31.12.413 - Low-income credit unions -- Director's approval required -- Powers -- Rules.

Low-income credit unions — Director's approval required — Powers — Rules.

(1) A credit union may apply in writing to the director for designation as a low-income credit union. The criteria for approval of this designation are as follows:

     (a) At least fifty percent of a substantial and well-defined segment of the credit union's members or potential primary members earn no more than eighty percent of the state or national median income, whichever is higher;

     (b) The credit union must submit an acceptable written plan on marketing to and serving the well-defined segment;

     (c) The credit union must agree to submit annual reports to the director on its service to the well-defined segment; and

     (d) The credit union must submit other information and satisfy other criteria as may be required by the director.

     (2)(a) Among other powers and authorities, a low-income credit union may:

     (i) Issue secondary capital accounts approved in advance by the director upon application of the credit union; and

     (ii) Accept shares and deposits from nonmembers.

     (b) A secondary capital account is:

     (i) Over one hundred thousand dollars, or a higher amount as established by the director;

     (ii) Nontransactional;

     (iii) Owned by a nonnatural person; and

     (iv) Subordinate to other creditors.

     (3) The director may adopt rules for the organization and operation of low-income credit unions including, but not limited to, rules concerning secondary capital accounts and requiring disclosures to the purchasers of the accounts.

[2001 c 83 § 16.]