian, and receive reasonable compensation for

so acting, under any written trust instrument or custodial agreement created or organized and forming a part of a

deferred compensation plan for its members or groups or organizations of its members, provided the funds of the plans

are invested in savings or deposits of the credit union. All funds held may be commingled for the purpose of

investment, but individual records shall be kept by the credit union for each participant and shall show in proper detail

all transactions engaged in under authority of this subdivision.

A member may withdraw from a credit union by filing a written notice of intent to withdraw.

The amounts paid in on shares or deposits by an expelled or withdrawing member, with any dividends credited to the

shares and any interest accrued on the deposits to the date of expulsion or withdrawal shall be paid to the member, but in

the order of expulsion or withdrawal, and only as funds therefor become available, after deducting any amounts due to

the credit union by the member. The member shall have no other or further right in the credit union or to any of its benefits,

but the expulsion or withdrawal shall not operate to relieve the member from any remaining liability to the credit union.

N.C. Gen. Stat. § 54-109.28. Other credit unions

Any credit union organized under Articles 14A to 14L of this Chapter may permit membership of any other credit union

organized under Articles 14A to 14L of this Chapter or other acts.

N.C. Gen. Stat. § 54-109.54. Dividends

The board of directors of any credit union may declare dividends at its bylaws provide.

N.C. Gen. Stat. § 54-109.64. Savings Promotion Raffles

A credit union may offer a savings promotion raffle in which the sole consideration required for a chance of winning

designated prizes is the deposit of a minimum specified amount of money in a savings account or other savings program

offered by the credit union. A credit union shall maintain records sufficient to facilitate an audit of the savings promotion

raffle, shall conduct the savings promotion raffle in a safe and sound manner, and shall fully disclose the terms and

conditions of the promotion to account holders and prospective account holders of the credit union.

North Dakota N.D. Cent. Code § 6-06-06. Powers of credit unions.


1. To receive the savings of its members either as payment on shares or as deposits, including the right to conduct Christmas

clubs, vacation clubs, and other such thrift organizations within its membership.

2. To make loans to members.

3. To make loans to a cooperative society or other organization having membership in the credit union.

4. To deposit its moneys in financial institutions, trust companies, credit unions, corporate central credit unions, and the Bank

of North Dakota authorized to receive deposits.

5. To invest in the following:

a. In bonds of the United States without limitation in securities issued as direct obligations by the United States

government or any agency thereof and in any trust established for investing directly or collectively in such securities.

b. In bonds or evidences of debt of this state or in bonds of states of the United States.

c. In bonds or certificates of indebtedness of any county, city, or school district in this state, issued pursuant to authority of

law, but not to exceed thirty percent of the assets of any credit union may be invested in such bonds or certificates of

indebtedness.

d. In notes or bonds secured by mortgage or deed of trust upon unencumbered, improved real estate in this state, if

such investment does not exceed sixty-five percent of the market value of the property mortgaged, and fire and

tornado insurance policies are maintained and deposited as collateral to such mortgage, subject to such restriction

and regulations as may be imposed by the state credit union board.

e. In notes or bonds secured by a security interest or lien upon unencumbered personal property, if the investment does

not exceed ninety percent of the market value of the property secured.

f. In first lien, public utility, industrial, corporation, or association bonds, notes, or other evidences of debt issued by

corporations located in the United States of America to the extent authorized by the state credit union board.

g. Subject to rules of the state credit union board, in shares of investment companies registered under the Investment

Companies Act of 1940 and which invest only in investments otherwise permissible under this section.

h. In investments or insurance products otherwise prohibited by this section if the investments are directly related to a

benefit plan for credit union employees.

6. To borrow money as limited in this chapter.

7. Subject to such regulations as the state credit union board may prescribe, insurance obtained under title 1 of the

National Housing Act must be deemed adequate security.

8. To sue and be sued.

9. A credit union may invest in a credit union office building, including the lot, piece, or parcel of land on which the same is

located, and in furniture and fixtures, to the extent authorized by regulations issued by the state credit union board.

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10. Every state credit union has the power to purchase, hold, and convey other real estate as herein provided, and not

otherwise:

a. Such as is mortgaged to it in good faith by way of security for loans, or for debts previously contracted.

b. Such as is conveyed to it in good faith in satisfaction of debts previously contracted in the course of its dealings.

c. Such as it purchases at sales under judgments, decrees, or mortgages held by the credit union, or

purchases to secure debts due to it. Within sixty days of the transfer to other real estate owned, a

current appraisal must be conducted by a state licensed individual who is independent of the

transaction for all real estate recorded at or above one hundred thousand dollars or through a market

evaluation performed by a qualified individual who is independent of the transaction for all real estate

recorded below one hundred thousand dollars. Except as otherwise provided by chapter 10-06.1, a

state credit union may hold possession of any real estate acquired after July 1, 1991, under mortgage,

or title and possession of any real estate purchased to satisfy indebtedness, for a period not to exceed

five years. Except as otherwise provided by chapter 10-06.1, real estate acquired before July 1, 1991,

may be held for a period not exceeding five years from July 1, 1991. The commissioner may extend the

real estate holding period up to an additional five years upon formal request by a credit union if the

credit union has made a good-faith attempt to dispose of the real estate within the five-year period, or

disposal within the five-year period would be detrimental to the credit union. Within thirty days after

receipt of an adverse decision, the credit union may appeal that decision to the state credit union

board.

11. Subject to authorization by the state credit union board, acting by order or rule, a state credit union has the same

powers as a federal credit union and may engage in any activity in which a credit union could engage if the credit

union were federally chartered.

12. To exercise any incidental power necessary or requisite to enable the credit union to carry out effectively the business

for which it is incorporated or as determined by the board by order or rule.

N.D. Cent. Code § 6-06-13.1. Credit union volunteers -- Immunity. A person who serves as a volunteer, including a director, credit committee member, or supervisory committee member, of

a federal or state- chartered credit union is immune from civil liability for any act or omission resulting in damage or injury if

at the time of the act or omission all of the following are met:

1. The volunteer was acting in good faith and in the scope of that person's official duties as a volunteer of the credit union.

2. The act or omission did not constitute willful misconduct or gross negligence on the part of the volunteer.

3. The volunteer did not receive or expect to receive reimbursement for or payment of expenses in excess of five thousand

dollars per year for expenses actually incurred as a result of providing services as a volunteer of the credit union and did

not receive or expect to receive compensation or anything in lieu of compensation as payment for services provided as

a volunteer of the credit union.

This section does not grant immunity to any person causing damage as the result of the negligent operation of a motor

vehicle.

N.D. Cent. Code § 6-06-16. Entrance fee -- Capital -- Lien on shares -- Assessment on shares. A credit union may charge such entrance fee as may be provided by its bylaws. Its capital consists of the entrance fees

paid in and the payments made to it by the several members on shares therein. The credit union has a lien on the shares

and deposits of a member for any sum due to the credit union from that member or for the amount due on any loan

endorsed by that member. A credit union that is a member of the North Dakota credit union league may, by resolution

adopted with a quorum present at a regular or special meeting of the board of directors of the credit union, annually

assess against the share accounts of all members of the credit union an amount equal to the whole or proportionate part

of the annual membership fee payable to the North Dakota credit union league.

N.D. Cent. Code § 6-06-26. Dividends. A credit union's board of directors may declare and pay a dividend on shares from current or accumulated net earnings,

or both, but only after providing for required reserves, accrued and unpaid expenses, and established loan and lease

losses. A credit union may pay a dividend on partial or full shares and may pay the dividend at differing levels and at

differing intervals based on the type of share accounts owned by a member, the liquidation priority of share accounts, and

the balances of a member's share accounts. A credit union may determine the rate and amount of a dividend before the

end of the dividend period involved. A credit union, upon action of its board of directors, may authorize an interest refund

to members of record at the close of business the last day of any dividend period in proportion to the interest paid during

that dividend period. A credit union shall not pay a dividend if payment would result in the insolvency of the credit union.

Ohio Ohio Rev. Code Ann. § 1733.04. Authority of credit union

(A) In addition to the authority conferred by section 1701.13 of the Revised Code, but subject to any limitations contained

in sections 1733.01 to 1733.45 of the Revised Code, and its articles and regulations, a credit union may do any of the

following:

(1) Make loans as provided in section 1733.25 of the Revised Code;

(2) Invest its money as provided in section 1733.30 of the Revised Code;

(3) If authorized by the code of regulations, rebate to the borrowing members a portion of the member's interest paid

to the credit union;

(4) If authorized by the regulations, charge a membership or entrance fee not to exceed one dollar per member;

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(5) Purchase group savings life insurance and group credit life insurance;

(6) Make reasonable contributions to any nonprofit civic, charitable, or service organizations;

(7) Act as trustee or custodian, for which reasonable compensation may be received, under any written trust

instrument or custodial agreement created or organized in the United States and forming part of a tax-advantaged

savings plan that qualifies for specific tax treatment under sections 223, 401(d), 408, 408A, and 530 of the Internal

Revenue Code, 26 U.S.C. 223, 401(d), 408, 408A, and 530, as amended, for its members or groups of its members,

provided that the funds of such plans are invested in share accounts or share certificate accounts of the credit

union. These services include, but are not limited to, acting as a trustee or custodian for member retirement,

education, or health savings accounts.

(B) The authority of a credit union shall be subject to the following:

(1) A credit union may not borrow money in excess of twenty-five per cent of its shares and undivided earnings, without

prior specific authorization by the superintendent of credit unions.

(2) A credit union may not pay a commission or other compensation to any person for securing members or for the sale

of its shares, except that reasonable incentives may be made available directly to members or potential members

to promote thrift.

(3) A credit union, subject to the approval of the superintendent, may have service facilities other than its home office.

(4) Real estate may be acquired by lease, purchase, or otherwise as necessary and to the extent required for use of

the credit union presently and in the future operation of its office or headquarters, and in case of a purchase of real

estate, the superintendent must first be notified in writing prior to the purchase of the real estate. The superintendent

shall notify the credit union not more than thirty days after receipt of the notification to purchase the real estate if

the purchase is denied, approved, or modified. If the superintendent does not respond within thirty days after

receipt of the notification to purchase the real estate, it shall be deemed approved. Nothing herein contained shall

be deemed to prohibit a credit union from taking title to real estate in connection with a default in the payment of

a loan, provided that title to such real estate shall not be held by the credit union for more than two years without

the prior written approval of the superintendent. A credit union also may lease space in any real estate it acquires in

accordance with rules adopted by the superintendent.

(C) (1) As used in division (C) of this section:

(a) "School" means an elementary or secondary school.

(b) "Student" means a child enrolled in a school.

(c) "Student branch" means the designation provided to the credit union for the in-school services and financial

education offered to students.

(2) A credit union, upon agreement with a school board, in the case of a public school, or the governing authority, in

the case of a nonpublic school, and with the permission of the superintendent, may open and maintain a student

branch.

(3) Notwithstanding any other provision of this section, any student enrolled in the school maintaining a student branch

who is not otherwise qualified for membership in the credit union maintaining the student branch is qualified to be a

member of that student branch.

(4) The student's membership in the student branch expires upon the student's graduation from secondary school.

(5) The student branch is for the express use of students and may not be used by faculty, staff, or lineal ancestors or

descendants of students.

(6) Faculty, staff, or lineal ancestors or descendants of students are not eligible for membership in the credit union

maintaining the student branch unless otherwise qualified by this section to be members.

(7) The superintendent may adopt rules appropriate to the formation and operation of student branches.

(D) A credit union may guarantee the signature of a member in connection with a transaction involving tangible or

intangible property in which a member has or seeks to acquire an interest.

Ohio Rev. Code Ann. § 1733.24. Deposits, shares and accounts; notice of intent to withdraw

(A) A credit union is authorized to receive funds for deposit in share accounts, share draft accounts, and share certificates

from its members, from other credit unions, and from an officer, employee, or agent of the federal, state, or local

governments, or political subdivisions of the state, in accordance with such terms, rates, and conditions as may be

established by its board of directors, and for purposes of the agricultural linked deposit program created under sections

135.71 to 135.76 of the Revised Code and the business linked deposit program created under sections 135.77 to 135.774

of the Revised Code.

(B) The shares and share accounts of the credit union may be of one or more classes, as designated by the board of

directors, subject to approval of the superintendent of credit unions based on rules that shall assure equitable

distribution of dividends among classes, considering costs and advantages of each class to the members of the credit

union, including without limitation special services rendered, length of ownership, minimum investment, conditions of

repurchase, and other appropriate standards or combinations thereof. In the event the articles of incorporation of the

credit union indicate the authorized number of shares to be unlimited, the designation of classification of shares and

share accounts of the credit union may be effected by the board of directors, subject to the approval of the

superintendent, and does not require amendment of the articles of incorporation. All shares of the credit union shall

have a par value per share as set by the board of directors. Redemptions and liquidating dividends shall be prorated to

each member on the basis of the price paid the credit union for such share, irrespective of the class of such shares.

(C) (1) Each credit union shall have one class of shares designated as "membership share." The membership shares, or if a

credit union has but one class of shares, then all of the shares of the credit union, shall have a par value as set by the

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board of directors.

(2) Two or more persons that are eligible for membership that have jointly subscribed for one or more shares under a

joint account each may be admitted to membership.

(D) A credit union need not issue certificates for any or all of its classes of shares but irrespective of whether certificates are

issued, a registry of shares must be kept, including all of the transactions of the credit union pertaining to such shares.

(E) A credit union is authorized to maintain share draft accounts in accordance with rules prescribed by the

superintendent. The credit union may pay dividends on share draft accounts, may pay dividends at different rates on

different types of share draft accounts, and may permit the owners of such share draft accounts to make withdrawals

by negotiable or transferable instruments or other orders for the purpose of making transfers to third parties.

(F) Unless otherwise provided by written agreement of the parties, the rights, responsibilities, and liabilities attaching to a

share draft withdrawn from, transferred to, or otherwise handled by a credit union are defined in and governed by

Chapters 1303. and 1304. of the Revised Code, as if the credit union were a bank.

(G) Unless otherwise provided in the articles or regulations, a member may designate any person or persons to own or hold

shares, or share accounts with the member in joint tenancy with right of survivorship and not as tenants in common.

(H) Shares or share accounts may be issued in the name of a custodian under the Ohio transfers to minors act, a member

in trust for a beneficiary, a fiduciary or custodian in trust for a member beneficiary, or a fiduciary or custodian in trust

upon the death of a member. Redemption of such shares or payment of such share accounts to a member, to the

extent of the payment, discharges the liability of the credit union to the member and the beneficiary, and the credit

union shall be under no obligation to see to the application of the payment. Unless prior to the death of a member, the

member has notified the credit union in writing in a form approved by the credit union of a different beneficiary to

receive the proceeds of such shares or share accounts, then the proceeds shall be paid to the beneficiary or to the

beneficiary's parent or legal representative. Any payment made pursuant to written instructions of the member or

pursuant to the provisions herein contained shall be a valid and sufficient release and discharge of the credit union in

connection with any such share or share accounts.

(I) (1) Except as otherwise provided in the articles or regulations, and subject to the provisions thereof, a minor may

purchase shares, share accounts, or other depository instruments, and except for qualification as a voting member, the

credit union may deal with the minor with respect to shares, share accounts, or other depository instruments owned by

the minor as if the minor were a person of legal age.

(2) If shares, share accounts, or other depository instruments are issued in the name of a minor, redemption of any part

or all of the shares or withdrawal of funds by payment to the minor of the shares or funds and any declared dividends or

interest releases the credit union from all obligation to the minor as to the shares reduced or funds withdrawn.

(J) The regulations may require advance written notice of a member's intention to withdraw the member's shares. Such

advance notice shall not exceed sixty days.

Ohio Rev. Code Ann. § 1733.25. Loans or other extensions of credit; debt suspension agreement or debt cancellation

contract (A) A credit union may make loans or other extensions of credit to members for provident and productive purposes as

authorized by law, including rules adopted by the superintendent of credit unions; the articles; and the regulations; and

subject to policies adopted by the credit committee and approved by the board of directors.

(B) Upon the approval of the board of directors, a credit union may make loans or other extensions of credit to other credit

unions, provided that loans or other extensions of credit made to other credit unions need not have the approval of the

board of directors on a per case basis. The total of all such loans or other extensions of credit, including the aggregate

of all money paid into any trust established by one or more credit unions for the purpose of making loans or other

extensions of credit to other credit unions, shall not exceed twenty-five per cent of the shares and undivided earnings of

the lending credit union, except that this percentage limitation does not apply to corporate credit unions.

(C) The interest on any loan or other extension of credit made by a credit union shall not exceed one and one-half per

cent per month on unpaid balances. Such interest may accrue and be chargeable upon a monthly basis, and may be

computed upon the unpaid balance of the loan or other extension of credit as of the end of the previous calendar

month. Such interest may be accrued and charged by any technique approved by the superintendent so long as the

effective interest rate on any loan or other extension of credit does not exceed the amount permitted to be charged

by the computation authorized in this division. (D) A credit union may accept security in such form and under rules as shall be set forth in the articles, the regulations, or

established by the credit committee and approved by the board of directors.

(E) (1) The credit union shall have a lien on the membership share, shares, deposits, and accumulated dividends and

interest of a member in an individual, joint, trust, or payable on death account for any obligation owed to the credit

union by that member or for any loan co-signed or guaranteed by the member or account holder; provided, however,

that a credit union shall not have a lien upon the funds in an individual retirement account or an account established

pursuant to the Internal Revenue Code of the United States.

(2) A credit union may refuse to allow withdrawals from any share or deposit account by a member while the member

has any outstanding obligation to the credit union.

(F) (1) Subject to division (F)(2) of this section and any restrictions or requirements established by the superintendent, in

connection with any loan or extension of credit, a credit union may enter into a debt suspension agreement or debt

cancellation contract with the borrower or borrowers.

(2) A credit union shall not offer or finance, directly or indirectly, a debt suspension agreement or debt cancellation

contract requiring a lump sum, single payment for the agreement or contract payable at the outset of the

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agreement or contract, if the debt subject to the agreement or contract is secured by one to four family, residential

real property.

(3) For purposes of division (F) of this section, "debt cancellation contract" and "debt suspension agreement" have the

same meanings as in 12 C.F.R. part 37.

Ohio Rev. Code Ann. § 1733.30. Investments (A) A credit union may make any investment of any funds not required for the purpose of loans, in state or national banks

or state or federally chartered savings and loan associations, savings banks, or credit unions, doing business in this state;

in accounts, deposits, or shares of federally insured savings and loan associations or savings banks or insured credit

unions, doing business outside this state; in deposits or accounts of federally insured banks, trust companies, and mutual

savings banks doing business outside this state; in the shares of a corporate credit union subject to the regulations of

that corporate credit union; in shares, stocks, or obligations of any other organization providing services that are

associated with the routine operations of credit unions; or in United States government securities or municipal bonds

issued by municipalities of this state; and, with the approval of the superintendent of credit unions, in securities other

than those specified in this division. All investments under this division shall be made in United States dollars.

(B) In accordance with rules adopted by, and subject to the approval of, the superintendent, notes or loans made by or to

individual members of a credit union may be purchased by another credit union at such prices as may be agreed upon

between the credit unions.

(C) A corporate credit union may make investments provided the investments are in accordance with rules adopted by

the superintendent, are consistent with the safety and soundness of the credit union, and are made with due regard to

the investment requirements established by the applicable insurer recognized under section 1733.041 [1733.04.1] of the

Revised Code.

Oklahoma Okla. Stat. tit. 6, § 2006. Succession--Powers

A credit union shall have succession in its corporate name during its existence and shall have power:

1. To make contracts;

2. To sue and be sued;

3. To adopt and use a common seal and alter the same at pleasure;

4. To purchase, lease, own, hold, and dispose of any real estate, buildings, fixtures, equipment, furniture and furnishings

necessary, incidental and convenient to the operation of the credit union, the aggregate book value of which shall not

exceed seven percent (7%) of the total assets of the credit union, unless otherwise specifically approved by the State

Credit Union Board. A credit union may lease to any tenants as the credit union deems appropriate any portion of the

facilities or premises of the credit union which are not utilized in the conduct of the business of the credit union;

5. To make loans to its members for provident or productive purposes, the maturities of which shall not exceed fifteen (15)

years, except as otherwise provided herein and except as otherwise approved by the State Credit Union Board, and

extend lines of credit to its members, to other credit unions and to credit union organizations and to participate with

other credit unions, credit union organizations or financial organizations in making loans to credit union members, other

credit unions and credit union organizations in accordance with the following:

a. loans to credit union members shall be made in conformity with criteria established by the board of directors of the

lending credit union; provided that:

(1) a real estate loan secured by a first mortgage lien may have maturity not exceeding thirty (30) years or any longer

term which may be authorized by the State Credit Union Board,

(2) a loan to finance a manufactured home, which shall be secured by a first lien on such manufactured home, or a

second mortgage loan secured by a dwelling, shall have a maturity not exceeding fifteen (15) years or any longer

term which may be allowed by the State Credit Union Board, (3) a loan secured by the insurance or guarantee of, or with advance commitment to purchase the loan by, a state

or federal governmental agency may be made for the maturity and under the terms and conditions specified in

the state or federal law under which such insurance, guarantee or commitment is provided,

(4) a loan or aggregate of loans to a director or to a member of the supervisory committee or the credit committee or

the credit manager of the lending credit union which exceeds Sixty Thousand Dollars ($ 60,000.00) plus the amount

of any pledged shares, shall be approved by the board of directors of the lending credit union, and

(5) loans to credit union members for which any director of the lending credit union or any member of the supervisory

committee or credit committee or the credit manager of the lending credit union acts as a guarantor or endorser

shall be approved by the board of directors of the lending credit union when such loan, either standing alone or

when added to any outstanding loan or loans of the guarantor or endorser, exceeds Sixty Thousand Dollars ($

60,000.00) plus the amount of any pledged shares, b. loans to credit union members and other eligible borrowers shall be made in accordance with and shall be paid or

amortized in accordance with any rules or regulations as may be prescribed and adopted from time to time by the

State Credit Union Board, after taking into account the needs or conditions of the borrowers, the amounts and

duration of the loans, the interests of the members and the credit unions and such other factors as the State Credit

Union Board may deem relevant, c. unless approval by the board of directors of the lending credit union is otherwise expressly required herein, loans to

credit union members and other eligible borrowers shall be approved by the credit committee or by a loan officer of

the lending credit union in accordance with criteria established by the board of directors,

https://www.lexis.com/research/buttonTFLink?_m=a5e61f070a9a2bceffd51858e8324eee&_xfercite=%3ccite%20cc%3d%22USA%22%3e%3c%21%5bCDATA%5bORC%20Ann.%201733.30%5d%5d%3e%3c%2fcite%3e&_butType=4&_butStat=0&_butNum=2&_butInline=1&_butinfo=OHCODE%201733.041&_fmtstr=FULL&docnum=1&_startdoc=1&wchp=dGLzVzB-zSkAb&_md5=354d921921dcba8d943a8eb5bf76d600

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d. no loan or line of credit may be made to or established for a credit union member if the amount of such loan or line of

credit, when aggregated with all other outstanding loans and lines of credit made to or established for such credit

union member, will cause the credit union member to be indebted to the lending credit union in an amount

exceeding six percent (6%) of the greater of either (i) the paid-in and unimpaired capital and surplus of the lending

credit union or (ii) an amount which is six percent (6%) of the total assets of the lending credit union,

e. a self-replenishing line of credit may be established by a credit union for any eligible borrower to a stated maximum

amount on terms and conditions which may differ from the terms and conditions established for other eligible

borrowers,

f. loans to other credit unions shall be approved by the board of directors of the lending credit union and shall not

exceed twenty-five percent (25%) of the paid-in and unimpaired capital and surplus of the lending credit union,

g. loans to credit union organizations shall be approved by the board of directors of the lending credit union and shall not

exceed one percent (1%) of the paid-in and unimpaired capital and surplus of the lending credit union, except as

otherwise approved by the State Credit Union Board. A "credit union organization" means any organization which is

established primarily to serve the needs of credit unions and whose business relates to the daily operations of the

credit unions served by such credit union organization,

h. participation loans with other credit unions, credit union organizations or other financial organizations shall be in

accordance with written policies adopted by the board of directors of the lending credit union and shall be

approved by the board of directors of the lending credit union. However, a credit union which originates a loan for

which participation arrangements are made in accordance with this subsection shall retain an interest of at least ten

percent (10%) of the face amount of such loan,

i. a credit union may participate in any guaranteed loan program of the federal government or of this state under the

terms and conditions specified in the laws under which such program is provided,

j. a credit union may finance for any person, whether or not such person is a member of the credit union, the purchase

from the credit union of any real or personal property owned and held by the credit union, including any property

obtained by the credit union as a result of defaults in obligations owed to the credit union, and

k. a credit union may make loans to its officers and directors and to members of its supervisory and credit committees.

