1 General Provisions

TITLE XXXV
BANKS AND BANKING; LOAN ASSOCIATIONS; CREDIT UNIONS

Chapter 383-E
CREDIT UNION ACT

ARTICLE 1
General Provisions

Section 383-E:1-101

    383-E:1-101 Short Title. – This chapter shall be known and may be cited as the "Credit Union Act."

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:1-102

    383-E:1-102 Scope. – This chapter applies to state and foreign credit unions. RSA 383-A also applies to credit unions, except as otherwise provided in that chapter.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:1-103

    383-E:1-103 Reservation of Power to Amend or Repeal. – The general court has power to amend or repeal all or part of this chapter at any time and all persons subject to this chapter are governed by the amendment or repeal.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:1-104

    383-E:1-104 Commissioner. – The commissioner has the powers necessary or incidental to performing all of the commissioner's duties under this chapter, including the power to adopt rules as provided in this chapter in accordance with RSA 541-A. All rules previously adopted by the commissioner relating to the subject matter of this chapter shall be subject to RSA 541-A:17, except for rules adopted under RSA 394-A:7 which shall continue in full force and effect until amended or repealed.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:2-201

    383-E:2-201 Definitions. –
(a) Each term defined under RSA 383-A shall have the same meaning for purposes of this chapter.
(b) For purposes of this chapter, the following definitions apply:
(1) "Branch office" means a place or location, other than its main office, at which a credit union receives the money of its members on deposit and in payment of shares or makes loans or receives payments on loans, but shall not include an office that provides only administrative services or support for its activities. The commissioner may define by rule which administrative services or support for a credit union's activities would qualify for exemption from this definition and the procedure for requesting such exemption.
(2) "Federal credit union" means a credit union chartered under federal law.
(3) "Foreign credit union" means a credit union that is chartered by another state.
(4) "State credit union" means a credit union chartered by this state.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2019, 169:18, eff. July 10, 2019.

Section 383-E:3-301

    383-E:3-301 Agreement; Bylaws. – Seven or more persons, resident in this state, who have associated themselves by an agreement in writing with the intention of organizing a corporation for the purpose of accumulating and investing the savings of its members and making loans to members for provident purposes, may apply to the commissioner under RSA 383-E:3-304 to become a corporation which complies with the provisions of this chapter. The organizer shall prepare bylaws to govern the credit union. The bylaws shall prescribe the name of the corporation, the purposes for which it was formed, the conditions of residence, occupation, or association which qualify persons for membership, the par value of the paid-in shares, the number of directors, the number of members of the supervisory committee, and the number of members of the credit committee, if such committee is to be established, the duties of the several officers, the fines, if any, which shall be charged for failure to meet obligations to the corporation punctually, the date of the annual meeting of members, the manner in which members shall be notified of meetings, the number of members which shall constitute a quorum at meetings and such other regulations as may seem necessary.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:3-302

    383-E:3-302 Name. – A corporation organized under this chapter shall be known as a credit union, and its corporate name shall include the 2 words "credit union." Other distinguishing words may be used by permission of the commissioner.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:3-303

    383-E:3-303 Limitation on Use of Words "Credit Union." – Except associations heretofore incorporated, no person shall use a name or title containing the words "credit union" or any derivation thereof or be represented in the person's advertising or otherwise, as conducting business as a credit union, except a credit union organized under the provisions of this chapter, or under the Federal Credit Union Act, or except organizations whose membership is composed exclusively of credit unions.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:3-304

    383-E:3-304 Application. –
(a) The organizer of a credit union shall apply for a charter by filing an application under RSA 383-A:6-602. The commissioner shall prescribe the form of the application. The form shall specify information required to process the application. Such information shall include: the name of the credit union; the address of the credit union's main office; the credit union's registered agent and registered office; the name and address of each organizer; the name, address, background and experience of the proposed directors and the executive officers; the proposed organizational documents, including the organizer's agreement and the proposed bylaws; a funding plan for the first 5 years of operations, including a statement as to the amount of the proposed initial funding of the guaranty fund, why such funding is adequate for its operations, and the sources and uses of funds; a strategic plan describing the activities the credit union intends to engage in, the qualifications of members and the markets that it intends to serve and its strategy for the first 5 years of operation; pro forma financial statements for the first 5 years of operations; and any other facts or circumstances deemed relevant to the application by the commissioner. The organizer shall also file with the commissioner a copy of any application to the National Credit Union Administration or any insurance fund for insurance of the shares and deposits of the members.
(b)(1) The commissioner shall review the application, and within 30 days of its receipt, determine if it is substantially complete. An application is substantially complete if it contains all the information required in RSA 383-E:3-304(a), the applicant has paid the application fee, and the application meets all other requirements as the commissioner may prescribe by rule. If the application is deemed to be incomplete, the commissioner shall notify the applicant, and the applicant shall have 30 days to supply the required information.
(2) If the commissioner determines that the application is substantially complete under RSA 383:3-304(b)(1), he or she shall so notify the applicant, and the applicant shall within 30 days, cause a public notice of the application to be published in a newspaper of general circulation or other media acceptable to the commissioner. The notice shall state a date before which objections may be filed, which date shall not be earlier than 14 days after the publication of the notice. Any interested person may, within the time specified, file with the commissioner a statement of objection to the granting of such application. The form of public notice shall be prescribed by the commissioner.
(c) At any time after being submitted, the commissioner may deem the application to be abandoned if the organizer fails to furnish required information and certifications or the required fee within 30 days after a request made by the commissioner.
(d) If the commissioner determines that the application is substantially complete, he or she shall promptly conduct an examination of all relevant facts connected with the organization of the credit union. The commissioner may examine the following factors:
(1) Whether the proposed organizational structure is adequate to manage the proposed credit union.
(2) Whether the proposed capital as set forth in the capital plan is adequate in relation to the proposed activities of the proposed credit union.
(3) Whether the strategic plan sets forth a reasonable basis to indicate a reasonable probability of success and profitability.
(4) Whether the proposed executive officers and directors as a group, have sufficient experience, ability, standing, competence, trustworthiness, and integrity to justify a belief that the proposed credit union will be free from improper or unlawful influence and otherwise will operate in compliance with law.
(5) Whether the proposed name of the proposed credit union is likely to mislead the public as to its character or purpose or is the same as a name already adopted by an existing credit union in this state, or so similar thereto as to be likely to mislead the public.
(6) Whether the deposits and shares of members of the credit union will be insured by the National Credit Union Administration or other insurance fund deemed acceptable by the commissioner.
(7) Any other factor relevant to the type of credit union being proposed, as the commissioner may determine.
(e)(1) The commissioner may require a background investigation and criminal history records check on the organizer, directors, and executive officers.
(2) If required by the commissioner, the persons described in subsection (1) hereof shall submit to the department a criminal history records release form, as provided by the New Hampshire department of safety, division of state police, which authorizes the release of the person's criminal records, if any, and a complete set of fingerprints taken by a qualified law enforcement agency or an authorized employee of the department. In the event that the first set of fingerprints is invalid due to insufficient pattern, a second set of fingerprints may be necessary in order to complete the criminal history records check. If, after 2 attempts, a set of fingerprints is invalid due to insufficient pattern, the department may, in lieu of the criminal history records check, accept police clearances from every city, town, or county where the person has lived during the past 5 years.
(3) The commissioner shall submit the criminal history records release form to the division of state police which shall conduct a criminal history records check through its records and through the Federal Bureau of Investigation. Upon completion of the background investigation, the division of state police shall release copies of the criminal conviction records to the department. The department shall maintain the confidentiality of all criminal history records information received under this subsection.
(4) The commissioner may require the organizer to pay the actual costs of each background investigation and criminal history records check.
(f) All documents and communications submitted in connection with an application, which are classified as confidential under RSA 383:10-b, and all records of investigations and reports of examinations by the department related to the application shall be treated as confidential and subject to RSA 383:10-b.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2018, 318:31, eff. Aug. 24, 2018.

