§ 28-7-1-19 — Capital; lien on shares; transfer of shares; use of secondary capital; safety and soundness; regulations regarding prompt corrective action and risk based net worth

Indiana § 28-7-1-19

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

Text

(a) The capital of a credit union shall consist
of the payments on shares which have been made to it by members. A
credit union may attach a lien on the shares of any member with
outstanding obligations to the credit union. A credit union may, upon
the resignation of a member, cancel the shares of such member, and
apply the withdrawal value of such shares towards the liquidation of
the member's obligations. Fully paid up shares of a credit union may be
transferred to any qualified member upon such terms as the bylaws
provide. If a federal credit union is authorized by the federal regulatory
authority with jurisdiction or by federal law to use one (1) or more
forms of secondary capital, the department may by rule, order, or
declaratory ruling allow a credit union to use one (1) or more forms of
secondary capital. The rule, order, or declaratory ruling must include
disclosure requirements concerning the conditions for return of the
secondary capital and the liquidation priority of the secondary capital.
(b) A credit union shall maintain capital consistent with the safety
and soundness necessary to support the risk in the credit union's
activities, as determined appropriate by the director. The National
Credit Union Administration's:
(1) prompt corrective action; and
(2) risk based net worth;
regulations set forth in 12 CFR 702.101, 12 CFR 702.102, 12 CFR
702.103, 12 CFR 702.104, and 12 CFR 702.105 apply to all credit
unions.
Formerly: Acts 1961, c.182, s.19; Acts 1969, c.133, s.5. As
amended by P.L.263-1995, SEC.17; P.L.35-2010, SEC.160;
P.L.197-2023, SEC.14.