§644. Powers
A.Every credit union incorporated pursuant to or operating under the provisions of
this Chapter shall have all the powers enumerated, authorized, and permitted by this Chapter
and such other rights, privileges, and powers as may be incidental to or reasonably necessary
or appropriate for the accomplishment of the objects and purposes of the credit union; to
enter into such contracts, incur such obligations, and generally do anything necessary or
appropriate to take advantage of all membership, loans, subscriptions, contracts, grants,
rights, or privileges whatsoever which at any time may be available or inure to credit unions
by virtue of any act or resolution of the Congress of the United States, particularly any act
of Congress creating a federal credit union system, and re
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§644. Powers
A. Every credit union incorporated pursuant to or operating under the provisions of
this Chapter shall have all the powers enumerated, authorized, and permitted by this Chapter
and such other rights, privileges, and powers as may be incidental to or reasonably necessary
or appropriate for the accomplishment of the objects and purposes of the credit union; to
enter into such contracts, incur such obligations, and generally do anything necessary or
appropriate to take advantage of all membership, loans, subscriptions, contracts, grants,
rights, or privileges whatsoever which at any time may be available or inure to credit unions
by virtue of any act or resolution of the Congress of the United States, particularly any act
of Congress creating a federal credit union system, and regulations issued pursuant thereto.
B. Among others, and except as otherwise limited by the provisions of this Chapter,
every credit union shall have the following powers:
(1) To receive the savings of its members in payment for shares.
(2) To make loans exclusively to members.
(3) To invest, through its board of directors, in:
(a) Bonds, certificates, notes, or other evidence of indebtedness of the United States,
state of Louisiana, or any municipality of Louisiana, including paving certificates of
municipalities, and in federal farm loan bonds issued by federal land banks, debentures
issued by federal intermediate credit banks, and debentures issued by banks for cooperatives;
such investments may be by book entry and such book entry investments may be pledged as
security for loans.
(b) Homestead stock.
(c) The shares of other credit unions. It may deposit funds in savings banks, state
banks, trust companies, and national banks. The funds of the credit union shall be used first,
however, for loans to members, and preference shall be given to the smaller loan if available
funds do not permit all loans to be made which have passed the credit committee. Such
investments or deposits may be by book entry and such investments or deposits in the U.S.
Central Credit Union and the Louisiana Corporate Credit Union may be pledged as security
for loans.
(d) Shares, stocks, loans, or other obligations of any organization, corporation,
limited liability company, or association, provided the membership or ownership, as the case
may be, of such organization, corporation, limited liability company, or association is
primarily confined or restricted to credit unions, or organizations of credit unions, and
provided further the purpose for which it is organized is to strengthen or advance the
development of credit unions or credit union organizations. No such investment shall exceed
one percent of the credit union's capital and surplus.
(e) Investments authorized by law for fiduciaries and approved by the commissioner
of financial institutions.
(4)(a) When duly authorized by its board of directors, to lend to any other credit
unions at such rates as shall be fixed and determined by the board of directors, not exceeding
twenty-five percent of the paid in and unimpaired capital and surplus of the lending credit
union.
(b) As evidence of its indebtedness, the borrowing credit union shall execute its
promissory note or other written agreement to pay, signed by two of its board officers and
shall furnish a certified copy of the resolution of its board of directors to the lending credit
union, authorizing the borrowing. The borrowing credit union shall also furnish a financial
statement of its condition as of the last day of the preceding month of the application for such
loans.
(c) The limitation of Subparagraph (4)(a) that such loans not exceed twenty-five
percent of the unimpaired capital and surplus of the lending credit union shall not apply to
credit unions commonly referred to as corporate credit unions and central credit unions,
which credit unions are defined as credit unions whose field of membership primarily
includes other credit unions, officers of other credit unions, or eligible employee groups, or
both.
(d) Repealed by Acts 1992, No. 27, §2.
(5) To purchase from any liquidating credit union notes made by individual members
of the liquidating credit union at such prices as may be agreed upon by the board of directors
of the liquidating credit union and the board of directors of the purchasing credit union.
(6) To invest in and operate a credit union service center, either separately or in
cooperation with other credit unions and credit union organizations.
(7) To collect, receive, and disburse money in connection with the sale of money
orders and travelers checks and other money type instruments, and for other purposes as may
provide benefit or convenience for its members.
(8) To obtain and maintain insurance of its member accounts or share accounts by
the National Credit Union Administration, or other federal agency, or state agency or state
share insurance corporation of any state, established for the purpose of insuring member
accounts or share accounts of credit unions, including any investment that may be required
in a share insurance corporation.
(9) To purchase or otherwise provide insurance for the benefit or convenience of its
members.
(10) To charge reasonable collection fee incurred in the collection of a delinquent
loan to the delinquent member's loan account.
(11) To exercise the powers granted corporations organized under the laws of the
state of Louisiana and such incidental powers as may be necessary or requisite to promote
and carry on effectively its purposes.
(12) To receive from any officer, employee, or agent of those nonmember units of
the United States, the state of Louisiana, any parish, or municipality, and political
subdivision thereof, payments on shares, share certificates and share deposits.
(13) To act as trustee and custodian under the Employee Retirement Income Security
Act of 1974 (P.L. 93-406), as amended, and the Self-Employed Individuals Tax Retirement
Act of 1962. The bylaws shall provide for recordkeeping and segregation of assets and for
credit union operations, consistent with the principles of sound custodial administration.
(14) To become a member of the Central Liquidity Facility of the National Credit
Union Administration.
(15) To become a member of any federal or state or private corporation that provides
electronic funds transfer.
(16) To provide all types of transaction accounts for its members.
(17) To offer its members savings promotion raffles. The term "savings promotion
raffle" means a contest in which the sole consideration required for a chance of winning
designated prizes is obtained by the deposit of a specified amount of money in an interest-bearing share account, where each ticket or entry has an equal chance of being drawn.