Section 383-E:3-305

    383-E:3-305 Investigative Powers. – For the purpose of any investigation or examination under this chapter, the commissioner shall have the power to subpoena witnesses and administer oaths in any adjudicative proceedings, and to compel, by subpoena duces tecum, the production of all books, records, files, and other documents and materials relevant to his or her investigation or examination.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2019, 168:14, eff. July 10, 2019.

Section 383-E:3-306

    383-E:3-306 Hearing. – The commissioner may order within his or her discretion a public hearing on the application. The commissioner may approve or deny the application with or without a public hearing. Any required public hearing shall be held at the time and place fixed by the commissioner and a notice of the hearing shall be published in accordance with RSA 91-A. The commissioner may prescribe reasonable procedural rules to govern the proceedings, including rules for maintaining the confidentiality of the portions of the application, the commissioner's investigation, and the proceedings of the commissioner that include confidential information or are determined by the commissioner or otherwise determined by law to be confidential.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:3-307

    383-E:3-307 Action on Application. –
(a) If the commissioner determines that the application meets all of the requirements of this chapter and other applicable federal and state laws, the commissioner shall grant a charter to the credit union by issuing a notice of approval of the organization of the credit union, subject to such terms and conditions as determined by the commissioner, and endorsing the credit union's bylaws to indicate the commissioner's approval.
(b) If the application is denied, it shall be dismissed and no new application concerning the same proposal may be filed within one year thereafter.
(c) If the commissioner determines that the application does not satisfy the standards in RSA 383-E:3-307(a), but could satisfy the standards if the application were revised, he or she shall so notify the organizer; and in such case the organizer may refile the application under RSA 383-A:6-602.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:3-308

    383-E:3-308 Charter Rights; Liability. – Following the approval of the application by the commissioner and the filing of the bylaws with the secretary of state, the organizer of a credit union shall hold the rights to the charter. The organizer and all persons purporting to act for the credit union shall be jointly and severally liable for any liability created on its behalf until the organization is completed and a certificate to commence operations is issued by the commissioner.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:3-309

    383-E:3-309 Completion of Organization. – The organizer shall submit evidence to the commissioner that it has adopted bylaws, elected, or caused to be elected, the directors and officers required by its organizational documents and satisfied all other requirements of the charter.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:3-310

    383-E:3-310 Authorizing Commencement of Operations. – Upon receipt of the information described in RSA 383-E:3-309, the commissioner shall cause an examination to be made. If the commissioner determines that all requirements of the approval have been satisfied, the commissioner shall issue a certificate authorizing the credit union to commence operations. The cost of such examination shall be paid by the credit union.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:3-311

    383-E:3-311 Amendment of Bylaws. – The board of directors of a credit union may, by majority vote, amend the bylaws if the credit union files an application describing the proposed amendment under RSA 383-A:6-601 and it is permitted to do so by the commissioner based on the considerations set forth in RSA 383-E:3-301, as applicable.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2017, 209:12, eff. Sept. 8, 2017.

Section 383-E:3-312

    383-E:3-312 Material Change in Operating Conditions. – If a board of directors of a credit union proposes to make a material change in the strategic plan, funding plan or other factors considered by the commissioner in granting a charter to the credit union within 5 years of its receipt of a certificate to engage in business under RSA 383-E:3-310, the board may not make such change unless it submits an application seeking approval of the change to the commissioner as provided in RSA 383-A:6-602 and it is permitted to do so by the commissioner.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2017, 209:13, eff. Sept. 8, 2017.

