YES:
MR. SPEAKER:
Your Committee on Financial Institutions , to which was referred House Bill
1113 , has had the same under consideration and begs leave to report the same back to the
House with the recommendation that said bill be amended as follows:
more favorable than those extended to other borrowers;
(B) upon the making of the loan, the aggregate amount of
loans outstanding under this subdivision will not exceed
twenty percent (20%) of the unimpaired capital and surplus of
the credit union;
(C) the loan is approved by the credit committee or loan
officer; and
(D) the borrower takes no part in the consideration of or vote
on the application.
(4) To invest in any of the following:
(A) Bonds, notes, or certificates that are the direct or indirect
obligations of the United States, or of the state, or the direct
obligations of a county, township, city, town, or other taxing
district or municipality or instrumentality of Indiana and that
are not in default.
(B) Bonds or debentures issued by the Federal Home Loan
Bank Act (12 U.S.C. 1421 through 1449) or the Home
Owners' Loan Act (12 U.S.C. 1461 through 1468).
(C) Interest-bearing obligations of the FSLIC Resolution Fund
and obligations of national mortgage associations issued
under the authority of the National Housing Act.
(D) Mortgages on real estate situated in Indiana which are
fully insured under Title 2 of the National Housing Act (12
U.S.C. 1707 through 1715z).
(E) Obligations issued by farm credit banks and banks for
cooperatives under the Farm Credit Act of 1971 (12 U.S.C.
2001 through 2279aa-14).
(F) In savings and loan associations, other credit unions that
are insured under
IC 28-7-1-31.5
and certificates of
indebtedness or investment of an industrial loan and
investment company if the association or company is
federally insured. Not more than twenty percent (20%) of the
assets of a credit union may be invested in the shares or
certificates of an association or company; nor more than forty
percent (40%) in all such associations and companies.
(G) Corporate credit unions.
(H) Federal funds or similar types of daily funds transactions
with other financial institutions.
(I) Mutual funds created and controlled by credit unions,
credit union associations, or their subsidiaries. Mutual funds referred
to in this clause may invest only in instruments that are
approved for credit union purchase under this chapter.
(J) Shares, stocks, or obligations of any credit union service
organization (as defined in Section 701.27 712 of the Rules
and Regulations of the National Credit Union Administration)
with the approval of the department. Not more than five
percent (5%) of the total paid in and unimpaired capital of the
credit union may be invested under this clause.
(5) To deposit its funds into:
(A) depository institutions that are federally insured; or
(B) state chartered credit unions that are privately insured by
an insurer approved by the department.
(6) To purchase, hold, own, or convey real estate as may be
conveyed to the credit union in satisfaction of debts previously
contracted or in exchange for real estate conveyed to the credit
union.
(7) To own, hold, or convey real estate as may be purchased by
the credit union upon judgment in its favor or decrees of
foreclosure upon mortgages.
(8) To issue shares of stock and upon the terms, conditions,
limitations, and restrictions and with the relative rights as may be
stated in the bylaws of the credit union, but no stock may have
preference or priority over the other to share in the assets of the
credit union upon liquidation or dissolution or for the payment of
dividends except as to the amount of the dividends and the time
for the payment of the dividends as provided in the bylaws.
(9) To charge the member's share account for the actual cost of
necessary locator service when the member has failed to keep the
credit union informed about the member's current address. The
charge shall be made only for amounts paid to a person or concern
normally engaged in providing such service, and shall be made
against the account or accounts of any one (1) member not more
than once in any twelve (12) month period.
(10) To transfer to an accounts payable, a dormant account, or a
special account share accounts which have been inactive, except
for dividend credits, for a period of two (2) years. The credit
union shall not consider the payment of dividends on the
transferred account.
(11) To invest in fixed assets with the funds of the credit union.
An investment in fixed assets in excess of five percent (5%) of its
assets is subject to the approval of the department.
(12) To establish branch offices, upon approval of the department,
provided that all books of account shall be maintained at the
principal office.
