2005 Vermont Code - § 2054. — Powers

§ 2054. Powers

A credit union may:

(1) make contracts;

(2) sue and be sued;

(3) adopt and use a common seal and alter same at pleasure;

(4) purchase, hold and dispose of property necessary or incidental to its operations;

(5) require the payment of an entrance or annual membership fee of all members;

(6) receive savings from its members in the form of shares, deposits or special purpose thrift accounts; honor requests for withdrawals of any such savings in any manner approved by the credit union board of directors and by the commissioner of banking, insurance, securities, and health care administration who shall establish regulations consistent with prudent banking practices;

(7) lend its funds to its members as herein provided;

(8) purchase insurance on the lives of its members in an amount equal to their respective share, deposit and loan balances or any or all of them;

(9) borrow from any source, if so voted at the previous annual meeting, or a special meeting called for this purpose, an aggregate amount not exceeding 20 percent of its share, deposit and surplus account balances; and borrow amounts in excess of 20 percent but not in excess of 50 percent of its share, deposit and surplus account balances, if prior written approval has been given by the commissioner;

(10) invest surplus funds as provided in this chapter;

(11) make deposits in legally chartered banks, trust companies and credit union organizations;

(12) assess charges to members in accordance with the bylaws for failure to meet promptly their obligations to the credit union;

(13) declare dividends as herein provided;

(14) upon the resignation, expulsion, or default of a member impress a lien upon the shares, deposits, accumulated dividends and interest of any member, without notice to the member, to the extent of the total indebtedness due the credit union by the member as principal and/or surety or for dues and other lawful charges and may forthwith apply the same toward the liquidation thereof;

(15) with the approval of the commissioner maintain one or more offices other than the principal place of business as may be necessary to conduct the affairs of the credit union;

(16) in accordance with rules and regulations prescribed by the commissioner, sell to members negotiable checks (including traveler's checks) and money orders, and cash checks and money orders for members, for a fee which does not exceed the direct and indirect costs incident to providing such service;

(17) cause its records to be reproduced by microphotographic process. Any reproduction so made shall have the same force and effect as the original thereof and be admitted in evidence equally with the original;

(18) exercise the powers granted corporations organized under the laws of Vermont and such additional incidental powers as may be necessary or requisite to enable it to promote and carry on most effectively its purposes. (Added 1967, No. 312 (Adj. Sess.), § 1, eff. March 22, 1968; amended 1969, No. 18, § 1, eff. March 11, 1969; 1975, No. 70, § 2; 1977, No. 76, § 1; 1983, No. 227 (Adj. Sess.), § 1; 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a).)