Indiana Code 28-7-1-19. Capital; lien on shares; transfer of shares; use of secondary capital; safety and soundness; regulations regarding prompt corrective action and risk based net worth
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Sec. 19. (a) The capital of a credit union shall consist of the payments on shares which have been made to it by members. A credit union may attach a lien on the shares of any member with outstanding obligations to the credit union. A credit union may, upon the resignation of a member, cancel the shares of such member, and apply the withdrawal value of such shares towards the liquidation of the member’s obligations. Fully paid up shares of a credit union may be transferred to any qualified member upon such terms as the bylaws provide. If a federal credit union is authorized by the federal regulatory authority with jurisdiction or by federal law to use one (1) or more forms of secondary capital, the department may by rule, order, or declaratory ruling allow a credit union to use one (1) or more forms of secondary capital. The rule, order, or declaratory ruling must include disclosure requirements concerning the conditions for return of the secondary capital and the liquidation priority of the secondary capital.
(1) prompt corrective action; and
(b) A credit union shall maintain capital consistent with the safety and soundness necessary to support the risk in the credit union’s activities, as determined appropriate by the director. The National Credit Union Administration‘s:
Terms Used In Indiana Code 28-7-1-19
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Lien: A claim against real or personal property in satisfaction of a debt.
- National Credit Union Administration: The federal regulatory agency that charters and supervises federal credit unions. (NCUA also administers the National Credit Union Share Insurance Fund, which insures the deposits of federal credit unions.) Source: OCC
(2) risk based net worth;
regulations set forth in 12 C.F.R. § 702.101, 12 C.F.R. § 702.102, 12 C.F.R. § 702.103, 12 C.F.R. § 702.104, and 12 C.F.R. § 702.105 apply to all credit unions.
Formerly: Acts 1961, c.182, s.19; Acts 1969, c.133, s.5. As amended by P.L.263-1995, SEC.17; P.L.35-2010, SEC.160; P.L.197-2023, SEC.14.