Search OpenLegislation Statutes
This entry was published on 2014-09-22
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
Corporate credit unions
§ 453. Corporate credit unions. 1. A corporate credit union may be
incorporated under this section and shall be subject to all provisions
of this article not inconsistent with this section.

2. Membership in a corporate credit union shall be institutional and
shall be limited to: credit unions organized under this article, the
Federal Credit Union Act or any other credit union act, and
organizations or associations owned by or composed of credit unions and
corporations and associations which primarily service credit unions.

3. The board of directors of each credit union, organization,
association or corporation becoming a member of a corporate credit union
shall designate one person to be a voting representative in the
corporate credit union. Such person shall be eligible to hold office in
the corporate credit union as if such person were a member of the
corporate credit union.

4. A corporate credit union is a credit union whose members consist
primarily of other credit unions and whose purposes are to:

(a) accumulate and prudently manage the liquidity of its member credit
unions through interlending and investment services;

(b) act as an intermediary for credit union funds between members and
other corporate credit unions;

(c) obtain liquid funds from other credit union organizations,
financial intermediaries and other sources;

(d) foster and promote in cooperation with other state, regional and
national corporate credit unions and credit union organizations or
associations the economic security, growth and development of member
credit unions; and

(e) perform such other financial services of benefit to its members
which are authorized by the superintendent.

5. A corporate credit union shall enjoy the powers and privileges of
any other credit union incorporated under this chapter in addition to
those powers enumerated in this article, notwithstanding any limitation
or restrictions found elsewhere in this article. The superintendent of
financial services may promulgate such regulations concerning the
establishment and operations of corporate credit unions as in its
discretion are necessary and proper. Subject to such regulations, a
corporate credit union may:

(a) accept shares or deposits in any form from its members, other
state, regional or national corporate credit unions, and credit union
organizations or associations;

(b) make loans to its members and other credit unions and other state,
regional, or national corporate credit unions, organizations and
associations of credit unions;

(c) establish lines of credit for members and participate with other
credit unions in making loans to its members under the terms and
conditions determined by the board of directors;

(d) invest in the shares of or make deposits in credit unions;

(e) buy and sell any form of marketable debt obligations of domestic
or foreign corporations or of federal, state or local government units;

(f) borrow money, accept demand deposits and issue notes or

(g) acquire or sell the assets and assume the liabilities of a member;

(h) enter into agreements with credit unions to discount or purchase
loans made pursuant to government-guaranteed loan programs, real estate
loans made by members or any obligations of the United States or any
agency thereof held by members.

6. A corporate credit union shall be exempt from the reserve
requirements of section four hundred fifty-eight-a of this article, but
shall be required to accumulate and maintain reserves in accordance with
the requirements of the National Credit Union Administration.