2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part A - Definitions › § 26–501.01. Definitions

§ 26–501.01. Definitions.
For the purposes of this subchapter, the term:
(1) "Board" means a board of directors unless the context indicates a different meaning.
(2) "Capital" means share accounts, membership shares, reserves, undivided earnings, and other forms of capital that are approved by the Commissioner.
(3) "Charitable donation account" means an account owned by a credit union that is held in a segregated custodial account or special purpose entity and is specifically identified as a charitable donation account, whereby, no less frequently than every 5 years and upon termination of the account, at least 51% of the total return on assets in the account is distributed to one or more charitable organizations or nonprofit entities.
(4) "Commissioner" means the Commissioner of the Department of Insurance, Securities and Banking.
(5) "Corporate credit union" means a credit union whose field of membership consists primarily of other credit unions.
(6) "Credit union" means a cooperative, not-for-profit association organized for the purposes of encouraging thrift among its members, creating a source of credit at fair and reasonable rates of interest for its members, and providing an opportunity for its members to use and control their own money on a democratic basis to improve their economic and social condition.
(7) "Credit union service organization" means an organization, corporation, or association providing services associated with the general purposes of a credit union or engaging in activities incidental to the operations of a credit union.
(8) "Deposit" means a balance held by a District credit union and established by a District credit union member or non-member, another credit union, or a government unit in accordance with standards specified by the District credit union, including balances designated as deposits, deposit certificates, checking accounts, or accounts by other names.
(9) "Deposit account" means a debt owed by the District credit union to the account holder; the ownership of which does not confer membership or voting rights and does not represent an interest in the capital of the District credit union upon dissolution or conversion of the credit union into another type of institution.
(10) "Department" means the Department of Insurance, Securities and Banking.
(11) "District credit union" means a credit union organized under this subchapter.
(12) "Federal credit union" means a credit union organized and operating under the laws of the United States.
(13) "Field of membership" means the people who meet the criteria of a credit union and are eligible to become members of that credit union.
(14) "Fixed asset" includes structures, office furnishing, office machines, land, computer hardware and software, automated terminals, and heating and cooling equipment.
(15) "Foreign credit union" means a credit union organized and operating under the laws of another state, territory, or other foreign jurisdiction.
(16) "Government unit" means any board, agency, department, authority, instrumentality, or other unit or organization of the District, federal, state, county, municipal, or other level of government.
(17)(A) "Insolvent" means the condition that results when the total amount of a credit union's shares exceeds the present cash value of the credit union's assets after providing for liabilities, unless the Commissioner determines that:
(i) The circumstances leading to the deficient share to asset ratio no longer exist;
(ii) The likelihood of further depreciation of the share to asset ratio is not probable;
(iii) The return of the share to asset ratio to normal limits within a reasonable time for the credit union concerned is probable; and
(iv) The probability of a further potential loss to the insurance fund is negligible.
(B) For the purposes of this paragraph, the term:
(i) "Cash value of the credit union's assets" means the recorded value of any asset account; provided, that accepted accounting principles and practices are followed and the applicable provisions of law, regulations, and the credit union's bylaws are met.
(ii) "Liabilities" means recorded liabilities that are due and payable, excluding member and nonmember shares.
(18) "Insuring organization" means an organization that provides aid and financial assistance to credit unions that are in the process of liquidation or are incurring financial difficulty by protecting share and deposit accounts in the credit unions against loss, either without limit or up to a specified level for each account.
(19) "Loan" means the extension of credit under either an open-end or a closed-end agreement.
(20) "Low-income area" means:
(A) An area that wholly consists of, or is wholly located within, an enterprise community or empowerment zone, as designated pursuant to section 13301 of the Internal Revenue Code of 1986, approved August 10, 1993 (107 Stat. 543; 26 U.S.C. § 1391);
(B) An area where 20% of the population is living at or below 80% of the area median family income;
(C) An area in a metropolitan area where the median family income is at or below 80% of that metropolitan area median family income or the national metropolitan area median family income, whichever is greater;
(D) An area outside of a metropolitan area, where the median family income is at or below 80% of the statewide non-metropolitan area family income or the national non-metropolitan area median family income, whichever is greater;
(E) An area where the unemployment rate is 1.5 times the national average;
(F) An area meeting the criteria for economic distress that may be established by the Community Development Financial Institutions Fund, established by section 104 of the Community Development Banking and Financial Institutions Act of 1994, approved September 23, 1994 (108 Stat. 2166; 12 U.S.C. § 4703); or
(G) Other area approved by the Commissioner.
(21) "Member" means a person who has met the membership criteria of a credit union and has been accepted into membership of that credit union.
(22) "Membership share" means the balance required by the board of directors of a credit union to establish membership in the credit union.
(23) "Net worth" means the retained earnings balance of the credit union, based on generally accepted accounting principles, and other forms of capital approved by the Commissioner through rulemaking.
(24) "NCUA" means the National Credit Union Administration Board established under Title II of the Federal Credit Union Act, approved October 19, 1970 (84 Stat. 994; 12 U.S.C. § 1781
et seq.
)
(25) "Officer" means the chair, vice chair, treasurer, secretary, and any other individual appointed by the board of directors of the credit union to serve as an officer of the credit union.
(26) "Official" means any member of the board of directors of a credit union, a member of a committee of a credit union, or an individual appointed by the board of directors of a credit union to serve as an officer of the credit union.
(27) "Organization" means any corporation, association, partnership, limited liability company, limited liability partnership, joint venture, trust, or other legal entity.
(28) "Participation loan" means a loan made by multiple lenders to a member.
(29) "Person" means any natural person or organization.
(30) "Predominantly" means more than one half.
(31) "Service facility" means the place of business of a credit union where the credit union may transact business authorized by the credit union's board.
(32) "Share" means a balance held by a credit union and established in accordance with standards specified by the credit union, including shares, share accounts, share certificates, share draft accounts, custodial accounts, individual retirement accounts established pursuant to United States tax law, payable on death accounts, trust accounts, money market accounts, share checking accounts, business share accounts, or other similar accounts as the District credit union may adopt. "Share" does not include membership shares.
(33) "Supplemental capital" means capital approved by the Commissioner that is subordinate to shares, other liabilities, and share insurance.
(May 6, 2020, D.C. Law 23-86, § 101, 67 DCR 3476.)