Section 454. General powers

In  addition to the powers conferred by the
  provisions of this  chapter,  a  credit  union  shall,  subject  to  the
  restrictions  and  limitations contained in this article, in its bylaws,
  and in any regulations promulgated by  the  superintendent,  or  in  any
  regulations of the banking board as may be specifically authorized under
  this section, have the following powers:
    1.  To  issue and receive payments on, shares, share drafts, and share
  certificates, subject to  such  terms,  rates,  and  conditions  as  are
  established  by  its board of directors, from its members and from other
  credit unions, both state and federally chartered.
    A member may designate any person or persons to own  shares  or  share
  certificates  with  him  or  her  in  joint  tenancy  with  the right of
  survivorship, but no joint tenant shall be  permitted  to  vote,  obtain
  loans,  or  hold  office,  unless  he  or  she  is  within  the field of
  membership and is a qualified member.
    2. To act as trustee under a retirement plan established  pursuant  to
  the   provisions   of   the  act  of  congress  entitled  "Self-employed
  Individuals Tax Retirement Act of 1962," and provisions of law contained
  therein, as amended; provided that the  provisions  of  such  retirement
  plan require the funds of such trust to be invested exclusively in share
  accounts  of insured state and federally chartered credit unions. In the
  event that any such retirement plan,  which,  in  the  judgment  of  the
  credit  union, constituted a qualified plan under the provisions of said
  self-employed  individuals  tax  retirement  act  of  nineteen   hundred
  sixty-two,  and provisions of law contained therein, as amended, and the
  regulations promulgated thereunder at the time the trust was established
  and accepted by the credit union, is subsequently determined not  to  be
  such  a  qualified  plan  or  subsequently ceases to be such a qualified
  plan, in whole or in part, the credit union may, nevertheless,  continue
  to  act as trustee of any shares theretofore made under such plan and to
  dispose  of  the  same  in  accordance  with  the  directions   of   the
  shareholders  and the beneficiaries thereof. No credit union, in respect
  to shares  purchased  under  this  subdivision,  shall  be  required  to
  segregate  such shares from other shares of such credit union; provided,
  however, that the credit union shall keep appropriate records showing in
  proper detail all transactions engaged in under the  authority  of  this
  subdivision.
    3.  To  act as trustee of an individual retirement account established
  pursuant to the provisions of the act  of  congress  entitled  "Employee
  Retirement Income Security Act of 1974," and provisions of law contained
  therein,  as  amended;  provided  that  the  provisions  of  the written
  governing instrument creating the trust require the funds of such  trust
  to  be  invested  exclusively  in  share  accounts  of insured state and
  federally chartered credit unions. In the event that any such individual
  retirement  account,  which,  in  the  judgment  of  the  credit  union,
  constituted   a   qualified  individual  retirement  account  under  the
  provisions of said employee retirement income security act of 1974,  and
  provisions  of  law  contained  therein, as amended, and the regulations
  promulgated thereunder  at  the  time  the  trust  was  established  and
  accepted  by the credit union, is subsequently determined not to be such
  a qualified individual retirement account or subsequently ceases  to  be
  such a qualified individual retirement account, in whole or in part, the
  credit union may, nevertheless, continue to act as trustee of any shares
  theretofore  purchased  under  such individual retirement account and to
  dispose of the same in accordance with the directions of the shareholder
  and the beneficiaries thereof. No credit union,  in  respect  to  shares
  purchased  under  this  subdivision, shall be required to segregate such
  shares from other shares of such credit union; provided,  however,  that

  the credit union shall keep appropriate records showing in proper detail
  all transactions engaged in under the authority of this subdivision.
    4.  To  charge  an  entrance fee to any person who has applied for and
  been elected to membership.
    5. To charge a reasonable fee for the transfer of its shares.
    6. (a) To lend money to its members at the rate or rates agreed to  by
  the  credit union and the borrower upon such terms and conditions as are
  established by its board of directors and subject  to  such  regulations
  and restrictions as the banking board finds necessary and proper.
