title: RCW 31.12.436

text:
(1) A credit union may invest its funds in any of the following, as long as the investments are deemed prudent by the board:
(a) Loans held by credit unions, out-of-state credit unions, or federal credit unions; loans to members held by other lenders; and loans to nonmembers held by other lenders, with the approval of the director;
(b) Bonds, securities, or other investments that are fully guaranteed as to principal and interest by the United States government, and general obligations of this state and its political subdivisions;
(c) Obligations issued by corporations designated under 31 U.S.C. Sec. 9101, or obligations, participations or other instruments issued and guaranteed by the federal national mortgage association, federal home loan mortgage corporation, government national mortgage association, or other government-sponsored enterprise;
(d) Participations or obligations which have been subjected by one or more government agencies to a trust or trusts for which an executive department, agency, or instrumentality of the United States has been named to act as trustee;
(e) Share or deposit accounts of other financial institutions, the accounts of which are federally insured or insured or guaranteed by another insurer or guarantor approved by the director. The shares and deposits made by a credit union under this subsection (1)(e) may exceed the insurance or guarantee limits established by the organization insuring or guaranteeing the institution into which the shares or deposits are made;
(f) Common trust or mutual funds whose investment portfolios consist of securities issued or guaranteed by the federal government or an agency of the government;
(g) Up to five percent of the capital of the credit union, in debt or equity issued by an organization owned by the Northwest credit union association or its successor credit union association;
(h) Shares, stocks, loans, or other obligations of organizations whose primary purpose is to strengthen, advance, or provide services to the credit union industry or credit union members. A credit union may invest in or make loans to organizations under this subsection (1)(h) in an aggregate amount not to exceed ten percent of its assets. This limit does not apply to investments in, and loans to, an organization:
(i) That is wholly owned by one or more credit unions or federal or out-of-state credit unions; and
(ii) Whose activities are limited exclusively to those authorized by this chapter for a credit union;
(i) Loans to credit unions, out-of-state credit unions, or federal credit unions. However, the aggregate of loans issued under this subsection (1)(i) is limited to twenty-five percent of the total shares and deposits of the credit union making the loans;
(j) Key person insurance policies and investment products related to employee benefits, the proceeds of which inure exclusively to the benefit of the credit union;
(k) A registered investment company or collective investment fund, as long as the prospectus of the company or fund restricts the investment portfolio to investments and investment transactions that are permissible for credit unions;
(l) For credit unions that are approved public depositaries, any securities listed in RCW 39.58.050 as eligible collateral for public deposits;
(m) Investments of the type in which the state treasurer may invest state funds pursuant to RCW 43.84.080; or
(n) Other investments approved by the director by rule or upon written application.
(2) To aid in achieving its business or operational objectives, a credit union may invest in equity interests in corporations or other limited liability entities, whether or not the principal business of such other corporation or entity is related to the credit union's business. An "equity interest" is an interest such as stock in a corporation or membership in a limited liability company or a limited partnership interest in which the credit union's liability is limited to the amount of its investment and the credit union does not take on general liability.
(a) The entity in which the credit union invests must be engaged in or planning or developing activity that is incidental to or complementary to the credit union's operations. Activity is incidental or complementary to the credit union's operations if it would be performed for or provided to the credit union, or if it would be performed for or provided to the credit union's members in relationship to products, services, or activities that the credit union performs for or provides to its members. Such activity may not pose a risk to the safety and soundness of the credit union or the credit union industry. The entity may be engaged in other activity that is not incidental to or complementary to the credit union's operations.
(b) A credit union may not invest in:
(i) A federal depository institution or state depository institution as those terms are defined in the federal deposit insurance act, 12 U.S.C. Sec. 1813; or
(ii) A bank holding company or savings bank holding company as those terms are defined in the federal bank holding company act, 12 U.S.C. Sec. 1841.
(c) Until January 1, 2025, the initial aggregate amount of funds invested under this subsection (2) shall not exceed 2.5 percent of the net worth of the credit union, and when combined with the amount of funds invested in organizations described in subsection (1)(h) of this section, shall not exceed 10 percent of the assets of the credit union, whichever is less.
(d) Beginning January 1, 2025, the initial aggregate amount of funds invested under this subsection (2) shall not exceed five percent of the net worth of the credit union, and when combined with the amount of funds invested in organizations described in subsection (1)(h) of this section, shall not exceed 10 percent of the assets of the credit union, whichever is less.
(e) A credit union may engage in an activity permitted under this section only with the prior authorization of the director and subject to such requirements, restrictions, or other conditions as the director may adopt by rule, order, directive, standard, policy, memorandum, or other written communication with regard to the activity. In approving or denying a proposed activity, the director shall consider the financial and management strength of the credit union and the relationship of the activity to the credit union's operations.
(3) If a credit union has lawfully made an investment that later becomes impermissible because of a change in circumstances or law, and the director finds that this investment will have an adverse effect on the safety and soundness of the credit union, then the director may require that the credit union develop a reasonable plan for the divestiture of the investment.
[ 2022 c 15 s 4; 2019 c 19 s 6; 2017 c 61 s 12. Prior: 2015 c 123 s 4; 2015 c 114 s 11; 2013 c 34 s 8; 2001 c 83 s 19; 1997 c 397 s 36; prior: 1994 c 256 s 86; 1994 c 92 s 197; 1987 c 338 s 7; 1984 c 31 s 44. Formerly RCW 31.12.425.]
Notes:
Findings—Construction—1994 c 256: See RCW 43.320.007.

catchline: Investment of funds—When investment later becomes impermissible.


