Indiana § 28-7-1-10.1 Illegal members; purging of accounts; loans not affected

Indiana Statutes

§ 28-7-1-10.1 — Illegal members; purging of accounts; loans not affected

Indiana § 28-7-1-10.1

Art. 7SPECIALIZED FINANCIAL INSTITUTIONS

Ch. 1Credit Unions

This text of Indiana § 28-7-1-10.1 (Illegal members; purging of accounts; loans not affected) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 28-7-1-10.1 (2026).

Text

1. The department shall consider a person, a firm, a corporation, or an organization to be an illegal member if the person, firm, corporation, or organization:

(1)became a member of a credit union; and

(2)did not qualify under section 10(a) of this chapter or the articles of incorporation of the credit union. The membership of any illegal member, as determined by the department, shall be terminated and all accounts shall be purged from the active share accounts of the credit union within the period specified in writing by the department. However, a loan agreement between a terminated member and the credit union is unaffected by the termination and, if a loan involving an illegal member is secured by shares, the share account, to the extent encumbered by the loan, remains valid until unen

Free access — add to your briefcase to read the full text and ask questions with AI

1. The department shall consider a person,
a firm, a corporation, or an organization to be an illegal member if the
person, firm, corporation, or organization:
(1) became a member of a credit union; and
(2) did not qualify under section 10(a) of this chapter or the
articles of incorporation of the credit union.
The membership of any illegal member, as determined by the
department, shall be terminated and all accounts shall be purged from
the active share accounts of the credit union within the period specified
in writing by the department. However, a loan agreement between a
terminated member and the credit union is unaffected by the
termination and, if a loan involving an illegal member is secured by
shares, the share account, to the extent encumbered by the loan,
remains valid until unencumbered.