Missouri Code of State Regulations
Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE
Division 1100 - Division of Credit Unions
Chapter 2 - State-Chartered Credit Unions
Section 20 CSR 1100-2.035 - Special Standards for Newly Chartered Credit Unions

Universal Citation: 20 MO Code of State Regs 1100-2.035

Current through Register Vol. 49, No. 6, March 15, 2024

PURPOSE: This rule sets forth certain standards and goals which a newly chartered credit union must meet within its first year of operation. It also sets forth certain prohibited activities.

(1) A newly chartered credit union must-

(A) Maintain its books and records in accordance with generally accepted accounting principles;

(B) Generate from normal operations sufficient income to fund operations, reserve transfers, pay a reasonable dividend, a nominal contribution to retained earnings and further maintain solvency;

(C) Close its books quarterly and transfer to regular reserves at least ten percent (10%) gross income beginning with the first full quarter of operations;

(D) Record all accounts properly and on a timely basis; financial statements must be posted by the fifteenth of the following month;

(E) Not engage in the following prohibited activities and practices:
1. It shall not make any commercial loans nor hold any mortgage loans as assets;

2. It will not form a Credit Union Service Organization (CUSO) nor enter into any arrangement where it participates in the sponsorship of CUSO;

3. It shall not accept brokered funds;

4. It shall not make and hold as an asset any single loan over twenty-five thousand dollars ($25,000) or ten percent (10%) of assets whichever is less; and

5. It shall not enter into any insurance programs (other than credit disability, credit life, auto insurance or insurance securing property held for collateral on loans) where the credit union member finances the payment of insurance premiums through loans from the credit union without prior approval of the director of the Division of Credit Unions; and

(F) Forward to the director of the Division of Credit Unions its monthly financial statements and board of directors' minutes by the fifteenth of each month.

*Original authority: 370.040(5), RSMo 1939, amended 1945, 1945, 1949, 1959, 1967, 1972.

Disclaimer: These regulations may not be the most recent version. Missouri 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.
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