However, such loans shall not be made on terms more favorable than those extended to other members of the credit

union. A credit union may permit officers, directors and members of its supervisory and credit committees to act as co-

makers, guarantors or endorsers of loans to other credit union members;

6. To receive from its members, and other credit unions, state and federal, doing business in the United States, payments on

shares and deposits, and to require such notice for withdrawal of shares and deposits as the bylaws may provide;

7. To amend its bylaws in the manner provided by the bylaws, but all amendments to the bylaws must be submitted to and

approved by the State Credit Union Board before they become operative;

8. To invest its funds in accordance with the following:

a. investments shall be made in conformity with criteria established by the board of directors of the credit union and in

accordance with any rules or regulations as may be prescribed and adopted from time to time by the State Credit

Union Board, and

b. the following investments shall be authorized for credit unions:

(1) loans to credit union members and other loans authorized for credit unions under the laws of this state,

(2) obligations of the United States of America and obligations fully guaranteed as to principal and interest by any

instrumentality or agency of the United States of America,

(3) general obligations and revenue obligations of any state or any political subdivision thereof; provided the

aggregate of such investments shall not exceed ten percent (10%) of the paid-in and unimpaired capital and

surplus of the credit union; and provided that such investments shall be limited to obligations rated among the

three highest rating categories established by one or more national rating services for governmental obligations,

(4) obligations issued by banks for cooperatives, federal land banks, federal intermediate credit banks, federal home

loan banks, the Federal Home Loan Bank Board or any corporation designated by federal law as a wholly owned

government corporation, or obligations, participations or other instruments of or issued by, or fully guaranteed as to

principal and interest by, the Federal National Mortgage Association or the Government National Mortgage

Association, or in mortgages, obligations or other securities which are or ever have been sold by the Federal Home

Loan Mortgage Corporation pursuant to the Federal Home Loan Mortgage Corporation Act, or in other obligations

or other instruments or securities of the Student Loan Marketing Association, or obligations, participations, securities

or other instruments of or issued by or fully guaranteed as to principal and interest by any other agency of the

United States of America, (5) shares of, deposits with or loans to other federally insured credit unions in a total amount, in either case, not

exceeding twenty-five percent (25%) of the paid-in and unimpaired capital and surplus of the investing credit

union,

(6) shares of, or accounts or deposits with any state or federal banks, mutual savings banks and savings and loan

associations, the accounts of which are insured by an agency of the federal government,

(7) shares of, deposits with or loans to any Federal Reserve Bank or any central liquidity facility established under state

or federal law,

(8) shares of, deposits with or loans to any central credit union or corporate credit union organized under state or

federal law,

(9) shares of, deposits with or loans to any organization, corporation or association providing services associated with

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the general purposes of the investing credit union or engaging in activities incidental to the operations of any

credit union; provided that such investments in the aggregate may not exceed one percent (1%) of the

unimpaired capital and surplus of the investing credit union,

(10) any obligations or securities authorized for investment by federal credit unions under the laws of the United States

of America. However, such investments shall be in compliance with any restrictions or limitations pertaining thereto

under the laws of the United States of America or under the regulations of the National Credit Union

Administration,

(11) money market funds rated among the three highest rating categories established by one or more national rating

services for corporate or governmental securities,

(12) shares of mutual funds if the investments and investment transactions of the fund are authorized for credit unions

under the laws of this state, or

(13) such other investments or types of investments as may be authorized from time to time by the State Credit Union

Board; provided that the State Credit Union Board shall not be permitted under this specific grant of authority to

authorize a credit union to purchase or own real estate solely for investment purposes;

9. To make deposits in national banks and in state banks, trust companies, savings and loan associations, and credit

unions organized under the laws of this state, any other state, or the United States, operating in accordance with the

laws of the State of Oklahoma, or of the laws of the United States and approved by State Credit Union Board as

depositories;

10. To borrow, from any source, in an aggregate amount not exceeding fifty percent (50%) of its shares, deposits and

undivided earnings; such borrowed money may be borrowed either by means of bills payable or through rediscounts of

its negotiable instruments, and credit unions may pledge their assets as collateral securities therefor;

11. To fine members, in accordance with the bylaws, for failure to meet their obligations promptly to their credit union;

12. To impress and enforce a lien upon the shares, deposits, dividends, and interest of any member to the extent of any

loan made to the member or endorsed by the member and any interest or fines payable by the member;

13. To charge an entrance fee as provided in the bylaws;

14. To hire clerical help;

15. To become the owner and lessor of personal property upon the specific request of and for the use of a member. A

credit union may only purchase the personal property to be leased after it has completed a leasing arrangement with

a member. Except upon the written approval of the Commissioner, the term of the lease shall in no event exceed ten

(10) years and all such leases shall provide for the payment of regularly scheduled periodic payments, the total of

which shall at least equal the cost to the credit union of the personal property so leased. The total investment by a

credit union for benefit of any member, combined with all other obligations of such member to the credit union, shall at

no time exceed six percent (6%) of the greater of either (i) the paid-in and unimpaired capital and surplus of the credit

union or (ii) an amount which is six percent (6%) of the total assets of the credit union; and

16. To exercise such incidental powers as shall be necessary or requisite to enable it to carry on effectively the business for

which it is incorporated.

Okla. Stat. tit. 6, § 2010. Board of directors--Credit committee or credit manager--Supervisory committee--Officers

A. 1. The business affairs of a credit union shall be managed by a board of not less than seven (7) members, elected by the

members of the credit union, from their number, at their annual meeting, the organizational meeting being the first

annual meeting, and to hold office for such terms as the bylaws may provide.

2. The bylaws of a credit union shall not prevent or restrict a member from serving as a director, unless such member has

been, or is later, convicted of a crime involving dishonesty or breach of trust.

3. A record of names and addresses of the board of directors and the respective committees and officers shall be filed

with the Bank Commissioner within ten (10) days after their election. No member of the board of directors shall, as

such, be compensated, but the officers elected by the board of directors and the members of the credit and

supervisory committees may receive such compensation for services performed as the board shall, by resolution,

authorize.

4. The board of directors shall meet at least once a month, unless permitted by the Bank Commissioner to meet less

often, and shall have the general direction and control of the affairs of the corporation. The minutes of all such

meetings shall be kept. Among other things they shall act upon applications for membership.

5. The board shall also:

a. declare dividends and determine rates of interest on deposits,

b. fill vacancies in the board and in the credit committee until successors elected at the next annual meeting have

qualified,

c. authorize investment of credit union funds other than loans to members,

d. determine from time to time the maximum number of shares and deposits that will be accepted from a member in

any calendar month not inconsistent with the bylaws, and

e. subject to limitations of this act, determine the interest rates on loans and the maximum amount that may be

loaned with and without security to any member, and determine the rate of interest refund, if any, to be made to

members.

A majority of the board may, however, agree to exclude loans made at rates of interest lower than the basic rate of the

credit union and may also exclude loans where payments are in arrears from participation in such interest rebates. All

other loans shall participate at the same rate of rebate.

6. The State Credit Union Board may, by approval of implementing amendments to the bylaws of a credit union,

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authorize the delegation of specific powers by the board of directors of the credit union to an executive committee of

the board of designated officers of the credit union. However, the delegation of any power by the board of directors,

as authorized, shall not relieve the board of any existing duty or obligation for the proper exercise of the delegated

power.

B. 1. At their first meeting, after the annual meeting of the members, the directors shall elect from their number an

executive officer, who may be designated as chairman of the board or president, a vice-chairman of the board or a

vice-president, a secretary, and a treasurer, who shall be the executive officers of the corporation. The secretary and the

treasurer may be the same person. The duties of the officers shall be determined by the bylaws.

2. The board of directors may employ an officer in charge of operations, whose title shall be either president and/or

general manager or, in lieu thereof, the board of directors may designate the treasurer or an assistant treasurer, to act

as general manager and be in active charge of the affairs of the credit union. Each active officer and employee of a

credit union shall, before entering upon their duties, make and give a bond to the credit union, executed by a surety

company, in an amount fixed by the State Credit Union Board, for the protection of the credit union against the fraud

or dishonesty of each active officer or employee of the credit union. When the bond has been executed it shall be

filed with the Bank Commissioner.

3. The board of directors may appoint a membership officer and delegate to the officer the power to approve or

disapprove all membership applications. The membership officer may not be the treasurer or assistant treasurer. Once

appointed, the membership officer shall submit to the board of directors a list of approved or pending applications for

membership at each regular meeting of the board of directors.

C. 1. A credit committee of not less than three members shall be either elected by the members or appointed by the board

of directors, from the membership of the credit union, at the annual meeting of the members, or at the first meeting of

the board of directors after the annual meeting of the members, as the bylaws may provide. Members of the credit

committee shall hold office for such terms as specified in the bylaws. In lieu of a credit committee, a credit manager

may be appointed by the board of directors, if the bylaws so provide. The credit manager shall be an officer of the

credit union.

2. A credit committee, or if the bylaws so provide, a credit manager, shall have the general supervision of all loans to

members. It shall be the duty of the credit committee, or if applicable, the credit manager, to provide for the review

of all applications for loans, to ascertain whether or not such loan would benefit the applicant, and to determine

whether or not the security offered, in the judgment of the credit committee or the credit manager, is sufficient and

the terms proper. If the loans of the credit union are supervised by a credit committee, the credit committee shall

meet as often as may be required after due notice has been given to each member thereof, but not less than once a

month, and shall keep a record of all meetings.

3. The credit committee, or the credit manager, shall make a report to the members at the annual meeting.

4. To facilitate the work of the credit committee or the credit manager, the credit committee or the credit manager,

whichever is applicable, may appoint one or more loan officers and assistants, as may be necessary. Loan officers

shall act under the direction of the credit committee or the credit manager and may approve or disapprove loans,

but only within written rules and regulations established by the credit committee or the credit manager. A record of

loans approved by each loan officer shall be made available upon request to the credit committee or the credit

manager.

D. 1. The supervisory committee shall be appointed by the board of directors unless otherwise provided in the bylaws. One

director may be appointed or elected to the supervisory committee, but not the treasurer.

2. The supervisory committee shall make a semiannual examination of the affairs of the credit union, including an audit

of its books; and shall make an annual audit and a report to be submitted at the annual meeting of the corporation.

However, if the supervisory committee, with the approval of the board of directors, employs an auditor approved by

the State Credit Union Board, a licensed public accountant or a certified public accountant to perform an annual

audit of the affairs and books of the credit union, such annual audit by the outside auditor shall constitute full

compliance with this subsection.

3. The supervisory committee shall make a report of any audit it causes to be conducted of the credit union at the annual

meeting of the credit union.

4. By a unanimous vote, the supervisory committee may suspend any officer of the corporation, including the credit

manager, or any member of the credit committee or of the board of directors until the next members' meeting, which

meeting, however, shall be held within fourteen days of the suspension and at which meeting the suspension shall be

acted upon by the members; and, by a majority vote, may call a special meeting of the shareholders to consider any

violation of this law, the charter, or of the bylaws, or any practice of the corporation deemed by the committee to be

unsafe or unauthorized. The board of directors shall fill vacancies on the supervisory committee.

5. The supervisory committee shall in such manner as it deems advisable cause the accounts of the members to be

verified with the records of the treasurer from time to time and not less frequently than once every two (2) years.

6. The supervisory committee shall meet as often as necessary to conduct the business of the supervisory committee and

at such other times as the Commissioner may prescribe. Minutes of all such meetings shall be kept.

7. No member of the supervisory committee may be excluded from attending the meetings of the board of directors of

the credit union.

Okla. Stat. tit. 6, § 2017. Fiscal agency for state

Each credit union organized under this act when requested by the Treasurer of the State of Oklahoma, shall act as fiscal

agent of the State of Oklahoma, and shall perform such services as the Treasurer may require in connection with the

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collection of taxes and other obligations of the State of Oklahoma and the lending, borrowing, and repayment of money

by the State of Oklahoma.

Oregon Or. Rev. Stat. § 723.152. General powers; rules.

In addition to the powers conferred by the general corporation law a credit union may, subject to the restrictions and

limitations contained in this chapter and the credit union's bylaws:

(1) Make contracts.

(2) Sue and be sued.

(3) Adopt, use and alter a common seal.

(4) Acquire, lease, hold and dispose of property, either in whole or in part, necessary or incidental to the credit union's

operations.

(5) At the discretion of the board of directors, require any person admitted to membership to pay an entrance fee or

annual membership fee, or both.

(6) Receive savings from members of the credit union in the form of various classes of shares, deposits or deposit

certificates, deposit accounts or special-purpose thrift accounts.

(7) Receive from members of the credit union or from another credit union deposits or deposit certificates, deposit

accounts or various classes of shares payable on nonnegotiable request.

(8) Lend the credit union's funds to members of the credit union and to other credit unions as provided in this chapter.

(9) Acquire and lease personal property at the request of a member of the credit union who wishes to lease the property

on terms requiring payment, during the term of the lease, of rents that exceed the total expenditures made by the

credit union for the acquisition, ownership, financing and protection of the property. Rents may include residual value

payments that are the obligation of a responsible third party.

(10) Borrow from any source in accordance with policy established by the board of directors and issue debentures pursuant

to a plan approved by the Director of the Department of Consumer and Business Services. The debentures shall be

subordinate to the shares and deposits of the credit union.

(11) Discount and sell any eligible obligations, subject to rules adopted by the Director of the Department of Consumer and

Business Services.

(12) Sell all or substantially all of the credit union's assets or purchase all or substantially all of the assets of another credit

union, subject to the approval of the Director of the Department of Consumer and Business Services.

(13) Invest surplus funds as provided in this chapter.

(14) Make deposits in legally chartered banks, savings banks, savings and loan associations, trust companies and credit

unions.

(15) Assess charges to a member of the credit union in accordance with the credit union's bylaws for the member's failure

to meet the member's obligations to the credit union promptly.

(16) Hold membership in other credit unions organized under this chapter or other state or federal laws, and in other

associations and organizations composed of credit unions.

(17) Declare dividends, pay interest on deposit and deposit certificate accounts and pay interest refunds to borrowers as

provided in this chapter.

(18) Offer products and services reasonably related to the purposes of a credit union as set forth in ORS 723.006.

(19) Receive deposits from the federal government or this state, or any agency or political subdivision thereof.

(20) Make donations or contributions to any civic, charitable, political or community organization as authorized by the

board of directors.

(21) Act as a custodian of qualified pension funds of members of the credit union if permitted by federal law.

(22) Purchase or make available insurance for the credit union's directors, officers, agents, employees and members.

(23) Allow members of the credit union to use share accounts, deposit accounts or deposit certificate accounts as share

draft accounts as provided in ORS 723.434.

(24) Provide digital signature verification or other electronic authentication services to members of the credit union.

(25) Act as trustee or custodian for members of the credit union under any written trust instrument or custodial agreement

in connection with a tax-advantaged savings plan authorized under the Internal Revenue Code, including but not

limited to individual retirement, deferred compensation, education savings and health savings accounts, provided

that the trust instrument or custodial agreement requires all funds subject to the instrument or agreement to be

invested exclusively in share or deposit accounts in the credit union. The State of Oregon, or the applicable

instrumentality or municipality, is considered to be a member of the credit union with respect to such deposits, except

that the state or other instrumentality or municipality is not entitled to vote, hold office or otherwise participate in the

management or operation of the credit union.

(26) Indemnify the directors, officers, employees and committee members or other volunteers of the credit union in

accordance with the provisions of the credit union's articles, bylaws and the indemnification provisions of ORS chapter

60.

(27) Sell negotiable checks, including traveler's checks, money orders and other money transfer instruments, including

domestic and international electronic funds transfers, to persons eligible for credit union membership under ORS

723.172, whether or not such persons are members of the credit union.

(28) For a fee, cash checks and money orders and send or receive domestic and international electronic funds transfers for

persons eligible for credit union membership under ORS 723.172, whether or not such persons are members of the

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credit union. The fee a credit union may charge for cashing checks or money orders in accordance with this

subsection may not exceed the following amounts, as appropriate:

(a) For a check or money order issued by the federal government or an agency of the federal government, by this

state or an agency of this state, by any other state or political subdivision thereof or by the government of the

municipality in which a person is cashing the check or money order, or for a check that is a payroll check drawn

against an account held in a financial institution in this state:

(A) $ 5 or two percent of the face value of the check or money order, whichever is greater, if the person cashing

the check or money order provides valid and current government-issued photo identification; or

(B) $ 5 or 2-1/2 percent of the face value of the check or money order, whichever is greater, if the person cashing

the check or money order does not provide valid and current government-issued photo identification.

(b) For a check or money order not described in paragraph (a) of this subsection:

(A) $ 5 or three percent of the face value of the check or money order, whichever is greater, if the person cashing

the check or money order provides valid and current government-issued photo identification; or

(B) $ 5 or 3-1/2 percent of the face value of the check or money order, whichever is greater, if the person cashing

the check or money order does not provide valid and current government-issued photo identification.

(29) Exercise other powers that are necessary to carry out the credit union's purpose.

Or. Rev. Stat. § 723.156. Exercise of powers of federal credit union. (1) Notwithstanding any other provision of law, in addition to the powers and authorities provided under the laws of this

state, a credit union may exercise any of the powers that were available to a federal credit union as of January 1, 2017.

At least 45 days before exercising a power under this subsection, a credit union shall provide to the Director of the

Department of Consumer and Business Services written notice of the credit union’s intent to exercise the power. The

notice must describe the power and specify the statutory or regulatory authority or other legal basis for the federal credit

union power the credit union intends to exercise.

(2) Notwithstanding any other provision of law, in addition to the powers and authorities provided under the laws of this

state, a credit union may, after obtaining approval from the director and subject to any limitations the director

prescribes, exercise any of the powers conferred after January 1, 2017, upon a federal credit union that does business in

this state and that is subject to the regulations of the administrator of the National Credit Union Administration or the

successor or successors of the administrator, or any of the powers conferred on a credit union that is chartered under the

laws of another state and does business in this state, if the director finds that exercising the powers:

(a) Serves the public and members’ convenience and advantage; and

(b) Equalizes and maintains the quality of competition among credit unions chartered under the laws of this state, of

another state and under federal law.

Or. Rev. Stat. § 723.406. Dividends

(1) At such intervals and for such periods as the board of directors may authorize, and after provision for the required

reserves, the board of directors may declare dividends to be paid on shares or share certificates. Dividends may be

paid at various rates, or not paid at all, with due regard to the conditions that pertain to each class of share.

(2) Subject to the approval of the board of directors, accounts closed between dividend periods may be credited with

dividends at the rate set by the board of directors.

Or. Rev. Stat. § 723.572. Insurance for members.

(1) A credit union may purchase or make available life savings, loan protection and other forms of insurance for its

members in amounts related to their respective ages, shares, deposits or loan balances or to any combination of them.

(2) A credit union may enter into cooperative marketing arrangements to facilitate its members' voluntary purchases of

insurance.

Or. Rev. Stat. § 723.576. Liability insurance for director, officer, employee or agent.

A credit union may purchase and maintain insurance on behalf of any person who is or was a director, officer, employee

or agent of the credit union, or who is or was serving at the request of the credit union as a director, officer, employee or

agent of another corporation, partnership, joint venture, trust or other enterprise against any liability asserted against such



Pennsylvania 17 Pa. Cons. Stat. § 501. Powers.

(a) General rule. --A credit union shall have the following general powers:

(1) To continue as a corporation for the time specified in its articles of incorporation subject to 15 Pa.C.S. § 501 (relating

to reserved power of General Assembly).

(2) To maintain and defend judicial proceedings in its corporate name.

(3) To adopt and use a corporate seal, and alter the same at pleasure.

(4) To grant allowances or pensions to officers, directors and employees for faithful and long-continued services and,

after the death of the officer, director or employee either while in the service of the corporation or after retirement,

pensions or allowances may be granted or continued to their dependents. The allowances to dependents shall be

reasonable in amount and paid only for a limited time and, unless part of an employee benefit plan or employment

contract in effect at the time of retirement or death of the officer, director or employee, shall not exceed in total

the amount of the compensation paid to the officer, director or employee during the 12 months preceding

retirement or death.

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(5) To have and exercise all of the powers and means necessary to effect the purpose or purposes for which the credit

union is organized.

(b) Special powers. --A credit union shall have the following special powers:

(1) To receive the savings of its members as payments, representing equity on shares, share draft accounts and share

certificates.

(2) To make loans to members and to participate in loans to credit union members, including members of

any Federal credit union or credit union chartered under the laws of any state, jointly with such other

credit unions, credit union organizations or State or Federally chartered and regulated depository

institutions, if the institution which originates such a loan shall be legally required to retain an interest of

at least 10% of the outstanding balance of the loan. No loan may be made to any member if, upon

the making of that loan, the member would be indebted to the credit union upon loans made to him

in an aggregate amount which would exceed 10% of the credit union's unimpaired capital.

(3) To make loans to any cooperative society or societies, or other organization or organizations, which have

membership in the credit union.

(4) To make purchase money mortgage loans to members secured by mortgages which are first liens on

improved real property situated within the United States, the improvement being an established

dwelling house for not more than four families which is owned by the member of the credit union

making the mortgage and occupied or to be occupied, in whole or in part, by such member.

Purchase money mortgages shall not exceed 90% of the fair market value of the property, except as

provided in paragraph (4.1).

(4.1) The department may grant prior approval of a purchase money mortgage loan policy submitted to

the department by the credit union which complies with paragraph (4) and additionally provides for

private mortgage insurance for each purchase money mortgage and directs that purchase money

mortgages shall be written according to secondary market standards, in which case purchase money

mortgage loans shall not exceed 100% of the fair market value of the property.

(4.2) Shares of the credit union owned by the mortgagor may be assigned or pledged as additional collateral security

for the mortgage loan and, in such event, the mortgage loan granted upon such property may be increased by

the withdrawal value of the additional pledged shares to an amount not to exceed a maximum total mortgage

loan of 100% of the fair market value of such real property, and the credit union may release this additional

collateral whenever the mortgage loan meets all of the requirements of this title and could be made legally at the

time of release without the requirement of additional collateral. Purchase money mortgage loans shall be amortized

by approximately equal payments sufficient in amount to pay all interest and effect full repayment of principal

within a period not in excess of 30 years. Except as otherwise provided in this section, purchase money mortgage

loans on any one property shall not exceed 90% of the fair market value of the property or 5% of the unimpaired

capital of the credit union, whichever is lesser. The aggregate total of mortgage loans shall not exceed 50% of the

unimpaired capital of the credit union. Without regard to the limitations as to the amount and term of a purchase

money mortgage loan or the aggregate amount of all mortgage loans set forth in this paragraph, a credit union

may grant any mortgage loan which is insured or guaranteed, in whole or in part, by the United States or any

instrumentality thereof, or if there is a commitment to so insure or guarantee.

(5) To make loans to credit unions organized under the laws of this Commonwealth or under the laws of

any state or under the laws of the United States. In the case of central or corporate credit unions, the

aggregate amount outstanding on all such loans shall not exceed 25% of the unimpaired capital of

the lending credit union.

(6) To deposit its funds in insured state banks, bank and trust companies, savings banks, national

banking associations, savings associations, Federal saving and loan associations, insured credit

unions and insured Federal credit unions and central-type credit union organizations.

(7) To invest its funds in the following investments:

(i) Securities, obligations or other instruments of or fully guaranteed as to principal and interest by the United States

or any agency thereof or in any trust established for investing directly or collectively in the same.

(ii) Bonds or other interest-bearing obligations of the Commonwealth or any political subdivision thereof or an

authority which has been created as a body corporate and politic under any law of this Commonwealth.

(iii) Shares of any savings and loan association or credit union, organized under the laws of this Commonwealth, or of

any Federal savings and loan association or Federal credit union, to the extent to which the withdrawal or

repurchase value of such shares is insured by any agency of the United States or any other insurer approved by

the department.

(iv) Bonds and notes of the Pennsylvania Housing Agency created by the act of December 3, 1959 (P.L.1688,

No.621), known as the Housing Finance Agency Law.

(v) Capital stock, obligations or other securities of any service corporation organized under the laws of this

Commonwealth or under the laws of any other state and duly qualified to do business in this Commonwealth, if

the entire capital stock of such corporation is available for purchase only by credit unions, organized and

existing under the laws of this Commonwealth and by Federal credit unions or association of credit unions. A

complete description of the service corporation and its activities must be furnished to the department and its

approval obtained by the credit union before investing in such corporation. No credit union may make an

investment in a service corporation if its then aggregate outstanding investments under this subparagraph would

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exceed 1% of its assets.

(vi) Obligations issued by banks for cooperatives, Federal land banks, Federal intermediate credit banks or any

corporation designated in 31 U.S.C. § 9101(2) and (3) (relating to definitions) as a "government corporation."

(vii) Obligations, participations or other instruments of or issued by, or fully guaranteed as to principal and interest

by, the Federal National Mortgage Association or the Government National Mortgage Association.

(viii) Mortgages, obligations or other securities which are or ever have been sold by the Federal Home Loan

Mortgage Corporation pursuant to 12 U.S.C. § 1454 (relating to purchase and sale of mortgages; residential

mortgages; conventional mortgages; terms and conditions of sale or other disposition; authority to enter into,

perform, and carry out transactions) or 1455 (relating to obligations and securities of the corporation).

(ix) Obligations or other instruments or securities of the Student Loan Marketing Association.

(x) Participation certificates evidencing beneficial interests in obligations, or in the right to receive interest and

principal collections therefrom, which obligations have been subjected by one or more government agencies to

a trust or trusts for which any executive department, agency or instrumentality of the United States (or the head

thereof) has been named to act as trustee.

(xi) Bankers' acceptances issued by State banks, bank and trust companies and savings banks, and national

banking associations the accounts of which are Federally insured.

Before making the investments described in subparagraphs (vi) through (xi), a credit union shall be in compliance

with investment standards established by the department.

(8) To borrow money subject to the limitations set forth in this title.

(9) To make, amend, alter and repeal bylaws, not inconsistent with law, for the regulation of its affairs and the conduct

and management of the credit union. Immediately upon the adoption of the bylaws, or any additions thereto, or

any alteration, amendment or repeal thereof, notice of such fact and a copy of such bylaws or such alteration,

amendment or repeal shall forthwith be sent to the department. The department shall, within 60 days after receipt

thereof, have the power to disapprove, for any reasonable cause stated in writing, any such bylaw or any such

alteration, amendment or repeal thereof, but the bylaw, alteration, amendment or repeal shall be effective until

the department disapproves it and gives notice thereof to the credit union.

(10) To hold, purchase, mortgage, alter, improve and sell fixed assets, meaning such real property, and furniture and

fixtures to be used therein, as the purposes of the credit union require and which the credit union occupies or

intends to occupy for the transaction of its business or partly so occupies and partly leases to others, except that,

without the prior written approval of the department, the cost, at the time of acquisition, of such real property and

furniture and fixtures therein shall not exceed 5% of shares and undivided earnings.

(11) To purchase group insurance at reasonable rates on the lives of its members in an amount not to exceed the

respective shares balances of such members.

(12) To act as an issuing agent of the United States Treasury for the sale, issuance and redemption of United States

Savings Bonds to its members.

(13) To invest its funds in shares and become members of any insured central-type credit union organized under the

laws of the United States or under the laws of this Commonwealth in which such investments are specifically

authorized by the board of directors of the State credit union making the investment.

(14) To receive payments on shares and deposits from other credit unions and Federal credit unions. As used in this

paragraph, the term "deposit" means a type of time or demand account in which the credit union incurs a debt to

the depositor.

(15) To receive payments on shares which may be issued at varying dividend rates, share certificates which may be

issued at varying dividend rates and maturities and share draft accounts from members or nonmember units of

Federal, state or local governments, including any officer, employee or agent of the United States, any state or any

political subdivision thereof, or any territory or possession of the United States having official custody of public funds

and lawfully investing such funds in a credit union.

(16) To sell Federal funds to a bank or institution whose accounts are federally insured, provided that the interest or

other consideration received from the financial institution is at the market rate for Federal funds transaction and

that the transaction has a maturity of one or more business days or the credit union is able to require repayment at

any time.

