Effective 28 Aug 1994

370.070. Powers of a credit union. — A credit union has the following powers:

(1) To receive the savings of its members in payment for shares; and in addition to membership shares and general shares, there may also be created various classes of special shares, which special shares, notwithstanding any other provisions of this chapter, may be issued upon such terms, rates of interest and conditions as the board of directors may provide;

(2) To make loans to members;

(3) To deposit its funds and purchase certificates of deposit in state and national banks;

(4) To invest its funds in securities as provided in this chapter. The funds of the credit union shall be used first, however, for loans to members in the way and manner hereinafter provided, and preference shall be given to the small loan in the event the available funds do not permit all loans which have been approved by the credit committee;

(5) To purchase, hold and dispose of property, real and personal, necessary and incidental to its operation. Any property, real or personal, not used in the business but acquired by way of pledge or foreclosure in the collection of loans or accounts, may be held by the credit union, provided any real estate so acquired shall be sold by it within six years from the date on which it was acquired;

(6) To purchase insurance for the benefit of the credit union and its members;

(7) To make contracts, sue and be sued;

(8) With the approval of the director of the division of credit unions, to make loans to other credit unions, in the total amount not exceeding twenty percent of its capital, surplus and reserve funds;

(9) To provide for such special thrift accounts on such terms and conditions as the board of directors may determine not inconsistent with the bylaws;

(10) With the prior approval of the director of the division of credit unions, to provide to members fiscal and financial services, including temporary services to bona fide members of other credit unions, and to exercise such other incidental powers as are granted to general business corporations organized under the laws of this state, including such powers as are convenient or useful to enable it to promote and carry on most effectively its purposes, and all at a fee to be determined by the board of directors;

(11) To participate with another lender or other lenders in making loans. Such loans may be made on a secured or unsecured basis upon such terms and conditions as the board of directors of the credit union shall authorize;

(12) To purchase from or sell to other lenders or holders of loans any loan or loan participation interest in loans made by another lender;

(13) To lend, in an amount not to exceed two percent of the shares and deposits of the credit union, to any credit union association of which the credit union is a member or any subsidiary of such credit union association.

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(RSMo 1939 § 5524, A.L. 1945 p. 689, A. 1949 H.B. 2091, A.L. 1951 p. 289, A.L. 1965 p. 566, A.L. 1967 p. 508, A.L. 1972 S.B. 502, A.L. 1984 H.B. 962, A.L. 1986 H.B. 1193, A.L. 1994 H.B. 1312)

Prior revision: 1929 § 5082

CROSS REFERENCE:

Multinational banks, securities and obligations of, investment in, when, 409.950