Section 383-E:4-401

    383-E:4-401 Deposits; Loans. – A credit union may receive the money of its members on deposit and in payment of shares, upon such terms and in such amounts as its board of directors may prescribe. It may make loans to its members on such terms and upon such security, real or personal, as its written lending policy may prescribe.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:4-402

    383-E:4-402 Use of Funds. –
While awaiting call of its members for loans, a credit union may make use of its funds as described in and according to the limitations of the following subsections:
(a) It may deposit its money in any corporate credit union whose shares and deposits are insured by the National Credit Union Administration or other qualified share and deposit insurance fund deemed acceptable by the commissioner, and may deposit its money in any federally insured bank.
(b) It may invest any surplus in obligations of the United States government, including any loans included in the Participation Sales Act of 1966, 12 U.S.C. section 1701, or of the state, or of any county, city or town of the state issued under authority of law.
(c) It may invest in securities, obligations, participations, or other instruments of or issued by or fully guaranteed as to principal and interest by the United States or any agency thereof or in any trust or trusts established for investing directly or collectively in the same.
(d) Any credit union with assets of $3,000,000 or more may purchase real estate mortgages secured by real estate wherever situate which are guaranteed by the Federal Housing Administration and may purchase real estate mortgages secured by real estate in this state and in any state which are guaranteed by the United States government through the insured loan program of the Farmer's Home Administration. It may be an originator or participating lender in participating loans as defined in RSA 383-B:3-303(d)(8), provided that its participation in such loans shall be within such limits as are prescribed in RSA 383-E:4-403.
(e) The board of directors shall establish and maintain a written investment policy which shall be reviewed not less than annually. The board of directors may, by majority vote of such board, delegate investment authority as prescribed in the credit union's written investment policy to a committee established by, or officers designated by, the board for such purpose. All investments will be reviewed in every meeting of the board of directors.
(f) All investments in securities shall be supported by a documented credit and risk analysis. Such analysis shall be applied to securities as a part of a pre-purchase and ongoing due-diligence process. Assessments of creditworthiness and risk shall not be solely reliant on external credit ratings, if any, provided by one or more NRSROs. Any investment in a debt security shall meet the investment grade debt security standard.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:4-403

    383-E:4-403 Limitations. –
The following limitations shall be observed with respect to the investments of credit unions:
(a) Not exceeding 5 percent of total assets shall be invested in preferred or common stock.
(b) Not exceeding 5 percent of total assets shall be invested in bonds of the Dominion of Canada, its provinces and cities.
(c) Not exceeding 20 percent in aggregate of the total assets shall be invested in corporate securities, New Hampshire securities, banks and bank holding company securities, and investment trust shares; provided, however, that not exceeding 5 percent of the total assets may be invested in preferred and common stock, including shares of investment trusts.
(d) Unless the value of a credit union's assets as determined by the commissioner shall exceed the amount of the shares and deposits by at least 5 percent, it shall be unlawful for such credit union to invest in any preferred or common stocks, including shares of investment trusts, without the written permission of the commissioner.
(e) A credit union may, in total, invest or lend up to 20 percent of its net worth in or to any single service entity, provided all of the following conditions are met:
(1) The service entity is structured to limit the credit union's exposure to loss;
(2) The service entity primarily serves credit unions and the membership of affiliated credit unions; and
(3) A credit union's aggregate investment in or loans to all service entities do not exceed 50 percent of its net worth.
(f) For the purposes of paragraph (e), "net worth" means the net worth as reported on the National Credit Union Administration Call Report Form 5300.
(g) The commissioner may grant a waiver of the 20 percent maximum investing or lending threshold in paragraph (e) if the credit union's aggregate investment in or loans to all service entities do not exceed 50 percent of its net worth and if the credit union can demonstrate that:
(1) The credit union exceeds the 20 percent limitation in paragraph (e) due to investments or loans to a service entity that engages solely in originating or servicing residential mortgage loans or both, where all such residential mortgages meet the definition of a qualified mortgage as that term is defined in 15 United States Code, Section 1639c(b)(2)(A).
(2) The lending activities of the service entity are to and for the benefit of the membership of the credit union.
(3) The loan to or investment in the service entity does not present an unacceptable exposure to loss that adversely impacts the safety and soundness of the credit union.
(h) Whenever in the opinion of the commissioner the condition of any credit union is such that the commissioner deems it unwise for the credit union to invest in any preferred or common stocks, including shares of investment trusts, he or she may by written order forbid such credit union to make such investment, and said credit union shall not thereafter make such investment until such order shall be revoked in writing.
(i) No investment shall be made which, when added to investments of the same category then held, shall cause the investments in that category to exceed the percentages permitted for such category.
(j) In determining whether an investment complies with the limitations imposed by this section, the applicable limitation shall be applied to the condition of the credit union at the time of making such investment.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2019, 115:5, eff. Jan. 1, 2020.

Section 383-E:4-404

    383-E:4-404 Public Obligations. –
The following described securities are legal investments:
(a) The authorized bonds and notes of the state of New Hampshire or of any municipal government in New Hampshire, including all authorities, commissions, districts or similar divisions of state or municipal government, provided that:
(1) The direct obligations of the state of New Hampshire or any state entity in New Hampshire are backed by the issuer's ability to levy taxes for the repayment of principal and interest.
(2) Obligations secured by the revenues of any authorities, commissions, districts or similar divisions of state or municipal government are ranked among the 4 highest ratings of any NRSRO.
(b) The authorized bonds and notes of any other state, commonwealth or territory of the United States or any municipality therein or authorities, commissions, districts or similar divisions of state or municipal government therein, provided:
(1) The direct obligations of any state, commonwealth or territory of the United States or any municipality located therein are backed by the issuer's ability to levy taxes for repayment of principal and interest and are ranked among the 3 highest ratings of any NRSRO.
(2) Obligations secured by the revenue of any authorities, commissions, districts or similar divisions of state or municipal government are ranked among the 3 highest ratings of any NRSRO.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:4-405