(17) With the prior written approval of the department, to sell all or a part of its assets and to assign its liabilities and

capital to another credit union, Federal credit union or out-of-State credit union. Further, a credit union with prior

written approval of the department shall have the power to purchase all or part of the assets and to assume the

liabilities and capital of a credit union, Federal credit union or out-of-State credit union.

(c) Southern Africa investments. --(Deleted by amendment).

(d) Special powers of community development credit unions. --A community development credit union may do all of the

following:

(1) Accept payments on shares from any agency, instrumentality, public corporation or other entity of the United States

or any state and nonmembers pursuant to the Federal Credit Union Act (48 Stat. 1216, 12 U.S.C. § 1751 et seq.) and

other applicable Federal law and requirements of the National Credit Union Administration.

(2) Participate in the Community Development Revolving Loan Program under the administration of the National Credit

Union Administration.

(3) Engage in any other programs or activities permitted by Federal or State law applicable to a community

development credit union with the prior written approval of the department upon filing of an application and

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submittal of a fee.

(e) Federal parity. --Notwithstanding any other provisions of this title or any other law, in addition to any other powers as

authorized by this title or other law, a credit union shall have the power:

(1) To engage in any activity permissible for a Federal credit union as authorized by the Federal Credit Union Act (48

Stat. 1216, 12 U.S.C. § 1751 et seq.) and the rules and regulations of the National Credit Union Administration, subject

to reasonable conditions, limitations and restrictions as may be imposed by the department, including, but not

limited to, conditions, limitations and restrictions based upon safety and soundness.

(2) To engage in the activity of creating, amending or expanding its field of membership as authorized by section 109

of the Federal Credit Union Act (48 Stat. 1216, 12 U.S.C. § 1759), subject to reasonable conditions, limitations and

restrictions as may be imposed by the department, including, but not limited to, conditions, limitations and

restrictions based upon safety and soundness.

(3) To control, hold an interest in or participate in a credit union service organization that engages in any activity

permissible for a Federal credit union to conduct through a credit union service organization, provided that any

activity permissible for a credit union service organization shall be subject to reasonable conditions, limitations and



(f) Notice to department. --Unless prior approval is granted by the department, a credit union shall provide at least 30 days'

prior written notice to the department before it engages in an activity or acquires an interest permissible under

subsection (e). During the review period provided by this subsection, the department may:

(1) request further information concerning any proposed activity or interest;

(2) impose any conditions, limitations or restrictions upon such interests or activities to the extent authorized by

subsection (e); or

(3) prohibit the credit union from engaging in any activity or acquiring any interest if to do so would have a significant

adverse impact upon the safety and soundness of the credit union.

(g) Approval to be presumed. --Except as otherwise agreed to by a credit union, the department shall be deemed to have

granted approval for a credit union to engage in an activity or acquire an interest if within 30 days of receipt of written

notice from a credit union the department does not act.

17 Pa. Cons. Stat. § 509. Fees and charges. (a) Entrance fees. --A credit union may charge an entrance fee of an amount, not in excess of $ 1, as may be provided by

the bylaws.

(b) Fees in connection with loans. --A credit union may collect fees paid to public officials, actual fees necessary to secure

collateral, fees required to be charged by government agencies and reasonable attorney fees. Furthermore, in

connection with real estate loans, a credit union may collect charges and fees necessary to sell the loans to any

agency or instrumentality of the Federal Government or a corporation which engages in the business of purchasing

mortgage loans.

(c) Fees in connection with collectors or outside collection agencies. --A credit union may collect fees paid to outside

collectors or outside collection agencies, provided the aggregate of such collection fees does not exceed 20% of the

outstanding loan balance or other share or loan service related amounts owed to the credit union.

(d) Other fees. -- A credit union may additionally: (1) charge fees for other services to its members, provided that the fees

charged will be for the actual cost of the respective services provided by the credit union; and (2) recoup actual sums

expended by the credit union, including use of credit union personnel, incurred in collection of outstanding loan

balances or other share or loan service related amounts owed to the credit union..

(e) Late payment charges. --A credit union may collect late payment charges not in excess of 5% of the principal and

interest due on any installment payment of a loan that is more than 15 days delinquent.

17 Pa. Cons. Stat. § 511. Power to borrow.

(a) General rule.--A credit union may borrow from any source a sum not exceeding 50% of its unimpaired capital, regular

reserve, contingency reserves and undivided earnings for the purpose of meeting the demand for loans to members or

for the purpose of meeting demands for share withdrawals.

(b) Exception.--A credit union shall not borrow for the purpose of making investments authorized by section 501(b)(7)

(relating to powers).

17 Pa. Cons. Stat. § 514. Dividends.

(a) General rule. --The board of directors of a credit union or the members on recommendation of the board of directors,

whichever the bylaws provide, may declare dividends to be paid on all shares and share certificates from the net

earnings and undivided earnings at such rates and intervals and for such periods as the board of directors may

authorize and after provision for the required reserves. Dividends may be added to the credit of the members share

accounts, paid in cash, or partially credited to share accounts and partially paid in cash, at the option of the board of

directors.

(b) Inactive accounts. --A share account may be transferred to a special account if, for at least five years, there has been

no activity by the owner of the account and all written communications from the credit union to the owner of the

account have been returned to the credit union with no forwarding address. After the transfer, the credit union may

cease paying dividends on the transferred account and may cease sending notices to the owner. A member whose

account has been transferred may reclaim the funds from the credit union at any time prior to the time the account is

escheated. After escheat, reclaiming is governed by Article XIII.1 of the act of April 9, 1929 (P.L.343, No.176), known as

The Fiscal Code.

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17 Pa. Cons. Stat. § 701. Membership. (a) General rule. --Credit union organizations shall be limited to groups having a potential membership of 500 or more adult

persons and having a common bond of association within a well-defined community or rural district by reason of

occupation or of membership in a religious congregation or fraternal or labor organization or residence within a well-

defined community or rural district. A credit union may also retain its original field of membership and, additionally,

include in its field of membership other occupational groups, as well as like associational groups having a common

bond with the original field of membership, with insufficient number of members to form or conduct the affairs of a

separate credit union, if the existing credit union obtains prior permission from the department. The membership of a

credit union shall be limited to and consist of the incorporators of the credit union and such other persons, having the

common bond of association, set forth in the articles of incorporation, as have been duly admitted members, have

paid the entrance fee as provided in the bylaws and own and retain one or more shares. Organizations composed

principally of the same group as the credit union membership may be members. Employes of credit unions may be

members of such credit unions.

(b) Family members. --Persons who are members of the immediate family of a member of the credit union may be elected

to membership.

(c) Trust and joint tenancy deposits. --Shares may be issued in trust for or in joint tenancy with the right of survivorship with

any person designated by the credit union member, but no joint tenant or beneficiary of a trust shall be permitted to

vote, obtain a loan or hold office unless he is within the field of membership and is a qualified member in his own right.

(d) Continuation of membership. --Any member who leaves or has left the field of membership and has not withdrawn all

of his share account shall not cease to be a member of the credit union by reason thereof, and he shall have all of the

rights and obligations of membership, including, but not limited to, the right to retain and to add to his share account

and the right to vote. Upon leaving the field of membership, the provisions of this subsection shall apply to persons who

have become members of the credit union solely by reason of the provisions of subsection (b), but the provisions of

subsection (c) shall not be affected by this subsection.

(e) Spouse of deceased member. --The unremarried widow or widower of a deceased member may become a member

of the credit union.

(f) Effect of certain association formations. --Any association formed primarily to obtain a State credit union charter shall

not be considered by the department to have a sufficient common bond.

17 Pa. Cons. Stat. § 712. Indemnification and exoneration from liability of directors and officers.

(a) Indemnification. --A credit union shall be governed by the provisions of 15 Pa.C.S. Ch. 17 Subch. D (relating to

indemnification).

(b) Exoneration from liability of volunteer officers. --Volunteer officers of Federal, State and out-of-State credit unions shall

be entitled to the protection and rights set forth in 15 Pa.C.S. § 513 (relating to personal liability of directors) if the

membership adopts a bylaw to that effect.

(c) Standard of care and personal liability of directors. --See 15 Pa.C.S. §§ 512 (relating to standard of care and justifiable

reliance) and 513.

Rhode Island R.I. Gen. Laws § 19-5-12. Powers and duties of directors

The board of directors shall be responsible for the general management of the affairs, funds, and records of the credit

union, and shall meet as often as necessary. It shall be the board's special powers and duties:

(1) To act upon the expulsion of members;

(2) To approve or ratify the rate of interest which shall be allowed on deposits;

(3) To fill vacancies in the board of directors, the supervisory committee, and in the credit committee of the credit union

until the election and qualification of officers and directors to fill those vacancies is completed;

(4) To make recommendations to members relative to the maximum number of shares that may be held by any one

member, amendments to the by-laws, and any other matters which, in their opinion, the members should decide;

(5) To borrow, on behalf of the credit union, and to pledge as security the bonds, notes, mortgages, or other securities of

the credit union; provided, however, that this borrowing shall not exceed fifty percent (50%) of the assets of the credit

union, unless the director or the director's designee shall give his or her written approval;

(6) To declare dividends as provided in this chapter.

R.I. Gen. Laws § 19-5-15. Investment of funds -- Powers The capital, deposits, and surplus of the credit union shall be lent to the members for the purposes and upon the security

and terms as the credit committee shall approve, as authorized by a written loan policy, duly adopted by the board of

directors. Funds not used in loans to members may be deposited in authorized reserve agents, or invested in the same

manner as allowed by the national credit union administration rules and regulations, or in the following manner:

(1) Without limitation, in securities issued as direct obligations of the United States government and in securities guaranteed

by the United States government or an agency thereof, as to principal and interest, and in any trust or trusts established

for investing directly or collectively in these securities only;

(2) An amount not exceeding one third ( 1/3) of the assets may be invested in:

(i) Investments other than those described above but which are legal for the investment of funds of financial institutions

of this state, subject to the same limitations and restrictions by which financial institutions are governed, provided

that credit unions with assets of less than ten million dollars ($ 10,000,000) may not invest pursuant to the "prudent

person" provisions.

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(ii) Deposits in financial institutions incorporated under the laws of this state or under federal law and doing business in

this state or in those other institutions that may be approved by the director or the director's designee.

(iii) Any corporation incorporated by CUNA International, Inc. or its successor, or any associated or subsidiary

corporation, for the purpose of providing investment opportunity for credit unions, or any investment or interlending

program managed or sponsored by any of these corporations; provided that deposit or investment under this

subsection shall be made only after the director or the director's designee has approved the corporation for

investment, or the investment or interlending program.

(iv) Common or preferred stocks other than those permitted above to the extent of not over five percent (5%) of the

assets of investing credit unions with assets less than ten million dollars ($ 10,000,000) and to the extent of not over

ten percent (10%) of the assets of investing credit unions with assets of ten million dollars ($ 10,000,000) or more;

provided, however, that any of these securities shall be listed on a national stock exchange or on the National

Market System of the NASDAQ stock market; that dividends have been paid by the corporation issuing the security

and any predecessor corporation or corporations for at least four (4) of the last five (5) years; that the issuing

corporation has, as shown by its last audited statement, total assets of at least one hundred million dollars ($

100,000,000), and a stockholders' equity of not less than forty percent (40%) of the amount of its total assets; and

provided, further, that the security shall have been approved for investment by the director or the director's

designee. The director or the director's designee shall have absolute discretion in approving individual securities,

provided they meet the requirements set forth above. No credit union shall invest in securities under the terms of this

subdivision unless it shall have at least one million dollars ($ 1,000,000) in total assets as shown by its last annual

report. No credit union shall invest more than one percent (1%) of its assets in any one security under the terms of this

section.

(v) Funds not used in loans to members may be invested in capital shares, obligations, preferred stock issues of any

agency or association organized either as a stock company, mutual association, or membership corporation,

provided the membership or stockholding, as the case may be, of the agency or association is confined or

restricted to credit unions or organizations of credit unions, and provided the purposes for which the agency or

association is organized are designed to serve or otherwise assist credit union operations and provided the

investment is authorized by law or regulation for federal credit unions, including, without limitation, an investment in

credit union service organizations ("CUSO") as described in subsection 19-5-15(2) (vi).

(vi) Subject to the department of business regulation and the National Credit Union Administration's power to limit any

CUSO activities or services at any time based upon supervisory, legal or safety and soundness reasons or to refuse to

permit any CUSO activities or services, a credit union may invest in, loan to and/or contract with only those CUSOs

that are sufficiently bonded or insured for their specific operations and engaged in the preapproved activities and

services related to the routine daily operations of credit unions. The director, or director's designee, shall promulgate

regulations delineating specific preapproved activities and criteria.

In applying the limitations and restrictions as to percentages prescribed in the law governing investments by financial

institutions, percentages shall be computed based on the total assets of the credit union.

(3) Every credit union shall have the power to exercise, by its board of directors or duly authorized officers or agents, all

incidental powers necessary to carry on the business of a credit union including, but not limited to, the power:

(i) To receive, upon deposit and for safekeeping, property of every description, upon terms prescribed by the credit

union and to construct, own, lease, and maintain safe deposit vaults, with suitable boxes and places for the

reception and deposit of the property, and lease the use of these places and boxes to individuals and corporations,

upon those terms that the credit union may prescribe. The credit union shall in no case incur any liability on account

of the deposit of any property so made with it, or by reason of the leasing of any place of deposit, other than that

liability as the credit union shall expressly assume in each case by the terms of the contract or receipt under which it

shall accept the deposit or shall have let the place of deposit;

(ii) To act as a depositary of public money or a financial agent;

(iii) To purchase, sell and pledge eligible obligations and assets as set forth in § 19-5-15.1; and

(iv) To exercise additional powers, not inconsistent with the carrying on of a credit union business, with the approval of

the director or the director's designee.

R.I. Gen. Laws § 19-5-19. Dividends

At those intervals that the board of directors may authorize, and after provision for required reserves, the board of directors

may declare a dividend to be paid at different rates on different types of shares, at different rates and maturity dates in

the case of share certificates, and at different rates on different types of share draft accounts. Dividends may be declared,

in whole or in part, from profits or undivided earnings. Dividends credited may be accrued on various types of shares, share

certificates, and share draft accounts as authorized by the board of directors.

R.I. Gen. Laws § 19-5-29. Saving Promotion Raffle.

(a) If authorized by the credit union board of directors, a credit union registered to do business in the State of Rhode Island

may conduct a savings promotion raffle, provided that it has given the department of business regulation prior written

notice of its intent to conduct such a raffle. Said notice shall include an attestation that the raffle meets all requirements

of all applicable laws and regulations including, but not limited to, the national credit union administration (NCUA)

regulations and guidelines related to such contests; that the raffle will be administered in a manner that is fair and non-

discriminatory to credit union members; and that there will be no adverse impact on the financial condition of the credit

union as a result of the proposed savings promotion raffle. The credit union shall conduct a savings promotion raffle so

that each token or ticket representing an entry in the raffle has an equal chance of being drawn. A credit union shall not

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conduct a savings promotion raffle in a manner that jeopardizes the credit union's safety and financial soundness or

misleads its members.

(b) Pursuant to his or her supervisory powers the director of the department of business regulation may examine the conduct

of a savings promotion raffle at any time. The director may issue a cease and desist order for a violation of this section.

(c) A credit union shall maintain records sufficient to facilitate an audit of a savings promotion raffle.

(d) As used in this section, "savings promotion raffle" means a raffle conducted by a credit union where the sole

consideration required for a chance of winning designated prizes is the deposit of at least a specified amount of money

in a savings account or other savings program offered by the credit union.

South Carolina S.C. Code Ann. § 34-26-400. Particular powers of cooperative credit union; loans to other credit unions.

A cooperative credit union may receive the savings of its members in payment for shares, may lend to its members at

reasonable rates of interest, not to exceed the rate authorized by law, or may invest, as provided by law, the funds so

accumulated, may borrow from banks, savings and loan associations, trust companies, or other credit unions, or persons,

and loan such money to its members, and may undertake such other activities authorized by law, provided that any credit

union may loan money to any other credit union at such rate as the parties to the loan may agree.

S.C. Code Ann. § 34-26-410. Additional powers of credit union.

In addition to the powers mentioned elsewhere in this chapter, a credit union may:

(1) enter into contracts of any nature;


(3) adopt, use, and display a corporate seal;

(4) acquire, lease, hold, assign, pledge, hypothecate, sell, discount, or otherwise dispose of property or assets, either in

whole or part, necessary or incidental to its operations;

(5) borrow from any source, provided that a credit union must receive the commissioner's approval to borrow in excess of

an aggregate of twenty-five percent of its capital and deposits;

(6) purchase the assets of another credit union upon approval of the commissioner;

(7) offer related financial services including, but not limited to, electronic fund transfers, safe deposit boxes, leasing, and


(8) hold membership in other credit unions organized under this or other provisions of law, and in associations and


under state or federal law;

(9) act as fiscal agent for and receive payments on share and deposit accounts from a governmental unit;

(10) make contributions to any nonprofit civic, charitable, or service organizations; and

(11) purchase, sell, and hold investment securities which are marketable obligations in the form of bonds, notes, or

debentures which are salable under ordinary circumstances with reasonable promptness at a fair value.

(12) sell, to persons in the field of membership, negotiable checks, including traveler's checks, money orders, and other

similar money transfer instruments, including international and domestic electronic fund transfers and remittance

transfers and cash checks and money orders for persons in the field of membership for a fee.

All investments and related contracts and agreements shall be made in accordance with written investment policies

established by the board of directors.

S.C. Code Ann. § 34-26-710. Dividends. (1) At such intervals and for such periods as the board of directors may authorize, and after provision for the required

reserves, the board of directors may declare dividends to be paid on share accounts from the current earnings. Any

dividends paid from the undivided earnings account must have prior approval of the commissioner.

(2) Dividends may be paid at various rates with due regard to the conditions that pertain to each type of account such as

minimum balance, notice, and time requirements

S.C. Code Ann. § 34-26-810. Interest Rates

The interest rates on loans shall be determined by the board of directors, subject to the limitations, if any, established by

the South Carolina Consumer Protection Code. The board may also authorize any refund of interest on such classes of

loans and under such conditions as it prescribes.

S.C. Code Ann. § 34-26-820. Incidental fees and expenses.

(1) In addition to interest charged on loans, a credit union may charge members all reasonable expenses in connection

with the making, closing, disbursing, extending, collecting, or renewing of loans allowed by the Consumer Protection

Code.

(2) A credit union may assess charges to members, in accordance with the bylaws, for failure to meet their obligations to

the credit union in a timely manner.

S.C. Code Ann. § 34-26-900. Provision of member services; in general. A credit union may purchase or make available insurance for its members.

S.C. Code Ann. § 34-26-910. Insurance for officers, agents, and employees.

A credit union may purchase and maintain insurance on behalf of any person who is or was an elected official, officer,

employee, or agent of the credit union, or who is or was serving at the request of the credit union as a director, officer,

employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise against any liability asserted

against such person in any such capacity or arising out of such person's status as such, whether or not the credit union

would have the power to indemnify such person against such liability. S.C. Code Ann. § 34-26-930 (2011)

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S.C. Code Ann. § 34-26-930. Collection, receipt, and disbursement in connection with negotiable instruments; automated

services; fees. A credit union may collect, receive, and disburse monies in connection with the providing of negotiable checks, money

orders, travelers checks, wire transfers, and sight drafts, and the providing of services through automated teller machines

and for such other purposes as may provide benefit or convenience to its members. A credit union may charge fees for

such services.

S.C. Code Ann. § 34-26-1020. Permissible investments of credit union funds.


(1) in any investment which is legal for state-chartered banks;

(2) in deposits, obligations, or other accounts of financial institutions organized under state or federal law;

(3) in loans to or in shares or deposits of other credit unions or corporate credit unions;

(4) in deposits, in loans to, or shares of any Federal Reserve Bank, U.S. Central Credit Union, or of any central liquidity facility

established under state or federal law;

(5) in shares, stocks, deposits in, loans to, or other obligations of any credit union service organization, or association

exclusively providing services associated with the credit union or engaging in activities incidental to the operations of a

credit union. Such investments in the aggregate may not exceed fifteen percent of the credit union's reserves and

undivided profits;

(6) in participation loans with other credit unions; and

(7) in fixed assets, not to exceed sixty percent of the credit union's reserves and undivided profits, unless with the prior

written approval of the Board of Financial Institutions.

(8) In charitable donation accounts if those accounts meet the requirements of 12 C.F.R 721.3. A credit union shall notify

the commissioner before it establishes a charitable donation account.

Tennessee Tenn. Code Ann. § 45-4-301. Membership -- Qualifications -- Entrance fee.

(a) The membership shall consist of incorporators and persons, societies, associations, copartnerships and corporations that

have been duly elected to membership and have subscribed to one (1) or more shares and have paid for the same in

whole or in part, with the entrance fee as required by the bylaws, and have complied with other requirements that the

certificate of organization may contain; except that a credit union shall be limited to groups having a common bond of

occupation or association or to groups within a well-defined neighborhood, community, or rural district.

(b) A credit union may charge an entrance fee as may be provided in the bylaws.

Tenn. Code Ann. § 45-4-501. Powers generally.


(1) It may receive the savings of its members through the purchase of various classes of share accounts, including general

or regular shares, share certificates, special accounts, share draft accounts or members' special accounts, savings

accounts, certificates and notes;

(2) It may make loans to members, through the credit committee or loan officers;

(3) It may invest, through its board of directors, any of its capital, undivided profits, reserve funds, and other assets not

required for loans to members as provided by this chapter, in any of the following ways:

(A) In any legally chartered bank or trust company;

(B) In any state or federal savings and loan association;

(C) In credit unions, with state or federal charters, in an amount not to exceed ten percent (10%) of the shares,

members' special accounts and reserve funds of the investing credit union or of the credit union in which the

investment is made, whichever amount is the smaller; and in any central credit union, state or federal, approved for

the investments by the commissioner of financial institutions, in an amount not to exceed twenty-five percent (25%)

of the shares, members' special accounts and reserve funds of the investing credit union or of the credit union in

which the investment is made, whichever amount is smaller;

(D) In any agency or association organized either as a stock company, mutual association, or membership corporation;

provided, that the membership or stockholders, as the case may be, of the agency or association are restricted to

credit unions or organizations of credit unions; and provided further, that the purposes for which the agency or

association is organized are designed to service or otherwise assist credit union operations in an aggregate amount

not to exceed twenty-five percent (25%) of the allocations to the reserve fund of the investing credit union.

Investment in the foregoing stock company, mutual association or membership corporation shall not be legal if the

company or association is authorized or empowered to make loans to any person or corporation who is not a

member of the credit union organization;

(E) In obligations of or securities fully guaranteed as to principal and interest by the government of the United States or

of the state of Tennessee;

(F) In any bonds or other obligations issued by the Tennessee valley authority pursuant to the Tennessee Valley Authority

Act of 1933, and any amendment thereto;

(G) In investments authorized under § 35-3-120, and in any investment that is lawful for federal credit unions chartered

under title 12 of the United States Code;

(H) In any bonds of the state of Tennessee or any of its political subdivisions;

(I) In addition to the powers otherwise conferred upon credit unions by this chapter, central credit unions, as defined in

§ 45-4-101(c) and (d), have the power to invest in the obligations as are permitted for state banks under § 45-2-

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607(a)(4) and (a)(5); and

(J) In the volunteer corporate credit union;

(4) It may undertake other activities, not inconsistent with this chapter, that the bylaws may provide;

(5) To provide at the sole option of the borrower, as collateral at the expense of the borrower, insurance against the

hazards of death or disability, or both, of the borrower. The insurance shall be written by an agent and with a company

authorized to do business in Tennessee, or under a group policy issued by a company authorized to do business in

Tennessee, at rates approved by the commissioner of commerce and insurance. The credit union may have the

insurance written by an agent who is an employee, servant, or agent of the credit union or the insurance may be

effected under a group policy issued to the credit union. The amount and type of insurance that may be accepted

under this subdivision (5) shall bear a reasonable relation to the existing hazard and risk of loss and shall be subject to the

following terms and conditions:

(A) Life insurance shall be in an amount that does not at any time during the term of the loan exceed the original face

amount of the note and shall be for a period that does not exceed the term of the loan;

(B) Insurance against the hazard of disability of the borrower shall provide equal benefits, the total of all of which shall

not exceed the face amount of the note and shall not be payable beyond the maturity of the loan;

(C) A credit union that obtains a group policy for the purpose of perfecting any insurance that may be required or

accepted hereunder, or that obtains any life or disability insurance described in subdivisions (5)(A) and (5)(B), at the

request of the borrower, shall contract with the insurance company for a provision therein that the coverage

effected as to each individual insured debtor or borrower shall terminate automatically on prepayment in full of the

note by refinancing, renewal or otherwise, and the unearned premium refunded to the credit union. The credit union

shall pay the unearned premium refund to the borrower;

(D) At the time the loan is made, the lender shall give the borrower a memorandum, showing the name of the

insurance company, the types of insurance issued, a description of the coverages, the date of the policy, which

shall be the date on which the loan is made, the premium charged for each type of insurance and, if issued under

a group policy, the number of the master policy; and

(E) If the premiums for insurance are deducted from the proceeds of the loan, the amount so deducted shall not

exceed the premiums charged by the insurer for the insurance;

(6) It may permit its members to withdraw either shares or funds in members' special accounts through a remote

withdrawal system utilizing drafts drawn against the members' credit union and payable through a bank, and may

engage in any and all other share or fund withdrawal activities heretofore or hereafter authorized by law or regulation

for federally chartered credit unions; provided, that no credit union shall allow any person who is not a member of the

credit union to maintain an account with the credit union permitting the withdrawal; and provided further, that any

credit union utilizing the remote withdrawal of shares and members' special accounts shall be required to establish a

reserve against the accounts in an amount not less than the reserve against demand deposits that is required for state

chartered banks. The authority conferred by this subdivision (6) shall exist so long as federally chartered credit unions

are authorized to engage in the activities;

(7) It may receive United States department of the treasury tax and loan accounts, and pledge collateral to secure

treasury tax and loan funds;

(8) It may do all those things permitted to nonprofit corporations generally by title 48, chapter 58, part 5, relative to the

indemnification of officers and directors. For the purpose of this subdivision (8), members of the supervisory committee

and of the credit committee shall be treated as members of the board of directors; and

(9) It may exercise any power or engage in any activity that it could exercise or engage in if it were a federally chartered

credit union, subject to the regulation by the commissioner of financial institutions for the purpose of maintaining the

credit union's safety and soundness.

