17-2217. Reserve income; payments into reserve fund; rules and regulations.
17-2217
17-2217. Reserve income; payments into reserve
fund; rules and regulations.
All entrance fees, transfer fees and charges shall, after the payment of
the organization expenses, be known as reserve income, and shall be
added to the reserve fund of the credit union. At the close of the
fiscal year or each dividend paying period there shall be set apart to
the reserve fund, such sums as are provided for in this section.
(a) A credit union shall comply with the reserve requirements of the
national credit union administration rules and regulations, 12 C.F.R. 702 in
effect on the effective date of this act, or any later version as adopted by
the administrator in rules and regulations.
(b) A corporate credit union, in lieu of other reserve requirements, at a
minimum, shall set aside an amount equal to the average daily net assets of the
corporate credit union, as defined by the administrator, multiplied by .0005
and then multiplied by the number of days in the transfer period divided by
365, until the total amount of the corporate credit union's reserves, undivided
earnings and membership shares equal 4% of the net assets of the corporate
credit union. The administrator may decrease the amounts required to be set
aside by this subsection when in the administrator's opinion such decrease is
necessary or desirable.
(c) The reserve fund shall belong to the credit union and
shall be
held to meet losses on loans. Other losses may be charged to the reserve
fund with prior approval of the credit union administrator. The reserve
fund shall not be distributed to the members
except 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.