Revised Code of Washington - RCW Title 31 Miscellaneous Loan Agencies - Chapter 31.12 Washington State Credit Union Act

31.12.003 Findings -- Intent -- 1997 c 397
The legislature finds that credit unions provide many valuable services to the consumers of this state and will be better prepared to continue providing these ...

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" ...

31.12.015 Declaration of policy
A credit union is a cooperative society organized under this chapter as a nonprofit corporation for the purposes of promoting thrift among its members and ...

31.12.025 Use of words in name
(1) A credit union shall include the words "credit union" in its name. (2) No person may conduct business or engage in any other activity ...

31.12.035 Application for permission to organize -- Approval
Seven or more natural persons who reside in this state may apply to the director for permission to organize a credit union. The application must ...

31.12.055 Manner of organizing -- Articles of incorporation -- Submission to director
(1) Persons applying for the organization of a credit union shall execute articles of incorporation stating: (a) The initial name and location of the credit ...

31.12.065 Bylaws -- Submission to director
(1) Persons applying for the organization of a credit union shall adopt bylaws that prescribe the manner in which the business of the credit union ...

31.12.075 Approval, denial of proposed credit union -- Appeal
(1) When the proposed articles of incorporation and bylaws complying with the requirements of RCW 31.12.055 and 31.12.065 have been filed with the director, the ...

31.12.085 Filing upon approval -- Fee -- Notice to director -- Authority to commence business
(1) Upon approval under RCW 31.12.075(2), the director shall deliver a copy of the articles of incorporation to the secretary of state for filing. Upon ...

31.12.105 Amendment to articles of incorporation -- Approval of director -- Procedure
A credit union's articles of incorporation may be amended by the board with the approval of the director. Complete applications for amendments to the articles ...

31.12.115 Amendment to bylaws -- Approval of director required -- Procedure
(1) A credit union's field of membership bylaws may be amended by the board with approval of the director. Complete applications to amend a credit ...

31.12.185 Annual membership meetings
(1) A credit union's annual membership meeting shall be held at such time and place as the bylaws prescribe, and shall be conducted according to ...

31.12.195 Special membership meetings
(1) A special membership meeting of a credit union may be called by a majority of the board, a majority vote of the supervisory committee, ...

31.12.225 Board of directors -- Election of directors -- Terms -- Vacancies -- Meetings
(1) The business and affairs of a credit union shall be managed by a board of not less than five and not greater than fifteen ...

31.12.235 Directors -- Qualifications -- Operating officers and employees may serve
(1) A director must be a natural person and a member of the credit union. If a director ceases to be a member of the ...

31.12.246 Removal of directors -- Interim directors
The members of a credit union may remove a director of the credit union at a special membership meeting held in accordance with RCW 31.12.195 ...

31.12.255 Board of directors -- Powers and duties
The business and affairs of a credit union shall be managed by the board of the credit union. The duties of the board include, but ...

31.12.265 Officers
(1) The board at its first meeting after the annual membership meeting shall elect board officers from among its members, as provided in the credit ...

31.12.267 Directors and officers -- Fiduciary relationship
Directors, board officers, and senior operating officers are deemed to stand in a fiduciary relationship to the credit union, and must discharge the duties of ...

31.12.269 Directors and committee members -- Limitations on personal liability -- Exceptions
(1) Directors and committee members at a credit union or federal credit union have no personal liability for harm caused by acts or omissions performed ...

31.12.285 Suspension of members of board or supervisory committee by board -- For cause
The board may suspend for cause a member of the board or a member of the supervisory committee until a membership meeting is held. The ...

31.12.326 Supervisory committee -- Membership -- Terms -- Vacancies -- Operating officers and employees may not serve
(1) A supervisory committee of at least three members must be elected at the annual membership meeting of the credit union. Members of the supervisory ...

31.12.335 Supervisory committee -- Duties
(1) The supervisory committee of a credit union shall: (a) Meet at least quarterly; (b) Keep fully informed as to the financial condition of the ...

31.12.345 Suspension of members of a committee or members of the board by supervisory committee -- For cause
(1) The supervisory committee may, by unanimous vote, for cause, suspend a member of the board, until a membership meeting is held. The membership meeting ...