doc_type: statute

jurisdiction: wa

title: RCW 31.12.438

text:
(1) A credit union may invest in real property or leasehold interests including, but not limited to, structures and fixtures attached to real property for use in conducting its business or the business of a credit union service organization, subject to the following limitations:
(a) The credit union's net worth equals at least five percent of the total of its share and deposit accounts;
(b) The board approves the investment; and
(c) The aggregate of all such investments does not exceed seven and one-half percent of the total of its share and deposit accounts.
(2) The director may, upon written application, waive any of the limitations listed in subsection (1) of this section, and the director may adopt rules to interpret this section.
[ 2022 c 15 s 5; 2013 c 34 s 9; 2001 c 83 s 20; 1997 c 397 s 37. Prior: 1994 c 256 s 87; 1994 c 92 s 198; 1984 c 31 s 45. Formerly RCW 31.12.435.]
Notes:
Findings—Construction—1994 c 256: See RCW 43.320.007.

license: public-domain-government-work

rule_set: Revised Code of Washington

catchline: Investment in real property or leasehold interests—Limitations—Rules.

code: rcw

unit: section

court: Washington State Legislature


title: RCW 31.12.461

text:
(1) For purposes of this section, a "merging credit union" is a credit union whose charter ceases to exist upon merger with the continuing credit union, and a "continuing credit union" is a credit union whose charter continues upon merger with the merging credit union.
(2) A credit union may be merged with another credit union with the approval by the director of a plan of merger or in accordance with requirements the director may otherwise prescribe. The merger must be approved by a majority vote of the board of each credit union and a majority vote of those members of the merging credit union voting on the merger at a membership meeting. The requirement of approval by the members of the merging credit union may be waived by the director if the merging credit union is in imminent danger of insolvency.
(3) The property, rights, and interests of the merging credit union transfer to and vest in the continuing credit union without deed, endorsement, or instrument of transfer, although instruments of transfer may be used if their use is deemed appropriate. The debts and obligations of the merging credit union that are known or reasonably should be known are assumed by the continuing credit union.
(4) The continuing credit union shall cause to be published notice of merger once a week for three consecutive weeks in a newspaper of general circulation in the county in which the principal place of business of the merging credit union is located.
(5) The notice of merger must also inform creditors of the merging credit union how to make a claim on the continuing credit union, and that if a claim is not made upon the continuing credit union within thirty days of the last date of publication, creditors' claims that are not known by the continuing credit union are thereafter barred.
(6) Except for claims filed as requested by the notice, or debts or obligations that are known or reasonably should be known by the continuing credit union, the debts and obligations of the merging credit union are discharged.
(7) Upon merger, the charter of the merging credit union ceases to exist.
(8) Mergers are effective after the thirty-day notice period to creditors and all regulatory waiting periods have expired, and upon filing of the credit union's articles of merger by the secretary of state, or a later date stated in the articles, which in no event may be later than ninety days after the articles are filed.
[ 2015 c 114 s 12; 2014 c 8 s 1; 2013 c 34 s 10; 2001 c 83 s 21; 1997 c 397 s 40. Prior: 1994 c 256 s 91; 1994 c 92 s 220; 1987 c 338 s 8; 1984 c 31 s 71. Formerly RCW 31.12.695.]
Notes:
Findings—Construction—1994 c 256: See RCW 43.320.007.

catchline: Mergers.


title: RCW 31.12.464

text:
(1) A credit union may merge or convert into a federal credit union as authorized by the federal credit union act. The merger or conversion must be approved by a majority vote of those credit union members voting at a membership meeting, unless the credit union prescribes in its bylaws a higher percentage approval vote than a simple majority.
(2) If the merger or conversion is approved by the members, a copy of the resolution certified by the secretary must be filed with the director within ten days of approval. The board may effect the merger or conversion upon terms agreed by the board and the federal regulator.
(3) A certified copy of the federal credit union charter or authorization issued by the federal regulator must be filed with the director and thereupon the credit union ceases to exist except for the purpose of winding up its affairs and prosecuting or defending any litigation by or against the credit union. For all other purposes, the credit union is merged or converted into a federal credit union and the credit union may execute, acknowledge, and deliver to the successor federal credit union the instruments of transfer, conveyance, and assignment that are necessary or desirable to complete the merger or conversion, and the property, tangible or intangible, and all rights, titles, and interests that are agreed to by the board and the federal regulator.
(4) Mergers and conversions are effective after all applicable regulatory waiting periods have expired and upon filing of the credit union's articles of merger or articles of conversion, as appropriate, by the secretary of state, or a later date stated in the articles, which in no event may be later than ninety days after the articles are filed.
(5) Procedures, similar to those contained in subsections (1) through (4) of this section, prescribed by the director must be followed when a credit union merges or converts into an out-of-state or foreign credit union, or other type of financial institution.
[ 2015 c 114 s 13; 2001 c 83 s 22; 1997 c 397 s 41; 1994 c 92 s 221; 1984 c 31 s 72. Formerly RCW 31.12.705.]

catchline: Merger or conversion of state into federal, out-of-state, or foreign credit union, or other type of financial institution.


