The Florida Senate

657.031  Powers.--A credit union shall have the power to:

(1)  Make contracts.

(2)  Sue and be sued.

(3)  Acquire, lease, hold, and dispose of real and personal property necessary or incidental to its operations.

(4)  Incur and pay necessary and incidental operating expenses.

(5)  Require an entrance or membership fee.

(6)  Receive shares and deposits from its members and other credit unions; however, no credit union shall receive shares or deposits from persons, other than credit unions, who are not members of the credit union, except to a joint account in which at least one of the tenants is a member of the credit union.

(7)  Allow withdrawal of shares and deposits, as requested by a member orally, in writing, or through any other means of communication, including, but not limited to, drafts drawn on the credit union for payment to the member or any third party.

(8)  Charge fees for its services.

(9)  Extend credit to its members.

(10)  Borrow money and issue evidences of indebtedness for a loan or loans in the usual course of its business and secure such obligations by mortgage or pledge of any of its assets. Aggregate borrowings shall not exceed 50 percent of the unimpaired capital of the credit union. However, this percentage limitation shall not apply to loans from the corporation or from the National Credit Union Administration.

(11)  Discount and sell notes and obligations.

(12)  Sell all or any portion of its assets to another credit union or purchase all or any portion of the assets of another credit union.

(13)  Invest funds, as provided in this ¹part.

(14)  Maintain deposits in insured financial depository institutions.

(15)  Assess charges to its members.

(16)  Hold membership in central credit unions or corporate credit unions organized under this ¹part or under any other state or federal acts and membership in associations and organizations of credit unions.

(17)  Declare and pay dividends on shares, contract for and pay interest on deposits, and pay refunds of interest on loans.

(18)  Collect, receive, and disburse funds in connection with the sale of negotiable and nonnegotiable instruments and for such other purposes as may provide benefits or conveniences to its members.

(19)  Perform tasks and render any services requested by the Federal Government or by this state or any agency, political subdivision, or municipality thereof, if approved by the office.

(20)  Participate in, hold membership in, and pay dues to any organization the services of which will benefit the credit union or its membership.

(21)  Make donations for the members' welfare or for civic, charitable, scientific, or educational purposes as authorized by the board of directors.

(22)  Contract for the provision of trust services to its members with a trust company or other financial depository institution with trust powers authorized to do business in this state, with representatives of the trust company or other financial depository institution with trust powers being authorized to serve members from credit union facilities on a full-time or part-time basis.

(23)  Act as trustee of funds permitted by federal law to be deposited in a credit union as a deferred-compensation or tax-deferral device, including, but not limited to, Individual Retirement Accounts as defined by the Internal Revenue Code.

(24)  Purchase reasonable disability insurance, including accidental death benefits, for directors and committee members through insurance companies licensed to do business in this state.

(25)  Reimburse directors and committee members for reasonable and necessary expenses incurred in the performance of their duties.

(26)  Participate in systems which allow the transfer, withdrawal, or deposit of funds of credit unions or credit union members by automated or electronic means and hold membership in entities established to promote and effectuate these systems, provided such participation is not inconsistent with those rules of the commission adopted to further service to the members and to protect members' funds against unreasonable risks.

(27)  Issue credit cards and debit cards to allow members to obtain access to their shares, deposits, and extensions of credit, provided such issuance is not inconsistent with the rules of the commission. The commission may, by rule, allow the use of devices similar to credit cards and debit cards to allow members to obtain access to their shares, deposits, and extensions of credit.

(28)  Perform any act necessary to obtain and maintain membership in the corporation or obtain and maintain insurance of accounts through the National Credit Union Administration.

(29)  Exercise such incidental powers as are necessary or requisite to effectively carry out the purposes for which it is organized, provided such exercise is approved by rule or order of the commission or office.

History.--ss. 1, 6, ch. 80-258; ss. 2, 3, ch. 81-318; ss. 5, 46, ch. 82-214; ss. 13, 58, ch. 85-82; s. 1, ch. 91-307; ss. 1, 88, ch. 92-303; s. 1747, ch. 2003-261.

¹Note.--Chapter 657 is no longer divided into parts; former part II was repealed by s. 1978, ch. 2003-261.