North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0100 - GENERAL INFORMATION › Section 06C .0101 - DEFINITIONS

Current through Register Vol. 39, No. 2, July 15, 2024
When used in this Subchapter, the following words and
					 phrases shall have the following meaning:
(1) "Administrator" means the Administrator
				  of State-Chartered credit unions.
(2) "Board of Directors" means at least five
				  persons elected or appointed to oversee the management of each
				  organization.
(3) "Book value of
				  loans" means the dollar amount of loans the credit union has on its
				  books.
(4) "Branch Office" means a
				  facility that a credit union maintains and staffs at a location other than its
				  main office to furnish credit union services to its members.
(5) "Capital" means shares, undivided
				  earnings, and reserves.
(6)
				  "Commission" means the Credit Union Commission established by
				  G.S.
				  143B-439.
(7) "Corporate Credit Union" means a credit
				  union with an institutional field of membership, as set forth in
				  G.S.
				  54-110.1 and
				  G.S.
				  54-110.2.
(8) "Credit union" means a cooperative
				  nonprofit corporation under
				  G.S.
				  54-109.1.
(9) "Credit Union Service Organization" or
				  "CUSO" means an organization formed and operated by credit union(s), or
				  associations or organizations of credit unions, to provide financial or
				  operational products or services to credit unions or credit union
				  members.
(10) "Deposits" means a
				  preferred savings account on which the credit union is obligated to pay a
				  guaranteed interest rate on a continuing basis in such amounts and terms as the
				  Board of Directors approve.
(11)
				  "Dividend" means an operating expense of a credit union that is declared
				  payable on share accounts from time to time by the Board of Directors.
				  Dividends shall be paid as set forth in
				  G.S.
				  54-109.54.
(12) "EDP" means electronic data
				  processing.
(13) "Funds" means cash
				  on hand or cash in the bank and investments.
(14) "League" means the Carolinas Credit
				  Union League, the trade association that serves credit unions in North and
				  South Carolina.
(15) "Members"
				  means persons or organizations who have been accepted for membership by either
				  the Board, membership officer, or an executive committee, after having met
				  qualifications of being within the field of membership.
(16) "Membership" means a credit union
				  limited to those persons or groups as stipulated in the bylaws of the credit
				  union and set forth in
				  G.S.
				  54-109.26.
(17) "Membership fee" means a fee that may be
				  charged to applicants for membership as an entrance fee or as an annual
				  membership fee as determined by the Board of Directors or as the bylaws may
				  provide.
(18) "Reserve fund" means
				  the portion of income to be entered on the books of the corporation to offset
				  uncollectible loans in accordance with
				  G.S.
				  54-109.86.
(19) "Shares" means the primary capital owned
				  by the members and is comprised of the savings of the members. The par value
				  shall be as the bylaws provide.
(20) Types of investment transactions shall
				  be defined as follows:
(a) "Standby
				  commitments" means an agreement to purchase or sell a security at a future
				  date, whereby the buyer is required to accept delivery of the security at the
				  option of the seller.
(b) "Cash
				  forward agreement" means an agreement to purchase or sell a security at a
				  future date more than five days after the agreement is made and requires
				  mandatory delivery and acceptance.
(c) "Reverse repurchase agreement" means an
				  agreement whereby a credit union enters into an understanding to sell
				  securities to a purchaser and to repurchase the same securities from that
				  purchaser at a future date, regardless of the amount of consideration paid by
				  the credit union or the purchaser.
(d) "Repurchase agreement" means an agreement
				  whereby a credit union enters into an agreement to buy securities from a vendor
				  and to resell securities at a future date. Repurchase agreements may be the
				  following two types:
(i) "Investment-type
				  repurchase agreement" means a repurchase that contains the elements of a sale
				  of security as specified in Rule .1202(5) of this Subchapter.
(ii) "Loan-type repurchase agreement" means
				  any repurchase that does not qualify as an investment-type repurchase
				  agreement.
(e) "Future"
				  means a standardized contract for the delivery of commodities, including
				  certain government securities, sold on designated commodities
				  exchange.