26-2109. LIMITATIONS OF CORPORATE POWERS. A credit union shall have power to own, hold or use any property or any interest therein subject to the following limitations:

(a) Land and buildings: any office, branch office, customer-credit union communication terminal, drive-up teller, service center, parking lot, other facility or real estate where the credit union transacts or will transact business. The amount invested shall be limited to four and one-half per cent (4 1/2%) of its members’ shares and deposits. This limitation may only be increased with the prior written approval of the director.

(b) Furniture, fixtures and equipment: all office furnishings including but not limited to tables, chairs, desks, file cabinets, curtains, drapes, rugs, office machines and computer hardware if the credit union does not own a central processing unit. The amount invested shall be limited to one and one-half per cent (1 1/2%) of its members’ shares and deposits. This limitation may only be increased with the prior written approval of the director.

(c) In-house computer system: a central processing unit including all related hardware and software. The amount invested shall be limited to one and one-half per cent (1 1/2%) of its members’ shares and deposits. This limitation may only be increased with the prior written approval of the director.

(d) The limitations enumerated in subsections (a), (b) and (c) of this section shall not extend to any real property which may be conveyed to the credit union in public satisfaction of debts previously contracted in the course of business, nor to such real estate as the credit union shall purchase at sale on judgments, decrees, mortgage or deed of trust foreclosures under securities held by the credit union, but a credit union shall not bid at such sale a larger amount than is necessary to satisfy its debts and costs. Any moneys expended in this manner shall be accounted for in a property foreclosure asset account and separated from real property used for credit union operations.

(e) The provisions of this subsection (e) shall apply only to credit unions which, as of the effective date of this section, have an amount invested in any of the categories of property enumerated in subsections (a), (b) and (c) of this section which exceed one or more of the limitations expressed in those subsections. Any such credit union will not be in violation of this section by virtue of its having, as of the effective date of this section, an amount invested in one or more of the categories of property enumerated in subsections (a), (b) and (c) which exceed one or more of the limitations expressed in those subsections. Provided, however, that for each of the categories of property in which the amount invested by such credit union exceeds a limitation expressed in subsection (a), (b) or (c), as of the effective date of this section, such credit union may not thereafter acquire additional property of that category without the prior written approval of the director.

(f) For the purposes of this section, the amount which a credit union has invested in property of any of the enumerated categories shall be measured by the depreciated cost of that property as stated on the books of the credit union. No credit union may alter the depreciated cost of any such property stated on its books for the purpose of avoiding the requirements of this section.

History:

[26-2109, added 1982, ch. 53, sec. 2, p. 81.]