§ 28-7-1-0.5 — Definitions

Indiana § 28-7-1-0.5

• Jurisdiction: Indiana
• Art. 7: SPECIALIZED FINANCIAL INSTITUTIONS
• Ch. 1: Credit Unions

Text

5. The following definitions apply throughout
this chapter:
(1) "Automated teller machine" (ATM) means a piece of
unmanned electronic or mechanical equipment that performs
routine financial transactions for authorized individuals.
(2) "Branch" office" means an office, agency, or other place of
business at which deposits are received, share drafts are paid, or
money is lent to members of a credit union. The term does not
include:
(A) the principal office of a credit union;
(B) the principal office of a credit union affiliate;
(C) a branch office of a credit union affiliate;
(D) an automated teller machine; or
(E) a night depository.
(3) "Credit union" is a cooperative, nonprofit association,
incorporated under this chapter, for the purposes of educating its
members in the concepts of thrift and to encourage savings among
its members. A credit union should provide a source of credit at
a fair and reasonable rate of interest and provide an opportunity
for its members to use and control their own money in order to
improve their economic and social condition.
(4) "Department" refers to the department of financial institutions.
(5) "Surplus" means the credit balance of undivided earnings after
losses. The term does not include statutory reserves.
(6) "Unimpaired shares" means paid in shares less any losses for
which no reserve exists and for which there is no charge against
undivided earnings.
(7) "Related credit union service organization" means, in
reference to a credit union, a credit union service organization (as
defined and formed under Part 712 of the regulations of the
National Credit Union Administration, 12 CFR 712) in which the
credit union has invested under section 9(a)(4) of this chapter.
(8) "Premises" means any office, branch, suboffice, service
center, parking lot, real estate, or other facility where the credit
union transacts or will transact business.
(9) "Furniture, fixtures, and equipment" means office furnishings,
office machines, computer hardware, computer software,
automated terminals, and heating and cooling equipment.
(10) "Fixed assets" means:
(A) premises; and
(B) furniture, fixtures, and equipment.
(11) "Audit period" means a twelve (12) month period designated
by the board of directors of a credit union.
(12) "Community" means:
(A) a second class city;
(B) a third class city;
(C) a town;
(D) a county other than a county containing a consolidated city;
(E) a census tract;
(F) a township; or
(G) any other municipal corporation (as defined in IC 36-1-2-10).
(13) "Control of a related interest" refers to a situation in which
an individual directly or indirectly, or through or in concert with
one (1) or more other individuals, possesses any of the following:
(A) The ownership of, control of, or power to vote at least
twenty-five percent (25%) of any class of voting securities of
the related interest.
(B) The control in any manner of the election of a majority of
the directors of the related interest.
(C) The power to exercise a controlling influence over the
management or policies of the related interest. For purposes of
this clause, an individual is presumed to have control, including
the power to exercise a controlling influence over the
management or policies of a related interest, if the individual:
(i) is an executive officer or a director of the related interest
and directly or indirectly owns, controls, or has the power to
vote more than ten percent (10%) of any class of voting
securities of the related interest; or
(ii) directly or indirectly owns, controls, or has the power to
vote more than ten percent (10%) of any class of voting
securities of the related interest and no other person owns,
controls, or has the power to vote a greater percentage of that
class of voting securities.
(14) "Executive officer" includes any of the following officers of
a credit union:
(A) The chairman of the board of directors.
(B) The president.
(C) A vice president.
(D) The cashier.
(E) The secretary.
(F) The treasurer.
(15) "Immediate family", for purposes of section 17.2 of this
chapter, means the spouse of an individual, the individual's minor
children, and any of the individual's children, including adults,
residing in the individual's home.
(16) "Officer" means any individual who is not solely a director
or committee member and participates or has the authority to
participate in major policymaking functions of a credit union,
regardless of whether:
(A) the individual has an official title;
(B) the individual's title designates the individual as an
assistant; or
(C) the individual is serving without salary or other
compensation.
(17) "Related interest", with respect to an individual, means:
(A) a partnership, a corporation, or another business
organization that is controlled by the individual; or
(B) a political campaign committee:
(i) controlled by the individual; or
(ii) the funds or services of which benefit the individual.
(18) Except as provided in section 9(a)(4) of this chapter, "capital
and surplus" means the sum of:
(A) undivided profits;
(B) reserve for contingencies;
(C) regular reserve; and
(D) allowance for credit losses, minus any adjustment for credit
loss allowance for available for sale (AFS) securities.
As added by Acts 1977, P.L.294, SEC.1. Amended by
P.L.263-1995, SEC.1; P.L.188-1997, SEC.9; P.L.192-1997, SEC.16;
P.L.11-1998, SEC.15; P.L.53-2002, SEC.1; P.L.141-2005, SEC.11;
P.L.213-2007, SEC.65; P.L.217-2007, SEC.63; P.L.90-2008, SEC.40;
P.L.35-2010, SEC.147; P.L.137-2014, SEC.26; P.L.129-2020, SEC.11;
P.L.30-2024, SEC.3.