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The Banking Law of Connecticut > Payment of Interest Refunds by Connecticut Credit Unions (Department of Banking)
Short Summary
The provided legal document content pertains to the payment of interest refunds by Connecticut credit unions. The document defines key terms such as ‘Commissioner’ as the commissioner of banking, ‘Delinquency rate’ as the ratio of delinquent loans to total outstanding loans, and ‘Reserves’ as the total reserve against losses on loans and special reserve accounts. According to the document, the governing board of a Connecticut credit union may authorize the payment of interest refunds to members if certain conditions are met. These conditions include the declaration of a dividend, a delinquency rate of less than five percent, and sufficient reserves based on a specific formula. Interest refunds are to be paid to members from income earned during the accounting period, in proportion to the interest paid by members on reasonable classes of loans established by the governing board. However, interest refunds are not to be paid to members with loans delinquent for more than sixty days. Connecticut credit unions have the option to pay interest refunds into a member’s share account or disburse them directly to the member. The payment of interest refunds can only be made after expenses, dividend distribution, and required allocations to reserves have been made. In cases where a Connecticut credit union does not meet the requirements, they can apply to the commissioner for approval to pay an interest refund by submitting a written application. The commissioner will then approve or disapprove the application within forty-five days. The document does not mention any specific exemptions or penalties related to the payment of interest refunds by Connecticut credit unions.
Whom does it apply to?
Connecticut credit unions
What does it govern?
Payment of interest refunds by Connecticut credit unions
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Connecticut