(1) A credit union has the following powers to:
Receive the savings of its members either as payment on shares or as deposits, including the right to conduct Christmas clubs, vacation clubs, and other such thrift organizations or plans within the membership;
Make loans to its members;
Make loans to other credit unions as provided in this article;
Deposit in state and national financial institutions insured by an agency of the federalgovernment and to invest in the shares and deposits of the central credit union organized pursuant to this article;
Invest in any of the following: Obligations of the United States or securities guaranteed or insured by any agency of the United States; obligations of any state or territory of the United States, or of any political subdivision or instrumentality thereof, except revenue obligations issued to provide, enlarge, or improve electric power, gas, water, or sewer facilities, or any combination thereof, issued by any city or town, or other similar municipal corporation having a population of less than five thousand persons, as determined by the latest federal decennial census; and, to an extent which shall not exceed ten percent of its shares, deposits, and undivided earnings, in shares of mutual funds or investment companies, stocks, bonds, or other securities of any corporation or religious or educational organizations, as may be approved as prudent and sound by the commissioner;
Borrow money as provided in section 11-30-115;
Apply for and hold membership in a central credit union organized pursuant to thisarticle, in any other central credit union authorized to transact business in this state, and in any organization or association of credit unions;
Acquire, through purchase or other lawful transactions, and to hold title to real andpersonal property necessary and incidental to the operation of the credit union, and to sell, mortgage, or otherwise dispose of the same;
Exercise such incidental powers as shall be necessary to enable it to carry on effectively the business for which it is incorporated;
Upon the written approval of the commissioner, engage in any activity in which suchcredit union could engage were it operating under a federal charter at the time, provided such activity is not prohibited by the laws of this state;
Sell all or any portion of its assets and purchase all or any portion of the assets ofanother credit union and assume the liabilities of the selling credit union and its field of membership, subject to the approval of the commissioner;
Allow shares and deposits to be paid for, transferred, and withdrawn for payment tothe account holder or to third parties in such manner and with such procedures as may be established by the board of directors. This paragraph (l) shall apply only with respect to share draft accounts in which the entire beneficial interest is held by one or more individuals or members or by an organization which is operated primarily for religious, philanthropic, charitable, educational, or other similar purposes and which is not operated for profit.
Make loans to, or permit the assumption of loans by, officers or employees of thedivision who are members of the credit union;
Participate with other credit unions, credit union organizations, or financial organizations in making loans to credit union members when the borrower is a member of either the credit union originating the loan or the credit union purchasing a participation interest in the loan;
Act as trustee or custodian of individual retirement accounts for the credit union'smembers authorized by federal or state law or as trustee or custodian of any plan established pursuant to the federal "Self-Employed Individuals Tax Retirement Act of 1962", as amended, or the federal "Employee Retirement Income Security Act of 1974", as amended, if a significant portion of the participants in any such plan are eligible for membership in the credit union and the funds held in the trustee or custodial capacity are invested in the credit union's shares or deposits;
Act as fiscal agent for and receive payments on shares and deposits from nonmemberunits of the federal government or the state of Colorado or any agency or political subdivision thereof;
Receive payment on deposits from nonmember financial institutions which are supervised under the laws of this state, the United States, or another state or territory of the United States.
(2) As authorized pursuant to section 10-2-601 (2), C.R.S., a credit union may, pursuant to federal law or under such rules as may be adopted by the financial services board or the commissioner of insurance pursuant to section 10-2-601, C.R.S., act as the agent, through the credit union or any credit union service organization, for any insurance company authorized to do business in this state by soliciting and selling insurance and collecting premiums on policies issued by such company. For such services, a credit union or credit union service organization may receive such fees or commissions as may be agreed between such entity and the insurance company.
Source: L. 31: p. 297, § 4. CSA: C. 47, § 4. L. 41: p. 372, § 4. CRS 53: § 38-1-4.
C.R.S. 1963: § 38-1-4. L. 67: p. 316, § 3. L. 75: (1)(d) amended, p. 394, § 1, effective June 16; (1)(j) added, p. 374, § 3, effective June 26. L. 79: (1)(k) added, p. 415, § 1, effective July 1. L. 81: (1)(l) and (1)(m) added, p. 612, § 1, effective July 1. L. 83: (1)(k) amended and (1)(n) and (1)(o) added, p. 484, § 3, effective July 1. L. 84: (1)(d) and (1)(e) amended and (1)(p) and (1)(q) added, p. 373, § 3, effective July 1. L. 90: (1)(e), (1)(j), (1)(k), and (1)(m) amended, p. 1837, § 8, effective May 31. L. 96: (1)(q) amended, p. 185, § 2, effective April 8. L. 97: (2) added, p. 432, § 8, effective April 24. L. 2003: (1)(m) amended, p. 1207, § 7, effective July 1. L. 2004: (1)(m) and (1)(n) amended, p. 130, § 2, effective July 1.
Cross references: For the "Self-Employed Individuals Tax Retirement Act of 1962", see Pub.L. 87-792, 76 Stat. 809; for the "Employee Retirement Income Security Act of 1974", see Pub.L. 93-406, codified at 29 U.S.C. § 1001 et seq.