title: RCW 31.12.467

text:
(1) A federal credit union located and conducting business in this state may merge or convert into a credit union organized and operating under this chapter.
(2) In the case of a conversion, the board of the federal credit union shall file with the director proposed articles of incorporation and bylaws, as provided by this chapter for organizing a new credit union. If the conversion is approved by the director, the federal credit union becomes a credit union under the laws of this state.
(3) The assets and liabilities of the federal credit union will vest in and become the property of the successor credit union subject to all existing liabilities against the federal credit union. Members of the federal credit union may become members of the successor credit union.
(4) Mergers and conversions are effective after all applicable regulatory waiting periods have expired and upon filing of the federal credit union's articles of merger or articles of conversion, as appropriate, by the secretary of state, or a later date stated in the articles, which in no event may be later than ninety days after the articles are filed.
(5) Procedures, similar to those contained in subsections (1) through (4) of this section, prescribed by the director must be followed when an out-of-state or foreign credit union wishes to merge or convert into a credit union organized and operating under this chapter.
[ 2001 c 83 s 23; 1997 c 397 s 42; 1994 c 92 s 222; 1984 c 31 s 73. Formerly RCW 31.12.715.]

catchline: Merger or conversion of federal, out-of-state, or foreign to state credit union.


title: RCW 31.12.471

text:
(1) An out-of-state or foreign credit union may not operate a branch in Washington unless:
(a) The director has approved its application in accordance with this section;
(b) A credit union organized and operating under this chapter is permitted to do business in the state or foreign jurisdiction in which the credit union is organized;
(c) The interest rate charged by the credit union on loans made to members residing in this state does not exceed the maximum interest rate permitted in the state or jurisdiction in which the credit union is organized, or exceed the maximum interest rate that a credit union organized and operating under this chapter is permitted to charge on similar loans, whichever is lower;
(d) The credit union has secured surety bond and fidelity bond coverages satisfactory to the director;
(e) The credit union's share and deposit accounts are insured under the federal share insurance program or an equivalent share insurance program in compliance with RCW 31.12.408;
(f) The credit union submits to the director an annual examination report of its most recently completed fiscal year;
(g) The credit union has not had its authority to do business in another state or foreign jurisdiction suspended or revoked;
(h) The credit union complies with:
(i) The provisions concerning field of membership in this chapter and rules adopted by the director; and
(ii) Such other provisions of this chapter and rules adopted by the director, as determined by the director; and
(i) In addition, if the credit union is a foreign credit union:
(i) A treaty or agreement between the United States and the jurisdiction where the credit union is organized requires the director to permit the credit union to operate a branch in Washington; and
(ii) The director determines that the credit union has substantially the same characteristics as a credit union organized and operating under this chapter.
(2) The director shall deny an application filed under this section or, upon notice and an opportunity for hearing, suspend or revoke the approval of an application, if the director finds that the standards of organization, operation, and regulation of the applicant do not reasonably conform with the standards under this chapter. In considering the standards of organization, operation, and regulation of the applicant, the director may consider the laws of the state or foreign jurisdiction in which the applicant is organized. A decision under this subsection may be appealed under chapter 34.05 RCW.
(3) In implementing this section, the director may cooperate with credit union regulators in other states or jurisdictions and may share with the regulators the information received in the administration of this chapter.
(4) The director may enter into supervisory agreements with out-of-state and foreign credit unions and their regulators to prescribe the applicable laws governing the powers and authorities of Washington branches of the out-of-state or foreign credit unions. The director may also enter into supervisory agreements with the credit union regulators in other states or foreign jurisdictions to prescribe the applicable laws governing the powers and authorities of out-of-state or foreign branches and other facilities of credit unions. The agreements may address, but are not limited to, corporate governance and operational matters. The agreements may resolve any conflict of laws, and specify the manner in which the examination, supervision, and application processes must be coordinated with the regulators.
(5) A person, other than a credit union, out-of-state credit union, or foreign credit union, may not hold itself out in this state as engaging in the business of a credit union unless it is a credit union under this chapter, a federal credit union, an out-of-state credit union, or a foreign credit union.
(6) A person, wherever domiciled and regardless of the location or mode of its business, may not designate itself as or use the term "credit union" to refer to itself in any communication for purpose of conducting credit union business with a resident of the state of Washington, unless such person is a credit union under this chapter, federal credit union, out-of-state credit union, or foreign credit union.
(7) The director may adopt rules for the periodic examination and investigation of the affairs of an out-of-state credit union or foreign credit union operating a branch in this state.
[ 2015 c 114 s 14; 2001 c 83 s 24; 1997 c 397 s 43. Prior: 1994 c 256 s 88; 1994 c 92 s 205; 1984 c 31 s 54. Formerly RCW 31.12.526.]
Notes:
Findings—Construction—1994 c 256: See RCW 43.320.007.

catchline: Authority of out-of-state or foreign credit union to operate in this state—Conditions—Rules.


title: RCW 31.12.474

text:
(1) At a special meeting called for the purpose of liquidation, and upon the recommendation of at least two-thirds of the total members of the board of a credit union, the members of a credit union may elect to liquidate the credit union by a two-thirds majority vote of those members voting.
(2) Upon a vote to liquidate under subsection (1) of this section, a three-person liquidating committee must be elected to liquidate the assets of the credit union. The committee shall act in accordance with any requirements of the director and may be reasonably compensated by the board of the credit union. Each share account holder and depositor at the credit union is entitled to his, her, or its proportionate part of the assets in liquidation after all shares, deposits, and debts have been paid. The proportionate allocation shall be based on account balances as of a date determined by the board. For the purposes of liquidation, shares and deposits are equivalent. The assets of the liquidating credit union are not subject to contingent liabilities. Upon distribution of the assets, the credit union ceases to exist except for the purpose of discharging existing liabilities and obligations.
(3) Funds representing unclaimed dividends in liquidation and remaining in the hands of the liquidating committee for six months after the date of the final dividend must be deposited, together with all the books and papers of the credit union, with the director. The director may, one year after receipt, destroy such records, books, and papers as, in the director's judgment, are obsolete or unnecessary for future reference. The funds may be deposited in one or more financial institutions to the credit of the director, in trust for the members of the credit union entitled to the funds. The director may pay a portion of the funds to a person upon receipt of satisfactory evidence that the person is entitled to the funds. In case of doubt or conflicting claims, the director may require an order of the superior court of the county in which the principal place of business of the credit union was located, authorizing and directing the payment of the funds. The director may apply the interest earned by the funds toward defraying the expenses incurred in the holding and paying of the funds. Five years after the receipt of the funds, the funds still remaining with the director must be remitted to the state as unclaimed property.
[ 2001 c 83 s 25; 1997 c 397 s 44; 1994 c 92 s 223; 1984 c 31 s 74. Formerly RCW 31.12.725.]
Notes:
Revised uniform unclaimed property act: Chapter 63.30 RCW.