Tenn. Code Ann. § 45-4-502. Credit union may borrow. (a) A credit union has the power to borrow from any source, but the total of borrowing shall at no time exceed fifty percent

(50%) of the member accounts and surplus of the borrowing credit union.

(b) A central credit union, as defined in § 45-4-101, has the power to borrow from any source, and is not subject to the

limitations of subsection (a).

Tenn. Code Ann. § 45-4-503. Dividends.

(a) (1) Subject to the limitations contained in subsection (e), a credit union may declare dividends at rates it deems

appropriate for periods and classes of accounts that the board of directors may establish.

(2) A credit union may establish higher dividend rates for shares held in excess of specified minimum amounts.

(b) Shares that become fully paid during the preceding dividend period shall be entitled to a proportional part of the

dividend.

(c) Dividend credit for a month may be accrued on shares that are or become fully paid during the first ten (10) days of

that month.

(d) A credit union may provide for the payment of dividends from the date of deposit or the date when shares become

fully paid to the date of withdrawal of the deposits or shares, if the bylaws so provide.

(e) No dividends shall be authorized or paid that will total more than the current earnings of the credit union after the

required reserve transfer, undivided profits, and the amount held in regular reserves in excess of legal requirements

unless the commissioner of financial institutions shall have granted written approval in advance of the payment of the

dividends.

(f) Notwithstanding subsection (e), central credit unions, as defined in § 45-4-101, may declare and pay dividends from net

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earnings at the times and for the periods that the bylaws of the central credit unions may provide.

Tenn. Code Ann. § 45-4-603. Loan charges. In addition to the charging and collecting of interest as provided in § 45-4-602, a credit union shall be entitled to charge

and collect from its members loan charges that are fair and reasonable compensation for some expense incurred or to be

suffered by the credit union, or some service rendered or to be rendered, in connection with a particular loan; and in any

event, the loan or contract shall not include, except as part of interest, charges for costs indirectly related to that loan or

contract, including, but not limited to, overhead of the credit union, loan losses, and charges for services performed by

officers or employees of the credit union unless the services are rendered directly for the inspection of collateral, the

servicing of the loan after it is made, or the collection thereof.

Texas Tex. Finance Code § 122.051. Membership

(a) A person may be a member of a credit union only if the person is an incorporator or other person who:

(1) shares a definable community of interest, in accordance with the credit union's articles of incorporation or bylaws,

including a community of interest based on occupation, association, or residence;

(2) has paid an entrance fee or membership fee, or both, as required by the bylaws;

(3) has complied with the minimum share, including membership share, requirements or other qualifying account

requirements established by the board; and

(4) has complied with any other requirement of the articles of incorporation and bylaws.

(b) The state acting through the comptroller as administrator of the state's deferred compensation program or a political

subdivision acting through an appropriate officer as administrator of the political subdivision's deferred compensation

program may be a member of a credit union for purposes of funding a deferred compensation program. The state or a

political subdivision funding a deferred compensation program is not required to pay an entrance fee.

(c) A member who leaves the field of membership may retain membership in the credit union under reasonable board

standards.

(d) In this subsection, "good cause" includes the act of physically or verbally abusing a credit union member or employee.

A person's membership in a credit union may be terminated or suspended for good cause or for not maintaining

membership requirements, under the conditions and in accordance with the procedures provided in the bylaws. A

credit union may also discontinue providing any or all services to a member for good cause without terminating or

suspending the person's membership. Termination or suspension of a person's membership in the credit union or

discontinuing services does not relieve the person from any outstanding obligations owed to the credit union.

(e) Two or more persons within the credit union's field of membership who have jointly subscribed for one or more share or

deposit accounts under a joint account and who have complied with all membership requirements may each be

admitted to membership.

(f) A credit union authorized to engage in business under this subtitle may accept as a member any other credit union

organized or chartered under the laws of this or another state or of the United States. Those credit union members are

not entitled to any voting privileges.

Tex. Finance Code § 122.064. Indemnification A credit union may elect to indemnify a director, officer, employee, or agent of the credit union and to purchase

insurance as if the credit union were an “enterprise” as defined by Section 8.001, Business Organizations Code, under and

subject to the credit union’s bylaws and written policy. A credit union may not provide an indemnification or insurance that

would not be permissible under Chapter 8, Business Organizations Code, but may elect to impose the credit union’s owner

limitations on indemnification.

Tex. Finance Code § 123.001. GENERAL POWERS. A credit union may exercise any power necessary or appropriate to accomplish the purposes for which it is organized and

any power granted a corporation authorized to do business in this state, including any power specified in this chapter.

Tex. Finance Code § 123.002. INCIDENTAL POWERS.

A credit union may exercise any right, privilege, or incidental power necessary or appropriate to exercise its specific

powers and to accomplish the purposes for which it is organized.

Tex. Finance Code § 123.003. ENLARGEMENT OF POWERS.

(a) A credit union may engage in any activity in which it could engage, exercise any power it could exercise, or make any

loan or investment it could make, if it were operating as a federal credit union.

(b) Notwithstanding any other law, and in addition to the powers and authorities conferred under Subsection (a), a credit

union has the powers or authorities of a foreign credit union operating a branch in this state if the commissioner finds

that exercise of those powers or authorities is convenient for and affords an advantage to the credit union's members

and maintains the fairness of competition and parity between the credit union and any foreign credit union. A credit

union does not have the field of membership powers or authorities of a foreign credit union operating a branch in this

state.

Tex. Finance Code § 123.101. CONTRACTS. A credit union may make contracts.

Tex. Finance Code §123.102. POWER TO SUE AND DEFEND. A credit union may sue or be sued in the name of the credit union.

Tex. Finance Code § 123.103. PURCHASE AND SALE OF PROPERTY.

Subject to commission rules, a credit union may purchase, hold, lease, or dispose of property necessary or incidental to the

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operation or purpose of the credit union.

Tex. Finance Code § 123.104. MEMBERSHIP IN OTHER ORGANIZATION; OPERATION AS CENTRAL CREDIT UNION. A credit union may:

(1) be a member of:

(A) another credit union organized under this subtitle or other law; and

(B) another organization approved by the board; or

(2) operate, with the commissioner's approval, as a central credit union.

Tex. Finance Code § 123.105. FEES. (a) A credit union may collect a fee, determined by the board, for services and administrative costs, including a fee for a

check or draft that is returned because it is drawn against a closed account or an account containing insufficient or

uncollected money, because of a stop payment order, or for another similar reason.

(b) A fee under this section is an administrative expense. The fee is in addition to interest authorized by law and is not a part

of interest collected or agreed to be paid on a loan.

Tex. Finance Code § 123.106. CHANGE OF LOCATION. A credit union may change its principal place of business or a subsidiary place of business to another location by notifying

the commissioner in writing of the new address and the effective date of the change.

Tex. Finance Code § 123.107. INSURANCE FOR MEMBERS. A credit union may purchase or otherwise provide insurance for the benefit or convenience of its members in accordance

with applicable law or rules adopted by the commission.

Tex. Finance Code § 123.108. DONATIONS. A credit union may donate to a nonprofit, civic, charitable, or community organization as authorized by the board.

Tex. Finance Code § 123.109. SEAL. A credit union may adopt and use a common seal and may alter its seal at any time.

Tex. Finance Code §123.110. RECORDS. (a) A credit union may:

(1) copy any record kept by the credit union; and

(2) dispose of the original record in accordance with commission rules.

(b) A copy of a record is considered an original record for any purpose, including admissibility in evidence as an original

record before any court or administrative agency for the purpose of the copy's admissibility in evidence.

Tex. Finance Code §123.111. RIGHT TO ACT TO MITIGATE OR AVOID LOSS.

This subtitle does not prohibit a credit union from investing its money, operating a business, managing or dealing in

property, or taking any other action at any time that is reasonably necessary to avoid or mitigate a loss on a loan or on an

investment made or obligation created in good faith and in the usual course of the credit union's business, as authorized by

this subtitle or a rule adopted by the commission.

Tex. Finance Code § 123.201. POWER TO BORROW OR LEND.

(a) A credit union may:

(1) lend its funds, or engage in any other type of financing transaction authorized by applicable law or rules adopted

by the commission; and

(2) borrow money from any source, subject to Subsection (b).

(b) A credit union may not incur a debt without the commissioner's prior approval if the debt will cause the debt of the

credit union, including a deposit of a nonmember financial institution, to exceed an amount equal to 500 percent of

the credit union's unencumbered reserves and undivided earnings.

(c) The commissioner shall grant or deny a request for approval under Subsection (b) not later than the 10th day after the

date on which the request is made.

Tex. Finance Code § 123.202. RECEIPT, TRANSFER, AND PAYMENT OF MONEY.

A credit union may:

(1) receive and disburse money;

(2) receive a payment on a share or deposit; and

(3) provide for the transfer or withdrawal of money from an account by the means and through the payment systems that

the board determines best serve the convenience and needs of members and depositors.

Tex. Finance Code § 123.203. ACCEPTANCE OF MONEY FOR DEPOSIT FROM ANOTHER ENTITY. A credit union may accept money for deposit by a savings and loan association, a savings association, the savings

department of a bank, a commercial bank, a savings bank, a trust company, an insurance company, or any intermediary

or other person managing or holding money on behalf of the credit union or any of the credit union's members or

depositors.

Tex. Finance Code § 123.204. ACTION AS AGENT OR DEPOSITORY OF UNITED STATES OR OTHER GOVERNMENTAL ENTITY.

A credit union may act as agent or depository of and accept for deposit the money of:

(1) the United States or an agent or instrumentality of the United States;

(2) this or another state; or

(3) a political subdivision of this or another state, including:

(A) a municipality;

(B) a county;

(C) a school district; or

(D) another taxing authority.

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Tex. Finance Code §123.205. INVESTMENTS AND SECURITIES.

(a) In accordance with commission rules, a credit union may:

(1) develop and offer investment programs to its members and depositors; or

(2) act as agent for its members and depositors in the purchase, sale, or other disposition of a security, an interest in a

mutual fund, or an interest or participation in any other type of investment.

(b) A credit union may issue and sell securities in connection with an investment program developed and offered under

Subsection (a)(1).

Tex. Finance Code § 123.206. ACTION AS FISCAL OR TRANSFER AGENT; TRANSFER OF CERTAIN INSTRUMENTS; SIGNATURES.

A credit union may:

(1) act as fiscal agent or transfer agent;

(2) transfer a registered and countersigned certificate of stock, bond, or other evidence of indebtedness; or

(3) guarantee a signature.

Tex. Finance Code § 123.207. FIDUCIARY POWERS.

A credit union may:

(1) act, under court order or appointment, as guardian, receiver, trustee, executor, or administrator without giving bond;

(2) receive an investment from a person acting as a guardian, receiver, trustee, executor, or administrator under the

Texas Probate Code or Subtitle B, Title 9, Property Code;

(3) act as depository for money paid to a court or constituting the estate of a deceased person, a minor, or an

incompetent;

(4) accept, execute, and administer a trust as trustee;

(5) accept funds or money for deposit by a fiduciary, trustee, receiver, guardian, executor, or administrator; or

(6) act as custodian or trustee of a pension or profit-sharing plan, including an individual retirement account or a

pension fund of a self- employed individual or of the sponsor of a credit union.

Tex. Finance Code § 123.208. DIVIDENDS AND INTEREST.

(a) A credit union may:

(1) declare and pay a dividend on a share;

(2) contract for and pay interest on a deposit; or

(3) refund interest to a borrower.

(b) A dividend or interest may be paid at a rate and on the conditions that the board authorizes.

(c) The commissioner may restrict the payment of a dividend:

(1) if the commissioner issues a cease and desist order under Section 122.257; or

(2) as necessary to protect the member's interests and preserve the solvency of the credit union as authorized by

commission rule.

Tex. Finance Code § 123.209. TRANSFER SYSTEM.

A credit union may establish, operate, or participate in a system that allows the transfer of credit union money or the shares

or deposits of its members by electronic or other means, including a clearinghouse association, a data processing or other

electronic network, the Federal Reserve System, or any other government payment or liquidity program.

Tex. Finance Code § 123.210. SALE OF CERTAIN INSTRUMENTS OR SECURITIES; FEE.

A credit union may:

(1) collect, receive, and disburse money:

(A) in connection with the sale of a traveler's check, money order, cashier's check or draft, treasurer's draft, similar

instrument, or security of any type; or

(B) for another purpose that may provide a benefit or convenience for its members; and

(2) collect a fee for those services.

Tex. Finance Code § 123.211. CERTIFICATES OF INDEBTEDNESS. The commission by rule may authorize a credit union to issue certificates of indebtedness that are subordinated to all other

claims of credit union creditors.

Tex. Finance Code § 123.212. CHECK AND MONEY TRANSFER SERVICES.

A credit union may sell to a person within its field of membership negotiable checks, money orders, and other similar

money transfer instruments or services and may also cash checks and money orders for a person within its field of

membership for a fee.

Tex. Finance Code § 124.351. Permitted Investments (a) A credit union may invest money not used in loans to members in:

(1) capital shares, obligations, participation certificates, or common or preferred stock of an agency, association, or

company, subject to Section 124.352(a);

(2) loans to a national or state credit union association or corporation of which the credit union is a member;

(3) obligations, bonds, notes, or other evidences of indebtedness of a state or political subdivision of a state;

(4) certificates of deposit or other accounts issued by a state or national bank, savings and loan association, savings

association, or mutual savings bank;

(5) securities, obligations, participations, or other instruments of or issued by the United States, or in a trust established for

investing directly or collectively in those investments;

(6) loans to, shares of, or deposits in another credit union, a central credit union, a corporate credit union, a central

liquidity facility established under state or federal law, a trust, or an organization established for lending directly or

collectively to credit unions;

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(7) securities, obligations, participations, or other instruments fully or partially guaranteed as to principal, interest, or both

by the United States, or in a trust established for investing directly or collectively in those investments;

(8) participation loans with another credit union, corporation, credit organization, or financial organization;

(9) notes receivable, loans to members, or other assets of a credit union operating under this subtitle or the Federal

Credit Union Act (12 U.S.C. Section 1751 et seq.); and (10) other investments authorized by rules adopted by the commission that satisfy Subsection (b).

(b) A rule adopted under Subsection (a)(10) must be responsive to:

(1) changes in economic conditions or competitive practices; and

(2) the need for safety and soundness of credit union investments.

Tex. Finance Code § 124.101. Borrower Payment of Loan Expenses

A credit union may require a member to pay all reasonable expenses and fees incurred in connection with making,

closing, disbursing, extending, readjusting, or renewing a loan, whether or not those expenses or fees are paid to third

parties.

Utah Utah Code Ann. § 7-9-5. Powers of credit unions

In addition to the powers specified elsewhere in this chapter and subject to any limitations specified elsewhere in this

chapter, a credit union may:

(1) make contracts;


(3) acquire, lease, or hold fixed assets, including real property, furniture, fixtures, and equipment as the directors consider

necessary or incidental to the operation and business of the credit union, but the value of the real property may not

exceed 7% of credit union assets, unless approved by the commissioner;

(4) pledge, hypothecate, sell, or otherwise dispose of real or personal property, either in whole or in part, necessary or

incidental to its operation;

(5) incur and pay necessary and incidental operating expenses;

(6) require an entrance or membership fee;

(7) receive the funds of its members in payment for:

(a) shares;

(b) share certificates;

(c) deposits;

(d) deposit certificates;

(e) share drafts;

(f) NOW accounts; and

(g) other instruments;

(8) allow withdrawal of shares and deposits, as requested by a member orally to a third party with prior authorization in

writing, including drafts drawn on the credit union for payment to the member or any third party, in accordance with

the procedures established by the board of directors, including drafts, third-party instruments, and other transaction

instruments, as provided in the bylaws;

(9) charge fees for its services;

(10) extend credit to its members, at rates established in accordance with the bylaws or by the board of directors;

(11) extend credit secured by real estate;

(12) (a) subject to Subsection (12)(b), make co-lending arrangements, including loan participation arrangements, in

accordance with written policies of the board of directors with one or more:

(i) other credit unions;

(ii) credit union service organizations; or

(iii) other financial organizations; and

(b) make co-lending arrangements, including loan participation arrangements, in accordance with Subsection (12)(a)

subject to the following: the credit union or credit union service organization that originates a loan for which co-

lending arrangements are made shall retain an interest of at least 10% of the loan;

(i) on or after May 5, 2003, the originating credit union or credit union service organization may sell to a credit

union an interest in a co-lending arrangement that involves a member-business loan only if the person receiving

the member-business loan is a member of the credit union to which the interest is sold;

(ii) on or after May 5, 2003, the originating credit union or credit union service organization may sell to a credit

union service organization an interest in a co-lending arrangement that involves a member-business loan only if

the person receiving the member-business loan is a member of a credit union that holds an interest in the credit

union service organization to which the interest is sold; and

(iii) a nonexempt credit union may not originate, participate in, or obtain any interest in a co-lending arrangement,

including a loan participation arrangement, in violation of Section 7-9-58;

(13) sell and pledge eligible obligations in accordance with written policies of the board of directors;

(14) engage in activities and programs of the federal government or this state or any agency or political subdivision of the

state, when approved by the board of directors and not inconsistent with this chapter;

(15) act as fiscal agent for and receive payments on shares and deposits from the federal government, this state, or its

agencies or political subdivisions not inconsistent with the laws of this state;

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(16) borrow money and issue evidence of indebtedness for a loan or loans for temporary purposes in the usual course of its

operations;

(17) discount and sell notes and obligations;

(18) sell all or any portion of its assets to another credit union or purchase all or any portion of the assets of another credit

union;

(19) invest funds as provided in this title and in its bylaws;

(20) maintain deposits in insured depository institutions as provided in this title and in its bylaws;

(21) (a) hold membership in corporate credit unions organized under this chapter or under other state or federal statutes;

and

(b) hold membership or equity interest in associations and organizations of credit unions, including credit union service

organizations;

(22) declare and pay dividends on shares, contract for and pay interest on deposits, and pay refunds of interest on loans as

provided in this title and in its bylaws;

(23) collect, receive, and disburse funds in connection with the sale of negotiable or nonnegotiable instruments and for

other purposes that provide benefits or convenience to its members, as provided in this title and in its bylaws;

(24) make donations for the members' welfare or for civic, charitable, scientific, or educational purposes as authorized by

the board of directors or provided in its bylaws;

(25) act as trustee of funds permitted by federal law to be deposited in a credit union as a deferred compensation or tax

deferred device, including individual retirement accounts as defined by Section 408, Internal Revenue Code;

(26) purchase reasonable accident and health insurance, including accidental death benefits, for directors and

committee members through insurance companies licensed in this state as provided in its bylaws;

(27) provide reasonable protection through insurance or other means to protect board members, committee members,

and employees from liability arising out of consumer legislation including truth-in-lending and equal credit laws and as

provided in its bylaws;

(28) reimburse directors and committee members for reasonable and necessary expenses incurred in the performance of

their duties;

(29) participate in systems which allow the transfer, withdrawal, or deposit of funds of credit unions or credit union

members by automated or electronic means and hold membership in entities established to promote and effectuate

these systems, if:

(a) the participation is not inconsistent with the law and rules of the department; and

(b) any credit union participating in any system notifies the department as provided by law;

(30) issue credit cards and debit cards to allow members to obtain access to their shares, deposits, and extensions of

credit;

(31) provide any act necessary to obtain and maintain membership in the credit union;

(32) exercise incidental powers necessary to carry out the purpose for which a credit union is organized;

(33) undertake other activities relating to its purpose as its bylaws may provide;

(34) engage in other activities, exercise other powers, and enjoy other rights, privileges, benefits, and immunities authorized

by rules of the commissioner;

(35) act as trustee, custodian, or administrator for Keogh plans, individual retirement accounts, credit union employee

pension plans, and other employee benefit programs; and

(36) advertise to the general public the products and services offered by the credit union if the advertisement prominently

discloses that to use the products or services of the credit union a person is required to:

(a) be eligible for membership in the credit union; and

(b) become a member of the credit union.

Utah Code Ann. § 7-9-26. Loans to members -- Investment officers -- Investments

(1) Subject to Subsections 7-9-20(7) and (8) and Section 7-9-58, capital and surplus of the credit union shall be loaned to the

members for the purposes and upon the endorsements or security and the terms as the bylaws provide.

(2) Within 30 days after the annual meeting of the members the board of directors may appoint one or more investment

officers who shall have responsibilities for the credit union investment portfolio based upon policy established by the

board of directors and as provided in this chapter or in the bylaws.

(3) The credit union by action of its board of directors may invest its funds as follows:

(a) in securities, obligations, or other instruments of, or issued by, or fully guaranteed as to principal and interest by, the

United States of America or any of its agencies, or in any trusts established by investing directly or collectively in

these instruments;

(b) in obligations of any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and the

territories organized by Congress, or any of their political subdivisions;

(c) in certificates of deposit or accounts issued by a federally insured state or national depository institution;

(d) in loans to, or in shares or deposits of, other federally insured credit unions, central credit unions, corporate credit

unions, or a central liquidity facility established under state or federal law;

(e) in shares, stocks, loans, or other obligations of any organization, corporation, or association, if the membership or

ownership of the organization, corporation, or association is primarily confined or restricted to credit unions, and if

the purpose for which it is organized is to strengthen or advance the development of credit unions or credit union

organizations; and

(f) in other investments that are reasonable and prudent.

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Vermont Vt. Stat. Ann. tit. 8, § 32102. General powers

(a) Subject to applicable laws and regulations, a Vermont credit union may exercise the following powers:

(1) Make contracts;


(3) Adopt and use a common seal and alter such seal at pleasure;

(4) Purchase, hold, and dispose of property necessary or incidental to its operations;

(5) Establish, acquire, invest or participate in, or utilize a credit union service organization;

(6) Subject to the approval of the commissioner, contract with another credit union or credit unions for office or

agency services or to provide those services to the customers of that credit union;

(7) Subject to the approval of the commissioner, purchase the assets of another credit union or sell all or substantially

all of its assets to another credit union;

(8) Offer related financial services to its members, including, but not limited to, electronic financial services, safe

deposit boxes, negotiable instruments, leasing, and correspondent arrangements with other financial institutions,

and charge a reasonable fee for such services;

(9) Hold membership in other credit unions organized under the laws of this state, the laws of the United States, or the

laws of another state or territory of the United States and in associations and organizations;

(10) Make reasonable contributions to any nonprofit civic, charitable, or service organization;

(11) Require the payment of an entrance fee or annual membership fee, or both, of any person admitted to

membership, pursuant to resolution of the governing body;

(12) Receive savings from its members in the form of shares and honor requests for withdrawals or transfers of all or any

part of member share accounts, in any manner approved by the governing body;

(13) Lend funds to its members;

(14) Subject to rules adopted by the commissioner, sell at a discount any obligations owed to the credit union;

(15) Invest surplus funds, subject to the provisions of section 32104 of this title;

(16) Invest in shares of other credit unions and make deposits in other financial institutions, provided such credit union or

financial institution is federally insured;

(17) Assess fees and charges to members subject to applicable laws and regulations, for failure to meet promptly their

obligations to the credit union;

(18) Declare and pay dividends on various types of share accounts, pay interest on deposit accounts held by a

community development credit union, and pay interest refunds to borrowers;

(19) Subject to applicable state and federal laws and regulations, including applicable insurance laws, act as the agent

for any fire, life, accident, health, credit life, disability or other insurance company, other than a title insurance

company, authorized by the state of Vermont, by soliciting and selling insurance and collecting premiums on

policies issued by such company; and receive for services so rendered such fees or commissions as may be

agreed upon by the credit union and the insurance company for which it may act as agent; provided, however,

that no such credit union shall in any case assume or guaranty the payment of any premium on insurance policies

issued through its agency by its principal; and provided further that the credit union shall not guaranty the truth of

any statement made by an insured in filing his or her application for insurance;

(20) Purchase and maintain insurance on behalf of any person who is or was a director, officer, employee, or agent of

the credit union, or who is or was serving at the request of the credit union as a director, officer, employee, or agent

of another corporation, partnership, joint venture, trust, or other enterprise, against any liability asserted against

such person and incurred by such person in any such capacity or arising out of such person's status as such,

whether the credit union would have the power to indemnify such person against such liability;

(21) Enter into lease agreements, lease contracts, and lease-purchase agreements with members;

(22) Indemnify and limit the personal liability of volunteers;

(23) Enter into marketing arrangements and joint ventures to facilitate its members' voluntary purchase of goods,

insurance, and other services from third parties. A credit union may be compensated for services so provided;

(24) Borrow an aggregate amount not exceeding 20 percent of its assets, and borrow amounts in excess of 20 percent,

but not in excess of 50 percent of its assets, if prior written approval has been given by the commissioner;

(25) With the approval of the commissioner, maintain one or more offices other than the principal place of business as

may be necessary to conduct the affairs of the credit union;

(26) Accept payment for any electric, electric distribution, gas, water, or telephone company or other utility company

operating within this state in receiving money due such company for utility services furnished by it;

(27) Provide loan processing, loan servicing, member check and money order cashing services, disbursement of share

withdrawals and loan proceeds, money orders, internal audits, automated teller machine services, and other

similar services to other Vermont credit unions, federal credit unions, and out-of-state credit unions;

(28) Exercise other powers and actions as authorized under this part of this title or as authorized by regulation of the

commissioner.

(b) The expressed powers for a credit union authorized under this section do not preclude the exercise of additional powers

deemed to be incidental to the transaction of a general credit union business pursuant to this part.

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(c) Subject to the limitations of this part and other applicable laws and regulations, a Vermont credit union may exercise

the powers granted nonprofit corporations under Title 11B. In the event of any conflict between the provisions of Title 11B

and this title, the provisions of this title shall govern.

Vt. Stat. Ann. tit. 8, § 32103. Expanded powers of Vermont credit unions

(a) Subject to the requirements of this section, in addition to all other powers permitted under these statutes, a credit union

may exercise any of the powers or engage in any activity conferred upon a federal credit union chartered under the

laws of the United States of America.

