Title 6, Banks and Financial Institutions

The purpose of this chapter, which governs judicial and administrative interpretation and application of this chapter, is to provide opportunity for credit unions to remain competitive with each other, with financial institutions existing under other laws of this state and with b…

A. Any seven or more residents of this state who are of legal age and who have a common bond of interest or association may apply to the deputy director for permission to organize a credit union under this chapter. B. The incorporators shall prepare, adopt and execute a certifica…

A. The deputy director shall act on the completed application within sixty days. The deputy director shall issue a certificate of approval if the certificate of organization and the bylaws are in conformity with this chapter and the deputy director is satisfied that all of the fo…

A. The deputy director shall prepare standard forms of the certificate of organization and bylaws that are consistent with this chapter and that may be used by credit union incorporators. B. The board of directors may adopt proposed amendments to the certificate of organization a…

A. The name of every credit union organized under this chapter shall include the words "credit union". A credit union shall not adopt a name either identical to the name of any other credit union doing business in this state or so similar as to be misleading or cause confusion. B…

A. A credit union may change its principal place of business or branch within this state with the prior approval of the deputy director and the payment of the fee provided in section 6-126. B. A credit union may establish a branch office with the prior approval of the deputy dire…

A. A credit union organized under the laws of another state or territory of the United States may conduct business as a credit union in this state, subject to all laws and rules governing the operation of credit unions under this title, with the prior approval of the deputy direc…

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

In addition to all other rights, powers and privileges, a credit union that is organized under the laws of this state and whose accounts are insured by an insuring organization: 1. Has all of the rights, powers and privileges and is entitled to the same exemptions and immunities …

A. The membership of a credit union consists of the incorporators and other persons who are within the field of membership as prescribed in the bylaws, who have been duly accepted as members, who have paid any required one-time or periodic membership fee, or both, in accordance w…

A. The following may be included in the field of membership of a credit union: 1. An organization comprised primarily of individuals who are eligible for membership in the credit union. 2. An organization for which a majority of owners, by number, are individuals who are eligible…

A. The board of directors shall act on applications for membership or appoint one or more membership officers to approve applications for membership. A credit union may deny membership based on policies established by the board of directors. A person denied membership by a member…

A. A member may withdraw from a credit union at any time on giving notice of withdrawal as required in the bylaws. The credit union may require up to sixty days' notice of the intention to withdraw shares or deposits, but the notice does not entitle the member to any preferred or…

A. The members of the credit union shall hold the annual meeting and any special meetings as provided in the bylaws. B. At all such meetings a member has only one vote, irrespective of the member's shareholdings. A member may not vote by proxy, but a member may vote by absentee b…

The bylaws shall prescribe the manner in which the members or the board of directors, or both, may call a special meeting of the members.

The members of the credit union are not personally or individually liable for the payment of its debts solely by virtue of holding membership.

A. The board of directors has the authority and responsibility for directing the business affairs, monies and records of the credit union. B. Except as provided in section 6-543, directors may not vote by proxy, absentee ballot or mail ballot but may vote by telephone conference …

A. The board shall consist of at least five directors, to be elected by and from the members. Elections shall be held at the annual meeting or in such other manner as the bylaws provide. All members of the board are entitled to hold office for the terms the bylaws provide, except…

A credit union may compensate an officer, director or committee member for the officer's, director's or committee member's services to the credit union. Providing reasonable life, health, accident and similar insurance protection is not considered compensation. Directors, officer…

A director, committee member, officer, agent or employee of the credit union shall not in any manner participate, directly or indirectly, in the deliberation or the determination of any question affecting that person's pecuniary or other personal interest or the pecuniary interes…

A. At the organization meeting held within thirty days after each annual election, the board of directors shall elect from its own number a chairman of the board, a vice-chairman, a secretary and a treasurer. They shall also elect any other officers that are provided for in the b…

The board of directors may elect from its own number an executive committee, consisting of not fewer than three directors, which may be authorized to act for the board in all respects subject to any conditions or limitations prescribed by the board by law or rule. The executive c…

A. In addition to the duties prescribed in this chapter, the board of directors shall: 1. Purchase adequate fidelity coverage for the credit union covering the president and other officials and employees handling or having custody of monies or property of the credit union. 2. Aut…

A. The credit committee has the general supervision of all loans to members, unless it is replaced by a credit manager as provided in section 6-539. The credit committee may approve or disapprove loans subject to written policies established by the board of directors. B. The cred…

If the bylaws so provide, the board may elect a credit manager to serve in place of a credit committee. The credit manager may approve or disapprove loans subject to the written policies prescribed by the board of directors. The president may serve as the credit manager.

