Sec. 36a-456a. Shares; secondary capital accounts; share insurance.
Sec. 36a-456a. Shares; secondary capital accounts; share insurance. (a) The
par value of shares of a Connecticut credit union shall be five dollars or any multiple
thereof, provided such par value shall not exceed one hundred dollars.
(b) A Connecticut credit union may receive payments on shares and permit withdrawals of payments on shares with the exception of membership shares in accordance
with such credit union's bylaws and the Deposit Account Contract Act, sections 36a-315 to 36a-323, inclusive, except that the governing board may require members to give
sixty days' notice of intention to withdraw the whole or any part of their shares or
payments on shares, including membership shares.
(c) A Connecticut credit union may, with the written approval of the commissioner
and subject to applicable restrictions of state and federal law, receive from members
payments on shares that qualify as part of a retirement plan for self-employed individuals
or an individual retirement account in accordance with the applicable provisions of the
Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code
of the United States, as from time to time amended. Such payments on shares shall be
established in a separate account from the shares of the member, and shall not be subject
to pledge to secure extensions of credit by the Connecticut credit union to the member
or be available for set-off by the Connecticut credit union if the member defaults on an
extension of credit. Such shares shall be treated as under separate ownership for purposes
of applying any limit imposed by the governing board pursuant to its authority under
subdivision (5) of subsection (a) of section 36a-448a, on the maximum amount of shares
owned by a member. Otherwise, such shares are subject to all of the provisions of this
chapter relating to shares.
(d) A Connecticut credit union may receive payments on shares which the member
agrees in writing not to withdraw within the time period specified in the agreement.
(e) A Connecticut credit union may receive payments from a nonmember who is
(1) an individual, into a share account held jointly with a member of the Connecticut
credit union, which share account is subject to the provisions of section 36a-290; (2)
the United States, this state or any municipality or other political subdivision thereof;
(3) a federally-recognized Native American tribal government located in this state; or
(4) another Connecticut credit union, federal credit union or out-of-state credit union.
(f) A Connecticut credit union that has received a low-income designation from the
National Credit Union Administration, or its successor agency, under 12 CFR 701.34,
as from time to time amended, may offer secondary capital accounts to any person other
than an individual, subject to the requirements and conditions imposed on federally-chartered, low-income designated credit unions under 12 CFR 701.34, as from time to
time amended.
(g) A Connecticut credit union shall maintain in full force and effect share insurance
as required under the Federal Credit Union Act. Any Connecticut credit union that fails
to maintain in full force and effect such share insurance shall terminate its corporate
existence under such terms and conditions as the commissioner deems appropriate.
(h) A Connecticut credit union may obtain from an insurance company licensed
and qualified to do business in this state share insurance coverage that exceeds the
maximum allowable under the Federal Credit Union Act.
(i) Without being required to take any action to attach or perfect a lien, a Connecticut
credit union shall have and may impress and enforce a lien on the shares of each member
to secure the payment of all absolute and contingent liabilities of such member to the
Connecticut credit union.
(P.A. 02-73, S. 54; P.A. 03-84, S. 57.)
History: P.A. 03-84 changed "Commissioner of Banking" to "commissioner" in Subsecs. (c) and (g), effective June
3, 2003.