Senate Bill No. 340
(By Senator Minard)
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[Introduced March 10, 1993; referred to the Committee
on Banking and Insurance.]
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A BILL to amend and reenact section eighteen, article ten,
chapter thirty-one of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to
permissible investments by state-chartered credit unions.
Be enacted by the Legislature of West Virginia:
That section eighteen, article ten, chapter thirty-one of
the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be amended and reenacted to read as follows:
ARTICLE 10. CREDIT UNIONS.
§31-10-18. Legal investments for capital, undivided profits and
reserve funds.
The capital deposits, undivided profits and reserve funds of
the corporation may be invested in the following ways, and in
such ways only:
(a) Loaned to members of the corporation in accordance with
the provisions of this article;
(b) Deposited to the credit of the corporation in a bankinginstitution incorporated under the laws of this state or in
national banks operating in this state;
(c) In obligations of the United States of America or in
securities fully guaranteed thereby as to both principal and
interest or in shares or accounts of federal savings and loan
associations;
(d) Deposited to the credit of the corporation in a share
deposit account of a federally insured credit union;
(e) In a "membership capital share deposit account", as that
term is defined by the rules and regulations of the national
credit union administration: Provided, That any investment by a
credit union in a membership capital share deposit account is
limited to one percent of the credit union's total assets; and
(f) In any investment legal for banking institutions or
trust funds in this jurisdiction.
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(NOTE: The purpose of this bill is to authorize state
chartered credit unions to invest in membership capital share
deposit accounts and share deposit accounts of federally insured
credit unions, thereby promoting parity with federal chartered
credit unions which are already permitted to make such
investments.)