catchline: Liquidation—Disposition of unclaimed funds.


title: RCW 31.12.516

text:
(1) The powers of supervision and examination of credit unions and other persons subject to this chapter and chapter 31.13 RCW are vested in the director.
(2) The director shall require each credit union to conduct business in compliance with this chapter and may require each credit union to conduct business in compliance with other state and federal laws that apply to credit unions.
(3) The director has the power to commence and prosecute actions and proceedings against and enjoin violations of this chapter and chapter 31.13 RCW by any person holding itself out to be a credit union, federal credit union, out-of-state credit union, foreign credit union, or corporate credit union. The director may, in connection with such enforcement of this chapter and chapter 31.13 RCW, collect sums, including fines, costs, and reasonable attorneys' fees for actions commenced or prosecuted on its behalf.
(4) Upon a written finding, the director may temporarily suspend or restrict withdrawal of deposits in a credit union.
(5) The director may adopt such rules as are reasonable or necessary to carry out the purposes of this chapter and chapter 31.13 RCW.
(6) Chapter 34.05 RCW, whenever applicable, governs the rights, remedies, and procedures respecting the administration of this chapter.
(7) The director may by rule provide appropriate relief for small credit unions from requirements under this chapter or rules of the director. However, small credit unions must still comply with RCW 31.12.408.
(8) The director shall have the power and broad administrative discretion to administer and interpret the provisions of this chapter and chapter 31.13 RCW, to facilitate the delivery of financial services to the members of a credit union.
(9) Nonfederally insured credit unions, nonfederally insured out-of-state credit unions, and nonfederally insured foreign credit unions operating in this state as permitted by RCW 31.12.408 and 31.12.471, as applicable, must comply with safety and soundness requirements established by the director.
(10) The director may charge fees to credit unions and other persons subject to examination and investigation under this chapter and chapter 31.13 RCW, and to other parties where the division contracts out its services, in order to cover the costs of the operation of the division of credit unions, and to establish a reasonable reserve for the division. The director may waive all or a portion of the fees.
[ 2015 c 114 s 15; 2010 c 87 s 4; 2001 c 83 s 26; 1997 c 397 s 45; 1994 c 92 s 204; 1984 c 31 s 53.]

catchline: Powers of director.


title: RCW 31.12.518

text:
The director or the director's designee may take such action as provided for in this chapter to enforce, investigate, or examine persons covered by chapter 19.144 RCW.
[ 2008 c 108 s 17.]
Notes:
Findings—2008 c 108: See RCW 19.144.005.

catchline: Powers of director under chapter 19.144 RCW.


title: RCW 31.12.545

text:
(1) The director shall make an examination and investigation into the affairs of each credit union at least once every eighteen months, unless the director determines with respect to a credit union, that a less frequent examination schedule will satisfactorily protect the financial stability of the credit union and will satisfactorily assure compliance with the provisions of this chapter.
(2) In regard to credit unions, and out-of-state and foreign credit unions permitted to operate a branch in Washington pursuant to RCW 31.12.471, the director:
(a) Shall have full access to the credit union's books and records and files, including but not limited to computer files;
(b) May appraise and revalue the credit union's investments; and
(c) May require the credit union to charge off or set up a special reserve for loans and investments.
(3) The director may make an examination and investigation into the affairs of:
(a) An out-of-state or foreign credit union permitted to operate a branch in Washington pursuant to RCW 31.12.471;
(b) A nonpublicly held organization, or its subsidiary, in which a credit union has a material investment;
(c) A publicly held organization the capital stock or equity of which is controlled by a credit union;
(d) A credit union service organization, or any tier subsidiary of a credit union service organization, in which a credit union has an interest;
(e) An organization that is not a credit union, out-of-state credit union, federal credit union, or foreign credit union, and that has a majority interest in a credit union service organization in which a credit union has an interest;
(f) A sole proprietorship or organization primarily in the business of managing one or more credit unions;
(g) A person providing electronic data processing services to a credit union or to a credit union service organization; or
(h) A corporation or other business entity that provides alternative share insurance in accordance with RCW 31.12.408.
The director shall have full access to the books, records, personnel, and files, including but not limited to computer files, of persons described in this subsection.
(4) In connection with examinations and investigations, the director may:
(a) Administer oaths and examine under oath any person concerning the affairs of any credit union or of any person described in subsection (3) of this section; and
(b) Issue subpoenas to and require the attendance and testimony of any person at any place within this state, and require witnesses to produce any books and records and files, including but not limited to computer files, that are material to an examination or investigation.
(5) The director may accept in lieu of an examination under this section:
(a) The report of an examiner authorized to examine a credit union or an out-of-state, federal, or foreign credit union, or other financial institution; or
(b) The report of an accountant, satisfactory to the director, who has made and submitted a report of the condition of the affairs of a credit union or an out-of-state, federal, or foreign credit union, or other financial institution. The director may accept all or part of such a report in lieu of all or part of an examination. The accepted report or accepted part of the report has the same force and effect as an examination under this section.
[ 2015 c 114 s 16; 2010 c 87 s 5; 2001 c 83 s 27; 1997 c 397 s 46; 1994 c 92 s 207; 1984 c 31 s 56.]