    (b)  The knowingly taking, receiving, reserving, or charging a greater
  rate of interest than permitted by law shall  be  held  and  adjudged  a
  forfeiture  of  the  entire interest which the note or other evidence of
  debt carries with it, or which has been agreed to be  paid  thereon.  If
  such  greater rate of interest has been paid, the person paying the same
  or his legal representatives may recover twice the entire amount of  the
  interest thus paid from the credit union.
    (c)  (i)  No credit union may make any member business loan that would
  result in a total amount of such loans outstanding at that credit  union
  at  any  one time equal to more than the lesser of 1.75 times the actual
  net worth of the credit union, or  1.75  times  the  minimum  net  worth
  required  under  12  U.S.C. 1790d(c)(1)(A) for a credit union to be well
  capitalized.
    (ii) Subparagraph (i) of this paragraph does not apply in the case of:
  (A) a credit union chartered for the purpose of making, or  that  has  a
  history  of  primarily  making, member business loans to its members, as
  determined by the superintendent; or (B)  a  credit  union  that  serves
  predominantly  low-income  members, as defined by the superintendent, or
  which is a community development financial institution as defined in  12
  U.S.C.  4702;  or  (C)  a credit union excepted from the requirements of
  such subparagraph (i) by the superintendent where such credit  union  is
  seeking an exception from any federal limits on member business loans to
  the  same  extent  as permitted to federally-insured state credit unions
  pursuant to  the  Federal  Credit  Union  Act  and  regulations  related
  thereto,   provided   that   such   credit  union  demonstrates  to  the
  satisfaction  of  the  superintendent  that  such  exception  would   be
  consistent with the declaration of policy as set forth in section ten of
  this chapter.
    (iii)  For  purposes of this paragraph the term "member business loan"
  and the term "net worth" shall have the same meaning as such  terms  are
  defined in 12 U.S.C. 1757a.
    7.  (a)  To  issue  credit  cards, debit cards, and similar devices to
  allow members to make purchases and to  access  their  loans,  lines  of
  credit, shares and deposits;
    (b)  To  collect,  receive  and  disburse funds in connection with the
  issuance of negotiable checks, money orders, travelers checks and  other
  payment instruments to members, and to charge a fee for such services;
    (c) To rent safe deposit boxes to members; and
    (d) To provide any related financial services to members which are not
  expressly authorized pursuant to this article, including but not limited
  to  electronic  funds  transfers  and  correspondent services; provided,
  however, that any credit union which seeks to  offer  any  such  related
  financial services which it has not offered prior to June twentieth, two
  thousand  three  shall,  not less than sixty days prior to offering such
  services, notify the superintendent in writing of its intention to offer
  such services. If the superintendent does not object in writing  to  the
  offering  of  such  services  within sixty days after the receipt of the
  notice, the credit union may offer such services to its members.

    8. To deposit any moneys received by it, and not lent to  members,  in
  one  or  more  state  or  federally  chartered  banking organizations or
  branches of foreign  banking  corporations  which  are  insured  by  the
  Federal  Deposit  Insurance  Corporation,  by  the National Credit Union
  Share  Insurance  Fund,  or  by  another  agency  of  the  United States
  government.
    9. To borrow money subject to such regulations and restrictions as the
  banking board finds necessary and proper from any source in an aggregate
  amount not  exceeding  fifty  percent  of  assets  without  the  written
  approval of the superintendent.
    10.  To impose financing charges and late charges in the event of late
  payment or default on loans and recover reasonable costs  and  expenses,
  including  collection costs and reasonable attorneys' fees incurred both
  before and after judgment.
    11. To suspend or expel members, as provided in section  four  hundred
  sixty-four of this article.
