N.J. Stat. § 17:13-89

Current through L. 2024, c. 62.

Section 17:13-89 - Powers

A credit union's powers shall include, but not be limited to, the power to:

a. Make contracts;

b. Sue and be sued;

c. Adopt and use a common seal and alter same;

d. Acquire, lease, hold, assign, pledge, hypothecate, sell and otherwise dispose of property, either in whole or in part, necessary or incidental to its operations;

e. Offer its members and other credit unions, shares, share certificates, deposits, deposit certificates, or share drafts as provided in this act;

f. Lend its funds to its members as hereinafter provided;

g. Borrow money from any source, provided that a credit union shall notify the commissioner in writing of its intention to borrow in excess of an aggregate of 50% of its shares and undivided earnings;

h. Discount or sell any of its assets, and purchase the assets of another credit union, subject to the approval of the commissioner;

i. Make deposits and invest in legally chartered banks, savings banks, savings and loan associations, trust companies, and other credit unions, including corporate credit unions, and invest funds as otherwise provided in this act;

j. Hold membership in other credit unions organized under this act, and in associations and organizations controlled by or fostering the interests of credit unions, including a central liquidity facility organized under state or federal law;

k. Act as fiscal agent for and receive payment on shares or deposits, or both, from the federal government, this State, or any agency or political subdivision thereof;

l. Have and exercise all the powers of corporations organized under Title 14A of the New Jersey Statutes which are not inconsistent with this act;

m. Maintain service facilities, including automated terminals at locations other than its principal office upon the approval of the commissioner. The maintenance of these facilities shall be reasonably necessary to furnish service to its members. A credit union may join with one or more financial institutions in the operation of a service facility to meet member needs;

n. Contract with outside vendors to make insurance and group purchasing plans available to its members and receive compensation from the vendors in return for performing administrative functions on their behalf;

o. Participate in loans to credit union members jointly with other credit unions, credit union organizations, or financial institutions, provided that the originating credit union retains an interest of at least 10% of the face amount of the loan;

p. Participate in any guaranteed loan program of the federal or state government;

q. Purchase the conditional sales contracts, notes, and similar instruments of its members;

r. Purchase and maintain insurance on behalf of any person who is an officer, director, employee, or agent of the credit union;

s. Collect, receive and disburse monies in connection with the providing of negotiable checks, money orders, travelers' checks, and similar instruments, and for any other purposes which may provide benefit or convenience to its members, and to charge a reasonable fee for these services;

t. Declare dividends to its members, as provided in the bylaws or by rules and regulations of the commissioner;

u. Participate in government programs designed to alleviate social and economic problems at the community, state, or regional levels; and

v. Act as a public depository pursuant to the provisions of the "Governmental Unit Deposit Protection Act," P.L. 1970, c.236 (C.17:9-41 et seq.).

N.J.S. § 17:13-89

Amended by L. 2011, c. 108,s. 4, eff. 8/18/2011.

L.1984, c.171, s.11, eff. Oct. 31, 1984.