    383-E:4-405 Corporate Securities. –
The following described securities are legal investments:
(a) Obligations in the form of bonds and notes issued, assumed, or guaranteed by entities incorporated in the United States of America. The obligations shall be among the 3 highest ratings of any NRSRO. Convertible bonds of a lesser rating will be legal if the common stock would otherwise qualify.
(b) All preferred stocks issued, assumed or guaranteed by entities incorporated in the United States. The obligations shall be rated among the 3 highest ratings of any NRSRO.
(c) The common stock or senior securities convertible into common stock of entities incorporated in the United States of America provided:
(1) The stock is listed on an exchange and is ranked among the 3 highest ratings of any NRSRO.
(2) At the time of purchase, any common stock investment under this section when added to the book value of all other common stock securities presently owned of the same entity shall not exceed 5 percent of a credit union's capital funds.
(d) The bonds and notes issued, assumed or guaranteed by any entity organized under the laws of this state or carrying on its principal manufacturing within this state, provided that:
(1) The entity shall have, at the date of investment, a net worth of at least $1,000,000; and
(2) In at least 4 of the 5 years next preceding the date of investment, the net income available for interest plus the federal income tax of the entity shall have been not less than twice the interest on its obligations.
(e) The dividend-paying capital stock of any entity organized under the laws of this state or carrying on its principal manufacturing within this state, provided:
(1) All securities, if any, senior to such stock are legal investments hereunder, and the entity shall have at the date of such investment a net worth of at least $1,000,000.
(2) In at least 4 of the 5 years next preceding the date of investment, the entity shall have earned net income available for dividends on the entire outstanding issue of the stock in question of not less than 4 percent on the par or stated value of such stock.
(3) No credit union shall hold more than 5 percent of the outstanding stock of any entity.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:4-406

    383-E:4-406 Bank Stock. –
The following described securities are legal investments:
(a) The securities of any bank or bank holding company incorporated in the United States, provided that:
(1) Such bank or bank holding company shall have a total capital and surplus of at least $50,000,000.
(2) The capital and surplus shall represent not less than 4 percent of the total assets in at least 4 of the 5 years immediately preceding investment.
(3) Net earnings shall have averaged not less than 4/10 of one percent of average total assets over the same 5 years immediately preceding investment.
(4) The total loans to total deposits shall not be greater than 80 percent.
(b) The securities of any bank or trust company, or the special deposits of any investor-owned savings bank incorporated under the laws of this state and doing business herein, and the capital notes and the capital stock of any federally chartered bank in this state; but the amount of such notes or stock or special deposits held by any credit union as an investment and as collateral for loans shall not exceed 1/4 of the total capital notes and capital stock of the bank, except if held on or before June 1, 1979.
(c) The securities of any New Hampshire bank holding company which is registered with the board of governors of the Federal Reserve System under 12 U.S.C. section 1844, but the amount of capital stock held by any credit union in legal form or represented by voting trust certificates as an investment and as collateral for loans shall not exceed 1/4 of the total capital stock of such New Hampshire bank holding company.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:4-407

    383-E:4-407 Investment Trust Shares. –
The following described shares or units are legal investments if listed on an exchange or authorized for sale in this state by the bureau of securities regulation of the secretary of state:
(a) The shares of any management type investment company, either open-end or close-end, provided that:
(1) If the company acts as its own investment manager it must have been in business for at least 5 years, have at least $50,000,000 of net assets and have paid dividends for at least 4 of the 5 years immediately preceding investment.
(2) In the event that the company employs outside investment management then those investment managers must have a total of at least $100,000,000 under management and the fund must have been in business for at least 5 years, have net assets of $50,000,000 and have paid dividends for at least 4 of the 5 years immediately preceding investment.
(b) The shares of any management type investment company that is a member of a group of 3 or more mutual funds under the same investment manager, provided that:
(1) Such manager has at least $100,000,000 of assets under management, and
(2) The Company has at least $10,000,000 of net assets.
(c) Unit investment trusts with principal of at least $1,000,000, if authorized for sale in this state.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:4-408

    383-E:4-408 Other Legal Investments. –
The following described securities are legal investments:
(a) Acceptances of member banks of the Federal Reserve System of the times and maturities made eligible for rediscount and purchased by Federal Reserve Banks.
(b) Advances of federal funds to banks which also qualify as cash depositories under RSA 383-B:3-301(k), provided that total advances of federal funds under this subsection shall not exceed 20 percent of the credit union's shares and deposits, and the total of such advances by a credit union to any one bank shall not exceed 10 percent of the bank's capital funds.
(c) The obligations issued or guaranteed by the International Bank for Reconstruction and Development provided that such obligations are payable in dollars in the United States, and that the principal office of the obligor is, at the time of making such investment, located within the United States.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:4-409

    383-E:4-409 Loan of Securities. –
In order to increase income from investment securities, any credit union may loan to brokerage firms which are members of an exchange any stocks, bonds or other securities in which the credit union has invested under this chapter provided that:
(a) Each loan shall be executed through a correspondent bank having assets of not less than $500,000,000;
(b) At the inception of the loan at least 100 percent of the market value of the securities lent shall be secured by cash or debt obligations of the United States or debt obligations for which the faith and credit of the United States is pledged for the payment of the principal and interest thereof;
(c) At all times during the term of the loan the collateral securing the same shall be equal in value to not less than 95 percent of the market value of the securities loans by the credit union;
(d) The market value of the securities loaned by the credit union under the authority of this action shall not, at any one time, exceed 10 percent of the aggregate market value of all stocks, bonds or other securities then held by the credit union as investments under this chapter; and
(e) No loan shall be made to any brokerage firm which is then listed for and under special surveillance by an exchange in the belief that such brokerage firm is in or is approaching financial difficulty, and which is, at the time, the subject of any pending notice given by any exchange to the Securities Investor Protection Corporation and the Securities and Exchange Commission under 15 U.S.C. section 78eee(a)(1).
(f) Every brokerage firm receiving the loan under this section shall be registered, and every agent soliciting the loan shall be licensed, with the bureau of securities regulation of the secretary of state.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:4-410

    383-E:4-410 Retention of Securities. – Any security held under RSA 383-E:4-404 through 409 which becomes nonlegal because of changes in the law relating to legal investments or because of conditions arising subsequent to the purchase of such security, may be retained upon application to the commissioner for approval to retain the security.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:4-411

