Title 32, Title 32

Existing credit unions may include within their field of membership limited-income persons, as defined by the department of administration, for whom credit union services are otherwise unavailable.

Members who leave the field of membership may be permitted to retain their membership in the credit union as a matter of general policy of the board of directors.

The members of the credit union shall not be personally or individually liable for the payment of its debts.

(1) The annual meeting and any special meetings of the members of the credit union must be held at the time, place, and in the manner indicated by the bylaws. (2) At all meetings a member has only one vote, irrespective of the member's shareholdings. A member may not vote by prox…

(1) A credit union may elect to dissolve voluntarily and liquidate its affairs in the manner prescribed in this section. (2) The board of directors shall adopt a resolution recommending the credit union be dissolved voluntarily and directing that the question of liquidation be su…

(1) Any credit union may, with the approval of the department of administration, merge with another credit union under the existing charter of the other credit union, pursuant to any plan agreed upon by the majority of the board of directors of each credit union joining in the me…

(1) A credit union chartered under the laws of this state may be converted to a credit union chartered under the laws of any other state or under the laws of the United States, subject to regulations issued by the department of administration. (2) A credit union chartered under t…

A credit union may: (1) make contracts as provided for in this chapter; (2) sue and be sued; (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 di…

A credit union may exercise such incidental powers as are granted corporations organized under the laws of this state, including those that are necessary to enable it to promote and carry on most effectively its purposes.

(1) The credit union must be directed by a board, consisting of an odd number of at least five directors, to be elected at the annual membership meeting by and from the members. All members of the board shall hold office for terms that the bylaws provide. (2) The board of directo…

Within 30 days after election or appointment, a record of the names and addresses of the members of the board, committees, and all officers of the credit union must be filed with the department of administration on forms provided by the department.

(1) The board of directors shall fill any vacancies occurring in the board within 60 days. An individual appointed to fill a vacancy shall serve until successors elected at the next annual meeting have qualified or as provided in the bylaws. (2) The board shall also fill vacancie…

(1) An official of the credit union, other than the treasurer or an employee, may not be compensated for service in that position. (2) For the purposes of this section, the following payments are allowed and are not considered compensation: (a) necessary expenses incidental to th…

A director, committee member, officer, agent, or employee of the credit union may not in any manner, directly or indirectly, participate in the deliberation upon or the determination of any question affecting the person's pecuniary interest or the pecuniary interest of any corpor…

(1) At their next meeting following each annual meeting of the members, the directors shall elect from their own number: (a) a presiding officer of the board; (b) one or more vice presiding officers of the board; (c) a treasurer; and (d) a secretary. (2) The treasurer and the sec…

The board of directors shall have the general direction of the business affairs, funds, and records of the credit union.

From the persons elected to the board, the board may appoint an executive committee of not less than three directors who may be authorized to act for the board in all respects, subject to such conditions and limitations as are prescribed by the board.

(1) Either the board of directors or the executive committee shall meet each month. The board of directors or the executive committee may meet at other times as necessary. (2) Unless specifically prohibited by the bylaws, directors and members of the supervisory committee or cred…

(1) A credit union may use a credit committee or a credit manager to approve or disapprove loans under conditions the board of directors prescribes. (2) The credit committee or the credit manager may appoint one or more loan officers with the power to approve loans, subject to li…

(1) The board of directors or supervisory committee shall make or cause to be made a comprehensive annual audit of the books and affairs of the credit union and shall submit a report of that audit to the board of directors and a summary of that report to the members at the next a…

(1) The supervisory committee by a unanimous vote may suspend any official until the next membership meeting, which must be held not less than 7 or more than 21 days after the suspension. At the meeting, the suspension must be acted upon by the members. (2) Any member of the supe…

The supervisory committee by a majority vote may call a special meeting of the members to consider any violation of this chapter, the credit union's charter or bylaws, or any practice of the credit union deemed by the supervisory committee to be unsafe or unauthorized.

(1) General duties of directors include but are not limited to: (a) acting in good faith, in a manner the directors reasonably believe to be in the best interests of the credit union's membership, with the care, including reasonable inquiry, that an ordinarily prudent director in…

(1) The capital of a credit union consists of the payments by the members on shares. (2) Shares may be subscribed to, paid for, and transferred in a manner as the bylaws prescribe. (3) A certificate need not be issued to denote ownership of a share in a credit union. (4) This cha…

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. Th…

Christmas clubs, vacation clubs, and other thrift accounts may be operated under conditions established by the board of directors.

Shares may be issued to a minor who may withdraw the shares including the dividends and interest thereon. Share payments made by a minor and withdrawals thereof by the minor shall be valid in all respects. For such purposes a minor is deemed of full age.

(1) A member may designate any person or persons to hold shares and thrift club accounts with the member in joint tenancy with the right of survivorship, as a tenant in common, or under any other form of multiple-party account ownership permitted by law and allowed by the credit …

(1) Shares may be issued in the name of a revocable trust if the settlor is a member, or shares may be issued in the name of an irrevocable trust if either the settlor or the beneficiary is a member. A beneficiary, unless a member in the beneficiary's own right, may not be permit…

The credit union has a lien on the shares and accumulated dividends or interest of a member in the member's individual, joint, or trust account for any sum past due the credit union from the member or for any loan endorsed by the member.

When administering member accounts that are dormant, unclaimed, or abandoned, a credit union shall comply with the Uniform Unclaimed Property Act provided for in Title 70, chapter 9, part 8.

(1) Whenever the losses of any credit union, resulting from a depreciation in value of its loans or investments or otherwise, exceed its undivided earnings and reserve fund so that the estimated value of its assets is less than the total amount due the shareholders, the credit un…

Shares 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.

Every application for a loan must be made upon a form prescribed by the credit union. The application must state the security, if any, offered. Each loan must be evidenced by a written document or electronic data capable of being converted into written form.

No loan shall be made to any member in an aggregate amount in excess of 10% of the credit union's total assets.

(1) In addition to generally accepted types of security, the endorsement of a note by a surety, comaker, or guarantor or pledge of shares, in a manner consistent with the laws of this state, must be considered security within the meaning of this chapter. The adequacy of any secur…

A member may receive a loan in installments or in one sum and may pay the whole or any part of the loan on any day on which the office of the credit union is open for business.

Upon their own motion or upon application by a member, the credit committee or credit manager may approve a line of credit in advance, and advances may be granted to each member within the limit of such extension of credit. Where a line of credit has been approved, no additional …

(1) A credit union may participate in loans to credit union members jointly with other credit unions, corporations, or financial organizations. (2) A credit union may participate in guaranteed loan programs of the federal and state government. (3) A credit union may purchase the …

(1) (a) Except as provided in subsection (1)(b), a credit union may make loans to its officials if: (i) the loan complies with the requirements of this chapter with respect to loans to other borrowers and is not on terms more favorable than those extended to other borrowers; and …

(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 t…

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, part…

(1) Each credit union shall maintain insurance on its share accounts under the provisions of Title II of the Federal Credit Union Act or through a legally constituted insurance plan approved by the commissioner of insurance and the department of administration. (2) A credit union…

(1) 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 in…

The department of administration may require a credit union to establish and maintain, at a certain level, a regular reserve account as a contingency to address potential losses. The department may rely on standards adopted by the national credit union administration (NCUA) in ma…

The regular reserve account belongs to the credit union and must be used to meet losses including, with prior approval of the department of administration, losses from the sale of investments or securities. The regular reserve account may not be used to meet losses resulting from…