Title XIII, COMMERCE (Ch. 505 - 554I)

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 unio…

1. The capital of a credit union shall consist of the payments that have been made to it by the several members thereof on shares. A credit union may charge an entrance fee as may be provided by the bylaws. 2. A credit union may establish an equity share having a par value not to…

1. At the end of each dividend period, but no less than quarterly, the gross income of the state credit union shall be determined. 2. A legal reserve against losses on loans and against such other losses as may be specified by rule shall be set aside from the gross income in acco…

1. For purposes of this section , unless the context otherwise requires: a. “Equity interests” means limited partnership interests and other equity investments in which liability is limited to the amount of the investment, but does not mean general partnership interests or other …

1. Investment in banks. A state credit union may, with the prior approval of the superintendent, invest in the capital stock, obligations, or other securities of a bank. 2. Investment in savings banks. A state credit union may, with the prior approval of the superintendent, inves…

A state credit union may borrow from any source in total a sum that shall not exceed fifty percent of the sum of its share and deposit account balances. 2007 Acts, ch 174, §37

Except as provided in section 533.302, subsection 3 , a credit union organized under this chapter , as a condition of maintaining its privilege of organization, shall acquire and maintain insurance to protect each shareholder and each depositor against loss of funds held on accou…

1. A state credit union shall maintain a fidelity bond for state credit union employees and officials in a sufficient amount to indemnify the state credit union against losses that may be incurred by reason of any act or acts of fraud, dishonesty, forgery, theft, larceny, embezzl…

A state credit union may have share accounts including but not limited to the following types: 1. Ownership share account. The ownership share account shall consist of an account balance held by the state credit union in accordance with the state credit union’s bylaws. Each membe…

When a deposit is made in a state credit union in the names of two or more individuals that is payable to any one or more of them or is payable to the survivor or survivors, the deposit, including interest, or any part, may be paid to any one or more of the individuals, whether o…

When a state credit union is insolvent, the state credit union shall not do either of the following: 1. Accept any deposits or investments in ownership shares. 2. Renew or extend the term of any time deposits or time investments. 2007 Acts, ch 174, §42

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 sh…

1. A state credit union may provide its members with share draft accounts. a. “Share draft” means a negotiable draft which is payable upon demand and is used to withdraw funds from a share draft account. b. A share draft is an item for purposes of chapter 554, article 4 . c. The …

Other provisions of section 533.404 notwithstanding, when a state credit union is dissolved, first priority of payment shall be given to unpaid share drafts. However, a share draft shall not be paid if any of the following conditions exist: 1. The share draft was issued on or aft…

1. General lending power. A state credit union may loan to a member for a provident or productive purpose. a. Loans are subject to the conditions contained in this section and in the bylaws. b. A loan may be repaid by the borrower, in whole or in part, any day the office of the s…

1. a. Interest rates on loans made by a state credit union, other than loans secured by a mortgage or deed of trust which is a first lien upon real property, shall not exceed the finance charge permitted in sections 537.2401 and 537.2402 on consumer loans. b. Interest rates on bu…

1. A state credit union may lease safe deposit boxes for the storage of property on terms and conditions prescribed by the state credit union. The terms and conditions shall not bind any person to whom the state credit union does not give notice of the terms and conditions by del…

1. A state credit union shall permit a person named in and authorized by a court order to open, examine, and remove the contents of a safe deposit box located at the state credit union. 2. If a court order has not been delivered to a state credit union, the following persons may …

1. A state credit union shall not be required, in the absence of a court order or indemnity required by this section , to recognize any claim to, or claim of authority to exercise control over, property held in safe deposit or property held for safekeeping pursuant to section 533…

1. A state credit union has a lien upon the contents of a safe deposit box for past due rentals and any expense incurred in opening the safe deposit box, replacement of the locks on the safe deposit box, and of a sale made pursuant to this section . 2. If the rental of a safe dep…

1. A state credit union may accept property for safekeeping if the state credit union issues a receipt for the property, except in the case of night depositories. a. A state credit union accepting property for safekeeping shall purchase and maintain reasonable insurance coverage …

1. The superintendent may adopt rules regarding the preservation of records and files of a state credit union or any other person supervised or regulated by the superintendent. A state credit union is not required to preserve its records for a period longer than seven years after…

1. Any state credit union writing or record, or a photostatic or photographic reproduction of such writing or record, whether in the form of an entry in a book or otherwise, made as a memorandum or record of any act, transaction, occurrence, or event, shall be admissible in evide…

