Section 831 - Share capital and surplus1.Amount and par value of share capital.A. The capital of a credit union shall be unlimited in amount and shall consist of shares which may be subscribed to and paid for in such manner as the bylaws may prescribe. [1975, c. 500, §1(NEW).]B. The par value of such shares may be established by the credit union in its bylaws, in an amount not less than $5 per share, provided that par values in excess of $5 per share shall be in multiples of $5. [1983, c. 51, §3(AMD).]C. The maximum amount of shares that may be held by any one member or nonmember as provided in section 817 must be established from time to time by resolution of the board of directors. [1997, c. 108, §10(AMD).] [1997, c. 108, §10(AMD).]
2.Share transactions. The provisions of sections 422-A, 427, 428 and 429 are applicable to shares or accounts in a credit union. [2003, c. 322, §19(AMD).]
3.Surplus. "Surplus" or "total surplus" or "net worth" of a credit union means the balance of its retained earnings, which consists of undivided earnings, regular reserves, a guaranty fund and any other account approved by the superintendent. [2017, c. 143, §5(AMD).]
4.Requirement. A credit union shall establish and maintain adequate levels of net worth under rules adopted by the superintendent. Rules under this subsection must address, at a minimum, composition of net worth, net worth levels that must be maintained and procedures that must be followed to restore net worth if the net worth becomes impaired or falls below the minimum standards. Minimum net worth requirements established by the superintendent may be no less stringent than those applicable to a federally chartered institution with a similar charter. [2017, c. 143, §6(NEW).]
5.Exception. The superintendent may approve in writing net worth levels below the required minimum as the superintendent considers necessary or appropriate under the particular circumstances of a credit union. [2017, c. 143, §6(NEW).]
6.Approval. A proposed issuance of securities considered to be net worth under subsection 4 or under rules adopted under subsection 4 must be submitted to the superintendent for the superintendent's approval at least 10 days prior to issuance and include any documentation the superintendent considers necessary. [2017, c. 143, §6(NEW).]
7.Rulemaking. The superintendent may adopt rules to implement this section or to determine the amount of net worth required under this section. Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. In the absence of rulemaking, a credit union shall follow the capital adequacy standards established by the National Credit Union Administration or a successor institution. In the event standards established by the National Credit Union Administration or a successor institution require the credit union to accumulate or maintain accounts in an amount in excess of the standard established by the superintendent, the credit union shall accumulate and maintain such accounts in a manner sufficient to satisfy the requirements of the National Credit Union Administration or a successor institution. [2017, c. 143, §6(NEW).]
Amended by 2017, c. 143,§ 5 and § 6, eff. 11/1/2017.1975, c. 500, § 1 (NEW) . 1983, c. 51, § 3 (AMD) . 1997, c. 108, §§10,11 (AMD) . 2003, c. 322, § 19 (AMD) .