2023 CODE OF GEORGIA › Title 7 - BANKING AND FINANCE (§§ 7-1-1 — 7-9-13) › Chapter 1 - FINANCIAL INSTITUTIONS (§§ 7-1-1 — 7-1-1138) › Article 3 - CREDIT UNIONS (§§ 7-1-630 — 7-1-671) › Part 3 - OPERATION AND REGULATION (§§ 7-1-650 — 7-1-671) › Section 7-1-650 - Powers

A credit union shall have, in addition to the powers common to all corporations under the laws of this state, the power to:
(1)
Receive funds from its members or other financial institutions in the form of shares and deposits on accounts or as evidenced by certificates of deposit issued by the credit union;
(2)
Receive savings deposits from nonmembers, provided that such deposits are:
(A)
Insured by or through a federal public body or are expressly authorized by state or federal law;
(B)
Made in such a manner as expressly authorized by the bylaws;
(C)
Not deposited in a share draft account; and
(D)
Not bearing a greater rate of interest than the rate of interest paid to members for the same class of deposit;
(3)
Make loans to members subject to approval by its credit committee or authorized employees pursuant to Code Section
7-1-658
;
(4)
On the authority of its board of directors or by employees authorized by the board of directors, invest:
(A)
In general and direct obligations of the United States, including bonds and securities upon which payment of principal and interest is fully guaranteed by the United States; in general and direct obligations of any state or territorial government of the United States upon which payment of principal and interest is fully guaranteed by the state or territory; in general and direct obligations of counties, districts, and municipalities of any state or territorial government of the United States upon which payment of principal and interest is fully guaranteed by the issuing county, district, or municipality; obligations issued by banks for cooperatives, federal land banks, federal intermediate credit banks, federal home loan banks, the Federal Home Loan Bank Board, or any corporation designated in Section 846 of Title 31 of the United States Code as a wholly owned government corporation; or in obligations, participations, or other instruments of or issued by or fully guaranteed as to principal and interest by the Federal National Mortgage Association or the Government National Mortgage Association;
(B)
Reserved;
(C)
In loans to other credit unions, provided that the loans in the aggregate do not exceed 50 percent of the net worth of the lending credit union;
(D)
By depositing its funds in banks, savings and loan associations, and credit unions; by purchasing certificates of deposit and savings certificates which such financial institutions are authorized to issue; by selling or purchasing federal or correspondent (daily) funds through such financial institutions; and by selling or purchasing whole loans or loan participations. The authorizations in this subparagraph shall be subject to limitations prescribed in regulations issued by the department; and
(E)
In any other types of investments authorized by the department, provided that such investments shall not, in the aggregate, exceed 25 percent of its net worth;
(5)
Borrow from any source, provided that the total of such funded borrowings shall at no time exceed 200 percent of its net worth. The department may, notwithstanding the other provisions of this Code section, waive the requirements of this paragraph to permit an individual credit union to borrow for authorized purposes;
(6)
Undertake, with the approval of the department, other activities which are not inconsistent with this chapter or regulations adopted pursuant thereto; provided, however, that no such approval shall be granted unless the commissioner determines the activities do not present undue safety and soundness risks to the credit union involved;
(7)
Organize and engage in business without having any stated amount of capital subscribed or paid in other than that derived from the subscribers' qualifying shares, commence business with only such capital authorized and paid in as may be provided in its bylaws, and provide for the payment and withdrawal thereof as and in the manner provided by its bylaws;
(8)
Purchase, hold, and convey real estate for the following purposes only:
(A)
Such real estate as the credit union occupies or intends to occupy primarily for the transaction of its business, subject to the prior approval of the department except to the extent authorized by regulation;
(B)
Such real estate as shall be conveyed to it in satisfaction of debt previously contracted in the course of its business; and
(C)
Such real estate as it shall purchase at sales under judgments, decrees, or mortgage foreclosures pursuant to mortgages or security deeds held by it;
(9)
Hold real estate acquired in the cases provided for by subparagraphs (B) and (C) of paragraph (8) of this Code section and real estate which has ceased to be used primarily as credit union premises, subject to a determination by a majority vote of its directors at least once each year as to the advisability of retaining any such property and provided that no such property is held for more than five years without the prior written approval of the department;
(10)
Hold property other than real estate, which is acquired in satisfaction of debts previously contracted and which a credit union is not otherwise authorized to own, for no longer than six months unless such time period is extended by the department;
(11)
Dispose of property held pursuant to paragraphs (9) and (10) of this subsection through financing by the credit union without the advance of additional funds irrespective of the purchasers' membership in the credit union and of ordinarily applicable collateral margin requirements;
(12)
Provide, in its articles of incorporation approved by a majority of its membership present and voting, for the elimination or limitation of personal liability of a director to the credit union or its members in their capacity as shareholders of the credit union to the same extent as a bank or trust company operating under the provisions of this chapter;
(13)
Subject to any rules and regulations enacted by the department and in compliance with federal law and applicable provisions regarding insurable interests in Chapter 24 of Title 33, purchase, hold, or fund insurance on the life of any of its directors, officers, or employees, or any other person whose death might cause financial loss to the credit union, or, pursuant to any contract lawfully obligating the credit union as guarantor or surety, on the life of the principal obligor;
(14)
Provide third-party payment services to its members;
(15)
Provide check-cashing services, sale of payment instruments, or sale of international remittances to those consumers eligible for membership; and
(16)
Enter into an agency relationship, as defined in Code Section
7-1-4
, subject to restrictions and qualifications prescribed by rules and regulations of the department.
Amended by 2023 Ga. Laws 348,§ 11, eff. 7/1/2023.
Amended by 2022 Ga. Laws 748,§ 24, eff. 7/1/2022.
Amended by 2019 Ga. Laws 270,§ 20, eff. 7/1/2019.
Amended by 2018 Ga. Laws 339,§ 13, eff. 5/3/2018.
Amended by 2017 Ga. Laws 57,§ 17, eff. 6/1/2017.
Amended by 2016 Ga. Laws 450,§ 3-2, eff. 7/1/2016.
Amended by 2015 Ga. Laws 9,§ 7, eff. 3/13/2015.
Amended by 2005 Ga. Laws 160,§ 17, eff. 5/5/2005.