catchline: Examinations and investigations—Reports—Access to records—Oaths—Subpoenas.


title: RCW 31.12.565

text:
(1) The following are confidential and privileged and not subject to public disclosure under chapter 42.56 RCW:
(a) Examination reports and information obtained by the director in conducting examinations and investigations under this chapter and chapter 31.13 RCW;
(b) Examination reports and related information from other financial institution regulators obtained by the director;
(c) Reports or parts of reports accepted in lieu of an examination under RCW 31.12.545; and
(d) Business plans and other proprietary information obtained by the director in connection with a credit union's application or notice to the director.
(2) Notwithstanding subsection (1) of this section, the director may furnish examination reports, work papers, final orders, or other information obtained in the conduct of an examination or investigation prepared by the director to:
(a) Federal agencies empowered to examine credit unions or other financial institutions;
(b) Officials empowered to investigate criminal charges. The director may furnish only that part of the report which is necessary and pertinent to the investigation, and only after notifying the affected credit union and members of the credit union who are named in that part of the examination report, or other person examined, that the report is being furnished to the officials, unless the officials requesting the report obtain a waiver of the notice requirement for good cause from a court of competent jurisdiction;
(c) The examined credit union or other person examined, solely for its confidential use;
(d) A department licensee or regulated entity that uses a covered service as defined in RCW 43.320.500, by contract or otherwise, solely for its confidential use;
(e) The attorney general in his or her role as legal advisor to the director;
(f) Prospective merger partners or conservators, receivers, or liquidating agents of a distressed credit union;
(g) Credit union regulators in other states or foreign jurisdictions regarding an out-of-state or foreign credit union conducting business in this state under this chapter, or regarding a credit union conducting business in the other state or jurisdiction;
(h) A person officially connected with the credit union or other person examined, as officer, director, supervisory committee member, attorney, auditor, accountant, independent attorney, independent auditor, or independent accountant;
(i) Organizations that have bonded the credit union to the extent that information is relevant to the renewal of the bond coverage or to a claim under the bond coverage;
(j) Organizations insuring or guaranteeing the shares of, or deposits in, the credit union; or
(k) Other persons as the director may determine necessary to protect the public interest and confidence.
(3) Examination reports, work papers, temporary and final orders, consent orders, and other information obtained in the conduct of an examination or investigation furnished under subsection (2) of this section remain the property of the director and no person to whom reports are furnished or any officer, director, or employee thereof may disclose or make public the reports or information contained in the reports except in published statistical information that does not disclose the affairs of a person, except that nothing prevents the use in a criminal prosecution of reports furnished under subsection (2)(b) of this section.
(4) In a civil action in which the reports or information are sought to be discovered or used as evidence, a party may, upon notice to the director, petition the court for an in-camera review of the reports or information. The court may permit discovery and introduction of only those portions of the report or information which are relevant and otherwise unobtainable by the requesting party. This subsection does not apply to an action brought or defended by the director.
(5) This section does not apply to investigation reports prepared by the director concerning an application for a new credit union or a notice of intent to establish a branch of a credit union, except that the director may adopt rules making portions of the reports confidential, if in the director's opinion the public disclosure of that portion of the report would impair the ability to obtain information the director considers necessary to fully evaluate the application.
(6) Any person who knowingly violates a provision of this section is guilty of a gross misdemeanor.
[ 2022 c 49 s 8; 2010 c 87 s 6; 2005 c 274 s 254; 2001 c 83 s 28; 1997 c 397 s 48. Prior: 1994 c 256 s 90; 1994 c 92 s 209; 1984 c 31 s 58.]
Notes:
Findings—Construction—1994 c 256: See RCW 43.320.007.
Examination reports and information from financial institutions exempt: RCW 42.56.400.

catchline: Examination reports and specified other information confidential—Exceptions—Penalty.


title: RCW 31.12.567

text:
A credit union shall file with the director any financial and statistical report that it is required to file with the national credit union administration. Each report must be certified by the principal operating officer of the credit union. In addition, a credit union shall file reports as may be required by the director.
[ 2001 c 83 s 29; 1997 c 397 s 49.]

catchline: Reports—Financial and statistical data—As required by director.


title: RCW 31.12.569

text:
Credit unions will comply with the provisions of United States generally accepted accounting principles as required by federal law or rule of the director. In adopting rules to implement this section, the director shall consider, among other relevant factors, whether to transition small credit unions to generally accepted accounting principles over a period of time.
[ 2010 c 87 s 7; 2001 c 83 s 30; 1997 c 397 s 50.]
Notes:
Effective date—1997 c 397 s 50: "Section 50 of this act takes effect January 1, 1999." [ 1997 c 397 s 91.]

catchline: Generally accepted accounting principles.


title: RCW 31.12.571

text:
A credit union desiring to establish a branch in another state or a foreign jurisdiction shall submit to the director a notice of intent to establish the branch at least thirty days before conducting business at the branch.
[ 2001 c 83 s 31; 1997 c 397 s 51; 1994 c 92 s 190; 1984 c 31 s 23. Formerly RCW 31.12.215.]

