§ 7-9-44 — Corporate central credit union.

Utah § 7-9-44

• Jurisdiction: Utah
• Title 7: Financial Institutions Act
• Ch. 7-9: Utah Credit Union Act

Text

(1) A credit union in which all credit unions, a bona fide trade association of authorized credit unions recognized by the commissioner, and its affiliates are eligible for membership may be established in this state and shall be known as a corporate central credit union.
(2) The corporate central credit union has all the powers and rights granted credit unions established under this chapter. The maximum loan by a corporate central credit union shall be established in the corporate central credit union bylaws.
(3) Beginning January 1, 1984, and at the end of each dividend period, the corporate central credit union, in lieu of a regular reserve as provided in Section 7-9-30, shall transfer 2% of its gross earnings to its central reserve until the reserve equals 1-1/2% of total assets. If the central reserve falls below 1-1/2% of total assets, it shall be replenished by regular transfers of 2% of gross earnings or by contributions, whichever is less, in such amounts as are needed to maintain the central reserve at 1-1/2% of total assets.
(4) Charges may be made against the central reserve to the extent permitted against a regular reserve. No other charges may be made against the central reserve, except as authorized in writing by the commissioner.
(5) The purposes of the corporate central credit union are:

(5)(a) to accumulate and prudently manage the liquidity of its member credit unions through interlending and investment services;
(5)(b) to act as an intermediary for credit union funds between members, other corporate credit unions, other financial institutions, and government agencies;
(5)(c) to obtain liquid funds from other credit union organizations, financial intermediaries, and other sources;
(5)(d) to foster and promote, in cooperation with other state, regional, and national corporate credit unions and credit union organizations or associations, the economic security, growth, and development of member credit unions; and
(5)(e) to perform other financial services of benefit to its members authorized by the commissioner.
(6) The corporate central credit union is exempt from supervision fees but is subject to examination fees.

Legislative History

Amended by Chapter 97, 2014 General Session