17-2217.   Reserve income; payments into reservefund; rules and regulations.All entrance fees, transfer fees and charges shall, after the payment ofthe organization expenses, be known as reserve income, and shall beadded to the reserve fund of the credit union. At the close of thefiscal year or each dividend paying period there shall be set apart tothe reserve fund, such sums as are provided for in this section.

      (a)   A credit union shall comply with the reserve requirements of thenational credit union administration rules and regulations, 12 C.F.R. 702 ineffect on the effective date of this act, or any later version as adopted bythe administrator in rules and regulations.

      (b)   A corporate credit union, in lieu of other reserve requirements, at aminimum, shall set aside an amount equal to the average daily net assets of thecorporate credit union, as defined by the administrator, multiplied by .0005and then multiplied by the number of days in the transfer period divided by365, until the total amount of the corporate credit union's reserves, undividedearnings and membership shares equal 4% of the net assets of the corporatecredit union. The administrator may decrease the amounts required to be setaside by this subsection when in the administrator's opinion such decrease isnecessary or desirable.

      (c)   The reserve fund shall belong to the credit union andshall beheld to meet losses on loans. Other losses may be charged to the reservefund with prior approval of the credit union administrator. The reservefund shall not be distributed to the membersexcept upon dissolution of the credit union.

      History:   L. 1929, ch. 141, § 17;L. 1941, ch. 181, § 5;L. 1965, ch. 153, § 6;L. 1968, ch. 160, § 8;L. 1971, ch. 77, § 1;L. 1975, ch. 136, § 6;L. 1981, ch. 101, § 7;L. 1992, ch. 225, § 9;L. 2001, ch. 84, § 1; Apr. 12.