17-2214. Corporate credit unions; powers; lending to members; credit unions lending to each other, approval.
17-2214
17-2214. Corporate credit unions; powers; lending to members; credit unions lending to each other, approval. (a) Subject to rules and regulations prescribed by the administrator, corporate credit unions shall have the following additional powers to:
(1) Provide access for its shareholders on a mutual basis to financial systems and the services and products of financial institutions;
(2) provide its shareholders with research and consulting services concerning financial matters, institutions and products;
(3) provide financial system support services and facilities;
(4) establish and execute financial programs to assist its shareholders in meeting their needs;
(5) provide safekeeping or trustee services to or on behalf of its shareholders;
(6) issue shares or classes of shares with such terms and conditions as may vary from other shares authorized by this act as the administrator shall approve including, but not limited to, and notwithstanding the provisions of K.S.A. 17-2230, and amendments thereto, the subordination of such shares to other shares of the credit union and the liability for a designated class of shares to be reduced in accordance with K.S.A. 17-2225, and amendments thereto, without reducing the liability on all other shares, except that, such shares shall have a redemption priority in liquidation or termination of membership no earlier than provided to other shares authorized by this act; and
(7) purchase from or sell to its members participation interests in loans made by the corporate credit union or its members.
(b) A corporate credit union may lend to each member no more than 25% of its assets, except that other credit unions, operating under the provisions of this act, may lend to each other only with the approval of the administrator, up to 25% of the shares, undivided earnings and reserves of the lending credit union.
(c) Subject to written policies adopted by its board of directors and approved by the administrator, a corporate credit union may:
(1) Make loans to;
(2) receive payments on shares, share certificates or investments in any other account of the corporate credit union from; or
(3) invest its funds in shares, stock or obligations of, organizations established to provide operational and financial services associated with the routine operations of credit unions.
Any investments in the capital stock of or loans to such organizations shall not exceed, in the aggregate, 2% of such credit union's shares and unimpaired capital.
History: L. 1929, ch. 141, § 14; L. 1951, ch. 204, § 5; L. 1965, ch. 153, § 4; L. 1968, ch. 160, § 7; L. 1970, ch. 88, § 1; L. 1973, ch. 85, § 134; L. 1988, ch. 97, § 1; L. 1992, ch. 225, § 5; July 1.