31.12.365 Directors and members of committees -- Compensation -- Reimbursement -- Loans
(1) Directors and members of committees shall not receive compensation for their service as directors and committee members. However, this subsection does not prohibit directors ...

31.12.367 Risk -- Bond coverage -- Notice to director
(1) Each credit union must be adequately insured against risk. In addition, each director, officer, committee member, and employee of a credit union must be ...

31.12.382 Limitation on membership
(1) Membership in a credit union shall be limited to groups having a common bond of occupation or association, or to groups within a well-defined ...

31.12.384 Membership
(1) A credit union may admit to membership those persons qualified for membership as set forth in its bylaws. (2) An organization whose membership, ownership, ...

31.12.386 Voting rights -- Methods -- Proxy -- Under eighteen years of age
(1) No member may have more than one vote regardless of the number of shares held by the member. An organization having membership in a ...

31.12.388 Expulsion of member -- Challenge -- Share and deposit accounts
(1) Members expelled from the credit union will be notified of the expulsion and the reasons upon which it is based. The credit union will, ...

31.12.402 Powers
A credit union may: (1) Issue shares to and receive deposits from its members in accordance with RCW 31.12.416; (2) Make loans to its members ...

31.12.404 Additional powers -- Powers conferred on federal credit union -- Authority of director
(1) Notwithstanding any other provision of law, and in addition to all powers and authorities, express or implied, that a credit union has under the ...

31.12.408 Insurance required after December 31, 1998 -- Federal share insurance program or an equivalent share insurance program -- Director's findings
(1) After December 31, 1998, credit unions must be insured under the federal share insurance program or an equivalent share insurance program as defined in ...

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 ...

31.12.416 Shares and deposits governed by chapter 30.22 RCW -- Limitation on shares and deposits -- Notice of withdrawal -- Lien rights
(1) Shares held and deposits made in a credit union by a natural person are governed by chapter 30.22 RCW. (2) A credit union may ...

31.12.418 Dividends
Dividends may be declared from the credit union's earnings which remain after the deduction of expenses, interest on deposits, and the amounts required for reserves, ...

31.12.426 Loans to members -- Secured or unsecured loans
(1) A credit union may make secured and unsecured loans to its members under policies established by the board, subject to the loans to one ...

31.12.428 Limit on loan amount
(1) No loan may be made to any borrower if the loan would cause the borrower to be indebted to the credit union on all ...

31.12.436 Investment of funds
A credit union may invest its funds in any of the following, as long as they are deemed prudent by the board: (1) Loans held ...

31.12.438 Investment in real property or leasehold interests for own use -- Future expansion
(1) A credit union may invest in real property or leasehold interests primarily for its own use in conducting business, including, but not limited to, ...

31.12.461 Mergers
(1) For purposes of this section, the merging credit union is the credit union whose charter ceases to exist upon merger with the continuing credit ...

31.12.464 Merger or conversion of state into federal, out-of-state, or foreign credit union, or other type of financial institution
(1) A credit union may merge or convert into a federal credit union as authorized by the federal credit union act. The merger or conversion ...

31.12.467 Merger or conversion of federal, out-of-state, or foreign to state credit union
(1) A federal credit union located and conducting business in this state may merge or convert into a credit union organized and operating under this ...

31.12.471 Authority of out-of-state or foreign credit union to operate in this state -- Conditions
(1) An out-of-state or foreign credit union may not operate a branch in Washington unless: (a) The director has approved its application in accordance with ...

31.12.474 Liquidation -- Disposition of unclaimed funds
(1) At a special meeting called for the purpose of liquidation, and upon the recommendation of at least two-thirds of the total members of the ...

31.12.516 Powers of director
(1) The powers of supervision and examination of credit unions and other persons subject to this chapter and chapter 31.13 RCW are vested in the ...

31.12.518 Powers of director under chapter 19.144 RCW
The director or the director's designee may take such action as provided for in this chapter to enforce, investigate, or examine persons covered by chapter ...

