17-2212.   Capital and revenue of credit union; right of setoff; dormantaccounts; unmatured shares; transfer to reserve fund, when.(a) The capital of a credit union shall consist of the payments that havebeen made to such credit union on alltypes of shares. A credit unionshall have a lien and right of setoff on the shares and onthe dividends or other earningspayable thereon for and to the extent of any obligation of the member orother shareholder and ofanydues and fines payable by the member or other shareholder. A credit union, upon the resignationor expulsion of a member, may cancel the shares of such member and applythewithdrawal value of such shares toward the liquidation of the member'sindebtedness.

      (b)   A credit union may charge a membership fee, as may beestablished by the board of directors. Fully paid-up shares of a creditunion may be transferred to anyperson upon election to membership, upon such terms as the board may establish.Any money received in the share account of any memberwhich has not matured to one full share within a three-year period shallbe refunded to such member. If such member cannot be located after duediligence by the officer in charge of operations or other authorized personor employee, such money shall betransferred to the reserve fund. Such due diligence shall include the sendingto the member at the last known address of the member a notice of the intendedaction to transfer money to the reserve fund. For the purposesof this section, the last known address of the member is the address givenby the member in any writing signed by the member and shown on the recordsof the credit union. Unless and until the member notifies the credit unionof a new or different address, the given address is presumed to be unchanged.

      (c)   At such time as the location of the member, beneficiary or other personnamed on any share account is unknown to the credit union and there hasnot been any activity generated by the member, shareholder, or other personnamed on the account for 12 monthsor longer, such account may be considered a dormant account and maybe placed in a separate grouping under a control system which will adequatelyidentify such accounts. Adequate controls shall be established to determinethe validity of significant activity on dormant accounts. This subsectionshall be subject to the provisions of K.S.A. 58-3901 et seq.,and any amendments thereto.

      History:   L. 1929, ch. 141, § 12; L. 1951, ch. 204, § 4; L. 1982,ch. 102, § 6;L. 1992, ch. 225, § 4; July 1.