Read the full stored bill text
EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
SECOND REGULAR SESSION
SENATE BILL NO. 1424
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR CARTER.
6097S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 370.020, 370.080, and 370.200, RSMo, and to enact in lieu thereof three new
sections relating to credit unions.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 370.020, 370.080, and 370.200, RSMo, 1
are repealed and three new sections enacted in lieu thereof, to 2
be known as sections 370.020, 370.080, and 370.200, to read as 3
follows:4
370.020. The certificate of organization shall state: 1
(1) The name of the proposed credit union and the 2
city, town, or village in which its business office is 3
located; 4
(2) The names and addresses of the subscribers to the 5
certificate, and the number of shares subscribed by each; 6
(3) A statement that organization as a credit union is 7
desired under this particular law; 8
(4) The par value of the regular shares, which shall 9
not exceed one hundred dollars; 10
(5) The par value of membership shares, if any, which 11
shall not be less than [twenty-five] one dollar nor more 12
than one hundred dollars. 13
370.080. 1. The membership shall consist of the 1
organizers and such persons, societies, associations, 2
copartnerships and corporations as have been duly elected to 3
SB 1424 2
membership and have subscribed to one or more general 4
shares, or one membership share and/or membership fee when 5
required, and have paid for the same in the whole or in 6
part, with the entrance fee as required by the bylaws, and 7
have complied with such other requirements as the 8
certificate of organization may contain. 9
2. A credit union shall be composed of one or more 10
groups of persons. The members of each such individual group 11
must share: 12
(1) A common occupation, association, employer or; 13
(2) A geographic area which may include all those 14
persons who reside or work in a city not within a county or 15
a county, in which the main office of the credit union is 16
located as reported on the National Credit Union 17
Administration (NCUA) 2006 year-end 5300 call report, and 18
counties contiguous to such areas as may be approved by the 19
director. The director shall not allow a geographic area 20
credit union to expand beyond counties contiguous to a city 21
not within a county or a county in which its main office is 22
located. The director shall not allow a credit union to 23
expand its geographic area due to a relocation of the credit 24
union's main office. 25
3. No individual shall be eligible for membership in a 26
credit union on the basis of the relationship of such 27
individual to another person who is eligible for membership 28
in such credit union unless the individual is a member of 29
the immediate family or household, as such terms are defined 30
by the commission, of such person. Except as provided in 31
section 370.340, once a person becomes a member of a credit 32
union in accordance with this chapter, such person or 33
organization may remain a member of such credit union until 34
SB 1424 3
the person or organization chooses to withdraw from the 35
membership of the credit union. 36
4. Each credit union may, at the option of the board, 37
create one or more classes of shares which shall be known as 38
"membership share" representing the member's ownership 39
interest in the credit union on such terms and conditions as 40
the board of directors may determine, not inconsistent with 41
the bylaws, provided that each membership share shall have a 42
par value of not less than [twenty-five] one dollar nor more 43
than one hundred dollars. A membership share shall not be 44
pledged as security on any loan. 45
5. Notwithstanding any other provisions of this 46
chapter to the contrary, in the event of liquidation of the 47
assets of the credit union, the membership share shall be at 48
risk, uninsured, and shall be subordinated to the claims of 49
all nonmembers and participate in the assets of the credit 50
union after all creditors and holders of all other shares, 51
and the National Credit Union Administration. 52
370.200. 1. The board of directors shall have the 1
general management of the affairs, funds, and records of the 2
corporation, and unless they shall be specifically reserved 3
to the members or delegated to the president or operating 4
manager, it shall be the special duty of the directors: 5
(1) To act upon applications for membership in the 6
credit union; 7
(2) To determine, from time to time, rates of interest 8
which shall be charged on loans; 9
(3) To fix the maximum number of shares which may be 10
held by and the maximum amount, both secured and unsecured, 11
which may be loaned to any one member, such limitations to 12
apply alike to all members; and 13
SB 1424 4
(4) To have charge of the investment of funds of the 14
credit union, other than loans to members, and to perform 15
such other duties as the members may, from time to time, 16
authorize. 17
2. Additionally, the board shall have the duty to: 18
(1) Authorize the employment and compensation of the 19
chief executive officer; 20
(2) Approve an annual operating budget for the credit 21
union; 22
(3) Declare dividends on regular shares; 23
(4) Accept and act upon resignations and determine and 24
fill vacancies on the board of directors, credit committee, 25
and, if the bylaws so provide, the supervisory committee 26
until the election or appointment of qualified successors; 27
(5) Amend the bylaws except for those provisions in 28
other sections of this chapter specifically reserved for 29
membership action; and 30
(6) Consider an appeal of a person denied membership 31
by the credit union. 32
3. Unless specifically prohibited by the bylaws, 33
directors may participate in and act at any meeting of the 34
board through the use of a telephone, video conference, or 35
other electronic means. Participation in the meeting in 36
this manner shall constitute attendance, and participation 37
by directors in a meeting may be in any combination of in- 38
person, telephone, or other electronic or virtual means 39
provided that all directors participating can communicate 40
simultaneously. Any action taken during such meeting shall 41
have the same binding and legal effect as if conducted fully 42
in person. Votes and other actions of the directors may be 43
conducted by electronic means, including remote or online 44
systems, provided that board approved procedures are 45
SB 1424 5
established to verify the identity of voting directors and 46
to ensure the integrity of the process. 47
✓