(b) Prior to engaging in such power or activity, the credit union shall notify the commissioner of its intent to engage in the

activity or power conferred upon a federal credit union. The notification shall identify the power or activity, shall identify

the specific federal law or regulation that permits such power or activity, shall identify any Vermont law or regulation

that may prohibit or restrict such power or activity, and shall provide such additional information as the commissioner

may request.

(c) If the commissioner determines that such power or activity is permitted by federal law or regulation, that such power or

activity would not adversely affect the safety or soundness of such credit union, and that such power or activity is not

prohibited or restricted by any other applicable Vermont law or regulation, the commissioner shall issue a written letter

of nonobjection to the credit union's engaging in such power or activity. A credit union shall not engage in such power

or activity without first obtaining a written letter of nonobjection from the commissioner.

(d) The commissioner shall respond to the credit union's notification within the time frame set forth in section 30804 of this

title.

(e) In the event the commissioner objects to the credit union's proposed power or activity, the credit union shall have the

reconsideration and appeal rights set forth in section 30805 of this title.

Vt. Stat. Ann. tit. 8, § 32104. Investments (a) A Vermont credit union may invest its assets prudently in accordance with the best judgment of its governing body,

subject to the limitations set forth in this section and in the credit union's adopted investment policy.

(b) A Vermont credit union's governing body shall establish a written investment policy, which it shall review and ratify at

least annually, that addresses, at a minimum, the following:

(1) Investment quality parameters.

(2) Investment mix and diversification.

(3) Investment maturities.

(4) Delegation of authority to officers and committees responsible for administering the portfolio.

(c) Funds not used in loans to members may be invested:

(1) In loans to or in shares or deposits of other credit unions and central credit unions, corporate credit unions, or a

central liquidity facility established under state or federal law.

(2) In the capital shares, obligations, or preferred stock issues of any agency or an association organized either as a

stock company, mutual association or membership corporation; provided the membership or stockholdings, as the

case may be, of such agency or association are primarily confined or restricted to credit unions or organizations of

credit unions, and provided the purposes for which the agency or association is organized are designed primarily to

service or otherwise assist credit union operations.

(3) In shares of a cooperative society organized under the laws of this state or of the laws of the United States in the

total amount not exceeding ten percent of the shares, deposits, and surplus of the credit union.

(4) In loans to any credit union association or corporation, national or state, of which the credit union is a member,

except that the investments shall be limited to two percent of the assets of the credit union.

(5) In any investment legal for financial institutions as they are defined in subdivision 11101(32) of this title, but in no event

common stock.

Virginia Va. Code Ann. § 6.2-1302. Powers

In addition to the powers specified or implied elsewhere in this chapter or in the laws of the Commonwealth, a credit union

shall have the power to:

1. Enter into contracts;

2. Sue and be sued;

3. Adopt, use, and display a corporate seal;

4. Receive savings from and make loans and extend lines of credit to its members;

5. Individually or jointly with other credit unions acquire, lease as lessor or lessee, hold, assign, pledge, exchange, repair,

mortgage, hypothecate, sell, discount, or otherwise dispose of property or assets, either in whole or in part, as necessary

or incidental to its operations, including any property or assets obtained as a result of defaults under obligations owing

to it;

6. Borrow from any source, provided that (i) a credit union shall notify and obtain prior approval of the Commissioner if the

total borrowings will exceed 50 percent of the credit union's outstanding shares and (ii) in no event shall the borrowings

exceed 90 percent of the credit union's outstanding shares;

7. Sell all or substantially all of its assets or purchase all or substantially all of the assets of another credit union, subject to the

approval of the Commission;

8. Offer related financial services, including electronic fund transfers, share draft accounts, safe deposit boxes, leasing of

tangible personal property to its members, and correspondent arrangements with other financial institutions;

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9. Hold membership in other credit unions organized under this chapter or other applicable law, and in associations and

organizations controlled by or fostering the interest of credit unions, including a central liquidity facility organized under

state or federal law;

10. Contract with any licensed insurance company or society to insure the lives of its members to the extent of their loans

and share accounts, in whole or in part, and to pay all or a portion of the premium therefor;

11. Engage in activities or programs as requested by any governmental authority, subject to the approval of the

Commissioner;

12. Invest its funds, operate a business, manage or deal in property when such actions are reasonably necessary to avoid

loss on a loan or investment previously made or an obligation previously created in good faith. Such property or business

shall not be held or operated by the credit union for a period longer than is reasonably required to protect the interest

of the credit union, unless specifically authorized by the Commissioner;

13. Make contributions to any nonprofit civic, charitable, or service organizations;

14. Make loans to its members and to other credit unions; and

15. Undertake such other activities relating to the purposes of the credit union as its charter or bylaws may authorize,

provided such activities are not inconsistent with this chapter.

Va. Code Ann. § § 6.2-1327. Membership defined; field of membership

A. The membership of a credit union shall consist of the incorporators, employees of such credit union, and other persons

within the field of membership set forth in the bylaws as have: (i) been fully admitted into membership, (ii) paid any

required entrance fee or annual membership fee, or both, (iii) subscribed for one or more shares, (iv) paid the initial

installment thereon, and (v) complied with such other requirements as the articles of incorporation or bylaws specify.

B. Credit union membership shall be limited to persons within a specified field of membership, individuals within the

immediate family or household of such persons, associations of such persons, other credit unions, and employees of the

credit union. The field of membership specified shall be composed of one of the following:

1. A single group having a common bond of occupation or association;

2. More than one group, each of which has a common bond of occupation or association, and each of

which does not exceed 3,000 members at the time it is proposed to be included in a multiple common-

bond credit union. The 3,000-member limitation shall not apply if the Commission determines that an

exception on the grounds provided in subsection (d) (2) or (d) (3) of § 101 of the Credit Union

Membership Access Act (12 U.S.C. § 1759) is appropriate. In making any determination under this

provision, the Commission shall give consideration to the National Credit Union Administration guidelines;

or

3. Those persons or organizations within a well-defined local community, neighborhood or rural district. The

Commission shall in its discretion determine whether a proposed field of membership constitutes a "well-

defined local community, neighborhood or rural district." In making such determination, the Commission

shall give consideration to the definition of the term that has been adopted by the National Credit Union

Administration and has become legally effective.

C. Except as the board of directors may provide to the contrary in the bylaws with respect to termination of membership,

once a person or entity becomes a member of a credit union in accordance with this chapter, that person or entity

may remain a member of that credit union until the person or entity chooses to withdraw from the credit union.

D. The board of directors may expel from the credit union any member who: (i) has not carried out his obligations to the

credit union; (ii) has been convicted of a criminal offense; (iii) neglects or refuses to comply with the provisions of this

chapter or of the bylaws; (iv) neglects to pay his debts, or otherwise causes financial loss to the credit union; or (v) has

deceived the credit union with regard to the use of borrowed money. No member shall be so expelled until he has

been informed in writing of the charges against him, and an opportunity has been given to him, after reasonable

notice, to be heard.

E. Members of the credit union shall not be personally liable for payment of the debts of the credit union.

F. The surviving spouse of a deceased credit union member shall be eligible to become a member of the credit union to

which the deceased member belonged. In no other instance shall an individual be eligible for membership in a credit

union on the basis of the individual's relationship to another person who is eligible for membership in the credit union,

unless the individual is a member of the immediate family or household of such person. The board of directors of a

credit union may provide in the bylaws for a less inclusive policy governing membership by virtue of relationship to

another person, and such policy shall be effective.

G. Societies, associations, organizations, partnerships, and corporations composed of persons who are eligible for

membership may be admitted to membership in the same manner and under the same conditions as such persons.

H. Any individual or entity that was a member of a credit union as of July 1, 1999, may remain a member of the credit

union after that date, and any group that was included in the field of membership of a credit union on that date may

remain within the field of membership of that credit union after that date. The successor of an entity that was a

member or was eligible for membership in a credit union or for inclusion in a field of membership on July 1, 1999, retains

the status of its predecessor.

Va. Code Ann. § 6.2-1376. Authorized investments

The funds of a credit union that are not used in loans to members may be invested only:

1. In loans to other insured credit unions to the extent permitted in the bylaws;

2. In shares, share accounts, or deposits of other insured credit unions to the extent authorized in its bylaws, but not to

exceed 25 percent of the investing credit union's outstanding shares and reserve fund;

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3. Notwithstanding any other provision of this section, in shares or deposits of any corporate credit union provided such

investments are specifically authorized by the board of directors making the investment;

4. In federally insured banks and savings institutions;

5. In the capital stock of the National Credit Union Central Liquidity Facility or any central liquidity facility established under

the laws of the Commonwealth;

6. In obligations of the United States and securities fully guaranteed as to principal and interest thereby;

7. In obligations of the Commonwealth and any political subdivision thereof, including, but not limited to, revenue bonds;

8. In such stock, securities, obligations, or other investments as may be approved from time to time by the Commission;

9. In real estate, office buildings, equipment, and furnishings of the credit union provided that the aggregate investment in

all such fixed assets shall not exceed five percent of the total of the members' share accounts without the prior written

authorization of the Commissioner;

10. In shares, stock, deposits in, loans, or other obligations of any credit union service organization, corporation, or

association, if (i) the membership or ownership, as the case may be, of such organization, corporation, or association is

primarily confined or restricted to credit unions or organizations of credit unions and (ii) the purpose for which such

organization, corporation, or association is organized is to strengthen or advance the development of credit unions or

credit union organizations. Such investment by any credit union shall not exceed five percent of the credit union's

outstanding shares and reserves without the prior approval of the Commissioner;

11. In deposits in, loans to, or shares of any Federal Reserve Bank; and

12. In cooperative loans with other credit unions or credit union organizations. Such investment shall not exceed 10 percent

of outstanding shares and reserves of the investing credit union.

Va. Code Ann. § 6.2-1360. Dividends A. At such intervals and for such periods as the bylaws provide and after provision for the required reserves, the board of

directors may declare dividends on share accounts from the undivided earnings or other funds set aside for dividends.

B. Dividends may be paid at different rates on different types of share accounts and at different rates and maturity dates in

the case of share certificates.

C. Dividend credit may be accrued on shares as authorized by the board of directors.

D. The rates of dividends and terms of payment may be declared in advance by the board of directors.

E. In no event shall a dividend be paid if, after the payment thereof, the liabilities of the credit union would exceed its

assets.

Washington Wash. Rev. Code § 31.12.402. Powers

A credit union may:

(1) Issue shares to and receive deposits from its members in accordance with RCW 31.12.416;

(2) Make loans to its members in accordance with RCW 31.12.426 and 31.12.428;

(3) Pay dividends and interest to its members in accordance with RCW 31.12.4108;

(4) Impose reasonable charges for the services it provides to its members;

(5) Impose financing charges and reasonable late charges in the event of default on loans, subject to applicable law,

and recover reasonable costs and expenses, including, but not limited to, collection costs, and reasonable attorneys'

fees incurred both before and after judgment, incurred in the collection of sums due, if provided for in the note or

agreement signed by the borrower;

(6) Acquire, lease, hold, assign, pledge, sell, or otherwise dispose of interests in personal property and in real property in

accordance with RCW 31.12.438;

(7) Deposit and invest funds in accordance with RCW 31.12.436;

(8) Borrow money, up to a maximum of fifty percent of its total shares, deposits, and net worth;

(9) Discount or sell any of its assets, or purchase any or all of the assets of another credit union, out-of-state credit union, or

federal credit union. However, a credit union may not discount or sell all, or substantially all, of its assets without the

approval of the director;

(10) Accept deposits of deferred compensation of its members;

(11) Act as fiscal agent for and receive payments on shares and deposits from the federal government or this state, and

any agency or political subdivision thereof;

(12) Engage in activities and programs as requested by the federal government, this state, and any agency or political

subdivision thereof, when the activities or programs are not inconsistent with this chapter;

(13) Hold membership in credit unions, out-of-state credit unions, or federal credit unions and in organizations controlled by

or fostering the interests of credit unions, including, but not limited to, a central liquidity facility organized under state or

federal law;

(14) Pay additional dividends and interest to members, or an interest rate refund to borrowers;

(15) Enter into lease agreements, lease contracts, and lease-purchase agreements with members;

(16) Act as insurance agent or broker for the sale to members of:

(a) Group life, accident, health, and credit life and disability insurance; and

(b) Other insurance that other types of Washington state-chartered financial institutions are permitted to sell, on the

same terms and conditions that these institutions are permitted to sell such insurance;

(17) Impose a reasonable service charge for the administration and processing of accounts that remain dormant for a

period of time specified by the credit union;

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(18) Establish and operate on-premises or off-premises electronic facilities;

(19) Enter into formal or informal agreements with another credit union for the purpose of fostering the development of the

other credit union;

(20) Work with community leaders to develop and prioritize efforts to improve the areas where their members reside by

making investments in the community through contributions to organizations that primarily serve either a charitable,

social, welfare, or educational purpose, or are exempt from taxation pursuant to section 501(c)(3) of the internal

revenue code;

(21) Limit the personal liability of its directors in accordance with provisions of its articles of incorporation that conform with

RCW 23B.08.320;

(22) Indemnify its directors, supervisory committee members, officers, employees, and others in accordance with provisions

of its articles of incorporation or bylaws that conform with RCW 23B.08.500 through 23B.08.600;

(23) Conduct a promotional contest of chance as authorized in RCW 9.46.0356(l)(b), as long as the conditions of RCW

9.46.0356(5) and 30.22.260 are complied with to the satisfaction of the director; and

(24) Exercise such incidental powers as are necessary or convenient to enable it to conduct the business of a credit union.

Wash. Rev. Code § 31.12.402. Additional powers -- Powers conferred on federal credit union -- Authority of director

(1) Notwithstanding any other provision of law, and in addition to all powers and authorities, express or implied, that a credit

union has under the laws of this state, a credit union has the powers and authorities that a federal credit union had on

December 31, 1993, or a subsequent date not later than July 23, 2017.

(2) Notwithstanding any other provision of law, and in addition to the powers and authorities, express or implied, that a

credit union has under subsection (1) of this section, a credit union has the powers and authorities that a federal credit

union has, and an out-of-state credit union operating a branch in Washington has, subsequent to July 23, 2017, if the

director finds that the exercise of the power and authority serves the convenience and advantage of members of

credit unions, and maintains the fairness of competition and parity between credit unions and federal or out-of-state

credit unions. However, a credit union:

(a) Must still comply with RCW 31.12.408; and

(b) Is not granted the field of membership powers or authorities of any out-of-state credit union operating a branch in

Washington.

(3) The restrictions, limitations, and requirements applicable to specific powers or authorities of federal or out-of-state credit

unions apply to credit unions exercising those powers or authorities permitted under this section but only insofar as the

restrictions, limitations, and requirements relate to the specific exercise of the powers or authorities granted credit

unions solely under this section.

(4) As used in this section, "powers and authorities" include, but are not limited to, powers and authorities in corporate

governance matters.

Wash. Rev. Code § 31.12.436. Investment of funds A credit union may invest its funds in any of the following, as long as they are deemed prudent by the board:

(1) Loans held by credit unions, out-of-state credit unions, or federal credit unions; loans to members held by other lenders;

and loans to nonmembers held by other lenders, with the approval of the director;

(2) Bonds, securities, or other investments that are fully guaranteed as to principal and interest by the United States

government, and general obligations of this state and its political subdivisions;

(3) Obligations issued by corporations designated under 31 U.S.C. Sec. 9101, or obligations, participations or other

instruments issued and guaranteed by the federal national mortgage association, federal home loan mortgage

corporation, government national mortgage association, or other government-sponsored enterprise;

(4) Participations or obligations which have been subjected by one or more government agencies to a trust or trusts for

which an executive department, agency, or instrumentality of the United States has been named to act as trustee;

(5) Share or deposit accounts of other financial institutions, the accounts of which are federally insured or insured or

guaranteed by another insurer or guarantor approved by the director. The shares and deposits made by a credit union

under this subsection may exceed the insurance or guarantee limits established by the organization insuring or

guaranteeing the institution into which the shares or deposits are made;

(6) Common trust or mutual funds whose investment portfolios consist of securities issued or guaranteed by the federal

government or an agency of the government;

(7) Up to five percent of the capital of the credit union, in debt or equity issued by an organization owned by the

Washington credit union league;

(8) Shares, stocks, loans, or other obligations of organizations whose primary purpose is to strengthen, advance, or provide

services to the credit union industry or credit union members. A credit union may in the aggregate invest an amount

not to exceed one percent of its assets in organizations under this subsection. In addition, a credit union may in the

aggregate lend an amount not to exceed one percent of its assets to organizations under this subsection. These limits

do not apply to investments in, and loans to, an organization:

(a) That is wholly owned by one or more credit unions or federal or out-of-state credit unions; and

(b) Whose activities are limited exclusively to those authorized by this chapter for a credit union;

(9) Loans to credit unions, out-of-state credit unions, or federal credit unions. The aggregate of loans issued under this

subsection is limited to twenty-five percent of the total shares and deposits of the lending credit union;

(10) Key person insurance policies, the proceeds of which inure exclusively to the benefit of the credit union; or

(11) Other investments approved by the director upon written application.

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West Virginia W. Va. Code § 31C-3-1. General powers.

In addition to the powers mentioned elsewhere in this chapter, a credit union may:

(a) Enter into contracts necessary for the conduct of its business as authorized under this statute;

(b) Sue and be sued;

(c) Adopt, use and display a corporate seal;

(d) Acquire, lease, hold, assign, sell, discount or otherwise dispose of property or assets, either in whole or in part, necessary

or incidental to its operation;

(e) Borrow from any source: Provided, That a credit union must obtain approval of the commissioner in writing of its

intention to borrow in excess of an aggregate of twenty percent of its equity capital and shares, and in no event shall its

borrowing be in excess of an aggregate of fifty percent of its equity capital and shares;

(f) Purchase the assets of another credit union;

(g) Offer related financial services, including, but not limited to, electronic fund transfers, safe deposit boxes, leasing and


(h) Hold membership in other credit unions organized under this or other acts, and in associations and organizations

controlled by or fostering the interests of credit unions, including a central liquidity facility organized under state or

federal law.

(i) Engage in activities and programs as requested by any governmental unit;

(j) Act as fiscal agent for and receive payments on share and deposit accounts from a governmental unit;

(k) Make contributions to any nonprofit civic, charitable or service organizations;

(l) Receive the savings of its members either as payment on shares, or as deposits (including the right to conduct Christmas

clubs, vacation clubs and other thrift organizations within the membership);

(m) Make loans for provident, productive, nonspeculative purposes to members, including a cooperative society or other

organization having membership in the credit union.

W. Va. Code § 31C-3-2. Incidental powers. A credit union may exercise all incidental powers that are convenient, suitable or necessary to enable it to carry out its

purposes.

W. Va. Code § 31C-3-3. Advantageous federal powers. Unless exercise of a power is specifically denied, the commissioner may prescribe rules authorizing credit unions to exercise

any of the powers conferred upon federal credit unions if the commissioner deems it appropriate for the purposes of credit

unions in this state and a benefit to their members.

W. Va. Code § 31C-4-1. Membership defined. (a) The membership of a credit union shall consist of those persons who share a common bond set forth in the bylaws, have

been duly admitted members, have paid any required one-time or periodic membership fee, or both, have subscribed

to one or more shares and have complied with such other requirements as the articles of incorporation and bylaws

specify.

(b) Credit union membership shall be limited to, persons within one or more groups having a common bond or bonds of

similar occupation, employer, association or interest, and members of the immediate family of such persons.

W. Va. Code § 31C-6-2. Dividends. (a) The credit union's board of directors shall establish the dividend period. Rates of dividends and the terms of payment

may be established in advance by action of the board of directors. Dividends may be paid at various rates with due

regard to the conditions that pertain to each type of account such as minimum balance, notice and time

requirements.

(b) The commissioner may, if circumstances warrant, establish the maximum dividend that a credit union or corporate

credit union may pay in each classification of its savings.

W. Va. Code § 31C-8-1. Insurance for members. A credit union may purchase or make available credit life or other credit insurance for its members either on an individual

or group basis.

W. Va. Code § 31C-8-2. Indemnification of officers.

A credit union may indemnify its officers, directors or employees by purchase of insurance or otherwise, to the extent that

such indemnification is permitted to that institution under federal law. Indemnification articles or bylaws must conform to, or

be more restrictive than, that set forth in section nine [§ 31-1-9], article one, chapter thirty-one of this code. The

commissioner reserves the right to prohibit or limit, by regulation or order, any indemnification payment for reasons of safety

and soundness or nonconformity to the credit union's articles of incorporation or bylaws or to the restrictions placed on

indemnification contained in this section or other applicable state law.

W. Va. Code § 31C-8-4. Money-type instruments. A credit union may collect, receive and disburse moneys in connection with the providing of negotiable checks, money

orders, travelers' checks and other money-type instruments, and the providing of these services through automated teller

machines (ATMs) and for such other purposes as may provide benefit or convenience to its members. A credit union may

charge fees for such services.

W. Va. Code § 31C-9-2. Authorized investments. Funds not used in loans to members may be invested:

(a) In securities, obligations or other instruments of or issued by or fully guaranteed as to principal and interest by the United

States of America or any agency or instrumentality thereof or in any trust or trusts established for investing directly or

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collectively in the same;

(b) In securities, obligations, or other instruments of any state of the United States, the District of Columbia, the

Commonwealth of Puerto Rico, and the several territories organized by Congress or any political subdivision thereof;

(c) In deposits, obligations or other accounts of banking institutions organized under state or federal law;

(d) In loans to or in shares or deposits of other credit unions or corporate credit unions;

(e) In deposits in, loans to, or shares of any federal reserve bank or of any central liquidity facility established under state or

federal law;

(f) In shares, stocks, deposits in, loans to or other obligations of any organization, corporation or association providing

services associated with the general purposes of the credit union or engaging in activities incidental to the operations

of a credit union. Such investments in the aggregate may not exceed two percent of the credit union's equity capital

and shares without written permission of the commissioner;

(g) In any investment legal for banking institutions or trust funds chartered in this State;

(h) In participation loans with other credit unions, credit union organizations or other organizations;

(i) In fixed assets, not to exceed five percent of the credit union's equity capital and shares, unless with the prior written

approval of the commissioner.

Wisconsin Wis. Stat. § 186.083. Mandatory indemnification.

(1) INDEMNIFICATION REQUIRED.

A credit union shall indemnify a director or officer, to the extent he or she has been successful on the merits or otherwise

in the defense of a proceeding, for all reasonable expenses incurred in the proceeding if the director or officer was a

party because he or she is a director or officer of the credit union.

(2) EXCEPTIONS.

(a) In cases not included under sub. (1), a credit union shall indemnify a director or officer against liability incurred by the

director or officer in a proceeding to which the director or officer was a party because he or she is a director or

officer of the credit union, unless liability was incurred because the director or officer breached or failed to perform

a duty he or she owes to the credit union and the breach or failure to perform constitutes any of the following:

1. A willful failure to deal fairly with the credit union or its members in connection with a matter in which the director

or officer has a material conflict of interest.

2. A violation of criminal law, unless the director or officer had reasonable cause to believe his or her conduct was

lawful or no reasonable cause to believe his or her conduct was unlawful.

3. A transaction from which the director or officer derived an improper personal profit.

4. Willful misconduct.

(b) Determination of whether indemnification is required under this subsection shall be made under s. 186.084 (c) The

termination of a proceeding by judgment, order, settlement or conviction, or upon a plea of no contest or an

equivalent plea, does not, by itself, create a presumption that indemnification of the director or officer is not

required under this subsection.

(3) WRITTEN REQUESTS.

A director or officer who seeks indemnification under this section shall make a written request to the credit union.

(4) INDEMNIFICATION NOT REQUIRED.

(a) Indemnification under this section is not required to the extent limited by the articles of incorporation under s.

186.086 (b) Indemnification under this section is not required if the director or officer has previously received

indemnification or allowance of expenses from any person, including the credit union, in connection with the same

proceeding.

Wis. Stat. § 186.091. Insurance. A credit union may purchase and maintain insurance on behalf of an individual who is an employee, agent, director or

officer of the credit union against liability asserted against and incurred by the individual in his or her capacity as an

employee, agent, director or officer, or arising from his or her status as an employee, agent, director or officer, regardless of

whether the credit union is required or authorized to indemnify or allow expenses to the individual against the same liability

under ss. 186.083, 186.085, 186.087 and 186.089

Wis. Stat. § 186.11. Investments. (1) GENERAL.

The board of directors may invest credit union funds in any of the following:

(a) United States government direct and agency obligations.

(b) Municipal bonds.

(c) A corporate central credit union organized under s. 186.32 or under any other state or federal law.

(d) Deposits and debt instruments of federally insured banks, credit unions, savings banks and savings and loan

associations.

(e) With the approval of the office of credit unions, other investment instruments.

(2) CREDIT UNION PROPERTY.

A credit union may purchase, hold, and dispose of property as necessary for or incidental to its operations.

(3) COOPERATIVE HOUSING.

A credit union may invest an amount not to exceed 10% of its regular reserve in agreements with other corporations or

its members to provide cooperative housing and related facilities for its members.

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(4) INVESTMENTS IN CREDIT UNION SERVICE ORGANIZATIONS.

(a) Unless the office of credit unions approves a higher percentage, a credit union may invest not more than 1.5% of its

total assets in the capital shares or obligations of credit union service organizations that, in the opinion of the office

of credit unions, are sufficiently bonded and insured and that satisfy all of the following:

1. Are corporations, limited partnerships, limited liability companies, or other entities that are permitted under the

laws of this state and that are approved by the office of credit unions.

2. Are organized primarily to provide goods and services to credit unions, credit union organizations and credit

union members.

(b) A credit union service organization under par. (a) may provide any of the following services related to the routine

daily operations of credit unions:

1. Checking and currency services, check cashing services, money order services, savings bond services, travelers

check services, and services regarding the purchase and sale of U.S. mint commemorative coins.

2. Clerical, professional, and management services, including, but not limited to, accounting, courier, credit

analysis, facsimile transmission and copying, internal credit union audit, locator, management and personnel

training and support, marketing, research, and supervisory committee audit services.

3. Consumer mortgage loan origination services.

4. Electronic transaction services, including, but not limited to, remote terminal, credit and debit card, data

processing, electronic fund transfer, electronic income tax filing, payment item processing, wire transfer, and

Internet financial services.

5. Tax preparation services, services regarding the development and administration of individual retirement

accounts, Keogh plans, deferred compensation plans, and other personnel benefit plans, and financial

counseling services, including, but not limited to, estate planning.

