17-2204.Powers of credit unions.
A credit union shall have the following powers:
(a) It may receive the savings of its members in payment for
shares, make
contracts, sue and be sued, and provide negotiable checks, money orders,
travelers checks, any other money type
instruments or transfer methods, safe deposit boxes or similar safekeeping
facilities to its members.
(b) It may make loans to members through the credit committee or
authorized
loan officer in the way and manner provided in K.S.A. 17-2201 et
seq., and amendments thereto.
(c) It may invest, through its board of directors
and under written investment policies established by the board:
(1) In all types of shares and accounts of a
corporate credit union, located in the state of Kansas and under the
supervision
of the administrator;
(2) in shares or accounts of any savings and loan association or
mutual savings bank the accounts of which are insured by an insurer
approved by the state in which it operates for guaranteeing the shares or
accounts of such institutions;
(3) in the bonds or other obligations of the United States of
America,
or securities fully guaranteed as to principal and interest thereby;
(4) in obligations of, or obligations issued by, any state or
political subdivision
thereof, including any agency, corporation or instrumentality of a state or
political subdivision, except that no credit union may invest more than 10%
of its shares, undivided earnings and reserves in the obligations of any
one issuer exclusive of general obligations of the issuer;
(5) in savings banks, state
banks, trust companies and national banks,
the accounts of which are insured by an insurer approved by the state in
which it operates for guaranteeing the shares or accounts of such institutions.
(6) Unless the administrator authorizes
otherwise, the funds of the credit union shall be used first for loans to
members and preference shall be given to the smaller loans in the event
the available funds do not permit all loans which have been approved by
a loan officer or have passed the credit committee to be made.
(d) It may enter into agreements with financial institutions
or organizations for the
extension of credit or debit services.
(e) It may do all things necessary to obtain, continue, pay for
and
terminate insurance of its shares and share certificates with the
national credit union share insurance fund or its successor or
successors or with an insurer approved by the
state commissioner of insurance or guarantee corporation approved by the
administrator under the provisions of this act for
such purpose.
(f) It may receive from its members or other insured
credit unions payments on shares and share certificates and may invest
its funds in shares, share certificates or other accounts of insured credit
unions. Except for investments in corporate credit unions, such
investments
may not exceed 25% of the investing credit unions' shares, undivided
earnings and reserves.
(g) A corporate credit union, as defined by
subsection (e) of K.S.A. 17-2231, and amendments thereto,
may buy and sell investment securities, as
defined by the administrator, but the total amount of such investment
securities of any one obligor or maker held by such credit union
shall at no time exceed 15% of the shares, undivided
earnings and reserves of the credit union except that this limit shall
not apply to obligations of the United States government or any agency
thereof.
(h) Credit unions may enter into agreements to discount or sell student loans
made pursuant to federally insured student loan programs under public
law 89-329, title IV part (b) of the higher education act of 1965 as
amended.
(i) A credit union may discount or sell to such
corporate credit union or
any financial institution or organization
any real estate loan made by the credit union.
(j) Credit unions may enter into agreements with a
corporate credit
union to discount or sell to such corporate
credit
union any obligation of the
United States government or any agency thereof, or of any state, municipality
or any agency thereof, if the obligation at the
time of purchase was a legal investment for credit unions.
(k) It may provide that shares and share certificates may be
withdrawn
for payment to the account holder or to third parties, in such manner and
in accordance with such procedures as may be established by the board of
directors.
(l) Every credit union incorporated pursuant to or operating
under
the provisions of this act may exercise such powers, including incidental
powers, as shall be necessary or requisite to enable it to carry on effectively
the purposes and business for which it is incorporated.
(m) A credit union may receive from the national credit union
central
liquidity facility created by title III of the federal credit union act,
12 U.S.C. 1795, et seq., payments on: (1) Shares which may be
issued at varying
dividend rates; (2) share certificates which may be issued at
varying dividend
rates and maturities; and (3) investments in any other accounts of
the
credit union. A credit
union may invest its funds in the capital stock of the national credit union
central liquidity facility.