31.12.545 Examinations and investigations -- Reports -- Access to records -- Oaths -- Subpoenas
(1) The director shall make an examination and investigation into the affairs of each credit union at least once every eighteen months, unless the director ...

31.12.565 Examination reports and information confidential -- Exceptions -- Penalty
(1) The following are confidential and privileged and not subject to public disclosure under chapter 42.56 RCW: (a) Examination reports and information obtained by the ...

31.12.567 Reports -- Financial and statistical data -- As required by director
A credit union shall file with the director any financial and statistical report that it is required to file with the national credit union administration. ...

31.12.569 Generally accepted accounting principles
Credit unions will comply with the provisions of generally accepted accounting principles as required by federal law or rule of the director. In adopting rules ...

31.12.571 Notice of intent to establish branch -- Another state or foreign jurisdiction
A credit union desiring to establish a branch in another state or a foreign jurisdiction shall submit to the director a notice of intent to ...

31.12.575 Removal or prohibition orders -- Director's authority -- Notice
The director may issue and serve a credit union director, supervisory committee member, officer, or employee with written notice of intent to remove the person ...

31.12.585 Prohibited acts -- Notice -- Cease and desist order
The director may issue and serve a credit union with a written notice of charges and intent to issue a cease and desist order if, ...

31.12.595 Temporary cease and desist order -- Notice -- Superior court
(1) If the director determines that the violation or practice specified in RCW 31.12.585 is likely to cause an unsafe or unsound condition at the ...

31.12.625 Administrative hearing -- Procedures
An administrative hearing on the notice provided for in RCW 31.12.575 and 31.12.585 must be conducted in accordance with chapter 34.05 RCW; provided that, to ...

31.12.630 Authority of director to call special meeting of board
The director may request a special meeting of the board of a credit union if the director believes that a special meeting is necessary for ...

31.12.633 Authority of director to attend meetings of the board
The director may attend a meeting of the board of a credit union if the director believes that attendance at the meeting is necessary for ...

31.12.637 Intervention by director -- Conditions
The director may place a credit union under supervisory direction in accordance with RCW 31.12.641 through 31.12.647, appoint a conservator for a credit union in ...

31.12.641 Supervision by director -- Notice -- Compliance -- Costs
(1) As authorized by RCW 31.12.637, the director may determine to place a credit union under supervisory direction. Upon such a determination, the director shall ...

31.12.644 Supervision by director -- Certain acts prohibited
During the period of supervisory direction, the director may prohibit the credit union from engaging in any of the following acts without prior approval: (1) ...

31.12.647 Supervision by director -- Credit union request for review
During the period of supervisory direction, the credit union may request the director to review an action taken or proposed to be taken by the ...

31.12.651 Conservator -- Authorized actions -- Costs
(1) As authorized by RCW 31.12.637, the director may, upon due notice and hearing, appoint a conservator for a credit union. The director may appoint ...

31.12.654 Actions by conservator -- Review
During the period of conservatorship, the credit union may request the director to review an action taken or proposed to be taken by the conservator, ...

31.12.657 Lawsuits during period of conservatorship
Any suit filed against a credit union or its conservator, during the period of conservatorship, must be brought in the superior court of Thurston county. ...

31.12.661 Conservator serves until purposes are accomplished
The conservator shall serve until the purposes of the conservatorship have been accomplished. If rehabilitated, the credit union must be returned to management or new ...

31.12.664 Liquidation -- Suspension or revocation of articles -- Placement in involuntary liquidation -- Appointment of liquidating agent -- Notice -- Procedure -- Effect
(1) As authorized by RCW 31.12.637, the director may appoint a liquidating agent for a credit union. Before appointing a liquidating agent, the director shall ...

31.12.667 Order directing involuntary liquidation -- Procedure
(1) On receipt of the order placing the credit union in involuntary liquidation, the officers and directors of the credit union shall deliver to the ...

31.12.671 Receivership -- Appointment of receiver by director -- Notice -- Act without bond
As authorized by RCW 31.12.637, the director may without prior notice appoint a receiver to take possession of a credit union. The director may appoint ...

