subchapter 06C - CREDIT UNIONS
SECTION .0100 - GENERAL INFORMATION
04 NCAC 06C .0101 DEFINITIONS
When used in this Subchapter, the following words and
phrases shall have the following meaning, except to the extent that any such
word or phrase is specifically qualified by its context:
(1) "Administrator" means the Administrator
of State-Chartered Credit Unions.
(2) "Board of Directors" means at least five
persons elected or appointed to oversee the management of each organization.
(3) "Book value of loans" means the dollar
amount of loans the Credit Union has on its books.
(4) "Branch Office" means a facility which a
Credit Union maintains and staffs at a location other than its main office to
furnish Credit Union services to its members.
(5) "Capital" consists of shares, undivided
earnings, and reserves.
(6) "Commission" means the Credit Union
Commission established by G.S. 143B-439.
(7) "Corporate Credit Union" means a Credit
Union with an institutional field of membership, as set forth in G.S. 54-110.1.
(8) "Credit union" means a cooperative
nonprofit corporation organized for the purpose of promoting thrift among its
members by affording them an opportunity for accumulating their savings; and to
create for them a source of credit for loans for provident and productive
purposes. It may undertake such other activities relating to the purpose of
the corporation as its bylaws may provide, such Credit Union being chartered
under the General Statutes of North Carolina.
(9) "Credit Union Service Organization" or
"CUSO" means an organization formed and operated by Credit Union(s),
or associations or organizations of Credit Unions, to provide revenue
generating services of the highest quality to Credit Union members, Credit
Unions and others which are needed or wanted and can be provided efficiently
and economically with a satisfactory overall rate of return on investment.
(10) "Deposits" means a preferred savings
account on which the Credit Union is obligated to pay a guaranteed interest
rate on a continuing basis in such amounts and terms as the Board of Directors
(12) "Dividend" means an operating expense of a
Credit Union which is declared payable on share accounts from time to time by
the Board of Directors. Dividends are paid as set forth in G.S. 54-109.54.
(13) "EDP" means electronic data processing.
(14) "Funds" means cash on hand or cash in the
bank and investments.
(15) "Interest on deposit accounts" is an
expense paid by the Credit Union for obtaining funds in a deposit account.
(16) "Interest on loans" means an amount
charged to a member for borrowing funds from a Credit Union at a specified rate
as declared by the Board of Directors, not to exceed the maximum legal rate.
(17) "Interest refund" means a percentage of
the interest collected on loans which is refunded to those members who borrowed
during a specific period pursuant to action of the Board of Directors.
(18) "Members" means persons or organizations
who have been accepted for membership by either the Board, membership officer,
or an executive committee, after having met qualifications of being within the
field of membership.
(19) "Membership" in a Credit Union is limited
to those persons or groups as stipulated in the bylaws of such Credit Union.
(20) "Membership fee" means a fee that may be
charged to applicants for membership as an entrance fee or as an annual
membership fee as determined by the Board of Directors or as the bylaws may
(21) "Reserve fund" means the portion of income
to be entered on the books of the corporation to offset uncollectible loans in
accordance with Section 54-109.86 of the General Statutes.
(22) "Shares" means the primary capital owned
by the members and is comprised of the savings of the members. The par value
shall be as the bylaws provide.
(23) Types of investment transactions are defined as
(a) "Standby commitments" means an
agreement to purchase or sell a security at a future date, whereby the buyer is
required to accept delivery of the security at the option of the seller.
(b) "Cash forward agreement" means an
agreement to purchase or sell a security at a future date more than five days
after the agreement is made and requires mandatory delivery and acceptance.
(c) "Reverse repurchase agreement"
means an agreement whereby a credit union enters into an understanding to sell
securities to a purchaser and to repurchase the same securities from that
purchaser at a future date, regardless of the amount of consideration paid by
the Credit Union or the purchaser.
(d) "Repurchase agreement" means an
agreement whereby a Credit Union enters into an agreement to buy securities
from a vendor and to resell securities at a future date. Repurchase agreements
may be of two types:
(i) "Investment-type repurchase
agreement" means a repurchase that contains the essential elements of a
sale of security as specified in Rule .1202(5) of this Subchapter.
(ii) "Loan-type repurchase agreement"
means any repurchase agreement that does not qualify as an investment-type
(e) "Future" means a standardized
contract for the future delivery of commodities, including certain government
securities, sold on designated commodities exchange.
(24) "Unimpaired capital" consists of the shares,
undivided surplus and reserves less any known or probable losses, as determined
History Note: Authority G.S. 54-109.1; 54-109.2; 54-109.12;
54-109.21(25); 54-109.26; 54-109.86; 143-439;
Eff. February 1, 1976;
Readopted Eff. April 4, 1978;
Amended Eff. July 1, 2013; January 1, 1992; October 1,
1983; April 1, 1979.