(1) A credit union shall establish and maintain a regular reserve for contingencies. The Director of the Department of Consumer and Business Services may adopt rules prescribing:
(a) Minimum net worth requirements for credit unions; and
(b) Actions to be taken by a credit union when the net worth of the credit union falls below the applicable minimum net worth requirement.
(2) In addition to the regular reserve required in subsection (1) of this section, a credit union shall establish a reserve for loan losses. The credit union shall allocate sufficient funds each month to the reserve for loan losses to maintain the reserve for loan losses in an amount at least equal to the credit union’s best estimate of the losses the credit union expects to sustain in the liquidation of currently outstanding loans. [1981 c.192 §38 (enacted in lieu of 723.632); 1995 c.319 §3; 2005 c.95 §10]
Section: Previous 723.550 723.560 723.572 723.576 723.582 723.586 723.602 723.631 723.632 723.636 723.642 723.646 723.672 723.676 723.682 NextLast modified: August 7, 2008