453 - Corporate credit unions.

§  453.  Corporate  credit  unions. 1. A corporate credit union may be  incorporated under this section and shall be subject to  all  provisions  of this article not inconsistent with this section.    2.  Membership  in a corporate credit union shall be institutional and  shall be limited to: credit unions organized  under  this  article,  the  Federal   Credit   Union   Act  or  any  other  credit  union  act,  and  organizations or associations owned by or composed of credit unions  and  corporations and associations which primarily service credit unions.    3.  The  board  of  directors  of  each  credit  union,  organization,  association or corporation becoming a member of a corporate credit union  shall designate  one  person  to  be  a  voting  representative  in  the  corporate  credit union. Such person shall be eligible to hold office in  the corporate credit union as if  such  person  were  a  member  of  the  corporate credit union.    4.  A  corporate  credit union is a credit union whose members consist  primarily of other credit unions and whose purposes are to:    (a) accumulate and prudently manage the liquidity of its member credit  unions through interlending and investment services;    (b) act as an intermediary for credit union funds between members  and  other corporate credit unions;    (c)  obtain  liquid  funds  from  other  credit  union  organizations,  financial intermediaries and other sources;    (d) 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    (e)  perform  such  other financial services of benefit to its members  which are authorized by the superintendent.    5. A corporate credit union shall enjoy the powers and  privileges  of  any  other  credit  union incorporated under this chapter in addition to  those powers enumerated in this article, notwithstanding any  limitation  or  restrictions  found elsewhere in this article. The banking board may  promulgate such regulations concerning the establishment and  operations  of  corporate  credit  unions  as  in  its  discretion are necessary and  proper. Subject to such regulations, a corporate credit union may:    (a) accept shares or deposits in any  form  from  its  members,  other  state,  regional  or  national corporate credit unions, and credit union  organizations or associations;    (b) make loans to its members and other credit unions and other state,  regional,  or  national  corporate  credit  unions,  organizations   and  associations of credit unions;    (c)  establish  lines of credit for members and participate with other  credit unions in making  loans  to  its  members  under  the  terms  and  conditions determined by the board of directors;    (d) invest in the shares of or make deposits in credit unions;    (e)  buy  and sell any form of marketable debt obligations of domestic  or foreign corporations or of federal, state or local government units;    (f)  borrow  money,  accept  demand  deposits  and  issue   notes   or  debentures;    (g) acquire or sell the assets and assume the liabilities of a member;  and    (h)  enter  into agreements with credit unions to discount or purchase  loans made pursuant to government-guaranteed loan programs, real  estate  loans  made  by  members  or any obligations of the United States or any  agency thereof held by members.    6.  A  corporate  credit  union  shall  be  exempt  from  the  reserve  requirements  of section four hundred fifty-eight-a of this article, butshall be required to accumulate and maintain reserves in accordance with  the requirements of the National Credit Union Administration.