370.070. Powers of a credit union.
Powers of a credit union.
370.070. A credit union has the following powers:
(1) To receive the savings of its members in payment forshares; and in addition to membership shares and general shares,there may also be created various classes of special shares,which special shares, notwithstanding any other provisions ofthis chapter, may be issued upon such terms, rates of interestand conditions as the board of directors may provide;
(2) To make loans to members;
(3) To deposit its funds and purchase certificates ofdeposit in state and national banks;
(4) To invest its funds in securities as provided in thischapter. The funds of the credit union shall be used first,however, for loans to members in the way and manner hereinafterprovided, and preference shall be given to the small loan in theevent the available funds do not permit all loans which have beenapproved by the credit committee;
(5) To purchase, hold and dispose of property, real andpersonal, necessary and incidental to its operation. Anyproperty, real or personal, not used in the business but acquiredby way of pledge or foreclosure in the collection of loans oraccounts, may be held by the credit union, provided any realestate so acquired shall be sold by it within six years from thedate on which it was acquired;
(6) To purchase insurance for the benefit of the creditunion and its members;
(7) To make contracts, sue and be sued;
(8) With the approval of the director of the division ofcredit unions, to make loans to other credit unions, in the totalamount not exceeding twenty percent of its capital, surplus andreserve funds;
(9) To provide for such special thrift accounts on suchterms and conditions as the board of directors may determine notinconsistent with the bylaws;
(10) With the prior approval of the director of thedivision of credit unions, to provide to members fiscal andfinancial services, including temporary services to bona fidemembers of other credit unions, and to exercise such otherincidental powers as are granted to general business corporationsorganized under the laws of this state, including such powers asare convenient or useful to enable it to promote and carry onmost effectively its purposes, and all at a fee to be determinedby the board of directors;
(11) To participate with another lender or other lenders inmaking loans. Such loans may be made on a secured or unsecuredbasis upon such terms and conditions as the board of directors ofthe credit union shall authorize;
(12) To purchase from or sell to other lenders or holdersof loans any loan or loan participation interest in loans made byanother lender;
(13) To lend, in an amount not to exceed two percent of theshares and deposits of the credit union, to any credit unionassociation of which the credit union is a member or anysubsidiary of such credit union association.
(RSMo 1939 § 5524, A.L. 1945 p. 689, A. 1949 H.B. 2091, A.L. 1951 p. 289, A.L. 1965 p. 566, A.L. 1967 p. 508, A.L. 1972 S.B. 502, A.L. 1984 H.B. 962, A.L. 1986 H.B. 1193, A.L. 1994 H.B. 1312)Prior revision: 1929 § 5082
CROSS REFERENCE:
Multinational banks, securities and obligations of, investment in, when, RSMo 409.950