TITLE 26

BANKS AND BANKING

CHAPTER 21

IDAHO CREDIT UNION ACT

26-2108.  POWERS. A credit union shall have power to:

(1)  Make contracts;

(2)  Sue and be sued in the name of the credit union;

(3)  Own, hold, or use any real or personal property or any interest therein that is necessary or incidental to the credit union’s operations, subject to the provisions of this chapter;

(4)  Require the payment of an entrance or membership fee of any applicant admitted to membership;

(5)  Receive from its members payments on shares and deposits of any type;

(6)  Pay dividends or interest on shares and deposits as provided for in this chapter;

(7)  Make loans to its members in accordance with this chapter and purchase or otherwise acquire, in whole or in part, obligations of its members. A credit union may only purchase or otherwise acquire obligations of its members that it could enter into directly with the members;

(8)  Charge interest and other fees on loans, impose fees and charges in connection with the accounts and services provided to members, including fees for failure to meet obligations to the credit union, and recover costs, including attorney’s fees and court costs, incurred in collecting amounts owed to the credit union, subject to other applicable law;

(9)  Borrow money in an aggregate amount not to exceed fifty percent (50%) of its members’ shares and deposits, plus undivided earnings;

(10) Deposit funds in federally insured banks and savings and loan companies and in state or federal credit unions and otherwise invest funds as provided in this chapter;

(11) Lease tangible personal property to its members;

(12) Hold membership in other state or federally chartered credit unions and in trade or other associations related to the credit union’s business;

(13) Receive funds as shares or deposits from a state or federal credit union, bank, savings bank, savings and loan association, or any other type of depository institution;

(14) Receive deposits from the federal government, a state, or any political subdivision of the federal government or a state, or a corporation or other entity established by either;

(15) Establish and operate electronic service facilities to provide services in accordance with this chapter. An electronic service facility that is not operated by personnel on the premises at which the electronic service facility is located is not a branch office for the purposes of section 26-2143, Idaho Code. At least annually, a credit union that operates one (1) or more electronic service facilities shall provide the director with a report listing any electronic service facilities that it has put into service or taken out of service since the last such report;

(16) Make charitable contributions that are reasonable in amounts in relation to the credit union’s financial circumstances;

(17) Indemnify its directors, supervisory committee members, officers, employees, and others in accordance with provisions in its bylaws that are consistent with the Idaho business corporation act;

(18) Provide financial counseling services to its members, including but not limited to investment counseling or advice and debt counseling;

(19) Act as an insurance producer, employ insurance producers, or enter into other arrangements with insurance producers to offer any type of insurance to members in accordance with the Idaho insurance code;

(20) Join, make deposits in or loans to, or purchase shares of any federal reserve bank, federal home loan bank, or central liquidity facility established under federal or state law;

(21) Receive funds as shares or deposits from a deferred compensation plan or other retirement plan that serves any of the credit union’s members or potential members;

(22) Sell, pledge, discount, or otherwise dispose of, in whole or in part, obligations of its members and service obligations of which it has disposed;

(23) Offer tax return preparation and filing services for its members;

(24) Enter into joint marketing, networking, or referral arrangements to facilitate members’ purchases of goods and services from third parties. Such arrangements may include compensation to the credit union, subject to applicable law;

(25) Guarantee the signature of a member in connection with a transaction that involves tangible or intangible property in which a member has or seeks to acquire an interest;

(26) Perform any of the following services for any person in an underserved area, as designated in 12 CFR 1026.35(b)(2)(iv)(B), that does not have an established relationship with a financial institution or for any person in any area if the credit union has been designated as a low-income credit union as that term is defined in 12 CFR 701.34:

(a)  Cashing and selling checks, drafts, or money orders;

(b)  Purchasing and selling foreign currencies in exchange for United States currency;

(c)  Wire transfers; and

(d)  Financial counseling services;

(27) Sell all or part of its assets, purchase all or part of the assets and assume all or part of the liabilities of another credit union, out-of-state credit union, or federal credit union, subject to the approval of the director; and

(28) Exercise such incidental powers as are necessary or convenient to enable the credit union to conduct the business of a credit union or to otherwise fulfill the purposes for which it was organized, in accordance with this chapter.

History:

[26-2108, added 2022, ch. 78, sec. 4, p. 218; am. 2024, ch. 130, sec. 4, p. 523.]