31.12.674 Receiver may be required to show cause -- Superior court
Within ten days after the receiver takes possession of a credit union's assets, the credit union may serve notice upon the receiver to appear before ...

31.12.677 Powers and duties of receiver
Upon taking possession of a credit union, the receiver shall proceed to collect the assets of the credit union and preserve, administer, and liquidate its ...

31.12.681 Claims against credit union in receivership -- Notice
The receiver shall publish once a week for four consecutive weeks in a newspaper of general circulation in the county where the credit union's principal ...

31.12.684 Receiver shall inventory assets -- File lists of assets and claims -- Objections to approved claims
Upon taking possession of the credit union, the receiver shall make an inventory of the assets and file the list in the office of the ...

31.12.687 Expenses incurred by receiver
All expenses incurred by the receiver in relation to the receivership of a credit union, including, but not limited to, reasonable attorneys' fees, become a ...

31.12.691 Liquidation dividends -- Approval of court
At any time after the expiration of the date fixed for the presentation of claims, the receiver, subject to the approval of the court, may ...

31.12.694 Remaining assets -- Distribution
When all expenses of the receivership have been paid, as well as all proper claims of share account holders, depositors, and other creditors, and proper ...

31.12.697 Unclaimed liquidation dividends
Any liquidation dividends to share account holders, depositors, or other creditors of the credit union remaining uncalled for and unpaid in the hands of the ...

31.12.701 Personal property -- Receiver's duties
(1) The receiver shall inventory, package, and seal uncalled for and unclaimed personal property left with the credit union, including, but not limited to, property ...

31.12.704 Proceeds of sale -- Deposit or payment by receiver
The proceeds of the sale less any amounts for costs and charges incurred in safekeeping and sale must be deposited by the receiver in a ...

31.12.707 Completion of receivership -- Merger, purchase, or liquidation -- Secretary of state
Upon the completion of a receivership through merger, purchase of assets and assumption of liabilities, or liquidation, the director shall terminate the credit union's authority ...

31.12.711 Director may terminate receivership -- Expenses
If at any time after a receiver is appointed, the director determines that all material deficiencies at the credit union have been corrected, and that ...

31.12.714 Receivership files
The receiver or director, as appropriate, may at any time after the expiration of one year from the order of final distribution, or from the ...

31.12.717 Pendency of proceedings for review of appointment of receiver -- Liabilities of credit union -- Availability of relevant data
The pendency of any proceedings for judicial review of the appointment of a receiver may not operate to prevent the payment or acquisition of the ...

31.12.721 Appointment by court of temporary receiver -- Notice to director
No receiver may be appointed by any court for any credit union, except that a court otherwise having jurisdiction may in case of imminent necessity ...

31.12.724 Actions that are void -- Felonious conduct -- Penalties
(1) Every transfer of a credit union's property or assets, and every assignment by a credit union for the benefit of creditors, made in contemplation ...

31.12.728 Applicability of general receivership law
Except in cases in which a receiver is appointed by a court on a temporary basis under RCW 31.12.721, the provisions of Title 7 RCW ...

31.12.850 Prohibited acts -- Penalty
(1)(a) It is unlawful for a director, supervisory committee member, officer, employee, or agent of a credit union to knowingly violate or consent to a ...

31.12.860 Taxation of credit unions
Neither a credit union nor its members may be taxed upon its shares and deposits as property. A credit union shall be taxable upon its ...

31.12.890 Satellite facilities
See chapter 30.43 RCW. ...

31.12.891 Automated teller machines and night depositories security
Chapter 19.174 RCW applies to automated teller machines and night depositories regulated under this title.[1993 c 324 § 11. Formerly RCW 31.12.740.]Notes: Effective date -- ...

31.12.902 Short title
This chapter may be known and cited as the "Washington State Credit Union Act."[1984 c 31 § 76.] ...

31.12.906 Effective date -- 1997 c 397
Except for sections 35 and 50 of this act, this act takes effect January 1, 1998.[1997 c 397 § 92.] ...

31.12.907 Severability -- 1997 c 397
If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application ...

31.12.908 Severability -- 2001 c 83
If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application ...