6. Fixed asset services, including, but not limited to, the management, development, sale, or lease of fixed assets

and the sale, lease, or servicing of computer hardware or software.

7. Insurance brokerage or agency services, including, but not limited to, providing vehicle warranty programs,

providing group insurance purchasing programs, and acting as an agent for the sale of insurance.

8. Services with regard to the leasing of real property owned by the credit union service organization or personal

property.

9. Loan support services, including, but not limited to, debt collection and loan processing, servicing, and sales

services and services regarding the sale of repossessed collateral.

10. Record retention, security, and disaster recovery services, including, but not limited to, alarm monitoring, data

storage and retrieval, and record storage services and providing forms and supplies.

11. Securities brokerage services.

12. Shared credit union branch operations.

13. Student loan origination services.

14. Travel agency services.

15. Trust and other fiduciary services, including, but not limited to, acting as an administrator for prepaid legal

services plans or acting as a trustee, guardian, conservator, estate administrator, or in any other fiduciary

capacity.

16. Real estate brokerage services.

(bd) The office of credit unions may expand the list of services under par. (b) that are related to the routine daily

operations of credit unions. Any service approved under this paragraph shall be authorized for all credit union

service organizations under par. (a) A credit union may file a written request with the office of credit unions to

exercise its authority under this paragraph and may include, along with the request, a description of any proposed

service and an explanation of how that service is related to the routine daily operations of credit unions. Within 60

days after receiving a request under this paragraph, the office of credit unions shall approve or disapprove the

request.

(bh) A credit union service organization under par. (a) may provide any service described under par. (b) or approved

under par. (bd) through an investment by the credit union service organization in a 3rd-party service provider. The

amount that a credit union service organization may invest in a 3rd-party service provider under this paragraph may

not exceed the amount necessary to obtain the applicable services, or a greater amount if necessary for the credit

union service organization to obtain the services at a reduced cost.

(c) A credit union service organization may be subject to audit by the office of credit unions.

Wis. Stat. § 186.113 Credit union powers.

A credit union may:

(1) BRANCH OFFICES.

With the approval of the office of credit unions, establish branch offices inside or outside of this state. Permanent

records may be maintained at branch offices established under this subsection. In this subsection, the term "branch

office" does not include a remote terminal, a limited services office, or a service center.

(1s) SERVICE CENTERS.

Upon notice to the office of credit unions, establish and maintain service centers that are reasonably necessary to

furnish services to members. A credit union may operate a shared service center with one or more credit unions and

may participate in a shared service center network that is operated from inside or outside of this state. This subsection

does not prohibit a credit union from referring to a service center as a branch office. A service center shall be under the

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supervision of the office of credit unions.

(2) CREDIT UNION CENTER CORPORATION.

With other credit unions, organize a credit union center corporation that provides facilities, equipment and personnel. A

credit union center corporation shall be under the supervision of the office of credit unions.

(3) FINANCIAL COUNSELING.

Provide nonprofit financial counseling.

(4) FEES.

Charge for perfection of security interests and investigations of borrowers.

(5) THIRD-PARTY CHECKS.

Issue 3rd-party checks from an account of a member upon request of the member.

(6) TRUST SERVICES.

(a) Contract with a trust organization authorized to do business in this state to provide trust services to the credit unions

members.

(b) Act as trustees or custodians of member tax deferred retirement funds, individual retirement accounts, medical

savings accounts, or other employee benefit accounts or funds permitted by federal law to be deposited in a credit

union.

(c) Act as a depository for member qualified and nonqualified deferred compensation funds as permitted by federal

law.

(7) ACQUIRING INTERESTS IN CREDIT SALES TRANSACTIONS.

Purchase or acquire conditional sales contracts or similar instruments executed by credit union members.

(8) DONATIONS.

Make donations and grants if the board of directors approves any such donation or grant and the approval is based

on a determination that the donation or grant is in the best interest of the credit union and is reasonable given the size

and financial condition of the credit union.

(9) FINANCIAL SERVICES.

Collect, receive and disburse moneys in connection with the sale or provision of share drafts, travelers checks, money

orders, credit cards, debit cards or, with the approval of the office of credit unions, similar instruments.

(10) ADDITIONAL POWERS.

Exercise all powers necessary and proper to carry out the purposes of the credit union.

(11) ACCOUNTS.

(a) Offer deposit accounts to members.

(b) Offer deposit accounts to any person if the credit union satisfies the requirements specified in 12 CFR 701.34 (a) for

designation as a low- income credit union and files a statement with the office of credit unions agreeing to be

bound by requirements and conditions that are substantially identical to those imposed by the national board and

the national credit union administration on federal credit unions designated under 12 CFR 701.34 (a).

(12) ELECTIONS.

Conduct annual board of director elections in the manner provided by the bylaws.

(13) MULTIPARTY ACCOUNTS.

Issue multiple accounts in joint tenancy with any person designated by the member. The person first named on the

account shall be a member of the credit union. A nonmember named in the joint account shall not acquire the right to

vote, obtain loans or hold office because of the nonmembers inclusion in the joint account.

(14) GOVERNMENT LOANS.

(a) Process applications, act as closing agent and service loans made under s. 45.37, with the approval of the

department of veterans affairs.

(b) Make loans to members that are guaranteed by this state or by the federal government, with the approval of the

appropriate state or federal administering agency.

(14m) SAFE DEPOSIT BOXES.

(a) Rent safe deposit receptacles upon its premises for an agreed upon fee. A credit union may store for safekeeping

valuable or personal property of any member or of any person who is eligible to be a member. The credit union shall

have a lien for its charges on any property received by it for safekeeping.

(b) Sell any property subject to a lien under par. (a) at public auction in accordance with procedures under ch. 815 A

credit union may retain from the proceeds of the sale all lien fees and charges due including reasonable expenses

of the sale. A credit union shall pay the remaining balance to the person depositing the property or to the legal

representatives or assigns.

(15) AUTOMATED TELLER MACHINES.

(a) Directly or indirectly, acquire, place and operate, or participate in the acquisition, placement and operation of, at

locations other than its offices, remote terminals, in accordance with rules established by the office of credit unions.

The rules shall provide that any remote terminal shall be available for use, on a nondiscriminatory basis, by any state

or federal credit union which has its principal place of business in this state, by any other credit union obtaining the

consent of a state or federal credit union which has its principal place of business in this state and is using the

terminal and by all members designated by a credit union using the terminal. This subsection does not authorize a

credit union which has its principal place of business outside the state to conduct business as a credit union in this

state. The remote terminals also shall be available for use, on a nondiscriminatory basis, by any state or national

bank, state or federal savings bank or state or federal savings and loan association, whose home office is located in

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this state, if the bank, savings bank or savings and loan association requests to share its use, subject to the joint rules

established under s. 221.0303 (2) The office of credit unions by order may authorize the installation and operation of

a remote terminal in a mobile facility, after notice and hearing upon the proposed service stops of the mobile

facility.

(b) In this subsection, "remote terminal" means a terminal or other facility or installation, attended or unattended, which

is not located at the principal office or at a subsidiary office of a credit union and through which members and

credit unions may engage, by means of either the direct transmission of electronic impulses to and from a credit

union or the recording of electronic impulses or other indicia of a transaction for delayed transmission to a credit

union, in transactions which are incidental to the conduct of the business of a credit union and which are otherwise

permitted by law. "Remote terminal" also includes all equipment, regardless of location, which is interconnected

with a remote terminal and which is necessary to transmit, route and process electronic impulses in order to enable

the remote terminal to perform any function for which it is designed.

(c) If any person primarily engaged in the retail sale of goods or services owns or operates a remote terminal on such

persons premises and allows access to the unit by any financial institution, group of financial institutions or their

customers, nothing in this subsection or in rules established by the office of credit unions shall, or shall be construed

or interpreted to, require such person to accept any connection to or use of the unit on its premises for any other

purpose or function or to accept any connection to the unit on its premises by any other financial institution.

(d) If a person primarily engaged in the retail sale of goods or services owns or operates a remote terminal on such

persons premises and allows access to the unit by any financial institution, group of financial institutions or their

customers for any purpose or function, no laws governing such institutions or rules established by the office of credit

unions shall apply to such person other than those laws or rules directly related to the particular function performed

by the unit on such persons premises for a financial institution.

(e) Information transmitted from a remote terminal, either identified as to particular transactions or aggregate

information, shall only be used for purposes of effecting the financial transactions for which such information was

received, for any other purpose lawfully authorized by contract, or for any other purpose permitted by statute and

rules pertaining to the dissemination and disclosure of such information. Cross- reference: See also s. DFI-CU 63.01,

Wis. adm. code.

(16) DORMANT ACCOUNTS.

Subject to ch. 177, establish a policy, including a fee schedule, for disposing of dormant accounts.

(17) CONTRACTS.

Make contracts necessary and proper to meet its purpose and to conduct its business.

(18) LEGAL ACTIONS.

To sue and be sued, and to appear and defend in all actions and proceedings under its corporate name.

(19) CLIENT FUND ACCOUNTS.

Maintain real estate broker trust accounts under s. 452.13 for brokers who are eligible for membership in the credit

union, attorney trust accounts under s. 757.293 for attorneys who are eligible for membership in the credit union and

collection agency trust accounts under s. 218.04 (9g) for persons who are eligible for membership in the credit union.

(20) PUBLIC DEPOSITORY.

Act as a depository of state and local public funds.

(21) FEDERAL DEPOSITORY.

On request of the federal secretary of the treasury, act as federal depository, fiscal agent or both of the federal

government. A credit union may perform such services as the federal secretary of the treasury may authorize in

connection with the collection of taxes and other obligations due the federal government and the lending, borrowing

and repayment of money by the federal government, including the issue, sale, redemption or repurchase of bonds,

notes, treasury certificates of indebtedness, or other obligations of the federal government.

(22) COMMUNITY CURRENCY EXCHANGE AND SELLER OF CHECKS.

Engage in the business and functions provided for in s. 218.05 and ch. 217 upon receiving a certificate of authority from

the office of credit unions. An applicant shall meet the same requirements as other applicants under ch. 217, but no

investigation fee may be charged of credit union applicants. The office of credit unions may revoke a certificate of

authority following a hearing held upon 10 days notice to the credit union for any reason which would have justified the

rejection of an application or on the ground that the continued operation of the business threatens the solvency of the

credit union.

(23) ACCEPT INVESTMENTS.

Accept investments made by state or federally chartered credit unions.

(24) FUNERAL TRUSTS.

Accept deposits made by members for the purpose of funding burial agreements by trusts created pursuant to s.

445.125

(25) SALE OF INSURANCE PRODUCTS.

Sell insurance, annuities, and related products.

Wis. Stat. § 186.114. Savings promotion prize programs

(1) In this section:

(a) “Member” means any person holding an account authorized under s. 186.113.

(b) “Nonqualifying account" means a deposit account that is not a qualifying account.

(c) “Qualifying account" means a deposit account through which a credit union's members may obtain chances to

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win prizes in a savings promotion.

(d) “Savings promotion" means a contest or promotion to encourage savings deposits that is sponsored by one or

more credit unions, or by a credit union trade association or its subsidiary in conjunction with one or more credit

unions, and in which credit union members are offered a chance to win designated prizes.

(2) A credit union may sponsor, or participate in, a savings promotion if all of the following requirements are satisfied:

(a) Credit union members are not required to pay any fee or otherwise provide any consideration in order to enter the

savings promotion.

(b) All fees charged by a credit union in connection with a qualifying account are comparable with all fees charged in

connection with comparable nonqualifying accounts offered by the credit union.

(c) Each entry in the savings promotion has an equal chance of winning.

(d) Participants in the savings promotion are not required to be present at a prize drawing in order to win.

(3) For purposes of sub. (2) (a), a member's deposit of at least a specified amount of money for at least a specified time in

a qualifying account, which is required in order to enter the savings promotion, is not consideration if the interest rate

associated with the qualifying account is not reduced, as compared to comparable nonqualifying accounts offered

by the credit union, to account for the possibility of winning a prize.

Wis. Stat. § 186.115. Additional credit union authority.

(1) SCOPE OF AUTHORITY.

Subject to any regulatory approval required by law and subject to sub. (2), a credit union directly or

through a subsidiary, may undertake any activity, exercise any power or offer any financially related

product or service in this state that any other provider of financial products or services may undertake,

exercise or provide or that the office of credit unions finds to be financially related.

(2) RULES.

The activities, powers, products and services that may be undertaken, exercised or offered by credit

unions under sub. (1) are limited to those specified by rule of the office of credit unions. The office of

credit unions may direct any credit union to cease any activity, the exercise of any power or the offering

of any product or service authorized by rule. Among the factors that the office of credit unions may

consider in so directing a credit union are the credit unions net worth, assets, management rating and

liquidity ratio and its ratio of net worth to assets.

(3) INSURANCE UNDERWRITING NOT AUTHORIZED.

This section does not authorize a credit union, directly or through a subsidiary, to engage in the business of underwriting

insurance.

Wis. Stat. § 186.16. Dividends. (1) BOARD ESTABLISHES DIVIDENDS.

The board of directors shall establish the dividend period. Dividends shall be considered a normal operating expense of

the credit union. Rates of dividends and terms of payment may be established and guaranteed in advance by action

of the board of directors. The board of directors may classify its accounts and declare dividends which may be at

variable rates.

(2) MAXIMUM SET BY OFFICE OF CREDIT UNIONS.

The office of credit unions may establish the maximum dividend that a credit union and a corporate central credit

union may pay in each classification of its savings.

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Incidental Powers



Section 3.20. Incidental Powers.12

A credit union may exercise all incidental powers, as permitted by law and within the purposes stated in these

sections or incidental to these sections, that are convenient, suitable or necessary to enable it to carry out its

purposes.

12 The Model Credit Union Act has historically been significantly broader in regard to incidental powers

than the Federal Credit Union Act. Even so, most state credit union acts have followed the more restrictive

language of the federal law. Based on a 1972 Supreme Court case interpreting the incidental powers of

national banks, the Federal Credit Union Act requires that incidental powers be “necessary and requisite

to enable it to carry on the business for which it was incorporated.” However, the NCUA has noted that

recent case law has broadened the “business of banking” analysis, expanding the incidental powers of

banks so that incidental powers are no longer limited to activities deemed essential to the exercise of

express powers

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Incidental Powers


Alabama Code of Ala. § 5-17-4. Powers generally.


(10) To exercise incidental powers as necessary to enable it to carry on effectively the purposes for which it is incorporated

and other powers as are expressly authorized by the Administrator of the Alabama Credit Union Administration.

Alaska Alaska Stat. §06.45.060. Powers of a credit union; remedy for interest violations

A credit union has succession in its corporate name during its existence and may

(16) exercise incidental powers as are necessary or required to enable it to carry on effectively the business for which it is

incorporated.

Arizona Ariz. Rev. Stat. §6-516. General powers

B. A credit union may exercise all incidental powers that are convenient, suitable or necessary to enable it to promote or

carry out its purposes.

Arkansas Ark. Code Ann. §23-35-601. Powers generally.




California Silent

Colorado Colo. Rev. Stat. §11-30-104. Powers


Exercise such incidental powers as shall be necessary to enable it to carry on effectively the business for which it is

incorporated;

(i) Exercise such incidental powers as shall be necessary to enable it to carry on effectively the business for which it is

incorporated;

Connecticut Conn. Gen. Stat. § 36a-455a


(1) Transact a general credit union business and exercise by its governing board or duly authorized members of senior

management, subject to applicable law, all such incidental powers as are consistent with its purposes. The express

powers authorized for a Connecticut credit union under this section do not preclude the existence of additional powers

deemed to be incidental to the transaction of a general credit union business pursuant to this subdivision; be incidental

to the transaction of a general credit union business pursuant to this subdivision;

Florida Fla. Stat. § 657.031. Powers

(3) A credit union formed under this chapter shall operate as a financial institution, consistent with the provisions of chapter

655 and this chapter, and may exercise such incidental powers as are necessary or required to effectively carry out the

purposes for which the credit union was organized, provided the exercise of powers is approved by rule or order of the

commission or office.

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powers:






Hawaii Haw. Rev. Stat. § 412:10-200. General powers.

(b) A credit union may exercise all incidental powers that are necessary or requisite to enable it to effectively carry out its

purposes.

Idaho Idaho Code Ann. § 26-2108

(r) Exercise such incidental powers as are necessary to carry on the business for which it is incorporated not inconsistent

with the provisions of this chapter.

Illinois 205 Ill. Comp. Stat. §305/14. Incidental powers

A credit union may exercise such incidental powers as are granted corporations organized under the laws of this State

including, to the extent such powers are not inconsistent with powers and prohibitions contained in this Act, such powers as

are necessary or convenient to enable credit unions to promote and carry on their purposes. The provisions of this Section

shall be interpreted liberally and not restrictively.

Indiana Ind. Code Ann. §28-7-1-9

(a) A credit union has the following powers:

(17) To exercise such incidental powers necessary or requisite to enable it to carry on effectively the business for which it

is incorporated.

Iowa Iowa Code § 533.301

11. Exercise such incidental powers as may be necessary or requisite to enable the state credit union to carry on the

business effectively for which it is incorporated.

Kansas Kan. Stat. Ann. § 17-2204. Powers of credit unions.

A credit union shall have the following powers

(l) Every credit union incorporated pursuant to or operating under the provisions of this act may exercise such powers,

including incidental powers, as shall be necessary or requisite to enable it to carry on effectively the purposes and

business for which it is incorporated.

Kentucky Ky. Rev. Stat. Ann. 286.6-085. Incidental powers.


including such as are convenient or useful to enable it to promote and carry on most effectively its purposes.

Louisiana La. Rev. Stat. Ann. §6:644. Powers








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following powers:



Maine 9-B M.R.S. § 821. Powers in general

In addition to all services to members and to nonmembers as provided in section 817 incidental to the powers granted

credit unions elsewhere in this Title, a credit union is empowered to do the acts set forth in this chapter, subject to the

conditions and limitations set forth herein.

Maryland Md. Code Ann. Fin. Inst. Law § 6-204. Exercise of powers

A credit union may exercise all the rights, privileges, and incidental powers necessary or appropriate to exercise its specific

powers and to accomplish the purposes for which the credit union is organized.

Massachusetts Silent

Michigan Mich. Comp. Laws Ann. § 490.403. Domestic credit union; incidental powers.

A domestic credit union may exercise any incidental powers that are necessary or required to enable it to effectively carry

out the business for which it is organized.

Minnesota Minn. Stat. §52.04

Subdivision 1. Generally. --A credit union has the following powers:

(16) in furtherance of the twofold purpose of promoting thrift among its members and creating a source of credit for them

at legitimate rates of interest for provident purposes, and not in limitation of the specific powers hereinbefore

conferred, to have all the powers enumerated, authorized, and permitted by this chapter, and such other rights,

privileges and powers incidental to, or necessary for, the accomplishment of the objectives and purposes of the credit

union;

Mississippi Silent

Missouri Mo. Rev. Stat. § 370.070. Powers of a credit union


(10) With the prior approval of the director of the division of credit unions, to provide to members fiscal and financial

services, including temporary services to bona fide members of other credit unions, and to exercise such other

incidental powers as are granted to general business corporations organized under the laws of this state, including

such powers as are convenient or useful to enable it to promote and carry on most effectively its purposes, and all at

a fee to be determined by the board of directors;

Montana Mont. Code Anno., § 32-3-402. Incidental powers.


including those that are necessary to enable it to promote and carry on most effectively its purposes.

Nebraska Neb. Rev. Stat. § 21-1742. Incidental powers

A credit union may exercise all incidental powers that are suitable and necessary to enable it to carry out its purpose.

Nevada Nev. Rev. Stat. § 678.460

Every credit union organized under the provisions of this chapter:

1. Has all the powers granted by NRS 81.500 that are not inconsistent with the provisions of this chapter and in addition

117

thereto, the powers enumerated in NRS 678.470 to 678.500, inclusive

Nev. Rev. Stat. Ann. § 81.500. General powers.

1. Each corporation incorporated under NRS 81.410 to 81.540 inclusive, has the powers granted by the provisions of other

laws of Nevada relating to private corporations which are not inconsistent with those granted by NRS 81.410 to 81.540,

inclusive.

2. In addition to the powers granted in subsection 1, each corporation has the following powers:

(a) To appoint such agents and officers as its business may require, and such appointed agents may be either natural

persons or corporations.

(b) To admit natural persons and corporations to membership in the corporation.

(c) To expel any member pursuant to the provisions of its bylaws.

(d) To forfeit the membership of any member for violation of any agreement between the member and the corporation

or for the member's violation of its bylaws.

(e) To purchase, lease, or otherwise acquire, hold, own and enjoy, sell, lease, mortgage and otherwise encumber and

dispose of any and all and every kind of real and personal property, except as otherwise provided in NRS 81.505.

(f) To carry on any and all operations necessary or convenient in connection with the transaction of any of its business.

New Hampshire Silent

New Jersey N.J. Rev. Stat. § 17:13-89. Powers

A credit union's powers shall include, but not be limited to, the power to:

l. Have and exercise all the powers of corporations organized under Title 14A of the New Jersey Statutes which are not

inconsistent with this act

N.J. Rev. Stat. § 14A: 3-1(1)(p). General powers

(1) Each corporation, subject to any limitations provided in this act or any other statute of this State, or in its certificate of

incorporation, shall have power

(p) to have and exercise all other powers necessary or convenient to effect any or all of the purposes for which the

corporation is organized

New Mexico N.M. Stat. Ann. § 58-11-19. Incidental powers

A credit union may exercise all incidental powers that are convenient, suitable or necessary to enable it to carry out its

purposes as provided in its bylaws.

New York NY Bank Law § 454. General powers

In addition to the powers conferred by the provisions of this chapter, a credit union shall, subject to the restrictions and

limitations contained in this article, in its bylaws, and in any regulations promulgated by the superintendent, or in any

regulations of the [fig 1] superintendent of financial services as may be specifically authorized under this section, have the

following powers:

34. To have and exercise all other powers that are necessary or appropriate to enable it to carry out its purpose.

North Carolina N.C. Gen. Stat. § 54-109.22. Incidental powers

A credit union may exercise such incidental powers such as are necessary or requisite to enable it to promote and carry on

most effectively its purposes.

North Dakota N.D. Cent. Code, § 6-06-06. Powers of credit unions.


12. To exercise any incidental power necessary or requisite to enable the credit union to carry out effectively the business

for which it is incorporated or as determined by the board by order or rule.

Ohio Ohio Rev. Code § 1733.03. Purpose of credit union

The purpose for which a credit union may be formed is to promote thrift among its members, and to that end to establish,

on a cooperative basis, facilities for savings, credit for provident and productive purposes, assistance to members in

budgeting and money management and the effective use of their assets and resources, and all activities necessary or

incidental thereto.

118

Oklahoma Okla. Stat. tit. 6, § 2006. Succession--Powers

A credit union shall have succession in its corporate name during its existence and shall have power:

16. To exercise such incidental powers as shall be necessary or requisite to enable it to carry on effectively the business for

which it is incorporated.

Oregon Or. Rev. Stat. § 723.152. General powers; rules.

In addition to the powers conferred by the general corporation law a credit union may, subject to the restrictions and

limitations contained in this chapter and the credit union's bylaws:

(29) Exercise other powers that are necessary to carry out the credit union's purpose.

Pennsylvania 17 Pa. Cons. Stat.§ 501. Powers.

(a) General rule. --A credit union shall have the following general powers:

(5) To have and exercise all of the powers and means necessary to effect the purpose or purposes for which the credit

union is organized.

Rhode Island R.I. Gen. Laws § 19-5-15. Investment of funds -- Powers

(3) Every credit union shall have the power to exercise, by its board of directors or duly authorized officers or agents, all

incidental powers necessary to carry on the business of a credit union including, but not limited to, the power:

(i) To receive, upon deposit and for safekeeping, property of every description, upon terms prescribed by the credit

union and to construct, own, lease, and maintain safe deposit vaults, with suitable boxes and places for the reception

and deposit of the property, and lease the use of these places and boxes to individuals and corporations, upon those

terms that the credit union may prescribe. The credit union shall in no case incur any liability on account of the deposit

of any property so made with it, or by reason of the leasing of any place of deposit, other than that liability as the

credit union shall expressly assume in each case by the terms of the contract or receipt under which it shall accept

the deposit or shall have let the place of deposit;

(ii) To act as a depositary of public money or a financial agent;

(iii) To purchase, sell and pledge eligible obligations and assets as set forth in § 19-5-15.1; and

(iv) To exercise additional powers, not inconsistent with the carrying on of a credit union business, with the approval of

the director or the director's designee.

South Carolina S.C. Code Ann. § 34-26-420. Powers incidental to purpose of credit union; limitations.

A credit union may exercise incidental powers to enable it to carry out its purposes. However, the powers granted by state

law or regulation to a state-chartered credit union shall not exceed those provided by federal law to a federally chartered

credit union.

Tennessee Tenn. Code Ann. § 45-4-501. Powers generally.


(4) It may undertake other activities, not inconsistent with this chapter, that the bylaws may provide;

Texas Tex. Finance Code § 123.002. Incidental Powers

A credit union may exercise any right, privilege, or incidental power necessary or appropriate to exercise its specific

powers and to accomplish the purposes for which it is organized.

Utah Utah Code Ann. § 7-9-5. Powers of credit unions

In addition to the powers specified elsewhere in this chapter and subject to any limitations specified elsewhere in this

chapter, a credit union may:

(32) exercise incidental powers necessary to carry out the purpose for which a credit union is organized;

Vermont Vt. Stat. Ann. tit. 8 § 32102. General powers

(b) The expressed powers for a credit union authorized under this section do not preclude the exercise of additional powers

119

deemed to be incidental to the transaction of a general credit union business pursuant to this part. (c) Subject to the limitations of this part and other applicable laws and regulations, a Vermont credit union may exercise

the powers granted nonprofit corporations under Title 11B. In the event of any conflict between the provisions of Title 11B

and this title, the provisions of this title shall govern.

Virginia Va. Code Ann. § 6.2-1302. Powers

In addition to the powers specified or implied elsewhere in this chapter or in the laws of the Commonwealth, a credit union

shall have the power to:

15. Undertake such other activities relating to the purposes of the credit union as its charter or bylaws may authorize,

provided such activities are not inconsistent with this chapter.

Washington Rev. Code Wash. § 31.12.402. Powers

A credit union may:

(24) Exercise such incidental powers as are necessary or convenient to enable it to conduct the business of a credit union.

