Nebraska Statutes 21-1774. Shares
(1) Share accounts and membership shares, if any, may be subscribed to, paid for, and transferred in such manner as the bylaws may prescribe. A credit union may have more than one class of share accounts subject to such terms, rates, and conditions as the board of directors establishes or as provided for in the underlying contract. All classes of share accounts shall be treated equally in the event of liquidation of the credit union.
Terms Used In Nebraska Statutes 21-1774
- Contract: A legal written agreement that becomes binding when signed.
- Credit union: shall mean a cooperative, nonprofit corporation organized under the Credit Union Act for purposes of educating and encouraging its members in the concept of thrift, creating a source of credit for provident and productive purposes, and carrying on such collateral activities as are set forth in the act. See Nebraska Statutes 21-1705
- Loan: shall mean any extension of credit pursuant to a contract. See Nebraska Statutes 21-1714
- Membership shares: shall mean a balance held by a credit union and established by a member in accordance with standards specified by the credit union. See Nebraska Statutes 21-1716
(2) A credit union may require its members to subscribe to and make payments on membership shares.
(3) The par value of share accounts and membership shares shall be as prescribed in the bylaws.
(4) Membership shares may not be pledged as security on any loan.