    383-E:4-411 Advantageous Federal Powers. – A credit union shall have and may exercise any power, right, benefit or privilege, now or hereafter authorized for federal credit unions by federal legislation, regulation or ruling, provided that, if federal law requires a federal credit union to apply to the National Credit Union Administration before exercising a power, the credit union shall make the same application to the commissioner for permission to exercise such power.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:4-412

    383-E:4-412 Minors. – Shares may be issued and deposits received in the name of a minor, and such shares and deposits may, in the discretion of the directors, be withdrawn by such minor, or by his parent or guardian, and in either case payments made on such withdrawals shall be valid, and shall release the credit union from any liability to the minor, parent or guardian. A minor shall not have the right to vote.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:4-413

    383-E:4-413 Deposit Accounts. – Deposits of a credit union shall be subject to Article 4 of RSA 383-B.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:4-414

    383-E:4-414 Retirement Accounts. –
A credit union may act as trustee of pension and profit-sharing plans. A credit union may also act as trustee or custodian of:
(a) Individual retirement accounts authorized by federal and state law;
(b) Pension funds of self-employed individuals or of an entity or organization sponsoring the credit union;
(c) Deferred compensation plans; and
(d) Other similar retirement or pension plans.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:4-415

    383-E:4-415 Interest on Escrow Accounts. – Escrow accounts of credit unions, federal credit unions and foreign credit unions having escrow accounts in this state shall be subject to RSA 383-B:3-303(a)(7)(E).

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:4-416

    383-E:4-416 Safe Deposit Boxes. – Safe deposit boxes of credit unions, federal credit unions, and foreign credit unions having safe deposit boxes in this state shall be subject to Article 5 of RSA 383-B.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:4-417

    383-E:4-417 Transactions Involving Assets and Liabilities. – A credit union may purchase assets from and assume liabilities of, or sell assets and transfer liabilities to, a bank, state credit union, federal credit union, or foreign credit union if it files an application with the commissioner under RSA 383-A:6-602, subject to other federal or state regulatory approvals.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2017, 209:14, eff. Sept. 8, 2017.

Section 383-E:5-501

    383-E:5-501 Elections and Appointments. – The business and affairs of a credit union shall be managed by a board of not less than 5 directors elected by the members, a credit committee, if established, of not less than 3 members appointed by the board of directors, and a supervisory committee of not less than 3 members to be elected by the members at the annual meeting.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:5-502

    383-E:5-502 Qualifications. – No more than one member of the board of directors of a credit union shall be a member of the supervisory committee of the credit union nor shall the director be an employee of the credit union.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:5-503

    383-E:5-503 Terms of Directors and Officials. – Directors and supervisory committee members shall be elected for a term of not less than one year nor more than 3 years, as provided in the bylaws. If the term of the directors or supervisory committee members or both is more than one year, the directors or supervisory committee members or both shall be divided into classes, each class to be as equal in number as possible, and one class of directors or supervisory committee members or both shall be elected each year. Except as provided in RSA 383-E:5-504, directors and supervisory committee members shall hold their several offices until others are elected and qualified in their stead. The members of the credit committee shall be appointed for a term not to exceed one year.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:5-504

    383-E:5-504 Vacancies. – If a director or member of the credit or supervisory committee of any credit union ceases to be a member of the credit union, his office shall thereupon become vacant.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:5-505

    383-E:5-505 Electing Officers. – The directors, at their first meeting after the annual meeting of the corporation, shall elect from their own number such officers as are deemed necessary and provided for in the bylaws, who shall be the executive officers of the corporation, and who shall hold office until their successors shall have been elected and qualified.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:5-506

    383-E:5-506 Responsibilities of Directors and Officers. –
(a) The governance of a credit union shall be the responsibility of the board of directors. The board shall establish the policies for the conduct of the affairs of the credit union and shall supervise the affairs of the credit union to ensure that such policies are being adhered to by its officers and employees and that its operations are in compliance with federal and state laws and regulations and the credit union's organizational documents. Neither the board nor individual directors may delegate their duties to govern the credit union. Each director shall discharge his or her duties under the same standards that exist for a director of a business corporation under the Corporation Act except that director shall be subject to a fiduciary duty when he or she is acting on matters related to the proprietary interests of members.
(b) The president shall be responsible for carrying out the policies of the board and managing the day-to-day affairs of the credit union and shall be accountable to the board of directors in the performance of his or her duties. Each officer with discretionary authority shall discharge his or her duties under the same standards that exist for an officer of a business corporation under RSA 293-A:8.42 except that an officer of a credit union which serves as a fiduciary shall be subject to a fiduciary duty when he or she is acting on matters related to the proprietary interests of members.
(c) Subject to its oversight and any limitation set forth in the organizational documents or this chapter, the board of directors of a credit union may create one or more committees, delegate to each committee any powers and duties that the board of directors deems appropriate, and appoint one or more directors, officers, and other natural persons to serve on each committee. The following requirements shall apply to any committee so created:
(1) Each member of a committee shall be subject to the same standards of conduct to which a director is subject in accordance with this section;
(2) Each committee shall keep minutes of its activities and shall report to the board of directors as frequently as the board of directors requires; and
(3) The creation of, delegation of power or duties to, or action by a committee does not alone constitute a director's compliance with the standards of conduct as set forth in this section.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2021, 51:11, eff. July 24, 2021.

