17-2213.   Shares to minors; joint tenancy shareholdings; trust accounts;credit union can act as trustee or custodian.(a) Any credit union may receive money for the payment of shares from minorsor in the name of minors and may pay the same to such minors whether ornot the minors are emancipated until receiving a certified copy of theappointment of a legal guardian of such minor. Payments so made shalldischarge the credit union forever from any further liability on account ofsuch shareholdings for the money so paid by the credit union.

      (b)   Shares may beissued in the name of a minor and in trust in such way and manner as bylawsprovide. All types of shares may be held in the name of a member in trustfor a beneficiary or beneficiaries or in the name of a nonmember in trustfor a beneficiary who is a member. Beneficiaries may be minors, but no beneficiaryunless a member shall be permitted to vote, obtain loans, hold office orbe required to pay an entrance or membership fee. Payment of part or allof such a trust account to the party in whose name the account is heldshall, to the extent of such payment, discharge the liability of the creditunion to that party and to the beneficiary and the credit union shall beunder no obligation to see to the application of such payment. In the eventof death of the party in whose name a trust account is held the funds shallbe paid to the beneficiary.

      (c)   A member may designate any person or persons, including minors, tohold shares with such member in joint tenancy with the right of survivorship,but no joint tenant, unless a member shall be permitted tovote, obtain loans, or hold office or be required to pay an entrance feeor membership fee. Such joint tenancy shareholdingsor any part thereof or any dividends or earnings due orpayable thereon may be paid to or on order of any joint tenant, whether theother or others be living or not; and the receipt, order, or acquittance ofthe persons so paid shall be a valid and sufficient release and dischargeto the credit union for any payment so made.

      (d)   A credit union is authorized to act as trustee or custodian, and mayreceive reasonable compensation for so acting, under any written trust instrumentor custodial agreement created or organized in the United States and formingpart of a pension plan which qualifies or qualified for specific tax treatmentunder section 401(d) or 408 of the internal revenue code, for its membersor groups or organizations of its members, provided the funds of such plansare invested in share accounts or share certificate accounts of the credit union.

      The plan shall provide for the appointment of a successor trustee or custodianby a person, committee, corporation or organization other than the creditunion or any person acting in a capacity as a director, employee or agentof the credit union, upon notice from the credit union or the administratorthat the credit union is unwilling or unable to continue to act as trusteeor custodian.

      History:   L. 1929, ch. 141, § 13; L. 1963, ch. 140, § 8; L. 1982,ch. 102, § 7; L. 1983, ch. 83, § 1; July 1.