17-2214.   Corporate credit unions; powers; lending to members; creditunions lending to each other, approval.(a) Subject to rules and regulations prescribed by the administrator,corporate credit unions shall have the following additional powers to:

      (1)   Provide access for its shareholders on a mutual basis to financialsystems and the services and products of financial institutions;

      (2)   provide its shareholders with research and consulting servicesconcerning financial matters, institutions and products;

      (3)   provide financial system support services and facilities;

      (4)   establish and execute financial programs to assist its shareholders inmeeting their needs;

      (5)   provide safekeeping or trustee services to or on behalf of itsshareholders;

      (6)   issue shares or classes of shares with such terms and conditions asmay vary from other shares authorized by this act as the administrator shallapprove including, but not limited to, and notwithstanding the provisions ofK.S.A. 17-2230, and amendments thereto, the subordination of such shares toother shares of the credit union and the liability for a designated class ofshares to be reduced in accordance with K.S.A. 17-2225, and amendments thereto,without reducing the liability on all other shares, except that, such sharesshall have a redemption priority in liquidation or termination of membership noearlier than provided to other shares authorized by this act; and

      (7)   purchase from or sell to its members participation interests in loansmade by the corporate credit union or its members.

      (b)   A corporate credit union may lend to each member nomore than 25%of its assets, except that other credit unions, operatingunder the provisions of this act, may lend to each other only with theapproval of the administrator, up to 25% of theshares, undivided earnings and reserves of the lending credit union.

      (c)   Subject to written policies adopted by its board of directors andapproved by the administrator, a corporate credit union may:

      (1)   Make loans to;

      (2)   receive payments on shares, share certificates or investments in anyother account of the corporate credit union from; or

      (3)   invest its funds in shares, stock or obligations of, organizationsestablished to provide operational and financial services associated withthe routine operations of credit unions.

      Any investments in the capital stock of or loans to such organizationsshall not exceed, in the aggregate, 2% of such credit union's shares andunimpaired capital.

      History:   L. 1929, ch. 141, § 14; L. 1951, ch. 204, § 5; L. 1965,ch. 153, § 4; L. 1968, ch. 160, § 7; L. 1970, ch. 88,§ 1; L. 1973, ch. 85, § 134;L. 1988, ch. 97, § 1;L. 1992, ch. 225, § 5; July 1.