Title 81, Banks and Financial Institutions

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.

(1) Loans to members may be made only in accordance with the NCUA’s rules and regulations, Federal Credit Union Act, state statutes, and any interpretive rulings issued by the NCUA. (2) No officer or committee member shall act as endorser or guarantor for other borrowers from the…

A borrower may repay the whole or any part of his loan on any day on which the office of the corporation is open for the transaction of business.

(1) Before making loans or receiving deposits, the credit union shall file with the Department of Banking and Consumer Finance a set of its bylaws with certificate of adoption which in addition to such other provisions as may be contained therein shall show:(a) The date of the an…

Immediately before the payment of each dividend, and in no event less than one (1) time per year, the net income of the credit union shall be determined. From this amount, there shall be set aside, as a regular reserve against losses on loans and against such other losses as may …

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.

At any duly held meeting the board of directors, by a two-thirds (⅔) vote of those present may expel from the corporation any member thereof.

All amounts paid in on shares of an expelled or withdrawing member with any dividends credited to his shares to the date of expulsion or withdrawal shall be paid to said member but only as funds therefor become available and after deducting any amounts due to the corporation by s…

When a deposit has been made or is hereafter made in the name of two (2) or more persons, payable to any one (1) of those persons, or payable to any one (1) of those persons or the survivor, or payable to any one (1) of those persons or to the survivor or survivors, or payable to…

At any meeting, called for the purpose, notice of the purpose being contained in the call, a majority of the entire membership may vote to dissolve the corporation and shall, thereupon signify their consent to such dissolution in writing and shall file such consent with the Commi…

(1) Any state credit union may apply to the Commissioner of Banking and Consumer Finance for permission to establish a branch office. The application shall be in such a form as may be prescribed by the commissioner and shall be approved or denied by the commissioner within one hu…

A credit union may change its place of business upon written approval from the Department of Banking and Consumer Finance.

(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 …

The credit unions organized hereunder, their property, their franchises, capital, reserves, surpluses, and other funds, and their income shall be exempt from all taxation now or hereafter imposed; except that any real property and any tangible personal property of such credit uni…

(1) A state credit union may be converted into a federal credit union by complying with the following requirements:(a) The proposition for such conversion shall first be approved, and a date set for a vote thereon by the members, either at a regular meeting or a special meeting c…

(1) The bylaws may provide for the taking of referendum votes by the membership upon questions coming before the membership; such voting to be by mail, or otherwise in writing or a combination of viva voce voting and writing. (2) Special meetings of the members may be held by ord…

The making of a wilfully false affidavit to any statement, report or other document required by law in connection with the establishment or operating of a credit union shall be perjury and punishable as such, according to the general laws of the state and the embezzlement of any …

Each credit union shall keep sufficient books and accounts in such form as shall be approved by the Commissioner of Banking and Consumer Finance in accordance with the NCUA guidelines. However, any state credit union may cause any or all records, books and accounts at any time in…

All laws or parts of laws which otherwise would be in conflict with the provisions of this chapter are to be construed so as not to apply to credit unions to the extent that they would conflict with this chapter but nothing herein shall be taken as repealing any law of the state …

(1) Any credit union may, with the approval of the Commissioner of Banking and Consumer Finance or his successor, merge with another credit union under the existing charter of the other credit union, pursuant to any plan agreed upon by the majority of each board of directors of e…

(1) No credit union, except credit unions organized under the laws of the United States or under this chapter, shall do business in this state until it has received approval from the Commissioner of the Department of Banking and Consumer Finance. (2) The commissioner may approve …

The use by any person, corporation, association or copartnership except corporations formed under the provisions of this chapter, of any name or title which contains the words “credit union” shall be a misdemeanor.

This chapter shall be known and may be cited as the “Savings Bank Law.”

(a) The purpose of this chapter is:(a) To provide for affordable housing resources for citizens of this state by promoting and preserving a system of thrift institutions that are locally owned and controlled;(b) To provide for the safe and sound conduct of the business of savings…

The provisions of this chapter, unless the context otherwise specifies, shall apply to all state savings banks.

