§ 11-30-104 — Powers

Colorado § 11-30-104

• Jurisdiction: Colorado
• Title 11: Financial
• Art.: Credit Unions - General Provisions

Text

(1) A credit union has the following powers to:

(a) Receive the savings of its members either as payment on shares or as
deposits, including the right to conduct Christmas clubs, vacation clubs, and other
such thrift organizations or plans within the membership;

(b) Make loans to its members;

(c) Make loans to other credit unions as provided in this article;

(d) Deposit in state and national financial institutions insured by an agency of
the federal government and to invest in the shares and deposits of the central
credit union organized pursuant to this article;

(e) Invest in any of the following: Obligations of the United States or
securities guaranteed or insured by any agency of the United States; obligations of
any state or territory of the United States, or of any political subdivision or
instrumentality thereof, except revenue obligations issued to provide, enlarge, or
improve electric power, gas, water, or sewer facilities, or any combination thereof,
issued by any city or town, or other similar municipal corporation having a
population of less than five thousand persons, as determined by the latest federal
decennial census; and, to an extent which shall not exceed ten percent of its
shares, deposits, and undivided earnings, in shares of mutual funds or investment
companies, stocks, bonds, or other securities of any corporation or religious or
educational organizations, as may be approved as prudent and sound by the
commissioner;

(f) Borrow money as provided in section 11-30-115;

(g) Apply for and hold membership in a central credit union organized
pursuant to this article, in any other central credit union authorized to transact
business in this state, and in any organization or association of credit unions;

(h) Acquire, through purchase or other lawful transactions, and to hold title
to real and personal property necessary and incidental to the operation of the credit
union, and to sell, mortgage, or otherwise dispose of the same;

(i) Exercise such incidental powers as shall be necessary to enable it to carry
on effectively the business for which it is incorporated;

(j) Upon the written approval of the commissioner, engage in any activity in
which such credit union could engage were it operating under a federal charter at
the time, provided such activity is not prohibited by the laws of this state;

(k) Sell all or any portion of its assets and purchase all or any portion of the
assets of another credit union and assume the liabilities of the selling credit union
and its field of membership, subject to the approval of the commissioner;

(l) Allow shares and deposits to be paid for, transferred, and withdrawn for
payment to the account holder or to third parties in such manner and with such
procedures as may be established by the board of directors. This paragraph (l) shall
apply only with respect to share draft accounts in which the entire beneficial
interest is held by one or more individuals or members or by an organization which
is operated primarily for religious, philanthropic, charitable, educational, or other
similar purposes and which is not operated for profit.

(m) Make loans to, or permit the assumption of loans by, officers or
employees of the division who are members of the credit union;

(n) Participate with other credit unions, credit union organizations, or
financial organizations in making loans to credit union members when the borrower
is a member of either the credit union originating the loan or the credit union
purchasing a participation interest in the loan;

(o) Act as trustee or custodian of individual retirement accounts for the
credit union's members authorized by federal or state law or as trustee or custodian
of any plan established pursuant to the federal Self-Employed Individuals Tax
Retirement Act of 1962, as amended, or the federal Employee Retirement Income
Security Act of 1974, as amended, if a significant portion of the participants in any
such plan are eligible for membership in the credit union and the funds held in the
trustee or custodial capacity are invested in the credit union's shares or deposits;

(p) Act as fiscal agent for and receive payments on shares and deposits from
nonmember units of the federal government or the state of Colorado or any agency
or political subdivision thereof;

(q) Receive payment on deposits from nonmember financial institutions
which are supervised under the laws of this state, the United States, or another
state or territory of the United States.

(2) As authorized pursuant to section 10-2-601 (2), C.R.S., a credit union may,
pursuant to federal law or under such rules as may be adopted by the financial
services board or the commissioner of insurance pursuant to section 10-2-601,
C.R.S., act as the agent, through the credit union or any credit union service
organization, for any insurance company authorized to do business in this state by
soliciting and selling insurance and collecting premiums on policies issued by such
company. For such services, a credit union or credit union service organization may
receive such fees or commissions as may be agreed between such entity and the
insurance company.

Legislative History

Source: L. 31: p. 297, � 4. CSA: C. 47, � 4. L. 41: p. 372, � 4. CRS 53: � 38-1-4. C.R.S. 1963: � 38-1-4. L. 67: p. 316, � 3. L. 75: (1)(d) amended, p. 394, � 1, effective June 16; (1)(j) added, p. 374, � 3, effective June 26. L. 79: (1)(k) added, p. 415, � 1, effective July 1. L. 81: (1)(l) and (1)(m) added, p. 612, � 1, effective July 1. L. 83: (1)(k) amended and (1)(n) and (1)(o) added, p. 484, � 3, effective July 1. L. 84: (1)(d) and (1)(e) amended and (1)(p) and (1)(q) added, p. 373, � 3, effective July 1. L. 90: (1)(e), (1)(j), (1)(k), and (1)(m) amended, p. 1837, � 8, effective May 31. L. 96: (1)(q) amended, p. 185, � 2, effective April 8. L. 97: (2) added, p. 432, � 8, effective April 24. L. 2003: (1)(m) amended, p. 1207, � 7, effective July 1. L. 2004: (1)(m) and (1)(n) amended, p. 130, � 2, effective July 1.