Section 1. Par value: The par value of each share is $ 25. 00 . Subscriptions to shares are payable at the time of subscription, or in installments of at least $25. 00 per month.
To establish membership, the member must subscribe to one par value of share. The share does not have to be in a regular share account. The board may choose the best account for the characteristics of its membership.
Option A—Regular Share account required to establish membership
To establish membership in the credit union, the member must subscribe to one share in a regular share account.
Option B— account required to establish membership.
To established members in the credit union, the member must subscribe to one share in the stated account or accounts (note the account(s) in the blank above).
Section 2. Cap on shares held by one person: The board may establish, by resolution, the maximum amount of shares that any one member may hold.
Section 3. Time periods for payment and maintenance of membership share: The credit union will terminate from membership a member who:
- Fails to complete payment of one share within 30 days of admission to membership, or
- Fails to complete payment of one share within 30 days from the increase in the par value of shares, or
- Reduces the share balance below the par value of one share and does not increase the balance to at least the par value of one share within 30 days of the reduction.
Section 4. Transferability: Members may transfer shares to another member in any form approved by the board. Shares that accrue credits for unpaid dividends retain those credits when transferred.
Section 5. Withdrawals: Members may withdraw money paid in on shares provided that:
- The board has the right, at any time, to require members, or a subset of members, to give up to 60 days written notice of intention to withdraw all or part of the amounts they paid in.
- A member delinquent on any loan or obligation to the credit union may not withdraw their shares below the delinquent amount without the written approval of the credit committee or loan This withdrawal restriction also applies if the member is a comaker, endorser, or guarantor of a delinquent loan. Coverage of overdrafts under an overdraft protection policy does not constitute delinquency for purposes of this paragraph. Shares issued in an irrevocable trust as provided in Section 6 of this article are not subject to withdrawal restrictions except as stated in the trust agreement.
- The share account of a deceased member (other than one held in joint tenancy with another member) may be continued until the close of the dividend period in which the administration of the deceased’s estate is completed.
- The board can impose a fee for excessive share withdrawals from regular share accounts. By resolution, the board can set the number of withdrawals not subject to a fee and the amount of the fee subject to regulations relevant to the advertising and disclosure of terms and conditions on member
Section 6. Trusts: Shares may be issued in a revocable or irrevocable trust, subject to the following:
Shares issued in a revocable trust—the settlor must be a member of this credit union in his or her own right.
Shares issued in an irrevocable trust—either the settlor or the beneficiary must be a member of thiscredit union.
Both a revocable and irrevocable trust must state the name of the beneficiary. A trust may be a member of the credit union as an entity if all parties to the trust, including all settlors, beneficiaries and trustees, are within the credit union’s field of membership.
Shares issued through a pension plan authorized by the rules and regulations will be treated as an irrevocable trust unless otherwise indicated in the rules and regulations.
Section 7. Joint accounts and membership requirements:
Select one option and check the box corresponding to that option.
Option A—Separate account not required to establish membership.
Owners of a joint account may both be members of the credit union without opening separate accounts. For joint membership, both owners are required to fulfill all of the membership requirements including each member purchasing and maintaining at least one share in the account and filling out the membership card.
Option B—Separate account required to establish membership.
Each member must purchase and maintain at least one share in a share account that names the member as the sole or primary owner. Being named as a joint owner of a joint account is not sufficient to establish membership.