Low-income credit unions can receive nonmember shares and deposits from any source, including other financial institutions, public units, philanthropic individuals or groups such as churches and foundations, and the Community Development Revolving Loan Program. Nonmember account holders shall not have the rights and privileges afforded by Iowa Code chapter 533 to members of a credit union, and are limited in their involvement with a credit union to that specified by this rule.
(1)
Limitations. Unless a greater amount has been approved by the
superintendent, the maximum aggregate amount of all public unit and nonmember
accounts shall not, at any given time, exceed 20 percent of the total shares
and deposits of the credit union or $1.5 million, whichever is
greater.
(2)
Exception to
limit. Before accepting any
public unit or nonmember
accounts in
excess of 20 percent of total shares and deposits, the board of directors must
adopt a specific written plan concerning the intended use of these
accounts and
forward a copy to, and receive approval from, the
superintendent.
a. The plan must include:
(1) A statement of the credit union's needs,
sources and intended uses of public unit and nonmember shares and
deposits;
(2) Provision for
matching maturities of public unit and nonmember shares and deposits with
corresponding assets, or justification for any mismatch; and
(3) Provision for adequate income spread
between public unit and nonmember shares and corresponding assets.
b. In addition to the plan
specified by this subrule, a credit union seeking an exception must include in
its written request:
(1) The new maximum level
of public unit and nonmember shares and deposits being requested, either as a
dollar amount or a percentage of total shares and deposits of the credit
union;
(2) A copy of the credit
union's latest financial statement, including income and expenses;
(3) A copy of the credit union's loan and
investment policies; and
(4) Such
other documentation as may be required by the superintendent.
(3)
Use of
nonmember deposits. Nonmember deposits in low-income designated credit
unions may be:
a. Loaned to the members when
current member share and deposit accounts are insufficient to meet the loan
demand and liquidity needs of the credit union;
b. Invested and the positive spread used to
improve the income of the credit union; and
c. Invested and the positive spread used to
build the capital of the credit union.
