7-9-44. Corporate central credit union.
(1) A credit union in which all credit unions, the Utah League of Credit Unions and its
affiliates are eligible for membership may be established in this state and shall be known as a
corporate central credit union.
(2) The corporate central credit union has all the powers and rights granted credit unions
established under this chapter. The maximum loan by a corporate central credit union shall be
established in the corporate central credit union bylaws.
(3) Beginning January 1, 1984, and at the end of each dividend period, the corporate
central credit union, in lieu of a regular reserve as provided in Section 7-9-30, shall transfer 2% of
its gross earnings to its central reserve until the reserve equals 1-1/2% of total assets. If the
central reserve falls below 1-1/2% of total assets, it shall be replenished by regular transfers of
2% of gross earnings or by contributions, whichever is less, in such amounts as are needed to
maintain the central reserve at 1-1/2% of total assets.
(4) Charges may be made against the central reserve to the extent permitted against a
regular reserve. No other charges may be made against the central reserve, except as authorized
in writing by the commissioner.
(5) The purposes of the corporate central credit union are:
(a) to accumulate and prudently manage the liquidity of its member credit unions through
interlending and investment services;
(b) to act as an intermediary for credit union funds between members, other corporate
credit unions, other financial institutions, and government agencies;
(c) to obtain liquid funds from other credit union organizations, financial intermediaries,
and other sources;
(d) to foster and promote, in cooperation with other state, regional, and national corporate
credit unions and credit union organizations or associations, the economic security, growth, and
development of member credit unions; and
(e) to perform other financial services of benefit to its members authorized by the
commissioner.
(6) The corporate central credit union is exempt from supervision fees but is subject to
examination fees.
Amended by Chapter 267, 1989 General Session
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Last revised: Thursday, May 28, 2009