§ 31.12.413. Low-income credit unions -- Director's approval required -- Powers -- Rules
(1) A credit union may apply in writing to the director for designation as a low-income credit union. The criteria for approval of this designation are as follows:
(a) At least fifty percent of a substantial and well-defined segment of the credit union's members or potential primary members earn no more than eighty percent of the state or national median income, whichever is higher;
(b) The credit union must submit an acceptable written plan on marketing to and serving the well-defined segment;
(c) The credit union must agree to submit annual reports to the director on its service to the well-defined segment; and
(d) The credit union must submit other information and satisfy other criteria as may be required by the director.
(2)(a) Among other powers and authorities, a low-income credit union may:
(i) Issue secondary capital accounts approved in advance by the director upon application of the credit union; and
(ii) Accept shares and deposits from nonmembers.
(b) A secondary capital account is:
(i) Over one hundred thousand dollars, or a higher amount as established by the director;
(ii) Nontransactional;
(iii) Owned by a nonnatural person; and
(iv) Subordinate to other creditors.
(3) The director may adopt rules for the organization and operation of low-income credit unions including, but not limited to, rules concerning secondary capital accounts and requiring disclosures to the purchasers of the accounts.
[2001 c 83 § 16.]
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