§ 19-5-1. “Credit union” defined. In this chapter, the term “credit union” means a cooperative association formed for the purpose of promoting thrift among its members and offering opportunities for members to use and control their own money in order to improve their economic and social condition. History of Section.P.L. 1995, ch. 82, § 43.
§ 19-5-10. Credit committee. If the bylaws provide for a credit committee, then pursuant to the provisions of the bylaws, the board of directors may appoint, or the members may elect, a credit committee which shall consist of an odd number of members of the credit union. The method used shall be set forth in […]
§ 19-5-11. Duplication of office prohibited — Oaths of office — Record of qualification. (a) No member of the board of directors, credit committee, supervisory committee, or committees appointed by the board of directors shall serve at the same time as an official in any position of another unaffiliated credit union that is under the […]
§ 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 […]
§ 19-5-13. Loan applications. The credit committee or duly appointed loan officer shall approve, in writing, every loan or advance made by the credit union, subject to any limitations that may be set from time to time by the board of directors. Every application for a loan shall be made in writing and shall state […]
§ 19-5-14. Powers and duties of supervisory committee. (a) The supervisory committee shall make, or cause to be made, an annual audit and shall submit a report of that audit to the board of directors and a summary of the report to the members at the next annual meeting of the credit union. (b) Following […]
§ 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 […]
§ 19-5-15.1. Purchase, sale and pledge of eligible obligations and assets. (a) For purposes of this section: (1) “Eligible obligation” means a loan or group or portfolio of loans and includes a participation interest in a loan or group or portfolio of loans. (2) “Participation interest” means a loan where one or more federally insured […]
§ 19-5-16. Maximum aggregate liability of one person or company. A credit union shall not permit any person or entity to borrow or guaranty, directly or indirectly, an amount(s), in the aggregate, that exceeds one percent (1%) of its total assets or twenty percent (20%) of the total unimpaired capital, whichever is greater. This limit […]
§ 19-5-17. Compensation or loans to officers. (a) No member of the board of directors or member of either the credit or supervisory committee shall directly or indirectly borrow from or become surety for any loan or advance made by the credit union, except that any member of the board of directors or any member […]
§ 19-5-18. Expulsion of members. Credit union management may expel from the credit union any member who has not fulfilled his or her duties toward the credit union; or who has been convicted of a criminal offense; or who neglects or refuses to comply with the provisions of this chapter or of the credit union’s […]
§ 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 […]
§ 19-5-2. Incorporation. Fifteen (15) or more citizens of this state who have associated themselves by a written agreement to form a credit union may, with the consent of the director, or the director’s designee, become a corporation upon complying with the provisions of §§ 7-6-33 — 7-6-35. The subscribers to the agreement to form […]
§ 19-5-20. Regular reserve. Each credit union shall establish and maintain a regular reserve, as provided by the Federal Credit Union Act, 12 U.S.C. § 1751 et seq. The director, or the director’s designee, shall approve or deny any charges to the reserve. History of Section.P.L. 1995, ch. 82, § 43.
§ 19-5-21. Destruction of records. A credit union may, in accordance with rules and regulations that the director, or the director’s designee, may adopt, destroy its records that have become obsolete. History of Section.P.L. 1995, ch. 82, § 43.
§ 19-5-22. Tax on deposits. The capital stock, corporate franchises, and personal property, but not the real estate, of credit unions shall be exempt from taxation; provided, however, that every credit union shall annually pay to the general treasurer forty cents (40¢) on each one hundred dollars ($100) deposited with the credit union in the […]
§ 19-5-23. Conversion. (a) A credit union may be converted into a federal credit union, and a federal credit union may be converted into a credit union, by complying with all the requirements of applicable federal and state law. (b) A federal credit union shall become a credit union when its agreement to form has […]
§ 19-5-24. Merger. (a) Any credit union may, with approval of the director, or the director’s designee, merge with another credit union under the agreement to form of the surviving credit union, pursuant to any plan agreed upon by a two thirds (⅔) vote of those members of the board of directors of each credit […]
§ 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 that, in the opinion of the director, or the director’s designee, is not unsafe and unsound for the credit union. History of Section.P.L. 1995, ch. 82, § 43.
§ 19-5-26. Liquidity reserves. Every credit union shall maintain liquidity reserves equal to an amount as determined in the credit union’s liquidity and funds management policy as established and adopted by the board of directors of the credit union. Failure to adopt an adequate funds management policy shall be considered an unsafe and unsound practice. […]