catchline: Notice of intent to establish branch—Another state or foreign jurisdiction.


title: RCW 31.12.575

text:
The director may issue and serve a credit union director, supervisory committee member, officer, or employee with written notice of intent to remove the person from office or employment or to prohibit the person from participating in the conduct of the affairs of the credit union or any other depositary institution, trust company, bank holding company, thrift holding company, or financial holding company doing business in Washington state in accordance with RCW 31.12.625 whenever, in the opinion of the director:
(1)(a) The person has committed a material violation of law or an unsafe or unsound practice; or
(b) The person has committed a violation or practice involving personal dishonesty, recklessness, or incompetence; and
(2)(a) The credit union has suffered or is likely to suffer substantial financial loss or other damage; or
(b) The interests of the credit union's share account holders and depositors could be seriously prejudiced by reason of the violation or practice.
[ 2015 c 114 s 17; 2010 c 87 s 8; 2001 c 83 s 32; 1997 c 397 s 52; 1994 c 92 s 210; 1984 c 31 s 59.]

catchline: Removal or prohibition orders—Director's authority—Notice.


title: RCW 31.12.580

text:
(1) A notice under RCW 31.12.575 must contain a statement of the facts that constitute grounds for removal or prohibition and must fix a time and place at which a hearing will be held. If the notice under RCW 31.12.575 is accompanied by a notice of suspension under RCW 31.12.372, the notice of suspension must reference the statement of facts in the notice under RCW 31.12.575 as the basis for its issuance.
(2) The hearing must be set not earlier than ten days after the date of service of the notice or later than thirty days after the date of service of the notice unless an earlier or later date is set by the director at the request of the credit union director, supervisory committee member, officer, or employee for good cause shown or of the attorney general of the state.
(3) Unless the credit union director, supervisory committee member, officer, or employee, after being served with the notice, appears at the hearing personally or by a duly authorized representative, the person is deemed to have consented to the issuance of an order of removal or prohibition or both. In the event of such consent or if upon the record made at the hearing the director finds that any of the grounds specified in the notice have been established, the director may issue such orders of removal from office or prohibition from participation in the conduct of the affairs of the credit union or any other depositary institution, trust company, bank holding company, thrift holding company, or financial holding company doing business in Washington state as the director may consider appropriate.
(4) An order becomes effective at the expiration of ten days after service upon the credit union and the credit union director, supervisory committee member, officer, or employee concerned, except that an order issued upon consent becomes effective at the time specified in the order.
(5) An order remains effective except to the extent it is stayed, modified, terminated, or set aside by the director or a reviewing court.
[ 2015 c 114 s 18.]

catchline: Contents of notice under RCW 31.12.575—Hearing—Order.


title: RCW 31.12.585

text:
(1) The director may issue and serve any person regulated by this chapter with a written notice of charges and intent to issue a cease and desist order if, in the opinion of the director, the person has committed or is about to commit:
(a) A material violation of law; or
(b) An unsafe or unsound practice.
(2) Upon taking effect, the order may require the person and its directors, supervisory committee members, officers, employees, and agents to cease and desist from the violation or practice and may require them to take affirmative action to correct the conditions resulting from the violation or practice.
[ 2015 c 114 s 19; 2010 c 87 s 9; 2001 c 83 s 33; 1997 c 397 s 53; 1994 c 92 s 211; 1984 c 31 s 60.]

catchline: Prohibited acts—Notice—Cease and desist order.


title: RCW 31.12.595

text:
(1) If the director determines that the violation or practice specified in RCW 31.12.585 is likely to cause an unsafe or unsound condition at a credit union or a credit union service organization, or the public is likely to be substantially injured by delay in issuing a cease and desist order, the director may immediately issue and serve a temporary cease and desist order upon the credit union, credit union service organization, or other applicable person identified in RCW 31.12.545(3). The order may require the credit union, credit union service organization, or other applicable person under RCW 31.12.545(3), and its directors, supervisory committee members, officers, employees, and agents, to cease and desist from the violation or practice and may require them to take affirmative action to correct the conditions resulting from the violation or practice.
(2) With the temporary order, the director shall serve a notice of charges and intent to issue a cease and desist order under RCW 31.12.585 in the matter.
(3) The temporary order becomes effective upon service on the person and remains effective until completion of the administrative proceedings under the notice issued under subsection (2) of this section.
(4) Within ten days after a person has been served with a temporary order, the credit union may apply to the superior court in the county of its principal place of business for an injunction setting aside, limiting, or suspending the order pending the completion of the administrative proceedings under the notice issued under subsection (2) of this section.
(5) In the case of a violation or threatened violation of a temporary order, the director may apply to the superior court of the county of the principal place of business of the person for an injunction to enforce the order, and the court shall issue an injunction if it determines that there has been a violation or threatened violation.
(6) For the purposes of this section, the principal place of business of a foreign or out-of-state credit union, out-of-state credit union service organization, or other out-of-state person under RCW 31.12.545(3) is Thurston county.
[ 2015 c 114 s 20; 2010 c 87 s 10; 2001 c 83 s 34; 1997 c 397 s 54; 1994 c 92 s 212; 1984 c 31 s 61.]

catchline: Temporary cease and desist order—Notice—Principal place of business—Superior court.


title: RCW 31.12.625

text:
An administrative hearing on the notice provided for in RCW 31.12.575 and 31.12.585 must be conducted in accordance with chapter 34.05 RCW, and may be conducted by the director or the director's designee. To the extent the requirements of this chapter are inconsistent with chapter 34.05 RCW, this chapter will govern. The hearing may be held at such place as is designated by the director. The hearing shall be private unless the director determines that a public hearing is necessary to protect the public interest after fully considering the views of the party afforded the hearing.
[ 2010 c 87 s 11; 2001 c 83 s 35; 1997 c 397 s 56; 1994 c 92 s 214; 1984 c 31 s 64.]

