In construing this chapter, the following definitions shall apply unless such application would produce a result clearly inconsistent with the context of the provision.
(1) "Board" means the South Carolina Board of Financial Institutions.
(2) "Capital" means share accounts, reserves, and undivided earnings.
(3) "Commissioner" means the Commissioner of the State Board of Financial Institutions.
(4) "Corporate credit union" means a credit union whose field of membership consists primarily of other credit unions and credit union related organizations.
(5) "Credit union" means a cooperative, nonprofit corporation, incorporated under this chapter, for the purposes of encouraging thrift among its members, creating a source of credit at fair and reasonable rates of interest, and providing an opportunity for its members to use and control their own money on a democratic basis in order to improve their economic and social condition.
(6) "Deposit account" means a balance held by a credit union and established by a member, another credit union, organization, as defined in the Federal Credit Union Act, revised October 1998, Title 1, Section 1785-205(2), Paragraph (1), or a governmental unit in accordance with standards specified by the credit union including balances designated as deposits, deposit certificates, checking accounts, or other names. Ownership of a deposit account does not confer membership or voting rights and does not represent an interest in the capital of the credit union upon dissolution. A deposit account is a debt owed by the credit union to the credit holder.
(7) "Fixed asset" means a structure, land, computer hardware and software, and heating and cooling equipment that is affixed to premises. This also includes other property items such as furniture, fixtures, and equipment.
(8) "Governmental unit" means any board, agency, department, authority, instrumentality, or other unit or organizations of the federal, state, county, or municipal level of government.
(9) "Family" includes persons related by blood or marriage as well as foster and adopted children and legal guardians.
(10) "Insolvent" means the condition that results when the cash value of assets realizable in a reasonable time is less than the liabilities that must be met within that time.
(11) "Insuring organization" means an organization that provides aid and financial assistance to credit unions that are in the process of liquidation or are incurring financial difficulty in order that the share and deposit accounts in the credit unions shall be protected or guaranteed against loss or without limit or up to a specified level for each account.
(12) "Organization" means any corporation, association, partnership, society, firm, syndicate, trust, or other legal entity.
(13) "Person" means any natural person, trust, partnership, corporation, governmental unit, or any other organization.
(14) "Reserves" means allocations of retained income and includes regular and special reserves including any allowances for losses.
(15) "Risk assets" shall be considered all assets except the following:
(a) cash on hand;
(b) deposits or shares or both in federally or state insured banks, savings and loan associations, and credit unions;
(c) assets which are insured by, fully guaranteed as to principal and interest by, or due from the United States Government, its agencies, the Federal National Mortgage Association, or the Governmental National Mortgage Association;
(d) loans to other credit unions;
(e) loans to students insured under the provisions of Title IV, Part B of the Federal Higher Education Act of 1965 or similar state insurance programs;
(f) loans insured under Title 1 of the Federal National Housing Act by the Federal Housing Administration or insured by private mortgage insurers;
(g) shares or deposits in corporate credit unions;
(h) common trust investments which deal in authorized investments;
(i) prepaid expenses;
(j) accrued interest on nonrisk investments;
(k) furniture and equipment;
(l) land and buildings;
(m) loans fully secured by a pledge of shares in the lending credit unions, equal to and maintained to at least the amount of the loan outstanding;
(n) loans which are purchased from liquidating credit unions and guaranteed by the National Credit Union Administration; or
(o) loans insured or guaranteed by federal or state governments.
(16) "Share account" means a balance held by a credit union and established by a member in accordance with standards specified by the credit union including balances designated as shares, share certificates, share draft accounts, or other accounts. Ownership of a share account confers membership and voting rights and represents an interest in the capital of the credit union upon dissolution to members in good standing.
HISTORY: 1996 Act No. 371, Section 1, eff May 29, 1996; 2007 Act No. 51, Section 1, eff upon approval (became law without the Governor's signature on June 7, 2007).
Effect of Amendment
The 2007 amendment, in item (6), added "organization, as defined in the Federal Credit Union Act, revised October 1998, Title 1, Section 1785-205(2), Paragraph (1),".
Structure South Carolina Code of Laws
Title 34 - Banking, Financial Institutions and Money
Chapter 26 - South Carolina Credit Union Act
Section 34-26-100. Short title.
Section 34-26-110. Definitions.
Section 34-26-200. Responsibility of Board of Financial Institutions.
