Section 370.080

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 370

Effective - 28 Aug 2007   

  370.080.  Membership of credit union, membership shares not to be pledged as security for loans. — 1.  The membership shall consist of the organizers and such persons, societies, associations, copartnerships and corporations as have been duly elected to membership and have subscribed to one or more general shares, or one membership share and/or membership fee when required, and have paid for the same in the whole or in part, with the entrance fee as required by the bylaws, and have complied with such other requirements as the certificate of organization may contain.

  2.  A credit union shall be composed of one or more groups of persons. The members of each such individual group must share:

  (1)  A common occupation, association, employer or;

  (2)  A geographic area which may include all those persons who reside or work in a city not within a county or a county, in which the main office of the credit union is located as reported on the National Credit Union Administration (NCUA) 2006 year-end 5300 call report, and counties contiguous to such areas as may be approved by the director.  The director shall not allow a geographic area credit union to expand beyond counties contiguous to a city not within a county or a county in which its main office is located.  The director shall not allow a credit union to expand its geographic area due to a relocation of the credit union's main office.

  3.  No individual shall be eligible for membership in a credit union on the basis of the relationship of such individual to another person who is eligible for membership in such credit union unless the individual is a member of the immediate family or household, as such terms are defined by the commission, of such person.  Except as provided in section 370.340, once a person becomes a member of a credit union in accordance with this chapter, such person or organization may remain a member of such credit union until the person or organization chooses to withdraw from the membership of the credit union.

  4.  Each credit union may, at the option of the board, create one or more classes of shares which shall be known as "membership share" representing the member's ownership interest in the credit union on such terms and conditions as the board of directors may determine, not inconsistent with the bylaws, provided that each membership share shall have a par value of not less than twenty-five nor more than one hundred dollars.  A membership share shall not be pledged as security on any loan.

  5.  Notwithstanding any other provisions of this chapter to the contrary, in the event of liquidation of the assets of the credit union, the membership share shall be at risk, uninsured, and shall be subordinated to the claims of all nonmembers and participate in the assets of the credit union after all creditors and holders of all other shares, and the National Credit Union Administration.

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(RSMo 1939 § 5525, A.L. 1984 H.B. 962, A.L. 1985 H.B. 469, A.L. 1991 H.B. 180, A.L. 1998 H.B. 1323, A.L. 2007 S.B. 591)

Prior revision: 1929 § 5083