    12.  To  impress  and  enforce a lien upon the shares, share accounts,
  share certificates, deposits, dividends, and accumulation of interest on
  the shares, accounts, certificates, and deposits of any  member  to  the
  extent  of  any  sums owed the credit union by said member and any loans
  made to him or her directly or indirectly or  on  which  he  or  she  is
  surety, guarantor, or endorser.
    13.  To  cancel  the shares of any member who withdraws or is expelled
  and apply the withdrawal  value  thereof  to  the  liquidation  of  such
  member's indebtedness to the corporation.
    14.  Subject  to  the  limitations  contained  in subdivision seven of
  section four hundred fifty-six of this article, to hold  shares  in  and
  make loans to other credit unions, whether state or federally chartered.
    15.   To   conduct   its   business   at  automated  teller  machines,
  point-of-sale terminals, shared service centers, and similar  facilities
  subject  to  regulations  which may be promulgated by the banking board.
  Such facilities shall not be deemed to be  stations  and  shall  not  be
  subject to any of the provisions of this chapter applicable to stations.
    16.  To  issue shares to and accept deposits from a member in the name
  of a minor. Such shares and deposits  shall  be  held  for  the  minor's
  exclusive  right  and benefit and free from control or lien of all other
  persons, except creditors.  The  withdrawal  value  of  such  shares  or
  deposits  shall  be  paid  to  the  person  in whose name such shares or
  deposits are held. A receipt or acquittance of a minor  shall  be  valid
  and  sufficient  release  and  discharge  to  such  credit union for all
  payments made on account of such shares or deposits.
    17. To issue shares to and accept deposits from a  member,  which  are
  held  in  the name of a member in trust for a beneficiary or in the name
  of a non-member  in  trust  for  a  beneficiary  who  is  a  member.  No
  beneficiary, unless a member in his or her own right, shall be permitted
  to  vote, obtain loans, or hold office or be required to pay an entrance
  or membership fee. Payment of part or all of such a trust account to the
  party in whose name the account is held shall, to  the  extent  of  such
  payment,  discharge  the liability of the credit union to that party and
  to the beneficiary, and the credit union shall be under no obligation to
  see to the application of such payment. In the event of the death of the
  party who owns a trust account, if the credit union has  been  given  no
  other  written notice of the existence or terms of any trust and has not
  received a court order as to disposition of the account,  the  account's
  funds  and  any  dividends  or  interest  thereon  shall  be paid to the
  beneficiary.
    18. (a) To invest its funds in: (i)  Those  securities  authorized  as
  permissible  investments  for  savings  banks  by subdivisions one, two,

  three,  four,  twelve,  paragraph  (a)  of  subdivision  twelve-a,   and
  subdivisions  fifteen,  seventeen,  twenty-seven  and  twenty-eight-a of
  section two hundred thirty-five of this chapter.
    (ii)  Advances  of  federal  funds  as authorized for savings banks by
  subdivision twelve-b of section two hundred thirty-five of this chapter.
    (iii) Common trust units of a credit union investment  pool  organized
  for the purchase of:
    (A)  obligations  of the United States of America, or securities fully
  guaranteed as to principal and interest thereby;
    (B) obligations issued by banks for cooperatives, federal land  banks,
  federal  intermediate credit banks, federal home loan banks, the Federal
  Home Loan Bank Board, or any corporation designated in  section  846  of
  Title  31  of  the  United  States  Code  as  a  wholly owned government
  corporation, or in obligations, participations, or other instruments  of
  or  issued  by, or fully guaranteed as to principal and interest by, the
  Federal  National  Mortgage  Association  or  the  Government   National
  Mortgage  Association, or in mortgages, obligations, or other securities
  which are or ever have been sold  by  the  Federal  Home  Loan  Mortgage
  Corporation  pursuant  to section 1454 or 1455 of Title 12 of the United
  States Code, or in obligations or other instruments or securities of the
  Student Loan Marketing Association;
    (C) participation  certificates  evidencing  beneficial  interests  in
  obligations,   or  in  the  right  to  receive  interest  and  principal
  collections therefrom, which obligations have been subjected by  one  or
  more  government  agencies  to a trust or trusts for which any executive
  department, agency, or instrumentality of the United States (or the head
  thereof) has been named to act as trustee; provided that such investment
  pool has been approved by the superintendent; or
    (D) securities, obligations or other instruments of, or issued by, any
  agency of the United States.