Section 34-26-210. Discretionary powers of board.
Section 34-26-260. Form of credit union annual report to board.
Section 34-26-320. Model articles of incorporation to facilitate organization of credit unions.
Section 34-26-330. Amendment of articles of incorporation and bylaws.
Section 34-26-340. Name requirements of credit unions.
Section 34-26-350. Principal place of business of credit union; other locations.
Section 34-26-360. Fiscal year.
Section 34-26-380. Conduct of business out-of-state by credit union; necessity of board approval.
Section 34-26-390. Exemption of credit union from business license tax.
Section 34-26-400. Particular powers of cooperative credit union; loans to other credit unions.
Section 34-26-410. Additional powers of credit union.
Section 34-26-420. Powers incidental to purpose of credit union; limitations.
Section 34-26-500. Requirements of membership; eligible groups; requirement of board approval.
Section 34-26-510. Organizations eligible for credit union membership.
Section 34-26-520. Eligibility of other credit unions.
Section 34-26-530. Application for membership; appeal of membership denial.
Section 34-26-540. Retention of membership.
Section 34-26-550. Member liability for credit union debt.
Section 34-26-560. Expulsion; request for hearing.
Section 34-26-570. Annual and other meetings of credit union membership.
Section 34-26-580. Special meetings; grounds and proceedings.
Section 34-26-600. Authority of board of directors.
Section 34-26-605. Membership of board; term of office; board appointment of credit committee.
Section 34-26-610. Filing of record of names and addresses of membership.
Section 34-26-615. Board vacancies; credit and supervisory committee vacancies.
Section 34-26-620. Prohibition against compensation for services; accident insurance; expenses.
Section 34-26-625. Conflicts of interest; limitation on persons with pecuniary interest.
Section 34-26-630. Election of officers.
Section 34-26-635. Appointment of executive committee.
Section 34-26-640. Meetings of board; frequency of meetings.
Section 34-26-645. Duties of board.
Section 34-26-650. Credit committee supervision of member loans.
Section 34-26-655. Appointment of credit committee loan officers.
Section 34-26-660. Purpose and composition of credit union supervisory committee; term of office.
Section 34-26-665. Suspension of member; supervisory committee report to board.
Section 34-26-670. Suspension or removal of supervisory committee member.
Section 34-26-700. Share accounts; par value; pledged shares.
Section 34-26-730. Withdrawal of deposited funds; withdrawal notice.
Section 34-26-740. Payments on share accounts.
Section 34-26-750. Ownership interests in share accounts; joint accounts.
Section 34-26-760. Share accounts held in trust; beneficiaries.
Section 34-26-770. Payable-on-death share accounts; effect of transfer of account.
Section 34-26-780. Account lien; right of set-off.
Section 34-26-800. Loans and lines of credit; establishment of written policies.
Section 34-26-810. Interest rates.
Section 34-26-820. Incidental fees and expenses.
Section 34-26-830. Loan application.
Section 34-26-840. Limitation of size of loan; in general.
Section 34-26-850. Limitation on loan advances by approved line of credit; periodic review.
Section 34-26-860. Limitation on size of loan secured by real estate; approved collateral.
Section 34-26-870. Credit union participation in joint loan with other credit union.
Section 34-26-880. Credit union participation in federal or state loan programs; other powers.
Section 34-26-900. Provision of member services; in general.
Section 34-26-910. Insurance for officers, agents, and employees.
Section 34-26-920. Marketing arrangements.
Section 34-26-940. Retirement, pension, profit-sharing, and deferred income accounts.
Section 34-26-1000. Investment of credit union funds; investment committee.
Section 34-26-1010. Designation of depositories.
Section 34-26-1020. Permissible investments of credit union funds.
Section 34-26-1110. Permissible use of reserve; effect of liquidation of credit union.
Section 34-26-1120. Special reserves.
Section 34-26-1200. Dissolution; voluntary liquidation; distribution of assets.
Section 34-26-1300. Corporate credit union.
Section 34-26-1310. Purposes of corporate credit union.
Section 34-26-1320. Corporate credit union membership.
Section 34-26-1330. Application to form corporate credit union.
Section 34-26-1340. Powers and privileges of corporate credit union.
Section 34-26-1370. Board of directors of corporate credit union meetings.
Section 34-26-1380. Corporate credit union reserve requirements; exemptions.