A. The president may appoint one or more loan officers and delegate the power to approve or disapprove loans, subject to those limitations or conditions as the credit committee or board of directors prescribes. B. A member whose application is disapproved by a loan officer may ap…

A. The supervisory committee shall make or cause to be made a comprehensive annual audit of the books and affairs of the credit union. The supervisory committee shall also make those supplementary examinations, audits and verifications of members' accounts as it deems necessary o…

Unless the bylaws provide otherwise, a director, officer or member of a committee may be removed as follows: 1. Either the supervisory committee or the board may suspend for cause by a majority vote of their entire membership any director, officer or member of a committee and sha…

A. Unless the articles of incorporation or bylaws provide otherwise, action required or allowed to be taken at a board of directors' meeting may be taken by electronic means without a meeting as provided in this section if notice is given to each member of the board. The notice s…

A. Share accounts shall be subscribed to and paid for in such manner as the board of directors prescribes. A credit union may require its members to subscribe to and make payments on membership shares. Membership shares may not be pledged as security on any loan. B. The par value…

A. After provision for the required reserves, the board of directors may declare dividends to be paid on share accounts from the undivided earnings. B. A credit union may pay dividends at various rates with due regard to the conditions that pertain to each type of share account, …

A. A credit union may only accept deposit accounts from its members, employers of members, sponsors of profit or pension trusts of those members, other credit unions and governmental units, and from nonmembers in the case of credit unions serving predominantly low income members …

A. A person may withdraw monies in share and deposit accounts for payment to the account holder or to third parties in the manner and in accordance with the procedures established by the board of directors. B. Share and deposit accounts are subject to any withdrawal notice requir…

The credit union may receive payment on share and deposit accounts from a minor, who may withdraw monies from the accounts, including any dividends or interest on the accounts. Payments on the accounts by a minor and withdrawals by the minor are valid in all respects. For these p…

A. A credit union may enter into multiple party accounts, which are subject to title 14, chapter 6. A multiple party owner, unless the multiple party owner is a member of the credit union in the owner's own right, may not vote at member meetings, obtain loans from the credit unio…

A. A credit union has a lien on the share and deposit accounts and accumulated dividends of a member for any amount owed the credit union by the member and for any loan endorsed by the member. The credit union has a right of immediate setoff with respect to each share and deposit…

A. Before the incorporators of a credit union forward the organization documents to the deputy director, as required by section 6-506, they shall apply for insurance on share and deposit accounts from an insuring organization. B. The deputy director shall not grant a certificate …

Notwithstanding any other law, a credit union may offer a savings promotion account that is a savings account or certificate of deposit that includes an incentive in which the sole requirement to obtain the incentive is the deposit of a specified amount of money in the account.

A. A credit union may make loans, including lines of credit, to members for the purposes and on the conditions as prescribed by the board of directors. The board of directors shall establish written policies with respect to granting loans, including the terms, conditions and acce…

A. The board of directors shall determine the interest rates on loans. The board may also authorize any refund of interest on loans under the conditions it may prescribe. B. In addition to interest charged on loans, a credit union may charge all reasonable fees and expenses in co…

A. A credit union may participate in loans to its members jointly with other credit unions, credit union organizations or other organizations pursuant to written policies established by the board of directors. A credit union that originates such a loan shall retain an interest of…

A. A credit union may make loans to an officer, director or member of its supervisory and credit committees if both of the following conditions are met: 1. The loan complies with all requirements of this chapter and is not on terms more favorable than those extended to other borr…

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 whi…

A credit union may enter into marketing arrangements and joint ventures with other credit unions, credit union organizations or other organizations to facilitate its members' voluntary purchase of goods and services from third parties, consistent with the purposes of the credit u…

A credit union may collect, receive and disburse monies in connection with the providing of negotiable instruments, money orders, traveler's checks, credit or debit cards and other money instruments and may charge reasonable fees for these services.

A credit union may act as trustee or custodian of any form of retirement, pension, profit sharing or deferred income accounts for its members, pension funds of self-employed individuals eligible for membership and pension funds of a company or organization whose employees or memb…