2016 Utah Code
Title 7 - Financial Institutions Act
Chapter 9 - Utah Credit Union Act
Section 44 - Corporate central credit union.

Effective 5/13/2014
7-9-44. Corporate central credit union.

• (1) A credit union in which all credit unions, a bona fide trade association of authorized credit unions recognized by the commissioner, 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 97, 2014 General Session