Section 383-E:5-507

    383-E:5-507 Loan Officers. – When so provided by the bylaws, the board of directors may appoint and may provide for the compensation of loan officers to act under the supervision of the credit committee or, if none, the board of directors, and the loan officers, when so appointed and when authorized by the credit committee, or, if none, the board of directors, may approve or disapprove loans as prescribed in the lending policy, without the necessity for a meeting or approval by any member of the credit committee or, if none, the board of directors. A member whose application was disapproved by a loan officer may appeal the action to the credit committee or, if none, the board of directors, which may, by majority vote, reverse the loan officer's decision.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:5-508

    383-E:5-508 Borrowing. – The board of directors at any regular or special meeting may, by majority vote, authorize borrowing of specified amounts of money. At no time may the total borrowing exceed 30 percent of its total paid-in shares and deposits, guaranty fund, and undivided earnings without approval of the commissioner.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:5-509

    383-E:5-509 Dividends. – At such intervals and for such periods as the board of directors may authorize, and after any required transfers to the required reserves, the board of directors may declare dividends on shares and interest on deposits from current earnings. Dividends may be paid at various rates with due regard to the conditions that pertain to each type of share or deposit account such as minimum balance, notice and time requirements. Dividends may be paid from the undivided earnings of previous years if the payment of the dividends does not cause the net worth of the credit union to fall below "Well Capitalized," as set forth in 12 C.F.R. part 702 Prompt Corrective Action (PCA). Payment of these dividends from prior years' undivided earnings shall be reported to the commissioner within 30 days of dividend declaration. With prior approval of the commissioner, dividends may be paid from the undivided earnings of previous years if the payment of the dividends does cause the credit union's net worth to fall below "Well Capitalized" as set forth in 12 C.F.R. part 702 Prompt Corrective Action (PCA).

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:5-510

    383-E:5-510 Loans to Officials. – Members of the board of directors, credit committee, or supervisory committee may borrow from the credit union. Members of the board of directors, credit committee, and supervisory committee may borrow or become surety for loans in excess of their holdings in the credit union provided the loans are approved by a majority of the members of the board of directors; provided, that no member of a credit committee or supervisory committee shall have a vote concerning his or her own loan application, or be entitled to participate in the deliberations regarding said loan. No loan to the official shall receive terms more favorable than those extended to other persons borrowing from said credit union.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:5-511

    383-E:5-511 Grounds for Expulsion. –
The board of directors may, after notice and an opportunity to be heard, expel from a credit union any member who:
(a) Has not carried out his engagements with the credit union;
(b) Has been convicted of a criminal offense;
(c) Neglects or refuses to comply with the provisions of this chapter or the bylaws of the credit union;
(d) Habitually neglects to pay his debts;
(e) Shall become insolvent or bankrupt; or
(f) Shall have deceived the credit union or any committee of the credit union with regard to the use of borrowed money.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:5-512

    383-E:5-512 Order of Payments. – The amounts paid on shares or deposited by members who have withdrawn or have been expelled shall be paid to them in the order of withdrawal or expulsion, but only as funds for the payments become available and after deducting any amounts due from the member.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:5-513

    383-E:5-513 Lien and Right of Set-Off. – The credit union shall have a lien on the shares, share certificates, deposits, deposit certificates, and accumulated dividends or interest of a member in his individual, joint or trust account, for any sum past due the credit union from said member or for any loan endorsed by him or her. The credit union shall also have a right of immediate set-off with respect to every account.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:6-601

    383-E:6-601 Supervisory Committee. – The supervisory committee shall inspect from time to time the accounts of the credit union and shall keep fully informed of its financial condition, and shall supervise the acts of its board of directors, credit committee, and officers, as may be provided in the bylaws.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:6-602

    383-E:6-602 Annual Audits. – The supervisory committee of every credit union under the supervision of the commissioner shall conduct or cause to be conducted annual audits as is required by RSA 383-A:5-509 and submit reports of condition as is required by RSA 383-A:5-510.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:6-603

    383-E:6-603 Exemption to Annual Audit Requirement. –
(a) The commissioner may exempt a credit union from the annual audit requirement of RSA 383-E:6-602 if the credit union demonstrates that:
(1) It can maintain its safety and soundness without the audit;
(2) The cost of an audit would be an undue financial burden on the credit union; and
(3) It has an alternate audit arrangement in place that will assure the commissioner that its financial statements are true and accurate.
(b) The commissioner may revoke any exemption granted if, in his or her judgment, the safety and soundness of the exempt credit union requires it.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:6-604

    383-E:6-604 Report. – The supervisory committee chairman or his designee shall make a full report at the annual meeting, and it shall be filed and preserved with the records of the credit union.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:6-605

    383-E:6-605 Violations. –
(a) The supervisory committee may, by a unanimous vote, suspend any officer of the credit union or any member of the credit committee or of the board of directors.
(b) The supervisory committee may, by a majority vote, call a meeting of the members to consider any violation of this chapter or of the bylaws of the credit union, or any practice of the credit union, which, in the opinion of the committee, is unsafe or unauthorized.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:6-606

    383-E:6-606 Special Meeting After Suspension. – Within 7 days after the suspension of any officer, or any member of the credit committee or of the board of directors, the supervisory committee shall cause notice to be given of a special meeting of the members of the credit union to take such action relative to the suspension as may seem necessary.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:6-607

    383-E:6-607 Compensation. –
(a) No member of the board of directors or of either the credit or supervisory committee shall receive any compensation for his or her services as a member of the board or the committee; provided, however, that if at any time any credit union organized under the provisions of this chapter shall have enlarged its business to such extent that this section may create an impediment to its proper functioning, the commissioner, upon petition of the board of directors, may permit the board of directors to pay the credit committee such compensation as he or she shall consider proper. The reimbursement of reasonable expenses in the execution of the duties of the position shall not be considered compensation.
(b) The officers elected by the board of directors may receive such compensation as the board shall authorize.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:7-701

    383-E:7-701 Annual Meeting. – The annual meetings of the corporation shall be held at such time and place as the bylaws prescribe, but must be held within 120 days after the close of the fiscal year.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:7-702

    383-E:7-702 Special Meetings. – Special meetings of members may be called by a majority of the directors, or of the supervisory committee, and shall be called by the clerk upon written application of 10 percent of the members entitled to vote.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:7-703

    383-E:7-703 Voting. – No member shall be entitled to have more than one vote.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:7-704

