ARTICLE10.  CREDIT UNIONS

 

PART I. GENERAL PROVISIONS

 

§412:10-100  Definitions.  The followingdefinitions shall apply in construing this article unless such applicationwould produce a result clearly inconsistent with the context of the statutoryprovision:

"Capital" means share accounts,membership shares, reserves and undivided earnings.

"Common bond" means persons or groupsof persons, including members of the immediate family of persons within suchgroups, having a similar profession or occupation, being members of the sameindustry or trade, belonging to the same trade union; being members of the sameassociation, club, or other organization; residing within an identifiableneighborhood, community, rural district, or county; being employed by a commonemployer; or being employed by the credit union.

"Corporate credit union" means acredit union whose field of membership consists primarily of other creditunions.

"Credit union" means a cooperative,nonprofit association, chartered under this chapter for the purposes ofencouraging thrift among its members, creating a source of credit at a fair andreasonable rate of interest, and providing an opportunity for its members touse and control their own money to improve their economic and social condition.

"Credit union service organization"means any organization which is established primarily to serve the needs of itsmember credit unions, and whose business relates to the daily operations of thecredit unions it serves.

"Deposit account" means a balanceheld by a credit union and established by a member, another credit union or agovernmental unit in accordance with standards established by the board ofdirectors of the credit union including balances designated as deposits,deposit certificates, checking accounts or other names.  Ownership of a depositaccount does not represent an interest in the capital of the credit union upondissolution or conversion to another type of institution.  A deposit account isa debt owed by the credit union to the account holder.

"Federal power" means any activity,right, privilege, or immunity granted to any federal credit union under anyfederal statute, rule, regulation, interpretation, or court decision.

"Field of membership" means the groupor category of persons eligible for membership in a credit union who share acommon bond.

"Fixed asset" means a structure,land, computer hardware and software, and equipment.

"Insolvent" means the condition thatresults when the cash value of assets realizable in a reasonable time is lessthan the liabilities that must be met within that time.

"Membership share" means a balanceheld by a credit union and established by a member in accordance with standardsspecified by the credit union.  Each member may own only one membership share. Ownership of a membership share confers membership and voting rights.

"Members of the immediate family"shall be defined in the credit union's bylaws and may include persons relatedby blood or marriage, as well as foster and adopted children.

"Reserves" means allocations ofretained earnings and includes regular and special reserves, except for anyallowances for loan losses and investment losses.

"Residential real property" meansreal property on which is situated a dwelling unit comprised of not more thanfour family units, the primary use of which is occupancy as a home, andincludes, without limitation, a condominium or cooperative apartment.

"Share" or "share account"means a balance held by a credit union and established by a member inaccordance with standards specified by the credit union including balancesdesignated as "regular shares," "share draft accounts,""share certificates," "membership shares" or other names. Ownership of a share account represents an interest in the capital of thecredit union upon dissolution or conversion to another type of institution. [L1993, c 350, pt of §1]