Chapter
110
2006 -- S 2736
Enacted 06/16/06
A N A
C T
RELATING TO FINANCIAL
INSTITUTIONS
Introduced By: Senators J
Montalbano, McBurney, Connors, and Tassoni
Date Introduced: February
14, 2006
It is
enacted by the General Assembly as follows:
SECTION
1. Section 19-5-6 of the General Laws in Chapter 19-5 entitled "Credit
Unions"
is hereby amended to read as follows:
19-5-6.
Demand deposits. -- (a) A credit union may offer demand deposits to its
members
provided the following conditions are met:
(1) That the credit union has shares and deposits of one million dollars
($1,000,000) or
more;
(2) Every credit union shall maintain reserves as required by the provisions
with respect
to reserve
funds and reserve balances contained in the Federal Reserve Act, 12 U.S.C.
section 221
et seq.,
and in the rules, regulations, orders, and rulings from time to time in force
of the board of
governors
of the federal reserve system; and
(3) That no overdraft in excess of five hundred dollars ($500) shall be
allowed unless
authorized
as all or part of a loan for which the credit union holds an executed
promissory note;
and
(4) (3) That the credit union obtain the approval of the director
or the director's designee
prior to
accepting demand deposits, that approval to be conditioned on compliance with
the above
requirements
and on the soundness of the condition and operation of the credit union.
(b) If at any time the credit union ceases to comply with subdivisions (1)
through (4)
above,
the director or the director's designee may, upon thirty (30) days notice and
after an
opportunity
to be heard, withdraw the authority of the credit union to accept demand
deposits.
Upon
withdrawal the credit union shall accept no further sums to be credited to any
demand
deposit.
After two (2) months from the date of withdrawal of authority, the credit union
shall
cease to
maintain demand deposits.
SECTION
2. This act shall take effect upon passage.
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LC02295
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