Revised Code of Washington
Chapter 31.12 - Washington State Credit Union Act.
31.12.402 - Powers.

RCW 31.12.402
Powers.

A credit union may:
(1) Issue shares to and receive deposits from its members in accordance with RCW 31.12.416;
(2) Make loans to its members in accordance with RCW 31.12.426 and 31.12.428;
(3) Pay dividends and interest to its members in accordance with RCW 31.12.418;
(4) Impose reasonable charges for the services it provides;
(5) Impose financing charges and reasonable late charges in the event of default on loans, subject to applicable law, and recover reasonable costs and expenses, including, but not limited to, collection costs, and reasonable attorneys' fees incurred both before and after judgment, incurred in the collection of sums due, if provided for in the note or agreement signed by the borrower;
(6) Acquire, lease, hold, assign, pledge, sell, or otherwise dispose of interests in personal property and in real property in accordance with RCW 31.12.438;
(7) Deposit and invest funds in accordance with RCW 31.12.436;
(8) Borrow money, up to a maximum of fifty percent of its total shares, deposits, and net worth;
(9) Discount or sell any of its assets, or purchase any or all of the assets of another credit union, out-of-state credit union, or federal credit union. However, a credit union may not discount or sell all, or substantially all, of its assets without the approval of the director;
(10) Accept deposits of deferred compensation of its members;
(11) Act as fiscal agent for and receive payments on shares and deposits from the federal government or this state, and any agency or political subdivision thereof;
(12) Engage in activities and programs as requested by the federal government, this state, and any agency or political subdivision thereof, when the activities or programs are not inconsistent with this chapter;
(13) Hold membership in credit unions, out-of-state credit unions, or federal credit unions and in organizations controlled by or fostering the interests of credit unions, including, but not limited to, a central liquidity facility organized under state or federal law;
(14) Pay additional dividends and interest to members, or an interest rate refund to borrowers;
(15) Enter into lease agreements, lease contracts, and lease-purchase agreements with members;
(16) Act as insurance agent or broker for the sale to members of:
(a) Group life, accident, health, and credit life and disability insurance; and
(b) Other insurance that other types of Washington state-chartered financial institutions are permitted to sell, on the same terms and conditions that these institutions are permitted to sell such insurance;
(17) Impose a reasonable service charge for the administration and processing of accounts that remain dormant for a period of time specified by the credit union;
(18) Establish and operate on-premises or off-premises electronic facilities;
(19) Enter into formal or informal agreements with another credit union for the purpose of fostering the development of the other credit union;
(20) Work with community leaders to develop and prioritize efforts to improve the areas where their members reside by making investments in the community through contributions to organizations that primarily serve either a charitable, social, welfare, or educational purpose, or are exempt from taxation pursuant to section 501(c)(3) of the internal revenue code;
(21) Limit the personal liability of its directors in accordance with provisions of its articles of incorporation that conform with RCW 23B.08.320;
(22) Indemnify its directors, supervisory committee members, officers, employees, and others in accordance with provisions of its articles of incorporation or bylaws that conform with RCW 23B.08.500 through 23B.08.600;
(23) Conduct a promotional contest of chance as authorized in RCW 9.46.0356(1)(b), as long as the conditions of RCW 9.46.0356(5) and 30A.22.260 are complied with to the satisfaction of the director;
(24) Cash checks, money orders, and other payment instruments for members and persons who are eligible for membership in the credit union; and
(25) Exercise such incidental powers as are necessary or convenient to enable it to conduct the business of a credit union.

[ 2022 c 15 § 2; 2011 c 303 § 6; 2001 c 83 § 14; 1997 c 397 § 30. Prior: 1994 c 256 § 74; 1994 c 92 § 186; 1990 c 33 § 564; 1984 c 31 § 14. Formerly RCW 31.12.125.]
NOTES:

Findings—Intent—2011 c 303: See note following RCW 9.46.0356.


Findings—Construction—1994 c 256: See RCW 43.320.007.


Purpose—Statutory references—Severability—1990 c 33: See RCW 28A.900.100 through 28A.900.102.

Structure Revised Code of Washington

Revised Code of Washington

Title 31 - Miscellaneous Loan Agencies

Chapter 31.12 - Washington State Credit Union Act.

31.12.003 - Findings—Intent—1997 c 397.

31.12.005 - Definitions.

31.12.015 - Declaration of policy.

31.12.025 - Use of words in name.

31.12.035 - Application for permission to organize—Approval.

31.12.055 - Manner of organizing—Articles of incorporation—Submission to director.

31.12.065 - Bylaws—Submission to director.

31.12.075 - Approval, denial of proposed credit union—Appeal.

31.12.085 - Filing upon approval—Fee—Notice to director—Authority to commence business.

31.12.105 - Amendment to articles of incorporation—Approval of director—Procedure.

31.12.115 - Amendment to bylaws—Approval of director required—Procedure.

31.12.185 - Annual membership meetings.

31.12.195 - Special membership meetings.

31.12.225 - Board of directors—Election of directors—Terms—Vacancies—Meetings—Rules.

31.12.235 - Directors—Qualifications—Operating officers and employees may serve.

31.12.246 - Removal of directors and supervisory committee members—Interim directors and supervisory committee members.

31.12.251 - Removal of directors—No quorum.

31.12.255 - Board of directors—Powers and duties.

31.12.265 - Officers.

31.12.267 - Officials—Fiduciary duty—Information relied on—Definition.