1. All causes of action, other than actions for relief on the grounds of fraud or mistake, against a state credit union based upon a claim or claims founded on a written contract, or a claim or claims inconsistent with an entry or entries in a state credit union record, made in t…

1. The directors, officers, committee members, and employees of a state credit union shall hold in confidence all information regarding transactions of the state credit union, including information regarding transactions with its members and their personal affairs, except to the …

1. When a state credit union has been organized by the employees of the state or any political subdivision of the state, the officer who writes warrants for the state or other governmental body by which any public employee state credit union member is employed, may withhold from …

1. A state credit union shall be deemed an institution for savings and is subject to taxation only as to its real estate and moneys and credits. The shares shall not be taxed. 2. a. The moneys and credits tax on state credit unions is imposed at a rate of one-half cent on each do…

1. A state credit union shall report quarterly at a specified time to the superintendent in a format prescribed by the superintendent for that purpose. a. If any quarterly report is in arrears, a penalty of one hundred dollars for each day or fraction of a day such report is in a…

1. In accordance with 12 C.F.R. pt. 748 , Appendix B, a state credit union shall maintain an information security response program that includes procedures for notifying the credit union division as soon as possible after the credit union becomes aware of an incident involving un…

1. With the approval of the superintendent and the national credit union administration, a state credit union may merge with another credit union under the existing certificate of approval of the other credit union if the merger is pursuant to a plan agreed upon by a majority of …

1. Any financial institution may convert to a state credit union by complying with the laws of the original chartered authority and upon the approval of the superintendent. As used in this section , “financial institution” means any credit union, bank, savings bank, or savings an…

1. A state credit union may convert into a federal credit union with the approval of the administrator of the national credit union administration and by the affirmative vote of a majority of the credit union’s members who vote on the proposal, according to the provisions of sect…

The following shall apply to dissolution of a state credit union under this chapter , whether voluntary or involuntary: 1. Distribution of the assets of the state credit union shall be made in the following order: a. The payment of costs and expense of the administrator of dissol…

The process of voluntary dissolution shall be as follows: 1. A state credit union may dissolve upon the affirmative vote of a majority of its members eligible to vote according to the provisions of section 533.203 . At least twenty days’ notice shall be provided between the sendi…

1. If the superintendent has taken over management of the property and business of a state credit union pursuant to section 533.502 , and determined that the state credit union cannot be reorganized or merged with another credit union, the superintendent may move for the involunt…

Notwithstanding section 533.301, subsection 25 , a state credit union shall comply with the state law requirements for merger, conversion, or dissolution of a state credit union. 2007 Acts, ch 174, §67

1. Cease and desist order. a. (1) If the superintendent has reason to believe that an officer, director, employee, or committee member of a state credit union has violated any law, rule, or cease and desist order relating to a state credit union, or has engaged in an unsafe or un…

1. Notwithstanding any other provision of this chapter , the superintendent may take over the management of the property and business of a state credit union when it appears to the superintendent that any of the following actions have occurred or conditions exist: a. The state cr…

1. In all situations in which the superintendent has been appointed as receiver as provided in this chapter , the superintendent shall make a diligent effort to collect and realize on the assets of the state credit union, and shall make distribution of the proceeds from time to t…

1. a. The superintendent may tender to the administrator of an account insurance plan approved under this chapter the appointment as receiver for an insured state credit union. b. If the insurance plan administrator accepts the appointment as receiver, the rights of the members a…

1. The superintendent or the superintendent’s designee may subpoena witnesses, compel their attendance, administer an oath, examine any person under oath, and require the production of any relevant record related to any period of examination, or related to any report or filing ma…

1. All causes of action against a state credit union based upon a claim or claims inconsistent with an entry or entries in a state credit union record or ledger, made in the regular course of business, shall be deemed to have accrued, and shall accrue, one year after the date of …

A person who knowingly makes or causes to be made, directly or indirectly, any false statement in writing, or who procures, knowing that a false statement in writing has been made concerning the financial condition or means or ability to pay of such person or any other person in …

1. A director, officer, or employee of a state credit union shall not intentionally publish, disseminate, or distribute any advertising or notice containing any false, misleading, or deceptive statements concerning rates, terms, or conditions on which loans are made, or deposits …

A director, officer, agent, or employee of a state credit union, a credit union service organization, or any other person who knowingly signs, makes, or consents to another person making any false statement or false entry in the books of the state credit union or credit union ser…

Any information, record, application, or document provided to the credit union division pursuant to this chapter shall be provided in good faith. A director, officer, agent, or employee of a state credit union, a credit union service organization, or any other person shall not in…