    383-E:7-704 Supervisory Powers. – At an annual or special meeting the members may review the acts of the credit committee or of the board of directors, and may reverse any decision of the committee or directors by a 75 percent vote of its members present and entitled to vote; provided, that the 75 percent vote comprises a majority of all the members of the credit union.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:7-705

    383-E:7-705 Filling Vacancies. – In the event of the death or the resignation or removal from office of any member of the board of directors, or of the supervisory committee, the board of directors shall fill the vacancy until the next annual meeting, at which the unexpired term shall be filled by vote of the members.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:8-801

    383-E:8-801 Regular Reserves. – At the end of each quarterly reporting period, a transfer from current earnings shall be made to the regular reserve as set forth in 12 C.F.R. part 702. In the event that current earnings are insufficient to allow the required transfer, undivided earnings shall be utilized to augment the amount transferred from current earnings. The credit union shall notify the commissioner within 30 days of any required transfers made from undivided earnings to the regular reserve. Prior approval of the commissioner is required before any disbursements from the regular reserve.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:9-901

    383-E:9-901 Branching Authority. –
No credit union shall conduct any part of its operations at any branch office except as follows:
(a) A credit union may establish one or more branch offices or acquire branch offices from any credit union in any location within the state or without the state consistent with the membership qualifications of its bylaws.
(b) All credit unions shall submit an application to establish or acquire a branch office to the commissioner under RSA 383-A:6-602. A credit union may proceed to establish or acquire the branch office if it is permitted to do so by the commissioner under RSA 383-A:6-604.
(c) A foreign credit union may establish or acquire a branch office in this state. The foreign credit union shall submit an application to establish or acquire a branch office to the commissioner under RSA 383-A:6-602. The foreign credit union may proceed to establish or acquire the branch office if it is permitted to do so by the commissioner under RSA 383-A:6-604.

Source. 2015, 272:16. 2016, 230:5, eff. Aug. 8, 2016. 2017, 7:1, eff. Mar. 31, 2017; 209:15, eff. Sept. 8, 2017.

Section 383-E:9-902

    383-E:9-902 Branch Closings and Relocations. –
(a) A credit union may close a branch office upon the affirmative vote of a majority of its board of directors, but the closing shall not occur until the credit union has filed notice of the branch office closing with the commissioner under RSA 383-A:6-602. The credit union shall be required to comply with federal requirements for branch closings.
(b) A credit union may relocate a branch office upon the affirmative vote of a majority of its board of directors, but the relocation shall not occur until the credit union has filed notice of the branch office relocation with the commissioner under RSA 383-A:6-602. The credit union shall be required to comply with federal requirements for branch relocations.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2017, 209:16, eff. Sept. 8, 2017.

Section 383-E:9-903

    383-E:9-903 Automated Teller Machines; Fee Disclosure. – A credit union, federal credit union or foreign credit union that owns or operates an automated teller machine in this state shall be subject to RSA 383-B:7-705.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:10-1001

    383-E:10-1001 Procedural Requirements. – If a state credit union proposes to combine with another state credit union, federal credit union, or foreign credit union, the credit unions shall apply to the commissioner for approval of the proposed combination as required under RSA 383-A:6-602 and may complete the combination if permitted by the commissioner, subject to other federal or state approvals.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:10-1002

    383-E:10-1002 Required Vote. – The combination of credit unions is required to be approved by a state credit union first by a majority of its full board of directors and then by a majority of its members present and voting at a meeting called for that purpose.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:10-1003

    383-E:10-1003 Name Change. – The credit union resulting from a combination may change the name of the resulting credit union with the permission of the commissioner.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:10-1004

    383-E:10-1004 Branch Offices. – As part of the proceedings for the combination authorized by this article, the credit union resulting from the combination shall be authorized to operate any branch office or other office of the other credit union acquired in the combination unless otherwise ordered by the commissioner.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:11-1101

    383-E:11-1101 State Credit Union to Federal Credit Union. –
A state credit union may be converted into a federal credit union by complying with the following requirements:
(a) A majority of the directors of the state credit union shall first approve the proposition for the conversion and set a date for a vote on the conversion by the members, either at a meeting to be held on the date or by written ballot to be filed on or before the date. Written notice of the proposition and of the date set for the vote shall then be delivered in person to each member, or mailed to each member at the address for the member appearing on the records of the state credit union, not more than 30 nor less than 7 days prior to the date. Approval of the proposition for conversion shall be by the affirmative vote of a majority of the members of the state credit union who vote on the proposal. The written notice of the proposition shall in bold face type state that the issue will be decided by a majority of the members who vote.
(b) A notice of the proposed conversion shall be filed with the commissioner under RSA 383-A:6-602, together with a statement of the results of the vote, verified by the affidavits of the president or vice president and the clerk, within 10 days after the vote is taken.
(c) Promptly after the vote is taken and in no event later than 90 days thereafter, if the proposition for conversion was approved by the vote, the state credit union shall take such action as may be necessary under the applicable federal law to make it a federal credit union, and within 10 days after receipt of the federal credit union charter shall file with the commissioner a copy of the charter so issued. Upon making the filing, the credit union shall cease to be a state credit union.
(d) Upon ceasing to be a state credit union, the credit union shall no longer be subject to any of the provisions of this chapter. The successor federal credit union shall be vested with all of the assets and shall continue responsible for all of the obligations of the state credit union to the same extent as though the conversion had not taken place.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:11-1102

    383-E:11-1102 Federal Credit Union to State Credit Union. – A federal credit union may be converted into a state credit union by complying with such requirements of this chapter as would have enabled it to have originally qualified for organization as a state credit union. When the commissioner has been satisfied that the requirements, and all other requirements of this chapter, have been complied with, he shall approve the organization certificate. Upon approval, the federal credit union shall become a state credit union as of the date it ceases to be a federal credit union. The state credit union shall be vested with all of the assets and shall continue responsible for all of the obligations of the federal credit union to the same extent as though the conversion had not taken place.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:11-1103

