§31C-8-2. Indemnification of officers.
A credit union may indemnify its officers, directors or
employees by purchase of insurance or otherwise, to the extent that
such indemnification is permitted to that institution under federal
law. Indemnification articles or bylaws must conform to, or be
more restrictive than, that set forth in section nine, article one,
chapter thirty-one of this code. The commissioner reserves the
right to prohibit or limit, by regulation or order, any
indemnification payment for reasons of safety and soundness or
nonconformity to the credit union's articles of incorporation or
bylaws or to the restrictions placed on indemnification contained
in this section or other applicable state law.