7-9-44 - Corporate central credit union.
7-9-44. Corporate central credit union.
(1) A credit union in which all credit unions, the Utah League of Credit Unions and itsaffiliates are eligible for membership may be established in this state and shall be known as acorporate central credit union.
(2) The corporate central credit union has all the powers and rights granted credit unionsestablished under this chapter. The maximum loan by a corporate central credit union shall beestablished in the corporate central credit union bylaws.
(3) Beginning January 1, 1984, and at the end of each dividend period, the corporatecentral credit union, in lieu of a regular reserve as provided in Section 7-9-30, shall transfer 2% ofits gross earnings to its central reserve until the reserve equals 1-1/2% of total assets. If thecentral reserve falls below 1-1/2% of total assets, it shall be replenished by regular transfers of2% of gross earnings or by contributions, whichever is less, in such amounts as are needed tomaintain the central reserve at 1-1/2% of total assets.
(4) Charges may be made against the central reserve to the extent permitted against aregular reserve. No other charges may be made against the central reserve, except as authorizedin writing by the commissioner.
(5) The purposes of the corporate central credit union are:
(a) to accumulate and prudently manage the liquidity of its member credit unions throughinterlending and investment services;
(b) to act as an intermediary for credit union funds between members, other corporatecredit unions, other financial institutions, and government agencies;
(c) to obtain liquid funds from other credit union organizations, financial intermediaries,and other sources;
(d) to foster and promote, in cooperation with other state, regional, and national corporatecredit unions and credit union organizations or associations, the economic security, growth, anddevelopment of member credit unions; and
(e) to perform other financial services of benefit to its members authorized by thecommissioner.
(6) The corporate central credit union is exempt from supervision fees but is subject toexamination fees.
Amended by Chapter 267, 1989 General Session