    383-E:11-1103 Rules. – The commissioner may adopt rules governing the terms and conditions of conversions under this Article.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:12-1201

    383-E:12-1201 Dissolution. – If a special meeting is called for the purpose of addressing dissolution of a credit union and a majority of the members are in attendance, upon recommendation of not less than 2/3 of the board of directors, the members may dissolve the credit union by the vote of 2/3 of the members present and voting at a meeting called for that purpose.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:12-1202

    383-E:12-1202 Procedure. – Upon a vote dissolving the credit union, the members shall elect a committee of 3 persons to liquidate the assets of the credit union. The committee shall act under the control of the commissioner. Each paid-in share according to the amount paid in shall be entitled to its proportional part of the assets in liquidation after all deposits and debts have been paid.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:13-1301

    383-E:13-1301 Corporate Credit Union. – A corporate credit union may be incorporated under this chapter and shall be subject to all parts of this chapter not inconsistent with this subdivision.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:13-1302

    383-E:13-1302 Purposes. –
A corporate credit union is a cooperative nonprofit association whose members consist primarily of other credit unions and whose purposes 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 and other corporate credit unions;
(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 such other financial services of benefit to its members which are authorized by the commissioner.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:13-1303

    383-E:13-1303 Membership. –
(a) Membership in the corporate credit union shall consist of and be limited to the subscribers to the articles of incorporation, credit unions organized under this chapter, credit unions organized under the Federal Credit Union Act or under any other credit union act, organizations or associations of credit unions, and such other persons or organizations provided for in the articles of incorporation.
(b) The board of directors of each credit union, organization or association becoming a member of the corporate credit union shall designate one person to be a voting representative in the corporate credit union. The voting representative shall be eligible to hold office in the corporate credit union as if the person were himself or herself a member of the corporate credit union.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:13-1304

    383-E:13-1304 Charter and Name Exclusive. – Only one corporate credit union shall be incorporated under this chapter and no other credit union may use the term "corporate credit union" as a part of its name.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:13-1305

    383-E:13-1305 Application; Organization. –
Application to form a corporate credit union shall be made in writing to the commissioner. The application shall contain the names of at least 15 credit unions which have agreed to subscribe to shares in the corporate credit union at the time the application is made.
(a) The application shall be accompanied by articles of incorporation, bylaws, and other appropriate documents.
(b) The bylaws shall provide for the selection of a board of directors of at least 5 members and shall require credit unions applying for membership to subscribe to shares in a minimum amount as specified in the bylaws.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:13-1306

    383-E:13-1306 Powers and Privileges. –
A corporate credit union shall enjoy the powers and privileges of any other credit union incorporated under this chapter. In addition to such powers and privileges, and notwithstanding any limitations or restrictions found elsewhere in this chapter, a corporate credit union may:
(a) Accept shares or deposits in any form from its members, from other state, regional or national credit unions, and from credit union organizations or associations;
(b) Make loans to credit unions, to other state, regional or national corporate credit unions, organizations or associations of credit unions, and to other members;
(c) Establish lines of credit for members and participate with other credit unions in making loans to its members under the terms and conditions determined by the board of directors;
(d) Invest in the shares of or make deposits in credit unions;
(e) Buy and sell any form of marketable debt obligations of domestic or foreign corporations or of federal, state or local government units;
(f) Borrow from any source without limitation, accept demand deposits from any source, and issue notes or debentures;
(g) Acquire or sell the assets and assume the liabilities of a member; and
(h) Enter into agreements with credit unions to discount or purchase loans made under government-guaranteed loan programs, real estate loans made by members or any obligations of the United States or any agency thereof held by members.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:13-1307

    383-E:13-1307 Powers. – The corporate credit union may exercise such incidental powers or privileges as are conferred upon federal corporate credit unions, subject to the approval of the commissioner.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:13-1308

    383-E:13-1308 Participation in Central System. – The corporate credit union may enter into agreements for the purpose of participation in any state or federal central liquidity facility or central financial system for credit unions, and for the purpose of aiding credit unions in establishing concentrated lines of credit with other financial entities, and may act as a depositor and transmitter of funds to carry out the agreements.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:13-1309

    383-E:13-1309 Right of Set-Off; Security Interest. –
The corporate credit union shall have a right of immediate set-off against the balances of the share and deposit accounts of each member for any amounts due from the member to the corporate credit union.
(a) The corporate credit union shall have a lien on all share and deposit accounts of each member in the amount of the total indebtedness of the member to the corporate credit union. The lien created by this subsection shall attach to the accounts and be effective whenever the member is indebted to the corporate credit union. The lien shall have priority over any interests of all members and unsecured creditors of the member credit unions of the corporate credit union.
(b) The board of directors or credit committee may require and accept additional security for loans to a member in the form of a pledge, assignment, hypothecation or mortgage of any assets of the member or a guarantor.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:13-1310

    383-E:13-1310 Meetings. – The board of directors of a corporate credit union shall meet at least every 90 days in person or by means of telephone, as provided in the bylaws. The annual meeting of the members of the corporate credit union shall be held at such time as is prescribed in the bylaws. Each member shall be entitled to one vote irrespective of the number of shares held by the member.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:13-1311

    383-E:13-1311 Fees. – The operating fees established by the commissioner under RSA 383:11 shall make allowances for the special purposes and operations of a corporate credit union.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-E:13-1312

    383-E:13-1312 Reserves. – A corporate credit union shall be exempt from the regular reserve requirements of RSA 383-E:8-801 but shall be required to establish and maintain an equity reserve to meet losses, in accordance with rules adopted by the commissioner, under RSA 541-A.

Source. 2015, 272:16. 2016, 230:6, eff. Aug. 8, 2016.

Section 383-E:13-1313

    383-E:13-1313 Exemptions. – The corporate credit union shall be exempt from the securities laws of New Hampshire.

Source. 2015, 272:16, eff. Oct. 1, 2015.