Kansas Statutes
Article 22 - Credit Unions
17-2204 Powers of credit unions.

17-2204. Powers of credit unions. A credit union shall have the following powers:
(a) A credit union may receive the savings of its members in payment for shares, make contracts, sue and be sued, and provide negotiable checks, money orders, any other money type instruments or transfer methods, safe deposit boxes or similar safekeeping facilities to its members.
(b) A credit union may make loans to members through the credit committee or authorized loan officer in the way and manner provided in K.S.A. 17-2201 et seq., and amendments thereto.
(c) A credit union may invest under written investment policies established by the board:
(1) In all types of shares and accounts of a corporate credit union that is federally insured;
(2) in shares or accounts of any savings and loan association or mutual savings bank the accounts of which are insured by an insurer approved by the state in which the savings and loan association or mutual savings bank operates for guaranteeing the shares or accounts of such institutions;
(3) in the bonds or other obligations of the United States of America, or securities fully guaranteed as to principal and interest thereby;
(4) in obligations of, or obligations issued by, any state or political subdivision thereof, including any agency, corporation or instrumentality of a state or political subdivision, except that no credit union may invest more than 10% of its shares, undivided earnings and reserves in the obligations of any one issuer, exclusive of general obligations of the issuer; or
(5) in savings banks, state banks, trust companies and national banks, the accounts of which are insured by an insurer approved by the state in which the savings bank, state bank, trust company or national bank operates for guaranteeing the shares or accounts of such institutions.
(d) A credit union may enter into agreements with financial institutions or organizations for the extension of credit or debit services.
(e) A credit union may do all things necessary to obtain, continue, pay for and terminate insurance of its shares and share certificates with the national credit union share insurance fund or its successor. A credit union also may do all things necessary to obtain, continue, pay for and terminate private insurance coverage of its shares and share certificates in excess of the coverage for such shares and share certificates provided by the national credit union share insurance fund or its successor. Such excess coverage shall be obtained from an insurer approved by the commissioner of insurance.
(f) A credit union may receive from its members or other insured credit unions payments on shares and share certificates and may invest its funds in shares, share certificates or other accounts of insured credit unions.
(g) A corporate credit union, as defined by K.S.A. 17-2231(e), and amendments thereto, may buy and sell investment securities, as defined by the administrator, but the total amount of such investment securities of any one obligor or maker held by such credit union shall at no time exceed 15% of the shares, undivided earnings and reserves of the credit union, except that this limit shall not apply to obligations of the United States government or any agency thereof.
(h) Credit unions may enter into agreements to discount or sell student loans made pursuant to federally insured student loan programs under Pub. L. No. 89-329, title IV part (b) of the higher education act of 1965 as amended.
(i) A credit union may discount or sell to such corporate credit union or any financial institution or organization any real estate loan made by the credit union.
(j) A credit union may enter into agreements with a corporate credit union to discount or sell to such corporate credit union any obligation of the United States government or any agency thereof, or of any state, municipality or any agency thereof, if the obligation at the time of purchase was a legal investment for credit unions.
(k) A credit union may provide that shares and share certificates may be withdrawn for payment to the account holder or to third parties, in such manner and in accordance with such procedures as may be established by the board of directors.
(l) Every credit union incorporated pursuant to or operating under the provisions of the state credit union code may exercise such powers, including incidental powers, as shall be necessary or requisite to enable it to carry on effectively the purposes and business for which it is incorporated.
(m) A credit union may receive from the national credit union central liquidity facility created by title III of the federal credit union act, 12 U.S.C. § 1795 et seq., payments on: (1) Shares that may be issued at varying dividend rates; (2) share certificates that may be issued at varying dividend rates and maturities; and (3) investments in any other accounts of the credit union. A credit union may invest its funds in the capital stock of the national credit union central liquidity facility.
(n) Subject to written guidelines issued by the administrator, a credit union may purchase notes made by individual borrowers to a financial institution at such prices as may be agreed upon by the board of directors of the purchasing credit union. No purchase may be made, however, under authority of this subsection, unless approved in writing by the administrator, if, upon the making of that purchase, the aggregate of the unpaid balances of notes of nonmembers purchased under authority of this subsection would exceed 5% of the shares, undivided earnings and reserves of the credit union.
(o) Subject to rules and regulations adopted by the administrator, a credit union, if designated by the administrator as a low-income credit union, may accept payments to share accounts by nonmembers. Such rules and regulations shall specify the maximum level of nonmember shares, the use of such shares, the term of such accounts and other requirements to address safety and soundness issues. Nonmember account holders shall not have the same rights and privileges as members.
History: L. 1929, ch. 141, § 4; L. 1951, ch. 204, § 1; L. 1955, ch. 138, § 1; L. 1968, ch. 160, § 3; L. 1969, ch. 112, § 56; L. 1971, ch. 75, § 1; L. 1972, ch. 58, § 1; L. 1974, ch. 98, § 1; L. 1975, ch. 136, § 3; L. 1977, ch. 75, § 1; L. 1981, ch. 101, § 2; L. 1982, ch. 103, § 2; L. 1984, ch. 90, § 1; L. 1987, ch. 85, § 1; L. 1992, ch. 225, § 1; L. 1995, ch. 64, § 1; L. 2012, ch. 161, § 1; L. 2019, ch. 22, § 5; July 1.