(13) To pay an interest refund on loans proportionate to the
interest paid during the dividend period by borrowers who are
members at the end of the dividend period.
(14) To purchase life savings and loan protection insurance for
the benefit of the credit union and its members, if:
(A) the coverage is placed with an insurance company licensed
to do business in Indiana; and
(B) no officer, director, or employee of the credit union
personally benefits, directly or indirectly, from the sale or
purchase of the coverage.
(15) To sell and cash negotiable checks, travelers checks, and
money orders for members.
(16) To purchase members' notes from any liquidating credit
union, with written approval from the department, at prices agreed
upon by the boards of directors of both the liquidating and the
purchasing credit unions. However, the aggregate of the unpaid
balances of all notes of liquidating credit unions purchased by any
one (1) credit union shall not exceed ten percent (10%) of its
unimpaired capital and surplus unless special written
authorization has been granted by the department.
(17) To exercise such incidental powers necessary or requisite to
enable it to carry on effectively the business for which it is
incorporated.
(18) To act as a custodian or trustee of any trust created or
organized in the United States and forming part of a stock bonus,
pension, or profit sharing plan which qualifies or qualified for
specific tax treatment under Section 408(a) or Section 401(d) of
the Internal Revenue Code, if the funds of the trust are invested
only in share accounts or insured certificates of the credit union.
the credit union does business.
Participation may be in the form of either charitable contributions
or participation loans. In either case, disbursement of funds
through the administering organization is not required to be
limited to members of the credit union. Total contributions or
participation loans may not exceed one tenth of one percent
(0.001) of total assets of the credit union. A recipient of a
contribution or loan is not considered qualified for credit union
membership. A contribution or participation loan made under this
subdivision must be approved by the board of directors.
(25) To establish and operate an automated teller machine
(ATM):
(A) at any location within Indiana; or
(B) as permitted by the laws of the state in which the
automated teller machine is to be located.
(26) To demand and receive, for the faithful performance and
discharge of services performed under the powers vested in the
credit union by this article:
(A) reasonable compensation, or compensation as fixed by
agreement of the parties;
(B) all advances necessarily paid out and expended in the
discharge and performance of its duties; and
(C) unless otherwise agreed upon, interest at the legal rate on
the advances referred to in clause (B).
(27) Subject to any restrictions the department may impose,
to become the owner or lessor of personal property acquired
upon the request and for the use of a member and to incur
additional obligations as may be incident to becoming an
owner or lessor of such property.
union of the department's receipt of the letter submitted under
subsection (b). Except as provided in subsection (e), the credit
union may exercise the requested rights and privileges sixty (60)
days after the date on which the department receives the letter
unless otherwise notified by the department.
(d) The department, through its members, may prohibit the
credit union from exercising the requested rights and privileges
only if the members find that:
(1) federal credit unions domiciled in Indiana do not possess
the requested rights and privileges; or
(2) the exercise of the requested rights and privileges by the
credit union would adversely affect the safety and soundness
of the credit union.
(e) The sixty (60) day period referred to in subsection (c) may be
extended by the department based on a determination that the
credit union's letter raised issues requiring additional information
or additional time for analysis. If the sixty (60) day period is
extended under this subsection, the credit union may exercise the
requested rights and privileges only if the credit union receives
prior written approval from the department. However:
(1) the members must:
(A) approve or deny the requested rights and privileges; or
(B) convene a hearing;
not later than sixty (60) days after the department receives the
credit union's letter; and
(2) if a hearing is convened, the members must approve or
deny the requested rights and privileges not later than sixty
(60) days after the hearing is concluded.
(f) The exercise of rights and privileges by a credit union in
compliance with and in the manner authorized by this section is not
a violation of any provision of the Indiana Code or rules adopted
under
IC 4-22-2.
(g) Whenever, in compliance with this section, a credit union
exercises rights and privileges granted to federal credit unions
domiciled in Indiana, all credit unions may exercise the same rights
and privileges if the department by order determines that the
exercise of the rights and privileges by all credit unions would not
adversely affect their safety and soundness.
and when so amended that said bill do pass.