Alaska Administrative Code
Title 3 - Commerce, Community, and Economic Development
Part 1 - Banking, Securities, Small Loans and Corporations
Chapter 03 - Credit Unions
Article 2 - Credit Union Practices
3 AAC 03.165 - Share drafts
Universal Citation: 3 AK Admin Code 03.165
Current through February 24, 2025
(a) A credit union may establish share draft accounts if
(1) a summary of the policies and
procedures for the accounts is available at the credit union's principal
office;
(2) for a program which
incorporates truncation of the instruments, the original instruments are
maintained on file for at least five years unless other satisfactory means of
retrieval of copies of those instruments has been established;
(3) the account holder gives, in writing, at
least 15 days before the day of withdrawal, a notice of intent to withdraw
money in the account, except that the board of directors may waive or
reinstitute this provision at any time;
(4) surety bond coverage is in force;
and
(5) those participating in the
share draft program receive information which outlines the account holder's and
credit union's responsibilities.
(b) The board of directors may provide for
(1) fees for share draft account usage, which
may include stop payment orders, overdrafts, failure to maintain required
balances, and costs required to maintain the account;
(2) participation in guarantee arrangements,
if the guarantee to make payment will not place the holder of a share draft
account in a preferential position if notice is imposed under (a)(3) of this
section. Instruments drawn or other orders authorized before the effective date
of notice may be paid in accordance with normal operational procedures;
and
(3) an experimental share draft
program with terms and conditions that restrict the number of share draft
accounts for a period not to exceed one year, except that the dividend rate for
those share draft accounts may not exceed the rate paid on regular share
accounts.
Authority:AS 06.01.020
AS 06.45.010
Disclaimer: These regulations may not be the most recent version. Alaska may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.