Powers of Credit Unions

HRS div. 2, tit. 22, ch. 412, art. 10, pt. II

in effect

HRS §412:10-200 General powers

412:10-200. General powers (a) Except as expressly prohibited or limited by this chapter, a credit union shall have the power to issue shares, solicit, accept and hold deposits, and engage in any activities which are usual or incidental to the business of a credit union. In addition to the powers mentioned elsewhere in this article, a credit union may: (1) Enter into contracts of any nature; (2) Sue and be sued; (3) Adopt, use and display a common seal; (4) Acquire, lease, hold, assign, pledge, hypothecate, sell, or otherwise dispose of property, either in whole or in part, necessary or incidental to its operations; (5) Offer to its members, public unit accounts and other credit unions, shares, share certificates, share drafts, deposits, as provided in this article; (6) Make loans and extensions of credit of any kind, whether unsecured or secured by real or personal property of any kind or description; (7) Borrow from any source within or without the State; provided that a credit union shall notify the commissioner in writing of its intention to borrow in excess of an aggregate of fifty per cent of its capital; (8) Discount or sell any of the credit union's assets, and purchase the assets of another credit union; (9) Offer related financial services, including, but not limited to, electronic fund transfers, safe deposit boxes, leasing and correspondent arrangements with other financial institutions; (10) Hold membership in other credit unions organized under this or other laws, in service centers, and in associations and organizations controlled by or fostering the interests of credit unions, including a central liquidity facility organized under state or federal law; (11) Engage in activities and programs as requested by any governmental unit, subject to approval by the board of directors and not inconsistent with this article; (12) Act as fiscal agent for and receive payments on share and deposit accounts from a governmental unit; (13) Make contributions to any nonprofit civic, charitable or service organizations; and (14) Make investments as permitted under this article. (b) A credit union may exercise all incidental powers that are necessary or requisite to enable it to effectively carry out its purposes. [L 1993, c 350, pt of §1]

HRS §412:10-201 Powers granted under federal law

412:10-201. Powers granted under federal law (a) In this section "federal power" means any activity, right, privilege, or immunity granted to a federal credit union under any federal statute, rule, regulation, interpretation or court decision. (b) Any credit union desiring to acquire any federal power shall file an application with the commissioner. The application shall indicate the applicable federal statute, rule, regulation, interpretation or court decision, the extent of the federal power desired, the reasons for the application, and any other information requested by the commissioner. The commissioner may by rule prescribe the form of application. (c) If the commissioner is satisfied that the power should be granted, the commissioner shall issue a written approval of the application, subject to such terms and conditions as the commissioner deems appropriate. Other credit unions may file an application if they desire the same federal power, but approval of any application need not be granted. Any federal power granted pursuant to this section is in addition to, and not in limitation of, any other provision of this chapter, and the federal power may be exercised notwithstanding any other provision of this chapter. (d) If any federal power is terminated or modified, the commissioner may terminate or make a similar modification to any corresponding power granted under this section. (e) The commissioner may suspend or revoke any federal power granted under this section or under previous law if the commissioner finds: (1) That the credit union has violated any conditions imposed in connection with the grant of power; or (2) The credit union has not begun to exercise such power within one year of the date it was granted. (f) The commissioner shall retain jurisdiction over the enforcement of any power granted under this section or under previous law. Any action taken under subsections (d) or (e) shall be taken only after the commissioner has given the credit union notice of the proposed action and an opportunity to be heard. [L 1993, c 350, pt of §1; am L 2016, c 149, §14]

HRS §412:10-202 Credit union service organizations

412:10-202. Credit union service organizations A credit union may invest its funds in shares, stocks, or obligations of credit union service organizations providing services which are associated with the routine operations of credit unions, up to one per cent of the capital of the credit union. This authority does not include the power to acquire control directly or indirectly, of another financial institution. Loans to credit union service organizations shall not exceed one per cent of the capital of the credit union. The one per cent limitation on loans to credit union service organizations is independent of, and in addition to, the one per cent limitation on investment in credit union service organizations. [L 1993, c 350, pt of §1]

HRS §412:10-203 Sale or purchase of obligations or notes

412:10-203. Sale or purchase of obligations or notes A credit union may purchase, sell, pledge, or discount or otherwise receive or dispose of, in whole or in part, any eligible obligations of its members and to purchase from any liquidating credit union notes made by individual members of the liquidating credit union as may be agreed upon by the board of directors of the liquidating credit union and the board of directors of the purchasing credit union, but no purchase may be made under authority of this section, if after that purchase, the aggregate of the unpaid balances of notes purchased under authority of this section would exceed five per cent of the capital of the credit union. [L 1993, c 350, pt of §1]

HRS §412:10-204 Sale or purchase of assets

412:10-204. Sale or purchase of assets A credit union may sell all or part of its assets to another credit union, purchase all or part of the assets of another credit union and assume the liabilities of the selling credit union and those of its members. L 1993, c 350, pt of §1

Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: https://www.capitol.hawaii.gov/hrscurrent/Vol08_Ch0401-0429/HRS0412/HRS_0412-.htmFetched: 11/10/2026