(1) "Capital and
surplus" means shares, deposits, reserves, and undivided earnings.
(2) "Commissioner" means the Commissioner of
Financial Institutions.
(3) "Credit
union service organization" means an organization owned by one or more credit
unions which provides any of the following services:
(a) Checking and currency services:
(i) Check cashing;
(ii) Coin and currency services,
and
(iii)Money order, savings
bonds, travelers checks, and purchase and sale of U.S. Mint commemorative coins
services;
(b) Clerical,
professional and management services:
(i)
Accounting services;
(ii) Courier
services;
(iii)Credit
analysis;
(iv) Facsimile
transmissions and copying services;
(v) Internal audits for credit
unions;
(vi) Locator
services;
(vii)Management and
personnel training and support;
(viii)Marketing services;
(ix)Research services; and
(X) Supervisory committee audits;
(c) Consumer mortgage loan
origination;
(d) Electronic
transaction services;
(i) Automated teller
machines (ATM) services;
(ii)
Credit card and debit card services;
(iii)Data processing;
(iv) Electronic fund transfer (EFT)
services;
(v) Electronic income tax
filing;
(vi) Payment item
processing;
(vii)Wire transfer
services; and
(viii)Cyber financial
services;
(e) Financial
counseling services:
(i) Developing and
administering Individual Retirement Accounts (IRA), Keogh, deferred
compensation, and other personnel benefit plans;
(ii) Estate planning;
(iii)Financial planning and
counseling;
(iv) Income tax
preparation;
(v) Investment
counseling; and
(vi) Retirement
counseling;
(f) Fixed
asset services:
(i) Management, development,
sale, or lease of fixed assets; and
(ii) Sale, lease, or servicing of computer
hardware or software;
(g) Insurance brokerage or agency:
(i) Agency for sale of insurance;
(ii) Provision of vehicle warranty programs;
and
(iii) Provision of group
purchasing programs;
(h)
Leasing:
(i) Personal property; and
(ii) Real estate leasing of excess credit
union service organization property;
(i) Loan support services:
(i) Debt collection services;
(ii) Loan processing, servicing, and sales;
and
(iii)Sale of repossessed
collateral;
(j) Loans
and extensions of credit;
(k)
Member business loans;
(l) Record
retention, security and disaster recovery services:
(i) Alarm-monitoring and other security
services;
(ii) Disaster recovery
services;
(iii)Microfilm,
microfiche, optical and electronic imaging, CD-ROM data storage and retrieval
services;
(iv) Provision of forms
and supplies; and
(v) Record
retention and storage;
(m) Securities brokerage services;
(n) Shared credit union branch (service
center) operations;
(o) Student
loan origination;
(p) Travel agency
services;
(q) Trust and
trust-related services:
(i) Acting as
administrator for prepaid legal service plans;
(ii) Acting as trustee, guardian,
conservator, estate administrator, or in any other fiduciary
capacity;
(iii)Trust services;
and
(r) credit union
service organization investments in non-credit union service organization
service providers: In connection with providing a permissible service, a credit
union service organization may invest in a non- credit union service
organization service provider. The amount of the credit union service
organization's investment is limited to the amount necessary to participate in
the service provider, or a greater amount if necessary to receive a reduced
price for goods or services.
(4) "Loans and extensions of credit" means
any direct or indirect advance of funds in any manner whatsoever to a member,
that is made on the basis of any obligation of that member to repay the funds,
or repayable from specific property pledged by or on behalf of a member. "Loans
and extensions of credit" includes:
(a) A
contractual commitment to advance funds;
(b) An acquisition by discount, purchase,
exchange, or otherwise of any note, draft, or other evidence of indebtedness
upon which a member may be liable as maker, drawer, endorser, guarantor, or
surety;
(c) A participation without
recourse, with regard to the participating credit union service
organization.
(5) "Loans
and extensions of credit" does not include:
(a) An endorsement or guarantee for the
protection of a credit union and credit union service organization of any loan
or other asset previously acquired by the credit union service organization in
good faith or any indebtedness to a credit union and the credit union service
organization for the purpose of protecting the credit union and the credit
union service organization against loss or of giving financial assistance to
it;
(b) The purchase of investment
grade securities subject to a repurchase agreement in which the purchasing
credit union has a perfected security interest, or where the securities are
purchased from the state or any political subdivision thereof;
(c) Loans or extensions of credit which have
become unenforceable by reason of discharge in bankruptcy or are no longer
legally enforceable for other reasons.
(6) "Member" means a member of a stockholder
credit union.
(7) "Participation"
means the purchase or sale by a lender of a loan or part of a loan under
circumstances in which the acquiring institution;
(a) Has no formal or direct role in
establishing the terms and conditions binding the borrower; or
(b) is not a signatory of the loan agreement
binding the borrower.
(8) "Participation agreement" means an
agreement between the lead financial institution and the participant financial
institution spelling out in detail the terms, conditions, and understandings
between the parties to a loan participation.
(9) "Recourse" means an oral or written
agreement whereby a selling institution of a loan or participation in a loan
agrees to repurchase in whole or in part upon request of the purchaser or the
seller.
(10) "Well capitalized"
means "well capitalized" as defined in 12 U.S.C. Sec. 1790d(c)(1).