West Virginia W. Va. Code § 31C-3-2. Incidental powers.

A credit union may exercise all incidental powers that are convenient, suitable or necessary to enable it to carry out its

purposes.

Wisconsin Wis. Stat. § 186.113. Credit union powers.

A credit union may:

(10) ADDITIONAL POWERS.

Exercise all powers necessary and proper to carry out the purposes of the credit union.

Wis. Stat. § 186.118. Incidental powers parity with federal credit unions.

(1) In addition to any activity or power authorized under ss. 186.098, 186.11, 186.113, 186.114, 186.115, and 186.235 (21), a

credit union organized under s. 186.02 may engage in any activity or exercise any power that is listed by the office of

credit unions under sub. (2) (a) or (3) (b) 1.

(2)

(a) The office of credit unions shall promulgate a rule establishing a list of activities and powers incidental to the

business of a credit union that are authorized for federally chartered credit unions as of April 18, 2014.

(b) The office of credit unions shall submit the proposed rule under par. (a) to the legislative reference bureau in an

electronic format approved by the legislative reference bureau, and the legislative reference bureau shall publish

the proposed rule in the notice section of the Wisconsin administrative register under s. 35.93.

(c) Sections 227.114 (4) and (6), 227.115, 227.135, 227.137, 227.14 (2) (a) 6., (2g), (4), and (4m), 227.15, 227.16, 227.17,

227.18, 227.185, 227.19, and 227.30 do not apply to the office of credit unions in promulgating a rule under par. (a)

or to any rule promulgated by the office of credit unions under par. (a). Guidelines prescribed by executive order of

the governor do not apply to the office of credit unions in promulgating a rule under par. (a).

(3)

(a) After April 18, 2014, if any activity or power incidental to the business of a credit union that is not listed under sub. (2)

(a) becomes authorized for federally chartered credit unions, within 30 days after the activity or power becomes

authorized the office of credit unions shall make a determination as to whether the activity or power should also be

authorized for credit unions organized under s. 186.02. In making this determination, the office of credit unions shall

consider the degree to which the following apply with respect to the activity or power:

1. It is necessary, convenient, or useful for effectively carrying out the mission or business of a credit union.

2. It is the functional equivalent or logical outgrowth of activities or powers that are part of the mission or business of

a credit union.

3. It involves risks similar in nature to those already assumed as part of the business of the credit union and it is not

likely to be detrimental to the overall safety and soundness of the credit union.

(b)

1. The office of credit unions shall promulgate a rule adding an activity or power to the list of activities and powers

established under sub. (2) (a) if the office of credit unions determines under par. (a) that the activity or power

authorized for federally chartered credit unions should also be authorized for credit unions organized under s.

186.02.

2. The office of credit unions shall submit the proposed rule under subd. 1. to the legislative reference bureau in an



3. Sections 227.114 (4) and (6), 227.115, 227.135, 227.137, 227.14 (2) (a) 6., (2g), (4), and (4m), 227.15, 227.16, 227.17,

120

227.18, 227.185, 227.19, and 227.30 do not apply to the office of credit unions in promulgating a rule under subd.

1. or to any rule promulgated by the office of credit unions under subd. 1. Guidelines prescribed by executive

order of the governor do not apply to the office of credit unions in promulgating a rule under subd. 1.

(4) The office of credit unions shall publish and maintain on the department of financial institutions' Internet site the list of

activities and powers under sub. (2) (a).

(5) If the office of credit unions promulgates a rule listing an activity or power as provided in sub. (2) (a) or (3) (b) 1., subs.

(2) (b) and (c) and (3) (b) 2. and 3. do not apply to any subsequent rule modifying or eliminating the listed activity or

power.

121



Parity



Section 3.30. Parity.13

ALTERNATIVE #1

The Commissioner may authorize credit unions to exercise any of the powers conferred upon Federal Credit

Unions.

ALTERNATIVE #2

The Commissioner may authorize credit unions to exercise any of the powers conferred upon Federal Credit

Unions and upon Foreign Credit Unions operating in this state.

ALTERNATIVE #3

Notwithstanding any other provision of this Act or any other law, credit unions may offer any product or service

that is at the time authorized or permitted to any insured credit union chartered under the laws of the United

States or any other state, provided that powers conferred by this subsection:

(1) shall always be subject to the same limitations and restrictions that are applicable to the out of state or

federally-chartered credit union for the product or service by such applicable law;

(2) shall not include the right to own or conduct a business for which a license would be required under the

laws of this State. The prohibition against such business activities shall not prohibit a credit union from

engaging in indirect activities through a duly licensed Credit Union Service Organization or other

permissible parity authorities. Further, such prohibition shall expire automatically under the granting of

such licensed business activities under state or federal law.

ALTERNATIVE #4

Notwithstanding any other provision of this Act or any other law, credit unions may offer any product or service

that is at the time authorized or permitted to any other financial institution chartered under the United States,

any other states, or territories.14

13 Traditionally, “parity” or “wild card” statutes were meant to equalize the competitive balance between state

and federally chartered institutions. State credit unions would be able to take advantage of federal legislation

or regulations extending broader powers to Federal Credit Unions. Competitive losses due to an imbalance in

power would be minimized, and would provide incentives to convert from a state to a federal charter.

More recently, the focus has shifted to competition among the various states. With the development of

interstate branching, some home state banks found themselves at a disadvantage when out-of-state banks

branched into their state from a jurisdiction that allowed for more expansive products and services. To address

this growing problem, some states passed parity laws that would allow a home state bank to exercise any of

the powers exercised by an out-of-state bank branching into the home state.

Most states have retained a traditional parity provision. However, since some credit unions have expressed

interest in this type of expanded parity provision and believe it is the parity provision of the future, both options

are included here.

In states without a prospective parity provision, the statute could provide credit union parity with other financial

institutions combined with regulatory approval of new powers as set forth in Alternatives #3, and 4. 14 This alternative allows the broadest possible scope of parity powers, essentially allowing credit unions to offer

any product or service that another financial institution in the U.S. is permitted to offer.

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Parity


Alabama Code of Ala. § 5-17-4. Powers generally.


(11) In addition to any and all other powers heretofore granted to credit unions, any credit union shall have the power to

engage in any activity in which the credit union could engage were the credit union operating as a federally

chartered credit union, including but not by way of limitation because of enumeration, the power to do any act and

own, possess, and carry as assets property of that character including stocks, bonds, or other debentures which, at the

time, are authorized under federal laws or regulations for transactions by federal credit unions, notwithstanding any

restrictions elsewhere contained in the statutes of the State of Alabama. No credit union can exercise any power

which it claims only by virtue of the power being possessed by a federal credit union if the administrator issues a

written order prohibiting a credit union from exercising that power.

Alaska Alaska Stat. § 06.01.020. Department authority to add financial institution powers and limitations

(a) Notwithstanding other provisions of this title, the department may by order authorize state financial institutions, except

licensees subject to AS 06.20, AS 06.40, or AS 06.50, to exercise any of the powers conferred upon, or to be subject to

any of the limitations imposed upon, a federally chartered financial institution doing business in this state with deposits

insured by an agency of the federal government if the department finds that the exercise of the power or imposition of

the limitation both

(1) serves the public convenience and advantage; and

(2) equalizes and maintains the quality of competition between state financial institutions and federally chartered

financial institutions.

(b) The authority granted to the department by this section may not be limited by law unless that law expressly refers to this

section.

Arizona Ariz. Rev. Stat. § 6-517. Federal parity

In addition to all other rights, powers and privileges, a credit union organized under the laws of this state whose accounts are

insured by an insuring organization has all of the rights, powers and privileges and is entitled to the same exemptions and

immunities as any credit union chartered under the laws of the United States.



Arkansas Ark. Code Ann. §23-35-202. Authority of State Credit Union Supervisor -- Rules and regulations.

(a) All state-chartered credit unions shall be supervised and regulated by the State Credit Union Supervisor acting pursuant

to the authority delegated by this chapter. The supervisor shall be responsible for the enforcement of this chapter and

the credit union bylaws, and he or she shall have the authority to adopt rules and regulations governing credit unions in

a manner consistent with this chapter and other statutes of Arkansas.

(b) The supervisor may, irrespective of any limitations in this chapter and subject to other Arkansas law, make reasonable

rules authorizing a credit union to exercise any of the powers conferred upon a federally chartered credit union doing

business in this state which is subject to the regulations of the National Credit Union Administration, if the supervisor finds

that the exercise of the power:

(1) Serves the public convenience and advantage; and

(2) Equalizes and maintains the quality of competition between state-chartered credit unions and federally chartered

credit unions. This includes, but it is not limited to:

(A) The offering of the various types of accounts offered by federal credit unions;

(B) Designation of the legal relationships of an account holder;

(C) Adoption of any dividend paying date or other procedure or practice of paying dividends;

(D) Adoption of any business practice, procedure, method, or system authorized for federal credit unions; and

(E) The making of any loan or investment that a federal credit union doing business in this state is authorized to

make.

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California Cal. Fin. Code § 14052. General corporate powers

In addition to the powers enumerated in this division, every credit union has the general powers conferred upon

corporations by the Nonprofit Mutual Benefit Corporation Law of this state unless restricted by this division.

Colorado Colo. Rev. Stat. § 11-30-104. Powers


(j) Upon the written approval of the commissioner, engage in any activity in which such credit union could engage

were it operating under a federal charter at the time, provided such activity is not prohibited by the laws of this

state;

Connecticut Conn. Gen. Stat. § 36a-455a


(23) With the approval of the commissioner, engage in any activity that a federal credit union or out-of-state credit union

may be authorized to engage in under state or federal law. The application for such approval shall be in writing and

shall include a description of the activity, a description of the financial impact of the activity on the Connecticut

credit union, citation of the legal authority to engage in the activity under state or federal law, a description of any

limitations or restrictions imposed on such activity under state or federal law, and any other information that the

commissioner may require. The commissioner shall approve or disapprove such activity not later than thirty days after

the application filed is complete. The commissioner may impose any limitations or conditions to ensure that any such

activity is conducted in a safe and sound manner with adequate consumer protections. The provisions of this

subdivision do not authorize a Connecticut credit union or a Connecticut credit union service organization to sell title

insurance.

(24) to exercise by resolution the powers set forth in United States Code, title 12, section 1757. Before exercising each power,

the board must submit a plan to the commissioner of commerce detailing implementation of the power to be used;

Florida Fla. Stat. § 655.061. Competitive equality with federally organized or chartered financial institutions

Subject to the prior approval of the office pursuant to commission rule or office order of general application, state financial

institutions subject to the financial institutions codes may make any loan or investment or exercise any power which they

could make or exercise if incorporated or operating in this state as a federally chartered or regulated financial institution of

the same type and are entitled to all privileges and protections granted federally chartered or regulated financial

institutions of the same type under federal statutes and regulations. The provisions of this section take precedence over,

and must be given effect over, any other general or specific provisions of the financial institutions codes to the contrary. In

issuing an order or rule under this section, the office or commission shall consider the importance of maintaining a

competitive dual system of financial institutions and whether such an order or rule is in the public interest.



powers:






Hawaii Haw. Rev. Stat. § 412:10-201. Powers granted under federal law.

(a) In this section "federal power" means any activity, right, privilege, or immunity granted to a federal credit union under

any federal statute, rule, regulation, interpretation or court decision.

(b) Any credit union desiring to acquire any federal power, shall file an application with the commissioner. The application

shall indicate the applicable federal statute rule, regulation, interpretation or court decision, the extent of the federal

power desired, the reasons for the application, and any other information requested by the commissioner. The

commissioner may by rule prescribe the form of application and application filing fees.

(c) If the commissioner is satisfied that the power should be granted, the commissioner shall issue a written approval of the

application, subject to such terms and conditions as the commissioner deems appropriate. Other credit unions may file

an application if they desire the same federal power, but approval of any application need not be granted. Any

federal power granted pursuant to this section is in addition to, and not in limitation of, any other provision of this

chapter, and the federal power may be exercised notwithstanding any other provision of this chapter.

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(d) If any federal power is terminated or modified, the commissioner may terminate or make a similar modification to any

corresponding power granted under this section.

(e) The commissioner may suspend or revoke any federal power granted under this section or under previous law if the

commissioner finds:

(1) That the credit union has violated any conditions imposed in connection with the grant of power; or,

(2) The credit union has not begun to exercise such power within one year of the date it was granted.

(f) The commissioner shall retain jurisdiction over the enforcement of any power granted under this section or under previous

law. Any action taken under subsections (d) or (e) shall be taken only after the commissioner has given the credit union

notice of the proposed action and an opportunity to be heard.

Idaho Idaho Code § 26-2145. Authority to exercise federal powers

(a) Notwithstanding any other provision of law, but subject to the limitations provided for in this section, a credit union may

engage in any activity in which it could engage, exercise any power it could exercise, or make any loan or investment

which it could make if it were operating as a federal credit union, or a credit union chartered by another state.

(b) Before engaging in any activity or exercising any power afforded under this section, a credit union shall first notify the

director of its intent to do so. This notice shall be sent to the director by U.S. mail, postage prepaid, certified or

registered, with return receipt requested. Should the director take no action on the request within twenty (20) days of

delivery to the director, the right to engage in the action or power so requested shall be deemed granted.

(c) Should the director deny the request, the affected credit union shall have the right to request a hearing before the

director, which hearing shall be held within thirty (30) days of the date of the denial.

(d) The director shall have the discretion to deny any request which is inconsistent with the purposes of this chapter.

(e) No such approval shall operate to deny the director of any of his authority under this chapter and such permitted

activity shall be subject to regulation by the director.

Illinois 205 Ill. Comp. Stat. § 305/65. Conformity with Federal Credit Union Act

Conformity with Federal Credit Union Act. After the effective date of this Act, any credit union incorporated under the laws

of this State shall have all of the rights, privileges and benefits which may be exercised by a federal credit union; provided,

however, that the exercise of such rights, privileges and benefits may not violate any provision of this Act. In order to give

effect to this provision, the Secretary shall, where necessary, promulgate rules and regulations in substantial conformity with

those promulgated by the NCUA under the Federal Credit Union Act.

Indiana Ind. Code Ann. § 28-7-1-9.2. Exercise of rights and privileges granted to federal credit unions -- Approval or disapproval by

department.

(a) As used in this section, "rights and privileges" means the power:

(1) to:

(A) create;

(B) deliver;

(C) acquire; or

(D) sell;

a product, a service, or an investment that is available to or offered by; or

(2) to engage in mergers, consolidations, reorganizations, or other activities or to exercise other powers authorized for;

federal credit unions domiciled in Indiana.

(b) A credit union that intends to exercise any rights and privileges that are:

(1) granted to federal credit unions; but

(2) not authorized for credit unions under the Indiana Code (except for this section) or any rule adopted under the

Indiana Code; shall submit a letter to the department describing in detail the requested rights and privileges

granted to federal credit unions that the credit union intends to exercise. If available, copies of relevant federal law,

regulations, and interpretive letters must be attached to the letter submitted by the credit union. (c) The department shall promptly notify the requesting credit union of the department's receipt of the letter submitted

under subsection (b). Except as provided in subsection (e), the credit union may exercise the requested rights and

privileges sixty (60) days after the date on which the department receives the letter unless otherwise notified by the

department.

(d) The department may deny the requested rights and privileges if the department finds that:

(1) federal credit unions domiciled in Indiana do not possess the requested rights and privileges;

(2) the exercise of the requested rights and privileges by the credit union would adversely affect the safety and

soundness of the credit union;

(3) the exercise of the requested rights and privileges by the credit union would result in an unacceptable curtailment

of consumer protection; or

(4) the failure of the department to approve the requested rights and privileges will not result in a competitive

disadvantage to the credit union.

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(e) The sixty (60) day period referred to in subsection (c) may be extended by the department based on a determination

that the credit union's letter raised issues requiring additional information or additional time for analysis. If the sixty (60)

day period is extended under this subsection, the credit union may exercise the requested rights and privileges only if

the credit union receives prior written approval from the department. However:

(1) the department must:

(A) approve or deny the requested rights and privileges; or

(B) convene a hearing;

not later than sixty (60) days after the department receives the credit union's letter; and

(2) if a hearing is convened, the department must approve or deny the requested rights and privileges not later than

sixty (60) days after the hearing is concluded.

(f) The exercise of rights and privileges by a credit union in compliance with and in the manner authorized by this section is

not a violation of any provision of the Indiana Code or rules adopted under IC 4-22-2.

(g) If a credit union receives approval to exercise the requested rights and privileges granted to federal credit unions

domiciled in Indiana, the department shall determine by order whether all credit unions may exercise the same rights

and privileges. In making the determination required by this subsection, the department must ensure that the exercise

of the rights and privileges by all credit unions will not:

(1) adversely affect their safety and soundness; or

(2) unduly constrain Indiana consumer protection provisions.

(h) If the department denies the request of a credit union under this section to exercise any rights and privileges that are

granted to federal credit unions, the credit union may appeal the decision of the department to the circuit court with

jurisdiction in the county in which the principal office of the credit union is located. In an appeal under this section, the

court shall determine the matter de novo.

Iowa Iowa Code § 533.301. Powers.

25. Engage in any activity authorized by the superintendent which would be permitted if the state credit union were

federally chartered and which is consistent with state law.

Kansas Kan. Stat. Ann. § 17-2244. Authority to operate in same activities as other federally insured credit unions; powers of

administrator; report to legislature.

(a) In addition to any and all other powers granted to the credit union administrator, the administrator shall have the

power to authorize any credit union to engage in any activity in which such credit union could engage were they

operating as a federally insured credit union at the time such authority is granted, including but not by way of limitation

because of enumeration, the power to do any act, and own, possess and carry as assets, property of such character

including stocks, bonds or other debentures which, at the time such authority is granted, are authorized under

applicable laws and regulations for transactions by federally insured credit unions notwithstanding any restrictions

elsewhere contained in the statutes of the state of Kansas. Upon receipt of a written request from any state chartered

credit union, the administrator shall exercise such power by the issuance of a special order therefor if the administrator

deems it reasonably required to preserve and protect the welfare of such an institution and promote the general

economy of this state. The issuance of such special orders shall not be subject to the provisions of article 4 of chapter 77

of the Kansas Statutes Annotated and amendments thereto.

(b) The administrator shall, at the time of issuing any special order pursuant to this section, submit a written report thereof to

the president and the minority leader of the senate and to the speaker and the minority leader of the house of

representatives and the credit union council.

Kentucky Ky. Rev. Stat. Ann. § 286.6-095. Rules of commissioner.

Notwithstanding any other provision of law, the commissioner may make reasonable rules authorizing credit unions to

exercise any of the powers conferred upon federal credit unions, if the commissioner deems it reasonably necessary for the

well-being of such credit unions.

Louisiana La. Rev. Stat. § 6:644. Powers









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following powers:



Maine Me. Rev. Stat. ann. tit. 9-B § 828. Powers of federally chartered credit unions

Notwithstanding any other provisions of law, a credit union has the power to engage in any activity that a credit union

chartered by or otherwise subject to the jurisdiction of the Federal Government may be authorized to engage in by federal

legislation or regulations issued pursuant to such legislation. In the event any law of this State is preempted or declared

invalid pursuant to applicable federal law, by a court of competent jurisdiction or by the responsible federal chartering

authority with respect to any power that may be exercised by a credit union chartered by or otherwise subject to the

jurisdiction of the Federal Government, that law is invalid with respect to credit unions authorized to do business in this

State. The superintendent may adopt rules to ensure that such powers are exercised in a safe and sound manner with

adequate consumer protections. Rules adopted pursuant to this section are routine technical rules as defined in Title 5,

chapter 375, subchapter II-A.

Maryland Md. Code Ann. Fin. Inst. Law § 6-313. Powers authorized by federal law

(a) Additional activities. -- Notwithstanding any other provision of the laws or regulations of the State, on approval of the

Commissioner, a credit union may engage in any additional activity, service, or other practice in which, under federal

law or regulation, federal credit unions may engage.

(b) Scope of authority. -- The Commissioner may grant an approval under this section only if:

(1) The Commissioner determines that approval:

(i) Reasonably is required to protect the welfare of the general economy of the State and of credit unions; or

(ii) Is not detrimental to the public interest or to credit unions; and

(2) The approval imposes the same conditions that federal law or regulation requires or permits as to federal credit

unions.

Massachusetts Mass. Gen. Laws ch. 171, §6A. State Chartered Credit Unions; Powers; Activities; Authorization by Commissioner.

Notwithstanding other provisions of this chapter, a credit union organized under the provisions of this chapter and insured

by the National Credit Union Share Insurance Fund may exercise any power and engage in any activity that is permissible

for a credit union organized under the provisions of the Federal Credit Union Act in accordance with regulations

promulgated by the commissioner pursuant to this section; provided, however, that any such activity is not otherwise

prohibited. In determining whether or not to authorize any such activity, the commissioner shall also determine whether or

not competition among credit unions will be unreasonably affected and whether public convenience and advantage will

be promoted. Said commissioner shall promulgate regulations necessary to carry out the provisions of this section. Except

for emergency regulations adopted pursuant to section 2 of chapter 30A, any such regulation, or any amendment or

repeal thereof, shall, after compliance with all applicable provisions of said chapter 30A except section 5, shall be

submitted to the general court.

Said commissioner shall file the proposed regulation, amendment or repeal with the clerk of the house of representatives,

together with a statement that the pertinent provisions of said chapter 30A have been complied with and a summary of

the regulations in layman's terms. Said clerk shall refer such filing to the joint committee on banks and banking within five

days of the filing thereof. No such regulation shall take effect until 90 days after it has been so filed; provided, however,

that such 90 day period shall not include days when the general court is prohibited by law or rule from meeting in formal

session.

Michigan Mich. Comp. Laws Ann. §490.208. Application for additional powers by domestic credit unions.

(1) If 1 or more domestic credit unions apply for authority to exercise powers not specifically authorized by this act, the

commissioner may by rule, order, or declaratory ruling authorize domestic credit unions to exercise those powers if the

commissioner finds that those powers are appropriate and necessary to compete with other providers of financial services

in this state.

(2) In acting under subsection (1), the commissioner shall consider the ability of the domestic credit unions to exercise the

additional power in a safe and sound manner, the authority of the domestic credit unions under state or federal law or

regulation, the powers of other competing entities providing financial services, and any specific limitations on domestic

credit union powers contained in this act or in any rules or other law of this state.

(3) The commissioner shall make any rules, declaratory rulings, orders, or findings made under this section available to

domestic credit unions.

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Minnesota Minn. Stat. §52.04

Subd. 3. Parity. --Notwithstanding any other provision of law, and in addition to all powers and activities, express, implied, or

incidental, that a credit union has under the laws of this state, a credit union may exercise the powers and activities of, or

take any action permitted for, a federal credit union, upon approval of the commissioner. The commissioner must approve

or deny a request under this subdivision within 60 days after submission of the request by a credit union. The commissioner

may not authorize state credit unions subject to this chapter to engage in credit union activity prohibited by the laws of this

state.

Mississippi Miss. Code Ann. § 81-13-12. Authorization to operate as federal credit union

Notwithstanding any other law to the contrary, the Commissioner of Banking and Consumer Finance by rule may authorize

a credit union doing business under this chapter to engage in any activity in which it could engage, exercise any power it

could exercise, or make any loan or investment it could make, if it were operating as a federal credit union.

Missouri Mo. Rev. Stat. § 370.071. Additional powers of a credit union--membership fee allowed, when A credit union may have the

following additional powers: (2) To exercise such additional powers, with the approval of the director, as federally chartered credit unions may be

authorized under federal statutes; however, this section shall not apply to field of membership provisions within this

chapter;

Montana Mont. Code Ann., § 32-3-206. Authorized activities of credit unions.

Upon written application to the department of administration, a credit union may engage in any activity in which a credit

union could engage if it were operating as a federal chartered credit union at the time the authority is granted. The

activities include but are not limited to the power to do any act and to own, possess, and carry as assets property including

stocks, bonds, or other debentures that, at the time the authority is granted, are authorized under federal laws and

regulations for transactions by federal credit unions and are not subject to any restrictions contained elsewhere in Montana

law. However, the department may not charter a credit union not having a common bond of membership as defined in

32-3-304. The department shall approve an activity if it finds that the activity fosters competitive equality between state

and federal credit unions and prevents adverse effects on members of state-chartered credit unions. If the department

disapproves an activity, the credit union must be given an opportunity for a hearing pursuant to Title 2, chapter 4, part 6, to

determine whether a compelling reason exists for denying approval of the activity for which the credit union applied.

Nebraska Neb. Rev. Stat. § 21-17,115

Credit union organized under laws of Nebraska; rights, powers, privileges, and immunities of federal credit union;

exception. Notwithstanding any of the other provisions of the Credit Union Act or any other Nebraska statute, any credit

union incorporated under the laws of the State of Nebraska and organized under the provisions of the act shall have all the

rights, powers, privileges, benefits, and immunities which may be exercised as of January 1, 2012, by a federal credit union

doing business in Nebraska on the condition that such rights, powers, privileges, benefits, and immunities shall not relieve

such credit union from payment of state taxes assessed under any applicable laws of this state.

Nevada Nev. Rev. Stat. Ann. § 678.460. General powers; waiver or modification of law by commissioner.

2. May exercise any authority and perform all acts that a federal credit union may exercise or perform, with the consent

and written approval of the commissioner. The commissioner may, by regulation, waive or modify a requirement of

Nevada law if the corresponding requirement for federal credit unions has been or is eliminated or modified.

New Hampshire N.H. Rev. Stat. Ann. §394-B:52-a. Advantageous Federal Powers.

To the extent permitted by rules which may be adopted by the commissioner in accordance with RSA 394-A:7, any credit

union shall have and may exercise any power, right, benefit or privilege, now or hereafter authorized for federal credit

unions by federal legislation, regulation or ruling.

New Jersey N.J. Rev. Stat. § 17:13-90. Powers of commissioner

The commissioner shall have the power to make, amend and repeal regulations permitting credit unions to exercise any

power, right, benefit, or privilege permitted to federally chartered credit unions.

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128

New Mexico N. M. Stat. Ann. §58-11-20. Advantageous federal powers

In addition to other powers provided for the director and for credit unions organized under or subject to the Credit Union

Act [58-11-1 NMSA 1978] and notwithstanding any law to the contrary, the director may adopt such rules and regulations

as he deems necessary and proper, granting to state credit unions any of the powers and authority that federal credit

unions are or may hereafter be authorized, empowered, permitted or otherwise allowed to exercise under federal statutes,

rules or regulations.

