Ga. Comp. R. & Regs. R. 80-2-3-.01 - Certificate of Deposit

(1) Certificates of Deposit Generally--Any credit union may, from time to time as determined by its board of directors, issue deposit contracts in the form of Certificates of Deposit whereby the credit union agrees to pay a guaranteed rate of interest to the depositor which may be less than, equal to, or greater than any rate paid in the past or anticipated to be paid in the future on regular share deposits of members, provided the terms of such contracts are in compliance with the provisions of this regulation.

(2) Minimum Contract Terms and Standards:

(a) Monies accepted by a credit union pursuant to the authority of paragraph (1) of this regulation shall be considered to be a deposit subject to the provisions of the Financial Institutions Code of Georgia under the following conditions:

1. Certificates of deposit are issued only to members of the issuing credit union or to another financial institution consistent with O.C.G.A. § 7-1-650;

2. Certificates of deposit shall have a fixed maturity, and shall disclose their terms, including any automatic renewal provisions as established by the board of directors;

3. Funds deposited thereunder shall be subject to penalty provisions for withdrawal prior to maturity;

4. Certificates of deposit shall be non-negotiable and nontransferable;

5. The rates of interest payable under the certificate of deposit contract shall be approved by the Board of Directors of the credit union;

6. Requirements set forth in sections (2)(a)2., (2)(a)3. and 2(a)4. of this rule shall be disclosed to the depositor along with the date of maturity, interest rate, penalties for early withdrawal, and principal amount of the certificate of deposit.

(b) Every credit union issuing Certificates of Deposit shall maintain a record of every certificate of deposit issued. The record may be in the form of a register, ledger, or copy of the certificate by other technological means available and shall show:

1. The name of the registered owner of the certificate of deposit;

2. The amount of the certificate of deposit;

3. The maturity of the certificate of deposit; and

4. The rate of interest payable on the certificate of deposit.

(c) Interest may be payable at such intervals in accordance with the contract as determined by the board of directors but not more frequently than monthly except for the payment of accrued interest at the time of redemption of the certificate of deposit. Interest may be paid by check or other electronic means, by deposit to the member's regular share account, or added to the principal value of the certificate of deposit.

Notes

Ga. Comp. R. & Regs. R. 80-2-3-.01

O.C.G.A. §§ 7-1-61, 7-1-650, 7-1-663.

Original Rule entitled "Member Deposit Certificates" adopted as ER. 80-2-3-0.1-.01 . F. and eff. August 1, 1973. Amended: Permanent Rule of same title adopted. F. Nov. 27, 1973; eff. Dec. 17, 1973. Amended: ER. 80-2-3-0.2-.01 adopted. F. and eff. April 8, 1974. Amended: Permanent Rule adopted. F. Apr. 29, 1974; eff. May 19, 1974. Amended: F. Nov. 15, 1974; eff. Dec. 5, 1974. Amended: ER. 80-2-3-0.4-.01 adopted. F. and eff. December 9, 1976. Amended: Permanent Rule adopted. F. Jan. 21, 1977; eff. Feb. 10, 1977. Amended: ER. 80-2-3-0.6-.01 adopted. F. and eff. August 31, 1978. Amended: Permanent Rule adopted. F. Nov. 8, 1978; eff. Nov. 28, 1978. Amended: F. Mar. 18, 1980; eff. Apr. 7, 1980. Amended: F. July 13, 1981; eff. August 2, 1981. Amended: F. Aug. 17, 1983; eff. Sept. 6, 1983. Amended: F. Oct. 12, 1989; eff. Nov. 1, 1989. Amended: F. Oct. 22, 2001; eff. Nov. 11, 2001. Repealed: New Rule entitled "Certificate of Deposit" adopted. F. Aug. 15, 2005; eff. Sept. 4, 2005. Amended: F. July 7, 2023; eff. July 27, 2023.