(a) Any credit union may apply to the department for permission to offer third-party payment services to its members. The department shall exercise its discretion in determining whether to approve such request but shall not grant its approval until it is satisfied that:
(1) The convenience and need of the membership will be served by the proposed change;
(2) There is reasonable promise of adequate support of the program in light of:
(A) The competition offered by existing financial institutions;
(B) The financial history of the credit union and its membership; and
(C) The opportunities for profitable employment of depositors' funds as indicated by the average demand for credit, the number of potential depositors, the volume of transactions, and stability of the common bond;
(3) The managerial resources, internal controls, and operating procedures of the credit union are sufficient to administer the program in a safe and sound manner; and
(4) The capital and reserves of the credit union are adequate in light of current economic conditions and asset quality of the credit union.
(b) A credit union meeting certain financial and managerial criteria specified by department rule, regulation, or policy shall be exempt from the need for prior approval. Prior notice of intent to offer third-party payment services will be provided to the department.
(c) Upon the commencement of third-party payment services, a credit union shall be subject to Code Sections 7-1-287, pertaining to investment securities; 7-1-288, pertaining to corporate stock and securities; 7-1-371, pertaining to legal reserve requirements; and rules and regulations of the department relating to the foregoing Code sections of law and shall not pay a greater rate of interest on third-party payment accounts than is allowed to be paid by commercial banks.
(d) A credit union that is approved to offer third-party payment services may apply to the department to offer other services, such as check-cashing services, sale of payment instruments, or international remittances, which services are determined by the department to be safe, sound, convenient, and necessary and responsive to those consumers eligible for membership. The department may impose restrictions on these services if approved.
(e) Authority to offer third-party payment services may be suspended or revoked in accordance with Code Section 7-1-91.
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