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Opinion

Opinion Summary of Selected Opinion 97-176

Date: 10/18/2018
Organization: Division of Banks
Docket Number: 97-176

This opinion was issued in the fourth quarter of 1997.

Table of Contents

Central Credit Union Fund

The primary purpose of the Central Credit Union Fund (the "Fund"), established by Chapter 216 of the Acts of 1932, as amended, is to assist member credit unions when they are temporarily in need of cash or holding investments which cannot be readily liquidated by making loans to them. The Fund's governing law authorizes it to make a deposit in a state-chartered credit union. It is the position of the Division of Banks that the authority to make such a deposit is a general grant of power relative to any such credit union. Therefore, an individual credit union's by-laws on membership would not have to address the issue of the Fund being eligible for membership and the credit union being able to receive such a deposit. Accordingly, it is the position of the Division that the Fund may make a deposit in a state-chartered credit union, and such a deposit may be received regardless of the credit union's by-laws governing eligibility for membership.

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