(a) As used in this chapter, unless the context otherwise requires, the following terms shall have the meanings ascribed herein:(a) “Affiliate” means any person or corporation which controls, is controlled by, or is under common control with a savings institution.(b) “Associate” …

Any hearing required to be held by this chapter shall be conducted in accordance with applicable provisions as prescribed by the commissioner.

All the provisions of law relating to private corporations operating in this state which are not inconsistent with this chapter, or with the proper business of depository institutions, shall be applicable to all state savings banks.

(1) Nothing in this chapter shall be construed to invalidate any charter that was valid prior to the enactment of this chapter. Any savings bank chartered pursuant to this chapter shall use the letters “SSB” in its legal name. (2) Except as provided in subsection (1), no person o…

(1) Any five (5) or more natural persons (hereinafter referred to as “incorporators”), a majority of whom shall be domiciled in this state, may make application to organize a savings bank in order to promote the purpose of this chapter. The incorporators shall file with the commi…

(1) The certificate of incorporation of a proposed mutual savings bank shall set forth:(a) The name of the savings bank which shall not closely resemble the name of an existing depository institution doing business under the laws of this state so as to mislead the public;(b) The …

Upon receipt of an application to organize and establish a savings bank, the commissioner shall examine or cause to be examined all the relevant facts connected with the formation of the proposed savings bank. If it appears to the commissioner that the proposed savings bank has c…

(1) The commissioner may recommend approval of an application to form a mutual savings bank only when all of the following criteria are met:(a) The proposed savings bank has an operational expense fund from which to pay organizational and incorporation expenses in an amount deter…

(1) If the commissioner does not have the completed application within one hundred twenty (120) days of the filing of the preliminary application, the application shall be returned to the applicants. (2) When the commissioner has completed his examination and investigation of the…

(1) After consideration of the findings and recommendation of the commissioner and his oral testimony, if any, and the consideration of such other information and evidence, either written or oral, as has come before it at the public hearing, the board shall approve or disapprove …

The final decision of the board may be appealed by an applicant for a charter in accordance with Section 81-14-175.

All state savings banks must obtain and maintain insurance on all members’ and customers’ deposit accounts from an insurance corporation created by an act of Congress. Prior to the licensing of a savings bank, a certificate of incorporation duly recorded under the provisions of S…

All state savings banks must qualify for and maintain eligibility for the bad debt reserve under Section 7701(a)(19) of the Internal Revenue Code of 1968 and any amendments thereto.

A newly chartered savings bank shall commence business within one (1) year after the date upon which its corporate existence was begun. A savings bank which does not commence business within such time shall forfeit its corporate existence, unless the commissioner, upon written re…

(a) A newly chartered savings bank shall be entitled to a license fee to operate upon payment to the department of the appropriate license fee as prescribed by the commissioner and upon evidence presented to the commissioner of the following:(a) Capable, efficient and equitable m…

Any amendment to the certificate of incorporation of a state savings bank shall be made at any annual or special meeting of such savings bank upon approval by a majority of votes or shares cast by members or stockholders present in person or by proxy at such meeting. Any amendmen…

Every stock savings bank organized and operated under the provisions of this chapter shall at all times keep a current list of the names of all its stockholders. Whenever called upon by the commissioner, a stock savings bank shall file in the office of the commissioner a correct …

(1) Any state savings bank may apply to the commissioner for permission to establish a branch office. The application shall be in such form as may be prescribed by the commissioner and shall be approved or denied by the commissioner within one hundred twenty (120) days of filing.…

The board of directors of a state savings bank may change the location of a branch office or the principal office of the savings bank with the prior written approval of the commissioner. The commissioner may request, and the savings bank shall provide, such information as the com…

The commissioner may, for good cause and after a hearing, order the closing of a branch office. Such order shall be made in writing to the savings bank and shall fix a reasonable time to close the branch office.

No branch office in this state may be discontinued or abandoned without the consent in writing of the commissioner first obtained.