§ 19-5-6 - Demand deposits. - Rhode Island Statutes

SECTION 19-5-6

   § 19-5-6  Demand deposits. – (a) A credit union may offer demand deposits to its members provided thefollowing conditions are met:

   (1) That the credit union has shares and deposits of onemillion dollars ($1,000,000) or more;

   (2) Every credit union shall maintain reserves as required bythe provisions with respect to reserve funds and reserve balances contained inthe Federal Reserve Act, 12 U.S.C. § 221 et seq., and in the rules,regulations, orders, and rulings from time to time in force of the board ofgovernors of the federal reserve system; and

   (3) That the credit union obtain the approval of the directoror the director's designee prior to accepting demand deposits, that approval tobe conditioned on compliance with the above requirements and on the soundnessof the condition and operation of the credit union.

   (b) If at any time the credit union ceases to comply withsubdivisions (1) through (4) [(3)] above, the director or thedirector's designee may, upon thirty (30) days notice and after an opportunityto be heard, withdraw the authority of the credit union to accept demanddeposits. Upon withdrawal the credit union shall accept no further sums to becredited to any demand deposit. After two (2) months from the date ofwithdrawal of authority, the credit union shall cease to maintain demanddeposits.