17-2212. Capital and revenue of credit union; right of setoff; dormant accounts; unmatured shares; transfer to reserve fund, when.
17-2212
17-2212. Capital and revenue of credit union; right of setoff; dormant
accounts; unmatured shares; transfer to reserve fund, when.
(a) The capital of a credit union shall consist of the payments that have
been made to such credit union on all
types of shares. A credit union
shall have a lien and right of setoff on the shares and on
the dividends or other earnings
payable thereon for and to the extent of any obligation of the member or
other shareholder and of
any
dues and fines payable by the member or other shareholder. A credit union, upon the resignation
or expulsion of a member, may cancel the shares of such member and apply
the
withdrawal value of such shares toward the liquidation of the member's
indebtedness.
(b) A credit union may charge a membership fee, as may be
established by the board of directors. Fully paid-up shares of a credit
union may be transferred to any
person upon election to membership, upon such terms as the board may establish.
Any money received in the share account of any member
which has not matured to one full share within a three-year period shall
be refunded to such member. If such member cannot be located after due
diligence by the officer in charge of operations or other authorized person
or employee, such money shall be
transferred to the reserve fund. Such due diligence shall include the sending
to the member at the last known address of the member a notice of the intended
action to transfer money to the reserve fund. For the purposes
of this section, the last known address of the member is the address given
by the member in any writing signed by the member and shown on the records
of the credit union. Unless and until the member notifies the credit union
of 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 person
named on any share account is unknown to the credit union and there has
not been any activity generated by the member, shareholder, or other person
named on the account for 12 months
or longer, such account may be considered a dormant account and may
be placed in a separate grouping under a control system which will adequately
identify such accounts. Adequate controls shall be established to determine
the validity of significant activity on dormant accounts. This subsection
shall 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.