(n) Subject to written guidelines issued by the administrator,
a credit
union may purchase notes made by individual borrowers to a financial
institution
at such prices as may be agreed upon by the board of directors of the purchasing
credit union. No purchase may be made, however, under authority of this
subsection, unless approved in writing by the administrator, if, upon the
making of that purchase, the aggregate of the unpaid balances of notes of
nonmembers purchased under authority of this subsection would exceed 5%
of the shares, undivided earnings and reserves of the credit union.
(o) Subject to rules and regulations adopted by the administrator, a
credit union, if designated by the administrator as a low-income credit union,
may accept payments to share accounts by nonmembers.
Such rules and
regulations shall specify the maximum level of non-member shares, the use of
such shares, the term of such accounts and other requirements to address
safety and soundness issues. Non-member account holders do not have the same
rights and privileges as members.
History: L. 1929, ch. 141, § 4; L. 1951, ch. 204, § 1; L.
1955, ch. 138, § 1; L. 1968, ch. 160, § 3; L. 1969, ch. 112, § 56; L.
1971, ch. 75, § 1; L. 1972, ch. 58, § 1; L. 1974, ch. 98, § 1; L.
1975, ch. 136, § 3; L. 1977, ch. 75, § 1; L. 1981, ch. 101, § 2;
L. 1982, ch. 103, § 2; L. 1984, ch. 90, § 1;
L. 1987, ch. 85, § 1;
L. 1992, ch. 225, § 1;
L. 1995, ch. 64, § 1; July 1.
17-2204.Powers of credit unions.
A credit union shall have the following powers:
(a) It may receive the savings of its members in payment for
shares, make
contracts, sue and be sued, and provide negotiable checks, money orders,
travelers checks, any other money type
instruments or transfer methods, safe deposit boxes or similar safekeeping
facilities to its members.
(b) It may make loans to members through the credit committee or
authorized
loan officer in the way and manner provided in K.S.A. 17-2201 et
seq., and amendments thereto.
(c) It may invest, through its board of directors
and under written investment policies established by the board:
(1) In all types of shares and accounts of a
corporate credit union, located in the state of Kansas and under the
supervision
of the administrator;
(2) in shares or accounts of any savings and loan association or
mutual savings bank the accounts of which are insured by an insurer
approved by the state in which it operates for guaranteeing the shares or
accounts of such institutions;
(3) in the bonds or other obligations of the United States of
America,
or securities fully guaranteed as to principal and interest thereby;
(4) in obligations of, or obligations issued by, any state or
political subdivision
thereof, including any agency, corporation or instrumentality of a state or
political subdivision, except that no credit union may invest more than 10%
of its shares, undivided earnings and reserves in the obligations of any
one issuer exclusive of general obligations of the issuer;
(5) in savings banks, state
banks, trust companies and national banks,
the accounts of which are insured by an insurer approved by the state in
which it operates for guaranteeing the shares or accounts of such institutions.
(6) Unless the administrator authorizes
otherwise, the funds of the credit union shall be used first for loans to
members and preference shall be given to the smaller loans in the event
the available funds do not permit all loans which have been approved by
a loan officer or have passed the credit committee to be made.
(d) It may enter into agreements with financial institutions
or organizations for the
extension of credit or debit services.
(e) It may do all things necessary to obtain, continue, pay for
and
terminate insurance of its shares and share certificates with the
national credit union share insurance fund or its successor or
successors or with an insurer approved by the
state commissioner of insurance or guarantee corporation approved by the
administrator under the provisions of this act for
such purpose.
(f) It may receive from its members or other insured
credit unions payments on shares and share certificates and may invest
its funds in shares, share certificates or other accounts of insured credit
unions. Except for investments in corporate credit unions, such
investments
may not exceed 25% of the investing credit unions' shares, undivided
earnings and reserves.
(g) A corporate credit union, as defined by
subsection (e) of K.S.A. 17-2231, and amendments thereto,
may buy and sell investment securities, as
defined by the administrator, but the total amount of such investment
securities of any one obligor or maker held by such credit union
shall at no time exceed 15% of the shares, undivided
earnings and reserves of the credit union except that this limit shall
not apply to obligations of the United States government or any agency
thereof.