31.12.269 - Directors and committee members—Limitations on personal liability—Exceptions.

31.12.285 - Suspension of members of board or supervisory committee by board—For cause.

31.12.326 - Supervisory committee—Membership—Terms—Vacancies—Operating officers and employees may not serve—Audit committee alternative.

31.12.335 - Supervisory committee—Duties.

31.12.345 - Suspension of members of a committee or members of the board by supervisory committee—For cause.

31.12.365 - Directors and supervisory committee members—Compensation—Reimbursement—Rules.

31.12.367 - Risk—Bond coverage—Notice to director—Timing.

31.12.372 - Director may suspend any person, reason—Notice—Injunctions.

31.12.382 - Limitation on membership.

31.12.384 - Membership.

31.12.386 - Voting rights—Methods—Proxy—Under eighteen years of age.

31.12.388 - Expulsion of member—Challenge—Share and deposit accounts.

31.12.402 - Powers.

31.12.404 - Additional powers—Authority of director.

31.12.408 - Insurance required after December 31, 1998—Federal share insurance program or an equivalent share insurance program—Director's findings.

31.12.413 - Low-income credit unions—Director's approval required—Powers—Rules.

31.12.416 - Shares and deposits governed by chapter 30.22 RCW—Limitation on shares and deposits—Notice of withdrawal—Lien rights.

31.12.418 - Dividends.

31.12.426 - Loans—Secured or unsecured loans.

31.12.428 - Limit on loan amount.

31.12.436 - Investment of funds—When investment later becomes impermissible.

31.12.438 - Investment in real property or leasehold interests—Limitations—Rules.

31.12.461 - Mergers.

31.12.464 - Merger or conversion of state into federal, out-of-state, or foreign credit union, or other type of financial institution.

31.12.467 - Merger or conversion of federal, out-of-state, or foreign to state credit union.

31.12.471 - Authority of out-of-state or foreign credit union to operate in this state—Conditions—Rules.

31.12.474 - Liquidation—Disposition of unclaimed funds.

31.12.516 - Powers of director.

31.12.518 - Powers of director under chapter 19.144 RCW.

31.12.545 - Examinations and investigations—Reports—Access to records—Oaths—Subpoenas.

31.12.565 - Examination reports and specified other information confidential—Exceptions—Penalty.

31.12.567 - Reports—Financial and statistical data—As required by director.

31.12.569 - Generally accepted accounting principles.

31.12.571 - Notice of intent to establish branch—Another state or foreign jurisdiction.

31.12.575 - Removal or prohibition orders—Director's authority—Notice.

31.12.580 - Contents of notice under RCW 31.12.575—Hearing—Order.

31.12.585 - Prohibited acts—Notice—Cease and desist order.

31.12.595 - Temporary cease and desist order—Notice—Principal place of business—Superior court.

31.12.625 - Administrative hearing—Procedures.

31.12.630 - Authority of director to call special meeting of board.

31.12.633 - Authority of director to attend meetings of the board.

31.12.637 - Intervention by director—Conditions.

31.12.641 - Supervision by director—Notice—Compliance—Costs.

31.12.644 - Supervision by director—Certain acts prohibited.

31.12.647 - Supervision by director—Credit union request for review.

31.12.651 - Conservator—Authorized actions—Costs.

31.12.654 - Actions by conservator—Review.

31.12.657 - Lawsuits during period of conservatorship.

31.12.661 - Conservator serves until purposes are accomplished.

31.12.664 - Liquidation—Suspension or revocation of articles—Placement in involuntary liquidation—Appointment of liquidating agent—Notice—Procedure—Effect.

31.12.667 - Order directing involuntary liquidation—Procedure.

31.12.671 - Receivership—Appointment of receiver by director—Notice—Act without bond.

31.12.674 - Director's orders—Notice to director of hearing—Hearing—Principal place of business—Superior court.

31.12.677 - Powers and duties of receiver.

31.12.681 - Claims against credit union in receivership—Notice.

31.12.684 - Receiver shall inventory assets—File lists of assets and claims—Objections to approved claims.

31.12.687 - Expenses incurred by receiver.

31.12.691 - Liquidation dividends—Approval of court.

31.12.694 - Remaining assets—Distribution.

31.12.697 - Unclaimed liquidation dividends.

31.12.701 - Personal property—Receiver's duties.

31.12.704 - Proceeds of sale—Deposit or payment by receiver.

31.12.707 - Completion of receivership—Merger, purchase, or liquidation—Secretary of state.

31.12.711 - Director may terminate receivership—Expenses.

31.12.714 - Receivership files.

31.12.717 - Pendency of proceedings for review of appointment of receiver—Liabilities of credit union—Availability of relevant data.

31.12.721 - Appointment by court of temporary receiver—Notice to director.

31.12.724 - Actions that are void—Felonious conduct—Penalties.

31.12.726 - Conservator or receiver may terminate or adopt executory contracts—Timing—Binding terms—Liability.

31.12.728 - Applicability of general receivership law.

31.12.850 - Prohibited acts—Criminal penalties.

31.12.853 - Prohibited acts—Civil penalties—Rules.

31.12.860 - Taxation of credit unions.

31.12.890 - Satellite facilities.

31.12.891 - Automated teller machines and night depositories security.

31.12.902 - Short title.

31.12.906 - Effective date—1997 c 397.

31.12.909 - Construction—Chapter applicable to state registered domestic partnerships—2009 c 521.

31.12.910 - Effective date—2010 c 87.