Connecticut Seal

Senate Bill No. 888

Public Act No. 03-16


Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 36a-435b of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2003):

As used in sections 36a-435a to 36a-472a, inclusive, unless the context otherwise requires:

(1) "Branch" means any office [of] established by a Connecticut credit union, an out-of-state, state-chartered credit union, a federal credit union, or an out-of-state, federally-chartered credit union, as the case may be, at a fixed location, [other than the main office,] at which shares or deposits are received, share drafts or checks are paid, or money is lent, including an office operated as a shared service center and not including the main office of the credit union;

(2) "Capital" means undivided earnings, regular reserves, other special purpose reserves, donated equity, and accumulated, unrealized gains or losses on securities in accordance with generally accepted accounting principles;

(3) "Certificate of incorporation" means the certificate of incorporation of a Connecticut credit union and includes in the case of Connecticut credit unions in existence on July 1, 1975, articles of association, articles of incorporation and certificates of organization;

(4) "Corporate", when used in conjunction with any institution that is a Connecticut credit union, federal credit union or out-of-state credit union, means a corporate credit union, as defined in 12 CFR 704. 2, as from time to time amended;

(5) "Credit manager" means a natural person approved by the governing board of a Connecticut credit union and employed by such credit union to supervise its lending activities;

(6) "Credit union service organization services" means those services that are authorized for credit union service organizations under state or federal law, and that are closely related to credit union business, are convenient and useful to credit union business, are reasonably related to the operations of a credit union or are financial in nature;

(7) "Director" means a member of the governing board, a director emeritus or an advisory director of a Connecticut credit union;

(8) "Federal Credit Union Act" means 12 USC Section 1751 et seq. , as from time to time amended;

(9) "Financial institution" means any Connecticut credit union, bank, federal credit union, out-of-state bank or out-of-state credit union;

(10) "Immediate family member" means any person related by blood, adoption or marriage to a person within the field of membership of the Connecticut credit union;

(11) "Member" means any person who has been admitted to membership in the Connecticut credit union in accordance with this chapter;

(12) "Member in good standing" means a member who (A) owns at least one membership share in a credit union, (B) is current on all credit obligations to the credit union, and (C) has not caused the credit union a credit or share loss that remains outstanding;

(13) "Membership share" means a share equal to the stated par value of the Connecticut credit union which may not be withdrawn or transferred except upon termination of membership and which confers membership and voting rights on the member;

(14) "Multiple common bond membership" means a field of membership consisting of more than one group of individuals, each of which has, within the group, a common bond of occupation or association;

(15) "Officer" means the chairperson, vice chairperson, secretary and treasurer of the governing board of a Connecticut credit union;

(16) "Senior management" means the president or chief executive officer, vice president or vice chief executive officer, chief financial officer, credit manager, and any person occupying a similar status or performing a similar function;

(17) "Share" means the basic unit of moneys held by a member of a Connecticut credit union in share accounts at a Connecticut credit union on which a dividend may be paid;

(18) "Shared service center" means a branch established by any combination of two or more (A) Connecticut credit unions, (B) out-of-state, state-chartered credit unions, (C) federal credit unions, or (D) out-of-state, federally chartered credit unions, that is operated in such a manner as to provide a credit union member the same credit union services that the credit union member could lawfully obtain at the main office of the member's credit union;

[(18)] (19) "Single common bond membership" means a field of membership consisting of one group that has a common bond of occupation or association.

Approved April 29, 2003