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

approve.

(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

provide.

(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

follows:

(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

repurchase agreement.

(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

by management.

 

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.