New York N.Y. Bank Law § 12-a. [Expires and repealed Sept 10, 2014] Power of state chartered banking institutions to exercise the rights

of counterpart federally chartered banking institutions 1. Definitions.

(a) As used in this section, "state chartered banking institution" shall mean any bank, trust company, private banker,

savings bank, savings and loan association, foreign banking corporation, or credit union.

(b) As used in this section and as is applicable, "federally chartered banking institution" shall mean (i) any national

banking association organized pursuant to the National Bank Act of 1864, as amended, (12 USC 21 et seq.); (ii) any

federal savings association as such term is defined by the Federal Deposit Insurance Act, as amended, (12 USC

1813(b)(2)); (iii) a federal branch and agency of a foreign bank, as such terms are defined by the International

Banking Act of 1978, as amended, (122 USC 3101); or (iv) a federal credit union, as such term is defined by the

Federal Credit Union Act, as amended, (12 USC 1752(1)).

(c) As used in this section, "charter" shall mean the organization certificate or comparable document of a state banking

institution, or the license for a state branch or agency of a foreign banking corporation, or a similar organizational

document for a federal banking institution or a federal branch or agency, and "chartered" shall mean the formal act

of the state or appropriate federal regulatory agency in approving and conveying such charter of a banking

institution.

(d) As used in this section, "federally permitted power" shall mean any right, power, privilege or benefit, any activity, or any

loan, investment or transaction which a federally chartered banking institution directly or through a subsidiary or

subsidiaries, may lawfully exercise or into which it may lawfully engage or enter.

(e) As used in this section "foreign banking corporation" shall mean a banking corporation organized under the laws of a

foreign country and acting through a branch or agency licensed pursuant to section twenty-six of this article.

(f) As used in this section, unless the context requires otherwise, the term "subsidiary" shall have the same meaning as set

forth in subdivision five of section one hundred forty-one of this chapter, except that (i) any reference therein to "bank

holding company" shall be deemed to refer to a "state chartered banking institution" as defined in this section, and

(ii) with respect to a credit union, the term "subsidiary" as used in this section shall mean a "credit union organization".

2. Pursuant to this section and notwithstanding any other provision of law, except as otherwise provided in its charter, a

state-chartered banking institution may exercise any federally permitted power of its counterpart federally chartered

banking institution as herein set forth:

(a) a bank, private banker, or trust company may exercise any federally permitted power of a national banking

association;

(b) a savings bank or savings and loan association may exercise any federally permitted power of a federal savings

association;

(c) a foreign banking corporation acting through a branch may exercise any federally permitted power of a foreign

bank acting through a federal branch;

(d) a foreign banking corporation acting through an agency may exercise any federally permitted power of a foreign

bank acting through a federal agency;

(e) a credit union may exercise any federally permitted power of a federal credit union.

Nothing contained in this section shall be deemed to permit a state chartered banking institution to exercise any federally

permitted power except in a manner consistent with the following provisions of law, in each case, as the terms contained in

such provisions may be amended from time to time:

(i) chapter one of the laws of nineteen hundred ninety-four;

(ii) chapter nine of the laws of nineteen hundred ninety-six; and

(iii) sections fourteen-c, twenty-eight-b, thirty-nine and forty-four of this article, and sections six hundred five through

six hundred thirty-four of this chapter, and with respect to savings banks and savings and loan associations,

respectively, section two hundred forty and section three hundred ninety-six of this chapter.

3. Except with respect to a federally permitted power approved pursuant to subdivision four of this section, prior to any

state chartered banking institution initially exercising any federally permitted power pursuant to this section, such

banking institution shall make an application individually or with one or more state chartered banking institutions to the

superintendent indicating that such institution or institutions intend to exercise such federally permitted power and the

basis on which such institution or institutions believe such power is a federally permitted power. The superintendent shall

have one hundred twenty days from receipt of the application to determine whether it meets the requirements of this

section, provided that such period may be extended for an additional period of time with the written consent of the

applicant or applicants. If such application meets the requirements of this section, the superintendent shall post such

application upon the bulletin board of the department pursuant to section forty-two of this article. [fig 1] If such

application does not meet the requirements of this section, the superintendent shall, within ten days of such

129

determination, notify the applicant or applicants of the reasons why the application fails to meet the requirements. The

superintendent shall determine, consistent with the standards set forth in subdivision five of this section, whether to

approve such application subject to such terms and conditions as the superintendent may deem appropriate, in the

superintendent's sole discretion. Such determination, shall be made by the superintendent within forty-five days after the

posting of such application [fig 2] , provided however that the superintendent may notify the applicant or applicants

that the review of the application shall be extended for an additional period of time not exceeding [fig 3] sixty days after

the posting of such application, and provided further that such period of time may be extended for an additional period

of time with the written consent of the applicant or applicants. The superintendent shall not act upon the application

prior to thirty days after such application has been posted. [fig 4] If the superintendent approves such application, the

superintendent shall, within ten days of approving the application, notify the applicant or applicants in writing thereof,

and the applicant or applicants may exercise such federally permitted power subject to such terms and conditions as

the superintendent may have approved. If the superintendent declines such application, the superintendent shall, within

ten days of making such determination, notify the applicant or applicants in writing thereof. An applicant or applicants

may, upon the superintendent's failure to comply with this section, petition the superintendent to act upon the

application. The failure of the superintendent to act upon the application or notify the applicant or applicants, in writing,

as to the reasons why action cannot be taken within thirty days of receipt of such petition shall be deemed a denial of

the application, which shall be subject to judicial review. Notwithstanding any other law, the superintendent may make

the approval of an application under this section applicable to one or more additional state chartered banking

institutions that are qualified to exercise the same federally permitted powers as the applicant or applicants pursuant to

subdivision two of this section, subject to such terms and conditions as the superintendent shall find necessary and

appropriate.

4. Notwithstanding any other law, the superintendent, in [fig 1] the superintendent's discretion, may, when [fig 2] the

superintendent deems it necessary and appropriate after considering the standards set forth in subdivision five of this

section, [fig 3] by order, authorize one or more state chartered banking institutions to exercise a federally permitted

power, subject to such terms and conditions as the superintendent shall find necessary and appropriate [fig 4] . Prior to

[fig 5] issuing such order, the superintendent shall post [fig 6] notice of the superintendent's intention to issue such order

upon the bulletin board of the department pursuant to section forty-two of this article, and [fig 7] shall not act upon such

[fig 8] intention prior to thirty days after such [fig 9] notice has been posted.

5. Prior to approving any [fig 1] application or proposal pursuant to subdivision three or four of this section, the [fig 2]

superintendent shall make a finding that the approval of such [fig 3] application or proposal is:

(i) consistent with the policy of the state of New York as declared in section ten of this article and thereby protects the

public interest, including the interests of depositors, creditors, shareholders, stockholders and consumers; and

(ii) necessary to achieve or maintain parity between state chartered banking institutions and their counterpart federally

chartered banking institutions with respect to rights, powers, privileges, benefits, activities, loans, investments or

transactions.

6. A federally permitted power authorized pursuant to this section shall not exceed and shall be limited by any conditions,

qualifications or restrictions on the same when exercised by a counterpart federally chartered banking institution of a

state chartered banking institution unless the state chartered banking institution is so authorized by other New York state

law, or a rule, regulation or policy adopted pursuant to such other New York state law, or by a judicial decision.

Notwithstanding any other law, the superintendent may, at any time, impose by order any other terms and conditions as

he or she finds necessary and proper including, but not limited to, a requirement that any federally permitted power

authorized by this section be exercised, conducted or held in a subsidiary of a state chartered banking institution. In the

event that federally chartered banking institutions located in the state of New York lose the authority to exercise a

federally permitted power, based upon which comparable authority was granted to the counterpart state chartered

banking institutions pursuant to this section, then unless such authority is authorized by other New York state law, or a rule,

regulation or policy adopted pursuant to such other New York state law, or by a judicial decision, the authorization for

such state chartered banking institutions pursuant to this section shall be deemed revoked, provided, however, that any

such revocation shall be subject to such terms and conditions as may be imposed upon the counterpart federally

chartered banking institutions or by the superintendent.

7. (a) In those instances where state chartered banking institutions are permitted to engage in the business of insurance

pursuant to this section, they shall do so subject to [fig 1] all insurance laws, rules, and regulations; provided, however,

that the superintendent [fig 2] may exempt state chartered banking institutions from any insurance law, rule or regulation

which has been preempted under federal law, rule or regulation for federally chartered banking institutions if such law,

rule or regulation has been preempted because it applies to insurance activities of federally chartered banking

institutions and not to those of other entities.

(b) In those instances where a federally permitted power authorized pursuant to this section is subject to regulation by an

agency, as defined in subdivision one of section one hundred two of the state administrative procedure act, other

than the superintendent, [fig 1] then when a state chartered banking institution exercises such federally permitted

power, unless it is so authorized by other New York state law, or a rule, regulation or policy adopted pursuant to such

other New York state law, or by a judicial decision, it shall do so subject to such regulation to the same extent and in

the same manner as such agency regulates entities other than state chartered banking institutions, except to the

extent that federally chartered banking institutions are not subject to such regulation.

(c) Any state chartered banking institution or federally chartered banking institution and any subsidiary or affiliate thereof

which is licensed to sell insurance in this state shall maintain separate and distinct books and records relating to its

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insurance transactions, including all files relating to and reflecting consumer complaints, and such insurance books

and records shall be made available to the superintendent [fig 1] for inspection upon reasonable notice.

(d)--(f) [Deleted]

(g) [Redesignated]

8. On or before June first [fig 1] of each year, the superintendent shall submit a report to the governor, the speaker of the

assembly, the temporary president of the senate, the minority leaders of the senate and assembly, and the chairs and

ranking minority members of the senate and assembly banks committees, which shall include, with respect to the

authority provided for in this section, with respect to the preceding calendar year, (1) a listing of state chartered banking

institutions that [fig 2] were established [fig 3] , (2) a listing of institutions that have converted to a federal charter or have

been acquired by, or merged with, another banking institution, (3) the number of New York banking institutions exercising

the insurance activities authorized by this section, (4) the total number of New York chartered banking institutions

located in this state, [fig 4] and (5) the total amount of assets of such chartered [fig 5] banking institutions by type [fig 6] .

9. Any rules or regulations promulgated by the banking board pursuant to former sections fourteen-g and fourteen-h of this

chapter prior to September first, two thousand seven, and any resolutions adopted by the banking board pursuant to this

section after September first, two thousand seven and before the effective date of the chapter of the laws of two

thousand eleven which amended this subdivision, including any such rules [fig 1] , regulations and resolutions which in

whole or in part impose conditions, qualifications or restrictions on any federally permitted powers authorized thereby

which exceed the conditions, qualifications or restrictions imposed on the same when exercised by a federally chartered

banking institution, shall remain in full force and effect on or after such date, unless any such rule [fig 2] , regulation or

resolution is thereafter superseded, modified, or revoked by the [fig 3] superintendent pursuant to the provisions of

subdivisions three and four of this section.

North Carolina N.C. Gen. Stat. § 54-109.21. General powers

A credit union may:

(25) Engage in activity permitted under this subdivision. Notwithstanding any other provision of this Chapter, the

Administrator of Credit Unions, subject to the advice and consent of the Credit Union Commission, and upon a finding

that action is necessary to preserve and protect the welfare of credit unions and to promote the general economy of

the State, may adopt rules allowing State-chartered credit unions to engage in any activity in which they could

engage if they were federally chartered credit unions

North Dakota N.D. Cent. Code, § 6-06-06. Powers of credit unions.


11. Subject to authorization by the state credit union board, acting by order or rule, a state credit union has the same

powers as a federal credit union and may engage in any activity in which a credit union could engage if the credit

union were federally chartered.

Ohio Ohio Rev. Code Ann. 1733.412. Parity rule authority

(A) Notwithstanding any provision in Chapter 1733. of the Revised Code, if a credit union operating in this state that is

organized or chartered under this chapter or the laws of the United States possesses any right, power, privilege, or

benefit by virtue of a statute, rule, policy, regulation, interpretation, or judicial decision, the superintendent of credit

unions shall adopt a rule under section 111.15 of the Revised Code granting any credit union doing business under

authority granted by the superintendent authority to exercise the respective right, power, privilege, or benefit.

(B) The rule adopted by the superintendent pursuant to the authority of this section becomes effective on the later of the

following dates:

(1) The date the superintendent issues the rule;

(2) The date the statute, rule, policy, regulation, interpretation, or judicial decision on which the superintendent's rule is

based becomes effective.

(C) If the rule adopted by the superintendent pursuant to this section is not enacted into law or adopted in accordance

with Chapter 119. of the Revised Code within thirty months from its effective date, the rule shall thereupon no longer be

of any force or effect; however, the superintendent may adopt the rule under section 111.15 of the Revised Code

pursuant to this section for an additional thirty-month period.

(D) The superintendent, upon thirty days' written notice to state-chartered credit unions, may revoke any rule issued by

virtue of the authority of this section.

Oklahoma 6 Okl. St. § 2023. Exercising power of federally chartered credit union--Exceptions

A credit union chartered under the laws of the State of Oklahoma, the member accounts of which are insured under Title II

of the Federal Credit Union Act, may exercise any of the powers of a federally chartered credit union doing business in this

state, until otherwise provided by the Legislature; and provided that the State Credit Union Board may by rule prohibit the

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exercise of any such power if the Board finds that the exercise thereof will not serve the public convenience and

advantage and will not equalize and maintain the quality of competition between state and federal credit unions.

Oregon Or. Rev. Stat. § 723.156. Exercise of powers of federal credit union.

Notwithstanding any other provision of law, a credit union may, upon prior approval by the Director of the Department of

Consumer and Business Services and subject to any limitations prescribed by the director, exercise any of the powers

conferred upon a federally chartered credit union doing business in this state that is subject to the regulations of the

administrator of the National Credit Union Administration or the successor or successors of the administrator, if the director

finds that the exercise of the power:

(1) Serves the public and members' convenience and advantage; and

(2) Equalizes and maintains the quality of competition between state chartered credit unions and federally chartered

credit unions.

Pennsylvania 17 Pa. Cons. Stat. § 501(e). Powers.

(e) Federal parity. --Notwithstanding any other provisions of this title or any other law, in addition to any other powers as

authorized by this title or other law, a credit union shall have the power:

(1) To engage in any activity permissible for a Federal credit union as authorized by the Federal Credit Union Act (48

Stat. 1216, 12 U.S.C. § 1751 et seq.) and the rules and regulations of the National Credit Union Administration, subject

to reasonable conditions, limitations and restrictions as may be imposed by the department, including, but not

limited to, conditions, limitations and restrictions based upon safety and soundness.

(2) To engage in the activity of creating, amending or expanding its field of membership as authorized by section 109

of the Federal Credit Union Act (48 Stat. 1216, 12 U.S.C. § 1759), subject to reasonable conditions, limitations and



(3) To control, hold an interest in or participate in a credit union service organization that engages in any activity

permissible for a Federal credit union to conduct through a credit union service organization, provided that any

activity permissible for a credit union service organization shall be subject to reasonable conditions, limitations and



(f) Notice to department. --Unless prior approval is granted by the department, a credit union shall provide at least 30 days'

prior written notice to the department before it engages in an activity or acquires an interest permissible under

subsection (e). During the review period provided by this subsection, the department may:

(1) request further information concerning any proposed activity or interest;

(2) impose any conditions, limitations or restrictions upon such interests or activities to the extent authorized by

subsection (e); or

(3) prohibit the credit union from engaging in any activity or acquiring any interest if to do so would have a significant

adverse impact upon the safety and soundness of the credit union.

(g) Approval to be presumed. --Except as otherwise agreed to by a credit union, the department shall be deemed to have

granted approval for a credit union to engage in an activity or acquire an interest if within 30 days of receipt of written

notice from a credit union the department does not act.

Rhode Island R.I. Gen. Laws § 19-5-25. Exercise of same powers as federal credit unions

A credit union may engage in any activity authorized by law or regulation for federal credit unions which, in the opinion of

the director or the director's designee, is not unsafe and unsound for the credit union.

South Carolina S.C. Code Ann. § 34-26-210. Discretionary powers of board.

(5) By issuing operational instructions, the board may authorize state credit unions to engage in activities approved for

federally-chartered credit unions.

Tennessee Tenn. Code Ann. § 45-4-501. Powers generally.


(8) It may do all those things permitted to nonprofit corporations generally by title 48, chapter 58, part 5, relative to the

indemnification of officers and directors. For the purpose of this subdivision (8), members of the supervisory committee

and of the credit committee shall be treated as members of the board of directors; and

(9) It may exercise any power or engage in any activity that it could exercise or engage in if it were a federally chartered

credit union, subject to the regulation by the commissioner of financial institutions for the purpose of maintaining the

credit union's safety and soundness.

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Texas Tex. Finance Code § 123.003. Enlargement of Powers

(a) A credit union may engage in any activity in which it could engage, exercise any power it could exercise, or make any

loan or investment it could make, if it were operating as a federal credit union.

(b) Notwithstanding any other law, and in addition to the powers and authorities conferred under Subsection (a), a credit

union has the powers or authorities of a foreign credit union operating a branch in this state if the commissioner finds

that exercise of those powers or authorities is convenient for and affords an advantage to the credit union's members

and maintains the fairness of competition and parity between the credit union and any foreign credit union. A credit

union does not have the field of membership powers or authorities of a foreign credit union operating a branch in this

state.

Utah Utah Code Ann. § 7-1-301 (3). Powers and duties of commissioner -- Rulemaking

Without limiting the other powers, duties, and responsibilities specified in this title, the commissioner has all the functions,

powers, duties, and responsibilities with respect to institutions, persons, or businesses subject to the jurisdiction of the

department contained in this title, including all of the functions, powers, duties, and responsibilities described in Subsections

(1) through (15).

(3) (a) The commissioner may authorize a state chartered depository institution to engage in any activity it could engage

in, and to grant to that institution all additional rights, powers, privileges, benefits, or immunities it would possess, if it

were chartered under the laws of the United States.

(b) The commissioner may authorize a depository institution chartered by this state to engage in any activity that a Utah

branch of an out- of-state depository institution of the same class can engage in, and to grant to the Utah institution

all additional rights, powers, privileges, benefits, or immunities it needs to engage in the activity.

(c) In granting authority under this Subsection (3), the commissioner shall consider:

(i) the need for competitive equality between institutions chartered by this state and institutions operating in this state

that are chartered by another state or by the federal government; and

(ii) the adverse effect on shareholders, members, depositors, and other customers of financial institutions chartered by

this state if equal power and protection of those institutions, compared with federally chartered or out-of-state

institutions of the same class, are not promptly available.

Vermont Vt. Stat. Ann. tit. 8, § 32103. Expanded powers of Vermont credit unions

(a) Subject to the requirements of this section, in addition to all other powers permitted under these statutes, a credit union

may exercise any of the powers or engage in any activity conferred upon a federal credit union chartered under the

laws of the United States of America.

(b) Prior to engaging in such power or activity, the credit union shall notify the commissioner of its intent to engage in the

activity or power conferred upon a federal credit union. The notification shall identify the power or activity, shall identify

the specific federal law or regulation that permits such power or activity, shall identify any Vermont law or regulation

that may prohibit or restrict such power or activity, and shall provide such additional information as the commissioner

may request.

(c) If the commissioner determines that such power or activity is permitted by federal law or regulation, that such power or

activity would not adversely affect the safety or soundness of such credit union, and that such power or activity is not

prohibited or restricted by any other applicable Vermont law or regulation, the commissioner shall issue a written letter

of nonobjection to the credit union's engaging in such power or activity. A credit union shall not engage in such power

or activity without first obtaining a written letter of nonobjection from the commissioner.

(d) The commissioner shall respond to the credit union's notification within the time frame set forth in section 30804 of this

title.

(e) In the event the commissioner objects to the credit union's proposed power or activity, the credit union shall have the

reconsideration and appeal rights set forth in section 30805 of this title.

Virginia Va. Code Ann. § 6.2-1303. Regulations

A. The Commission may adopt regulations to implement the provisions of this chapter.

B. In addition to the powers specifically granted to state chartered credit unions by the provisions of this chapter, the

Commission may adopt such regulations as may be necessary to permit state chartered credit unions to have powers at

least comparable with those of federally chartered credit unions or to effect the purposes of this chapter, regardless of

any then existing statute, regulation or court decision limiting or denying such powers to state chartered credit unions.

The requirement of a public hearing shall not automatically apply to regulations adopted under this subsection, but the

Commission may hold such hearings as it deems appropriate.

C. Before adopting any regulation under this chapter, the Commission shall give reasonable notice of its content and shall

afford interested parties an opportunity to present evidence and be heard, in accordance with the Commission's Rules.

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Washington Rev. Code Wash. § 31.12.404. Additional powers -- Powers conferred on federal credit union -- Authority of director

(1) Notwithstanding any other provision of law, and in addition to all powers and authorities, express or implied, that a credit

union has under the laws of this state, a credit union has the powers and authorities that a federal credit union had on

December 31, 1993, or a subsequent date not later than July 22, 2001.

(2) Notwithstanding any other provision of law, and in addition to the powers and authorities, express or implied, that a

credit union has under subsection (1) of this section, a credit union has the powers and authorities that a federal credit

union has, and an out-of-state credit union operating a branch in Washington has, subsequent to July 22, 2001, if the

director finds that the exercise of the power and authority serves the convenience and advantage of members of

credit unions, and maintains the fairness of competition and parity between credit unions and federal or out-of-state

credit unions. However, a credit union: (a) Must still comply with RCW 31.12.408; and

(b) Is not granted the field of membership powers or authorities of any out-of-state credit union operating a branch in

Washington.

(3) The restrictions, limitations, and requirements applicable to specific powers or authorities of federal or out-of-state credit

unions apply to credit unions exercising those powers or authorities permitted under this section but only insofar as the

restrictions, limitations, and requirements relate to the specific exercise of the powers or authorities granted credit

unions solely under this section.

(4) As used in this section, "powers and authorities" include, but are not limited to, powers and authorities in corporate

governance matters.

West Virginia W. Va. Code § 31C-3-3. Advantageous federal powers.

Unless exercise of a power is specifically denied, the commissioner may prescribe rules authorizing credit unions to exercise

any of the powers conferred upon federal credit unions if the commissioner deems it appropriate for the purposes of credit

unions in this state and a benefit to their members.

Wisconsin Wis. Stat. § 186.115. Additional credit union authority.

(1) SCOPE OF AUTHORITY.

Subject to any regulatory approval required by law and subject to sub. (2), a credit union directly or through a

subsidiary, may undertake any activity, exercise any power or offer any financially related product or service in this

state that any other provider of financial products or services may undertake, exercise or provide or that the office of

credit unions finds to be financially related.

(2) RULES.

The activities, powers, products and services that may be undertaken, exercised or offered by credit unions under sub.

(1) are limited to those specified by rule of the office of credit unions. The office of credit unions may direct any credit

union to cease any activity, the exercise of any power or the offering of any product or service authorized by rule.

Among the factors that the office of credit unions may consider in so directing a credit union are the credit unions net

worth, assets, management rating and liquidity ratio and its ratio of net worth to assets.

(3) INSURANCE UNDERWRITING NOT AUTHORIZED.

This section does not authorize a credit union, directly or through a subsidiary, to engage in the business of underwriting

insurance.

Wis. Stat. § 186.118. Incidental powers parity with federal credit unions

(1) In addition to any activity or power authorized under ss. 186.098, 186.11, 186.113, 186.114, 186.115, and 186.235 (21), a

credit union organized under s. 186.02 may engage in any activity or exercise any power that is listed by the office of

credit unions under sub. (2) (a) or (3) (b) 1.

(2)

(a) The office of credit unions shall promulgate a rule establishing a list of activities and powers incidental to the

business of a credit union that are authorized for federally chartered credit unions as of April 18, 2014.

(b) The office of credit unions shall submit the proposed rule under par. (a) to the legislative reference bureau in an



(c) Sections 227.114 (4) and (6), 227.115, 227.135, 227.137, 227.14 (2) (a) 6., (2g), (4), and (4m), 227.15, 227.16, 227.17,

227.18, 227.185, 227.19, and 227.30 do not apply to the office of credit unions in promulgating a rule under par. (a)

or to any rule promulgated by the office of credit unions under par. (a). Guidelines prescribed by executive order of

the governor do not apply to the office of credit unions in promulgating a rule under par. (a).

(3)

(a) After April 18, 2014, if any activity or power incidental to the business of a credit union that is not listed under sub. (2)

(a) becomes authorized for federally chartered credit unions, within 30 days after the activity or power becomes

authorized the office of credit unions shall make a determination as to whether the activity or power should also be

authorized for credit unions organized under s. 186.02. In making this determination, the office of credit unions shall

consider the degree to which the following apply with respect to the activity or power: 186.118(3)(a)1.

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1. It is necessary, convenient, or useful for effectively carrying out the mission or business of a credit union.

2. It is the functional equivalent or logical outgrowth of activities or powers that are part of the mission or business of

a credit union.

3. It involves risks similar in nature to those already assumed as part of the business of the credit union and it is not

likely to be detrimental to the overall safety and soundness of the credit union.

(b)

1. The office of credit unions shall promulgate a rule adding an activity or power to the list of activities and powers

established under sub. (2) (a) if the office of credit unions determines under par. (a) that the activity or power

authorized for federally chartered credit unions should also be authorized for credit unions organized under s.

186.02.

2. The office of credit unions shall submit the proposed rule under subd. 1. to the legislative reference bureau in an



3. Sections 227.114 (4) and (6), 227.115, 227.135, 227.137, 227.14 (2) (a) 6., (2g), (4), and (4m), 227.15, 227.16, 227.17,

227.18, 227.185, 227.19, and 227.30 do not apply to the office of credit unions in promulgating a rule under subd.

1. or to any rule promulgated by the office of credit unions under subd. 1. Guidelines prescribed by executive

order of the governor do not apply to the office of credit unions in promulgating a rule under subd. 1.

(4) The office of credit unions shall publish and maintain on the department of financial institutions' Internet site the list of

activities and powers under sub. (2) (a).

(5) If the office of credit unions promulgates a rule listing an activity or power as provided in sub. (2) (a) or (3) (b) 1., subs.

(2) (b) and (c) and (3) (b) 2. and 3. do not apply to any subsequent rule modifying or eliminating the listed activity or

power.

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