catchline: Administrative hearing—Procedures.


title: RCW 31.12.630

text:
The director may request a special meeting of the board of a credit union if the director believes that a special meeting is necessary for the welfare of the credit union or the purposes of this chapter. The director's request for a special board meeting must be made in writing to the secretary of the board. On receipt of such a request, the secretary shall designate a time and place for the special board meeting, which shall be held within thirty days after receipt of the request. The director may require the attendance of all of the directors at the special board meeting, and an absence unexcused by the director constitutes a violation of this chapter.
[ 2013 c 34 s 11; 1997 c 397 s 58; 1994 c 92 s 216; 1984 c 31 s 67. Formerly RCW 31.12.655.]

catchline: Authority of director to call special meeting of board.


title: RCW 31.12.633

text:
The director may attend a meeting of the board of a credit union if the director believes that attendance at the meeting is necessary for the welfare of the credit union, or the purposes of this chapter, or if the board has requested the director's attendance. The director shall provide reasonable notice to the board before attending a meeting.
[ 1997 c 397 s 59; 1994 c 92 s 217; 1984 c 31 s 68. Formerly RCW 31.12.665.]

catchline: Authority of director to attend meetings of the board.


title: RCW 31.12.637

text:
The director may place a credit union under supervisory direction in accordance with RCW 31.12.641 through 31.12.647, appoint a conservator for a credit union in accordance with RCW 31.12.651 through 31.12.661, appoint a liquidating agent for a credit union in accordance with RCW 31.12.664 and 31.12.667, or appoint a receiver for a credit union in accordance with RCW 31.12.671 through 31.12.724, if the credit union:
(1) Consents to the action;
(2) Has failed to comply with the requirements of the director while the credit union is under supervisory direction;
(3) Has committed or is about to commit a material violation of law or an unsafe or unsound practice, and such violation or practice has caused or is likely to cause an unsafe or unsound condition at the credit union; or
(4) Is in an unsafe or unsound condition.
[ 1997 c 397 s 60.]

catchline: Intervention by director—Conditions.


title: RCW 31.12.641

text:
(1) As authorized by RCW 31.12.637, the director may determine to place a credit union under supervisory direction. Upon such a determination, the director shall notify the credit union in writing of:
(a) The director's determination; and
(b) Any requirements that must be satisfied before the director shall terminate the supervisory direction.
(2) The credit union must comply with the requirements of the director as provided in the notice. If the credit union fails to comply with the requirements, the director may appoint a conservator, liquidating agent, or receiver for the credit union, in accordance with this chapter. The director may appoint a representative to supervise the credit union during the period of supervisory direction.
(3) All costs incident to supervisory direction will be a charge against the assets of the credit union to be allowed and paid as the director may determine.
[ 1997 c 397 s 61.]


title: RCW 31.12.644

text:
During the period of supervisory direction, the director may prohibit the credit union from engaging in any of the following acts without prior approval:
(1) Disposing of, conveying, or encumbering any of its assets;
(2) Withdrawing any of its accounts at other financial institutions;
(3) Lending any of its funds;
(4) Investing any of its funds;
(5) Transferring any of its property; or
(6) Incurring any debt, obligation, or liability.
[ 1997 c 397 s 62.]

catchline: Supervision by director—Certain acts prohibited.


title: RCW 31.12.647

text:
During the period of supervisory direction, the credit union may request the director to review an action taken or proposed to be taken by the representative, specifying how the action is not in the best interests of the credit union. The request stays the action, pending the director's review of the request.
[ 1997 c 397 s 63.]

catchline: Supervision by director—Credit union request for review.


title: RCW 31.12.651

text:
(1) As authorized by RCW 31.12.637, the director may, upon due notice and hearing conducted by the director or the director's designee, appoint a conservator for a credit union. The director may appoint himself or herself or another qualified party as conservator of the credit union. The conservator shall immediately take charge of the credit union and all of its property, books, records, and effects.
(2) The conservator shall conduct the business of the credit union and take such steps toward the removal of the causes and conditions that have necessitated the appointment of a conservator, as the director may direct. The conservator is authorized to, without limitation:
(a) Take all necessary measures to preserve, protect, and recover any assets or property of the credit union, including any claim or cause of action belonging to or which may be asserted by the credit union, and administer the same in his or her own name as conservator; and
(b) File, prosecute, and defend any suit that has been filed or may be filed by or against the credit union that is deemed by the conservator to be necessary to protect all of the interested parties or a property affected thereby.
The conservator shall make such reports to the director from time to time as may be required by the director.
(3) All costs incident to conservatorship will be a charge against the assets of the credit union to be allowed and paid as the director may determine.
(4) If at any time the director determines that the credit union is not in condition to continue business under the conservator in the interest of its share account holders, depositors, or creditors, and grounds exist under RCW 31.12.637, the director may proceed with appointment of a liquidating agent or receiver in accordance with this chapter.
(5) The director, the department and its employees, and third parties acting as conservators are not subject to liability for actions under this section, and no departmental funds may be required to be expended on behalf of the credit union, or its creditors, employees, members, or any other party or entity.
[ 2010 c 87 s 12; 1997 c 397 s 64.]

catchline: Conservator—Authorized actions—Costs.