    (iv) Where the assets of a credit union are in excess of three million
  dollars, such credit union is further authorized to invest its funds  in
  the  securities  enumerated  in  subdivisions  thirteen  and fourteen of
  section two hundred thirty-five of this chapter, subject in each case to
  those limitations applicable to such investment in the case  of  savings
  banks.
    (b) All such securities, except those purchased in a common trust unit
  pursuant  to  subparagraph  (iii)  of paragraph (a) of this subdivision,
  must be registered in the name of the credit union; provided that  where
  any  such  securities  are non-registerable, except those purchased in a
  common trust investment pool, as hereinbefore provided,  they  shall  be
  placed  in the custody of a bank, trust company, national bank, or state
  or federal corporate credit union in the name of the credit  union,  and
  shall  be  retained by such bank, trust company, national bank, or state
  or federal corporate credit union until such securities  are  liquidated
  at  maturity  or  sold,  in  either of which events the proceeds of such
  securities shall be deposited in the name of the  credit  union  in  any
  institution specified in subdivision eight of this section.
    (c) Notwithstanding the provisions of this subdivision, a credit union
  may invest the lesser of ten percent of its capital or net worth, but at
  least  ten  thousand  dollars,  in  the  shares of investment companies;
  provided that the portfolio of such investment company  consists  solely
  of  securities  in which credit unions are permitted to invest directly.
  The term "investment companies" means open-end and close-end  investment
  companies  and  unit investment trusts as these terms are used in an Act
  of Congress entitled "Investment Company Act of 1940."
    19. Subject to regulations and restrictions of the  banking  board,  a
  credit  union  may  invest  its  funds in and make loans to credit union

  organizations; provided that such loans or investments shall be approved
  by the board of directors. No such loan or investment shall be made by a
  credit union pursuant to this subdivision if the amount of such loan  or
  investment  exceeds three per centum of the total sum due to the members
  on shares and deposits. For the purpose of this  subdivision,  a  credit
  union  organization  is  any organization established primarily to serve
  the needs of its member state  and  federal  credit  unions,  and  whose
  business relates to the daily operations of the credit unions it serves.
    20.  To  purchase,  sell,  service,  pledge  or discount, or otherwise
  receive or dispose of,  eligible  obligations  to  the  same  extent  as
  authorized  pursuant  to  Title  12  U.S.C.  section  1757(13)  and  any
  regulations promulgated thereunder, as such laws or regulations  may  be
  amended from time to time.
    21. To purchase, hold, lease and convey a plot whereon there is or may
  be erected a building suitable for the transaction of its business, from
  portions of which not required for its own use a revenue may be derived,
  and  a  plot  whereon  parking accommodations are or are to be provided,
  with or without charge, primarily for its members or employees or  both;
  provided  that  the net aggregate of all investments of any credit union
  in such plots and building shall be limited to six  per  centum  of  the
  capital  and  retained  earnings  of  such credit union, except with the
  approval of the superintendent.
    22. To enter into contracts.
    23. To sue and to be sued in all courts and to participate in  actions
  and  proceedings,  whether  judicial, arbitrative, or otherwise, in like
  cases as natural persons.
    24. To have a corporate seal, and to alter such seal at pleasure,  and
  to  use  it  by  causing it or a facsimile to be affixed or impressed or
  reproduced in any other manner.
    25. To make donations, irrespective  of  corporate  benefit,  for  the
  public welfare or for community fund, hospital, charitable, educational,
  scientific,  civic,  or  similar  purposes, and, in time of war or other
  national emergency, in aid thereof.