Structure Kansas Statutes

Kansas Statutes

Chapter 17 - Corporations

Article 22 - Credit Unions

17-2201 Organization of credit unions; articles of incorporation and bylaws; approval of administrator; application of corporation code; filing fees.

17-2202 Amendments to bylaws and charter; bylaw amendments to be filed; administrator's disapproval of amendments to bylaws; appeal.

17-2203 Use of name; penalty for unauthorized use.

17-2204 Powers of credit unions.

17-2204a Investments; limitations; definition of credit union services organization.

17-2205 Credit unions, fields of membership. [See Revisor's Note]

17-2205a Membership of credit union; continuation of branch operations, limitations. [See Revisor's Note]

17-2206 Supervision and powers of administrator; reports, fines; examination, fees.

17-2206a Undelivered funds due creditors, depositors and shareholders of defunct credit union; duties of administrator and state treasurer; undistributed assets of defunct credit unions fund.

17-2207 Fiscal year; meetings.

17-2208 Officers; board of directors; committees; suspension of members, when.

17-2209 Directors to elect officers; duties of board; executive committee.

17-2210 Method of making loans.

17-2211 Duties of supervisory committee; annual and supplementary audits; acceptance of certain audits.

17-2212 Capital and revenue of credit union; right of setoff; dormant accounts; unmatured shares; transfer to reserve fund, when.

17-2213 Shares to minors; joint tenancy shareholdings; trust accounts; credit union can act as trustee or custodian.

17-2214 Corporate credit unions; powers; lending to members; credit unions lending to each other, approval.

17-2215 Power to borrow money; limitations.

17-2215a Power of corporate credit unions to borrow increased by amount of certain investments.

17-2216 Loans to members; limitations.

17-2216a Loans to directors or members of credit or supervisory committees; conditions.

17-2217 Reserve income; payments into reserve fund; rules and regulations.

17-2218 Dividends.

17-2219 Expulsion of members, when; policy, notice; withdrawal of member from credit union.

17-2221 Change in place of business; how accomplished.

17-2221a Credit union branches; procedure.

17-2222 Conversion from state to federal credit union.

17-2223 Incorporation in this state of federal credit union or credit union organized in another state; procedure; name; effect of granting charter.

17-2223a Administrator's approval required before foreign credit union does business in state; examination; hearing.

17-2226 Purchase of real estate, material, equipment or improvements; lease and disposition of property.

17-2227 Information concerning credit unions; disclosure authorized; otherwise confidential; exceptions.

17-2228 Merger with other credit union, procedure; certificate requirements; assets and liabilities; cancellation of terminated credit union charter.

17-2229 Sale or purchase of assets to or of another credit union; agreement; approval of administrator; effective date; dissolution of selling credit union; reserves.

17-2230 Voluntary and involuntary dissolution; appointment of agent; liquidation procedure.

17-2231 Definitions.

17-2232 Credit union council; membership, appointment, terms; meetings.

17-2233 Credit union administrator; appointment, duties, salary, expenses and term.

17-2234 Department of credit unions; supervision; employees; attorney; security background check.

17-2235 Credit union council's compensation and expenses.

17-2236 Bonds of administrator, examiners and employees; disposition of moneys; credit union fee fund.

17-2237 Transfer of jurisdiction and records.

17-2238 Continuity of previously organized credit unions.

17-2239 Continuity of proceedings.

17-2240 Housing of department.

17-2241 Appeals.

17-2243 Invalidity of part.

17-2244 Authority to operate in same activities as other federally insured credit unions; powers of administrator; report to legislature.

17-2245 Credit union may participate in loan with another credit union, financial organization or national cooperative bank.

17-2246 Share insurance required.

17-2260 Rules and regulations.

17-2262 Severability.

17-2263 Contracts for payment of members' accounts to beneficiaries upon members' deaths; rights of member during lifetime; change of beneficiary.

17-2264 Same; duties of credit union; release and discharge thereof.

17-2268 Personal liability of officers and directors, exceptions.

17-2269 Citation.