§ 31.12.005. Definitions
Unless the context clearly requires otherwise, as used in this chapter:
(1) "Board" means the board of directors of a credit union.
(2) "Board officer" means an officer of the board elected under RCW 31.12.265(1).
(3) "Branch" of a credit union, out-of-state credit union, or foreign credit union means any facility that meets all of the following criteria:
(a) The facility is a staffed physical facility;
(b) The facility is owned or leased in whole or part by the credit union or its credit union service organization; and
(c) Deposits and withdrawals may be made, or shares purchased, through staff at the facility.
(4) "Capital" means a credit union's reserves, undivided earnings, and allowance for loan and lease losses, and other items that may be included under RCW 31.12.413 or by rule of the director.
(5) "Credit union" means a credit union organized and operating under this chapter.
(6) "Credit union service organization" means an organization that a credit union has invested in pursuant to RCW 31.12.436(8), or a credit union service organization invested in by an out-of-state, federal, or foreign credit union.
(7) "Director" means the director of financial institutions.
(8) "Federal credit union" means a credit union organized and operating under the laws of the United States.
(9) "Financial institution" means any commercial bank, trust company, savings bank, or savings and loan association, whether state or federally chartered, and any credit union, out-of-state credit union, or federal credit union.
(10) "Foreign credit union" means a credit union organized and operating under the laws of another country or other foreign jurisdiction.
(11) "Insolvency" means:
(a) If, under generally accepted accounting principles, the recorded value of the credit union's assets are less than its obligations to its share account holders, depositors, creditors, and others; or
(b) If it is likely that the credit union will be unable to pay its obligations or meet its share account holders' and depositors' demands in the normal course of business.
(12) "Loan" means any loan, overdraft line of credit, extension of credit, or lease, in whole or in part.
(13) "Material violation of law" means:
(a) If the credit union or person has violated a material provision of:
(i) Law;
(ii) Any cease and desist order issued by the director;
(iii) Any condition imposed in writing by the director in connection with the approval of any application or other request of the credit union; or
(iv) Any written agreement entered into with the director;
(b) If the credit union or person has concealed any of the credit union's books, papers, records, or assets, or refused to submit the credit union's books, papers, records, or affairs for inspection to any examiner of the state or, as appropriate, to any examiner of the national credit union administration; or
(c) If the person has breached his or her fiduciary duty to the credit union.
(14) "Membership share" means an initial share that a credit union may require a person to purchase in order to establish and maintain membership in a credit union.
(15) "Net worth" means a credit union's capital, less the allowance for loan and lease losses.
(16) "Operating officer" means an employee of a credit union designated as an officer pursuant to RCW 31.12.265(2).
(17) "Organization" means a corporation, partnership, association, limited liability company, trust, or other organization or entity.
(18) "Out-of-state credit union" means a credit union organized and operating under the laws of another state or United States territory or possession.
(19) "Person" means an organization or a natural person including, but not limited to, a sole proprietorship.
(20) "Principally" or "primarily" means more than one-half.
(21) "Senior operating officer" includes:
(a) An operating officer who is a vice president or above; and
(b) Any employee who has policy-making authority.
(22) "Small credit union" means a credit union with up to ten million dollars in total assets.
(23) "Unsafe or unsound condition" means, but is not limited to:
(a) If the credit union is insolvent;
(b) If the credit union has incurred or is likely to incur losses that will deplete all or substantially all of its net worth; or
(c) If the credit union is in imminent danger of losing its share and deposit insurance or guarantee.
(24) "Unsafe or unsound practice" means any action, or lack of action, which is contrary to generally accepted standards of prudent operation, the likely consequences of which, if continued, would be abnormal risk of loss or danger to a credit union, its members, or an organization insuring or guaranteeing its shares and deposits.
[2001 c 83 § 1; 1997 c 397 § 2. Prior: 1994 c 256 § 68; 1994 c 92 § 175; 1984 c 31 § 2.]
Notes:
Findings -- Construction -- 1994 c 256: See RCW 43.320.007.
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Last modified: April 7, 2009