    26. To elect or appoint officers, employees, and other agents  of  the
  credit union, define their duties, fix the compensation of employees and
  other  agents,  and  to  indemnify  credit  union  officials,  committee
  members, and employees.
    27. To have perpetual existence.
    28. To honor requests for  withdrawals  of  member  accounts,  whether
  shares  or  deposits, in any manner approved by the credit union's board
  of directors, including,  without  limitation  because  of  enumeration,
  requests   in   person,   by   telephone,  by  mail,  by  negotiable  or
  non-negotiable order, by electronic  communication,  or  otherwise.  The
  board  of  directors  may,  at  any  time,  require  members to give, in
  writing, not more than sixty days' notice of intention to  withdraw  the
  whole  or  any  part  of  the  amounts paid in by them, except that this
  requirement shall not apply to amounts in  a  share  draft  or  checking
  account. In the event that any credit union shall require that notice be
  given before such amounts may be withdrawn, it shall, before or upon the
  day  such  requirement  is  made effective, notify the superintendent by
  telephone, other electronic means or in writing  that  such  requirement
  has been made.
    29.  To,  either on an individual or participation basis, establish or
  maintain an accounting service center, the  functions,  facilities,  and
  operations  of  which are limited to providing data processing services.
  As used in this subdivision, the term "data processing  services"  means
  the  maintenance of bookkeeping, accounting, or other records related to
  the purposes and functions of a credit union, primarily by mechanical or

  electronic methods,  and  the  furnishing  of  reports  and  information
  derived  from  such  records.  Participation  in  the accounting service
  center  may  be  by  means  of  a  partnership  or  other  non-corporate
  arrangement   between   or   among  the  participating  entities  or  by
  participation in an accounting service center corporation organized  for
  the sole purpose of providing data processing services. A credit union's
  individual  or  proportionate ownership of the accounting service center
  shall not exceed two percent of its members' shareholdings.
    30. To acquire and lease  personal  property,  and  to  hold,  assign,
  pledge, sell or otherwise dispose of such personal property, to the same
  extent  as  authorized under subdivision twelve of section ninety-six of
  this chapter, subject to such limitations and conditions as the  banking
  board may from time to time prescribe by general regulation.
    31.  To  hold  membership  in other credit unions organized under this
  article or under federal law or any  other  credit  union  act,  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.
    32. To execute and deliver for its members such guarantees as  may  be
  incidental or usual in the transfer of investment securities.
    33.  Notwithstanding  any  other  provision  of  this  article  to the
  contrary, to participate in the  minority  -  and  women-owned  business
  development  and  lending  program,  as  established  in section 16-c of
  section 1 of chapter 174 of the laws of  1968,  constituting  the  urban
  development  corporation  act,  to  the  extent that such program allows
  participation by credit unions.
    34. To have and exercise  all  other  powers  that  are  necessary  or
  appropriate to enable it to carry out its purpose.
    35. To participate in loans to credit union members jointly with other
  credit   unions,   credit   union   organizations,   or   other  banking
  organizations pursuant to written policies established by the  board  of
  directors;  provided  that  a  credit  union which originates a loan for
  which participation arrangements are made shall retain an interest in at
  least ten percent of the face amount of the  loan.  The  member  of  the
  originating  credit  union benefiting from the proceeds of the loan need
  not be within the  field  of  membership  of  the  other  credit  unions
  participating in the loan.
    36.  To  invest its funds in a collateralized mortgage obligation/real
  estate mortgage investment conduit. A credit union may invest in a fixed
  or variable rate collateralized mortgage obligation/real estate mortgage
  investment conduit, subject to  the  same  extent  and  under  the  same
  conditions  as  federal  credit  unions  are  authorized  to  so invest,
  pursuant to the Federal Credit Union Act (12 U.S.C 1757(15)(B)) and  any
  regulations related thereto, as amended.