Article 14C.

Powers of Credit Union.

§ 54-109.21.  General powers.

(a) A credit union may:

(1) Make contracts.

(2) Sue and be sued.

(3) Adopt and use a common seal and alter the seal.

(4) Acquire, lease, hold and dispose of property, either in whole or in part, necessary or incidental to its present and future operations.

(5) At the discretion of the board of directors, require the payment of an entrance fee or annual membership fee, or both, of any person admitted to membership.

(6) Receive funds from persons in the form of shares, deposits, or special-purpose thrift accounts.

(7) Lend its funds to its members as provided in Articles 14A to 15A of this Chapter.

(8) Borrow from any source in accordance with policy established by the board of directors.

(9) Discount and sell any eligible obligations, subject to rules adopted by the Administrator.

(10) Sell all or substantially all of its assets or purchase all or substantially all of the assets of another financial institution, subject to the approval of the Administrator.

(11) Invest its funds as provided in Articles 14A to 15A of this Chapter.

(12) Make deposits in legally chartered banks, savings institutions, trust companies and corporate credit unions.

(13) Assess charges to members in accordance with the bylaws for failure to meet properly their obligations to the credit union.

(14) Hold membership in other credit unions organized under this Chapter or other acts, in other associations and organizations composed of credit unions, and in organizations or associations fostering the interests of credit unions or providing services to credit unions.

(15) Declare dividends, pay interest on deposits, and pay interest refunds to borrowers as provided in Articles 14A to 15A of this Chapter.

(16) Offer related financial services, including travelers checks, money orders, other negotiable instruments, electronic transfer of funds, safe deposit boxes, custodial services, and correspondent services and charge a reasonable fee for these services.

(17) Perform tasks and missions requested by the federal government or this State or any agency or political subdivision thereof, when approved by the board of directors and not inconsistent with Articles 14A to 15A of this Chapter.

(18) Act as fiscal agent for and receive deposits from the federal government, this State, or any agency or political subdivision thereof.

(19) Contribute to, support, or participate in any nonprofit service facility whose services will benefit the credit union or its membership subject to rules adopted by the Administrator.

(20) Make donations or contributions to any civic, charitable or community organization as authorized by the board of directors, subject to rules adopted by the Administrator.

(21) Act as a custodian of qualified pension funds if permitted by federal law.

(22) Purchase or make available insurance for its directors, officers, agents, employees, and members. Insurance may be provided through any insurance company or through any subsidiary insurance company owned by the credit union.

(23) Facilitate its members' purchase of goods and services in a manner that promotes the purposes of the credit union.

(24) Expel any member or reduce services for cause. A member expelled for cause may appeal in writing to the board of directors. Upon consideration of the member's appeal, the board may reinstate the member or uphold the expulsion. No member shall be expelled until informed in writing of the expulsion.

(25) Notwithstanding any other provision of Articles 14C to 14J of this Chapter, upon 45-day written notice to the Administrator and subject to the Administrator's written disapproval during the 45-day period if the Administrator concludes the credit union is not well-capitalized or well-managed as demonstrated by the supervisory rating it received during its most recent safety and soundness examination, engage in any activity or exercise any power in which it could engage or exercise if it were a federally chartered credit union, subject to similar approval provisions, if any, applicable to federally chartered credit unions with respect to the activity or power.

(26) Subject to rules adopted by the Administrator, act as trustee or custodian, and receive reasonable compensation for so acting, under any written trust instrument or custodial agreement created or organized and forming a part of a deferred compensation plan for its members or groups or organizations of its members so long as the funds of the plans are invested in savings or deposits of the credit union. All funds held may be commingled for the purpose of investment, but individual records shall be kept by the credit union for each participant and shall show in proper detail all transactions engaged in under authority of this subdivision.

(b) A member may withdraw from a credit union by filing a written notice of intent to withdraw. The amounts paid in on shares or deposits by an expelled or withdrawing member, with any dividends credited to the shares and any interest accrued on the deposits to the date of expulsion or withdrawal, shall be paid to the member in the order of expulsion or withdrawal, after deducting any amounts due to the credit union by the member and only as funds therefor become available. The member has no other right in the credit union or to any of its benefits, but the expulsion or withdrawal does not operate to relieve the member from any remaining 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; 2011-221, s. 1; 2026-31, s. 11(c).)