A credit union has broad powers to do ordinary business acts, but borrowing above 50% of capital and delegating management or section powers to outside persons need prior written approval from the deputy director.
6-516 - General powers 6-516. General powers A. In addition to the powers prescribed elsewhere in this chapter and except as prohibited by law, a credit union may: 1. Enter into contracts of any nature. 2. Sue or be sued. 3. Adopt, use and display a corporate seal. 4. Acquire, lease, hold, assign, pledge, hypothecate, sell, discount or otherwise dispose of property or assets, either in whole or in part, necessary or incidental to its operations. 5. Borrow money from any source, except that a credit union shall obtain the prior written approval of the deputy director to borrow in excess of an aggregate of fifty percent of its capital. 6. Purchase all or a portion of the assets and assume all or a portion of the liabilities of a credit union chartered under the laws of any state, a federal credit union, a bank or an out-of-state bank. 7. Offer financial services incidental to the purposes of a credit union, including electronic fund transfers, safe deposit boxes and leasing and correspondent arrangements with other financial institutions. 8. Hold membership in other credit unions organized under this chapter or other laws or in other associations and organizations. 9. Engage in activities and programs offered by any governmental unit that are incidental or reasonably related to credit union activities. 10. Act as a fiscal agent for and receive payments on share and deposit accounts from a governmental unit. 11. Make contributions to any nonprofit civic, charitable or service organizations. B. A credit union may exercise all incidental powers that are convenient, suitable or necessary to enable it to promote or carry out its purposes. C. A credit union shall not delegate the management of a credit union or the exercise of any power set forth in this section to any person who is not an officer, director or employee of the credit union without the prior written approval of the deputy director. The deputy director may examine the books, records and business affairs of any person or entity to whom the credit union proposes to delegate any such authority.