§ 54-109.21. General powers.
Article14C.
Powers of Credit Union.
§ 54‑109.21. Generalpowers.
A credit union may:
(1) Make contracts;
(2) Sue and be sued;
(3) Adopt and use acommon seal and alter the seal;
(4) Acquire, lease, holdand dispose of property, either in whole or in part, necessary or incidental toits operations;
(5) At the discretion ofthe board of directors, require the payment of an entrance fee or annualmembership fee, or both, of any person admitted to membership;
(6) Receive savings fromits members in the form of shares, deposits, or special‑purpose thriftaccounts;
(7) Lend its funds toits members as provided in Articles 14A to 14L of this Chapter;
(8) Borrow from anysource in accordance with policy established by the board of directors;
(9) Discount and sellany eligible obligations, subject to rules adopted by the Administrator;
(10) Sell all orsubstantially all of its assets or purchase all or substantially all of theassets of another financial institution, subject to the approval of theAdministrator of Credit Unions;
(11) Invest surplus fundsas provided in Articles 14A to 14L of this Chapter;
(12) Make deposits inlegally chartered banks, savings institutions, trust companies and central‑typecredit union organizations;
(13) Assess charges tomembers in accordance with the bylaws for failure to meet properly theirobligations to the credit union;
(14) Hold membership inother credit unions organized under Articles 14A to 14L of this Chapter orother acts, and in other associations and organizations composed of creditunions;
(15) Declare dividends;pay interest on deposits and pay interest refunds to borrowers as provided inArticles 14A to 14L of this Chapter;
(16) Sell travelers checksand money orders and charge a reasonable fee for such services, provided thetravelers checks are payable at institutions other than a credit union;
(17) Perform tasks andmissions requested by the federal government or this State or any agency orpolitical subdivision thereof, when approved by the board of directors and notinconsistent with Articles 14A to 14L of this Chapter;
(18) Act as fiscal agentfor and receive deposits from the federal government, this State, or any agencyor political subdivision thereof;
(19) Contribute to,support, or participate in any nonprofit service facility whose services willbenefit the credit union or its membership subject to rules adopted by theAdministrator;
(20) Make donations orcontributions to any civic, charitable or community organization as authorizedby the board of directors, subject to such regulations as are prescribed by theAdministrator;
(21) Act as a custodian ofqualified pension funds if permitted by federal law;
(22) Purchase or makeavailable insurance for its directors, officers, agents, employees, andmembers; and
(23) Facilitate itsmembers' purchase of goods and services in a manner which promotes the purposesof the credit union.
(24) The board ofdirectors may expel from the corporation any member who has not carried out theengagement the member made with the corporation, has been convicted of a felonyor crime involving moral turpitude, or neglects or refuses to comply with theprovisions of this Article or of the bylaws. The Board may, after notice andhearing as provided in this subdivision, expel from the corporation any memberwho because of the member's intemperance disrupts the activities of the creditunion or who because of the member's habitual neglect of financial obligationsreflects discredit upon the credit union. No member shall be expelled untilinformed in writing of the charges made and given an opportunity, afterreasonable notice, to be heard.
(25) Engage in activitypermitted under this subdivision. Notwithstanding any other provision of thisChapter, the Administrator of Credit Unions, subject to the advice and consentof the Credit Union Commission, and upon a finding that action is necessary topreserve and protect the welfare of credit unions and to promote the generaleconomy of the State, may adopt rules allowing State‑chartered creditunions to engage in any activity in which they could engage if they werefederally chartered credit unions.
(26) Subject to rulesadopted by the Administrator, act as trustee or custodian, and receivereasonable compensation for so acting, under any written trust instrument orcustodial agreement created or organized and forming a part of a deferredcompensation plan for its members or groups or organizations of its members,provided the funds of the plans are invested in savings or deposits of the creditunion. All funds held may be commingled for the purpose of investment, butindividual records shall be kept by the credit union for each participant andshall show in proper detail all transactions engaged in under authority of thissubdivision.
A member may withdraw from acredit union by filing a written notice of intent to withdraw.
The amounts paid in on sharesor deposits by an expelled or withdrawing member, with any dividends creditedto the shares and any interest accrued on the deposits to the date of expulsionor withdrawal shall be paid to the member, but in the order of expulsion orwithdrawal, and only as funds therefor become available, after deducting anyamounts due to the credit union by the member. The member shall have no otheror further right in the credit union or to any of its benefits, but theexpulsion or withdrawal shall not operate to relieve the member from anyremaining liability to the credit union. (1915, c. 115, ss. 5, 16, 17,23; C.S., ss. 5216‑5218, 5231; 1925, c. 73, ss. 3, 10; 1935, c. 87; 1965,c. 956, s. 8; 1975, c. 538, s. 1; 1977, c. 559, s. 5; 1983, c. 568, s. 2; 1991,c. 651, s. 3.)