(h) Credit unions may enter into agreements to discount or sell student loans
made pursuant to federally insured student loan programs under public
law 89-329, title IV part (b) of the higher education act of 1965 as
amended.
(i) A credit union may discount or sell to such
corporate credit union or
any financial institution or organization
any real estate loan made by the credit union.
(j) Credit unions may enter into agreements with a
corporate credit
union to discount or sell to such corporate
credit
union any obligation of the
United States government or any agency thereof, or of any state, municipality
or any agency thereof, if the obligation at the
time of purchase was a legal investment for credit unions.
(k) It may provide that shares and share certificates may be
withdrawn
for payment to the account holder or to third parties, in such manner and
in accordance with such procedures as may be established by the board of
directors.
(l) Every credit union incorporated pursuant to or operating
under
the provisions of this act may exercise such powers, including incidental
powers, as shall be necessary or requisite to enable it to carry on effectively
the purposes and business for which it is incorporated.
(m) A credit union may receive from the national credit union
central
liquidity facility created by title III of the federal credit union act,
12 U.S.C. 1795, et seq., payments on: (1) Shares which may be
issued at varying
dividend rates; (2) share certificates which may be issued at
varying dividend
rates and maturities; and (3) investments in any other accounts of
the
credit union. A credit
union may invest its funds in the capital stock of the national credit union
central liquidity facility.
(n) Subject to written guidelines issued by the administrator,
a credit
union may purchase notes made by individual borrowers to a financial
institution
at such prices as may be agreed upon by the board of directors of the purchasing
credit union. No purchase may be made, however, under authority of this
subsection, unless approved in writing by the administrator, if, upon the
making of that purchase, the aggregate of the unpaid balances of notes of
nonmembers purchased under authority of this subsection would exceed 5%
of the shares, undivided earnings and reserves of the credit union.
(o) Subject to rules and regulations adopted by the administrator, a
credit union, if designated by the administrator as a low-income credit union,
may accept payments to share accounts by nonmembers.
Such rules and
regulations shall specify the maximum level of non-member shares, the use of
such shares, the term of such accounts and other requirements to address
safety and soundness issues. Non-member account holders do not have the same
rights and privileges as members.
History: L. 1929, ch. 141, § 4; L. 1951, ch. 204, § 1; L.
1955, ch. 138, § 1; L. 1968, ch. 160, § 3; L. 1969, ch. 112, § 56; L.
1971, ch. 75, § 1; L. 1972, ch. 58, § 1; L. 1974, ch. 98, § 1; L.
1975, ch. 136, § 3; L. 1977, ch. 75, § 1; L. 1981, ch. 101, § 2;
L. 1982, ch. 103, § 2; L. 1984, ch. 90, § 1;
L. 1987, ch. 85, § 1;
L. 1992, ch. 225, § 1;
L. 1995, ch. 64, § 1; July 1.
17-2204.Powers of credit unions.
A credit union shall have the following powers:
(a) It may receive the savings of its members in payment for
shares, make
contracts, sue and be sued, and provide negotiable checks, money orders,
travelers checks, any other money type
instruments or transfer methods, safe deposit boxes or similar safekeeping
facilities to its members.
(b) It may make loans to members through the credit committee or
authorized
loan officer in the way and manner provided in K.S.A. 17-2201 et
seq., and amendments thereto.
(c) It may invest, through its board of directors
and under written investment policies established by the board:
(1) In all types of shares and accounts of a
corporate credit union, located in the state of Kansas and under the
supervision
of the administrator;
(2) in shares or accounts of any savings and loan association or
mutual savings bank the accounts of which are insured by an insurer
approved by the state in which it operates for guaranteeing the shares or
accounts of such institutions;
(3) in the bonds or other obligations of the United States of
America,
or securities fully guaranteed as to principal and interest thereby;
(4) in obligations of, or obligations issued by, any state or
political subdivision
thereof, including any agency, corporation or instrumentality of a state or
political subdivision, except that no credit union may invest more than 10%
of its shares, undivided earnings and reserves in the obligations of any
one issuer exclusive of general obligations of the issuer;
(5) in savings banks, state
banks, trust companies and national banks,
the accounts of which are insured by an insurer approved by the state in
which it operates for guaranteeing the shares or accounts of such institutions.
(6) Unless the administrator authorizes
otherwise, the funds of the credit union shall be used first for loans to
members and preference shall be given to the smaller loans in the event
the available funds do not permit all loans which have been approved by
a loan officer or have passed the credit committee to be made.
(d) It may enter into agreements with financial institutions
or organizations for the
extension of credit or debit services.
(e) It may do all things necessary to obtain, continue, pay for
and
terminate insurance of its shares and share certificates with the
national credit union share insurance fund or its successor or
successors or with an insurer approved by the
state commissioner of insurance or guarantee corporation approved by the
administrator under the provisions of this act for
such purpose.
(f) It may receive from its members or other insured
credit unions payments on shares and share certificates and may invest
its funds in shares, share certificates or other accounts of insured credit
unions. Except for investments in corporate credit unions, such
investments
may not exceed 25% of the investing credit unions' shares, undivided
earnings and reserves.
(g) A corporate credit union, as defined by
subsection (e) of K.S.A. 17-2231, and amendments thereto,
may buy and sell investment securities, as
defined by the administrator, but the total amount of such investment
securities of any one obligor or maker held by such credit union
shall at no time exceed 15% of the shares, undivided
earnings and reserves of the credit union except that this limit shall
not apply to obligations of the United States government or any agency
thereof.
(h) Credit unions may enter into agreements to discount or sell student loans
made pursuant to federally insured student loan programs under public
law 89-329, title IV part (b) of the higher education act of 1965 as
amended.
(i) A credit union may discount or sell to such
corporate credit union or
any financial institution or organization
any real estate loan made by the credit union.
(j) Credit unions may enter into agreements with a
corporate credit
union to discount or sell to such corporate
credit
union any obligation of the
United States government or any agency thereof, or of any state, municipality
or any agency thereof, if the obligation at the
time of purchase was a legal investment for credit unions.
(k) It may provide that shares and share certificates may be
withdrawn
for payment to the account holder or to third parties, in such manner and
in accordance with such procedures as may be established by the board of
directors.
(l) Every credit union incorporated pursuant to or operating
under
the provisions of this act may exercise such powers, including incidental
powers, as shall be necessary or requisite to enable it to carry on effectively
the purposes and business for which it is incorporated.
(m) A credit union may receive from the national credit union
central
liquidity facility created by title III of the federal credit union act,
12 U.S.C. 1795, et seq., payments on: (1) Shares which may be
issued at varying
dividend rates; (2) share certificates which may be issued at
varying dividend
rates and maturities; and (3) investments in any other accounts of
the
credit union. A credit
union may invest its funds in the capital stock of the national credit union
central liquidity facility.
(n) Subject to written guidelines issued by the administrator,
a credit
union may purchase notes made by individual borrowers to a financial
institution
at such prices as may be agreed upon by the board of directors of the purchasing
credit union. No purchase may be made, however, under authority of this
subsection, unless approved in writing by the administrator, if, upon the
making of that purchase, the aggregate of the unpaid balances of notes of
nonmembers purchased under authority of this subsection would exceed 5%
of the shares, undivided earnings and reserves of the credit union.
(o) Subject to rules and regulations adopted by the administrator, a
credit union, if designated by the administrator as a low-income credit union,
may accept payments to share accounts by nonmembers.
Such rules and
regulations shall specify the maximum level of non-member shares, the use of
such shares, the term of such accounts and other requirements to address
safety and soundness issues. Non-member account holders do not have the same
rights and privileges as members.
History: L. 1929, ch. 141, § 4; L. 1951, ch. 204, § 1; L.
1955, ch. 138, § 1; L. 1968, ch. 160, § 3; L. 1969, ch. 112, § 56; L.
1971, ch. 75, § 1; L. 1972, ch. 58, § 1; L. 1974, ch. 98, § 1; L.
1975, ch. 136, § 3; L. 1977, ch. 75, § 1; L. 1981, ch. 101, § 2;
L. 1982, ch. 103, § 2; L. 1984, ch. 90, § 1;
L. 1987, ch. 85, § 1;
L. 1992, ch. 225, § 1;
L. 1995, ch. 64, § 1; July 1.