title: RCW 31.12.654

text:
During the period of conservatorship, the credit union may request the director to review an action taken or proposed to be taken by the conservator, specifying how the action is not in the best interest of the credit union. The request stays the action, pending the director's review of the request.
[ 1997 c 397 s 65.]

catchline: Actions by conservator—Review.


title: RCW 31.12.657

text:
Any suit filed against a credit union or its conservator, during the period of conservatorship, must be brought in the superior court of Thurston county. A conservator for a credit union may file suit in any superior court or other court of competent jurisdiction against any person for the purpose of preserving, protecting, or recovering any asset or property of the credit union, including, but not limited to, any claims or causes of action belonging to or asserted by the credit union.
[ 1997 c 397 s 66.]

catchline: Lawsuits during period of conservatorship.


title: RCW 31.12.661

text:
The conservator shall serve until the purposes of the conservatorship have been accomplished. If rehabilitated, the credit union must be returned to management or new management under such conditions as the director may determine.
[ 1997 c 397 s 67.]

catchline: Conservator serves until purposes are accomplished.


title: RCW 31.12.664

text:
(1) As authorized by RCW 31.12.637, the director may appoint a liquidating agent for a credit union. Before appointing a liquidating agent, the director shall issue and serve notice on the credit union an order directing the credit union to show cause why its articles of incorporation should not be suspended or revoked, in accordance with chapter 34.05 RCW.
(2) If the credit union fails to adequately show cause, the director shall serve the credit union with an order directing the suspension or revocation of the articles of incorporation, placing the credit union in involuntary liquidation, appointing a liquidating agent under this section and RCW 31.12.667, and providing a statement of the findings on which the order is based.
(3) The suspension or revocation must be immediate and complete. Once the articles of incorporation are suspended or revoked, the credit union shall cease conducting business. The credit union may not accept any payment to share or deposit accounts, may not grant or pay out any new or previously approved loans, may not invest any of its assets, and may not declare or pay out any previously declared dividends. The liquidating agent of a credit union whose articles have been suspended or revoked may accept payments on loans previously paid out and may accept income from investments already made.
[ 1997 c 397 s 68; 1994 c 92 s 218; 1984 c 31 s 69. Formerly RCW 31.12.675.]

catchline: Liquidation—Suspension or revocation of articles—Placement in involuntary liquidation—Appointment of liquidating agent—Notice—Procedure—Effect.


title: RCW 31.12.667

text:
(1) On receipt of the order placing the credit union in involuntary liquidation, the officers and directors of the credit union shall deliver to the liquidating agent possession and control of all books, records, assets, and property of the credit union.
(2) The liquidating agent shall proceed to convert the assets to cash, collect all debts due to the credit union and wind up its affairs in accordance with any instructions and procedures issued by the director. If a liquidating agent agrees to absorb and serve the membership of the credit union, the director may approve a pooling of assets and liabilities rather than a distribution of assets.
(3) Each share account holder and depositor at the credit union is entitled to a proportionate allocation of the assets in liquidation after all shares, deposits, and debts have been paid.
The proportionate allocation shall be based on account balances as of a date determined by the board. For the purposes of liquidation, shares and deposits are equivalent.
(4) The liquidating agent shall cause a notice of liquidation to be published once a week for three consecutive weeks in a newspaper of general circulation in the county in which the principal place of business of the credit union is located. The notice of liquidation must inform creditors of the credit union on how to make a claim upon the liquidating agent, and that if a claim is not made upon the liquidating agent within thirty days of the last date of publication, the creditor's claim is barred. The liquidating agent shall provide personal notice of liquidation to the creditors of record, informing them that if they fail to make a claim upon the liquidating agent within thirty days of the service of the notice, the creditor's claim is barred. If a creditor fails to make a claim upon the liquidating agent within the times required to be specified in the notices of liquidation, the creditor's claim is barred. All contingent liabilities of the credit union are discharged upon the director's order to liquidate the credit union. The liquidating agent shall, upon completion, certify to the director that the distribution or pooling of assets of the credit union is complete.
[ 1997 c 397 s 69; 1994 c 92 s 219; 1984 c 31 s 70. Formerly RCW 31.12.685.]

catchline: Order directing involuntary liquidation—Procedure.


title: RCW 31.12.671

text:
(1) As authorized by RCW 31.12.637, the director may without prior notice appoint a receiver to take possession of a credit union. The director may appoint the national credit union administration or other qualified party as receiver. Upon appointment, the receiver is authorized to act without bond. Upon acceptance of the appointment, the receiver shall have and possess all the powers and privileges provided by the laws of this state with respect to the receivership of a credit union, and be subject to all the duties of and restrictions applicable to such a receiver, except insofar as such powers, privileges, duties, or restrictions are in conflict with any applicable provision of the federal credit union act.
Upon taking possession of the credit union, the receiver shall give written notice to the directors of the credit union and to all persons having possession of any assets of the credit union. No person with knowledge of the taking of possession by the receiver shall have a lien or charge for any payment advanced, clearance made, or liability incurred against any of the assets of the credit union, after the receiver takes possession, unless approved by the receiver.
(2) The director, the department and its employees, and any third-party receiver acting on behalf of the department are not subject to liability for actions taken pursuant to appointment of a receiver under this section. Funds of the department may not be required to be expended on behalf of the credit union or its members, directors, officers, employees, or any other person.
[ 2010 c 87 s 13; 1997 c 397 s 70.]

catchline: Receivership—Appointment of receiver by director—Notice—Act without bond.


title: RCW 31.12.674

text:
(1) Within ten days after the director issues an order of involuntary liquidation of a credit union pursuant to RCW 31.12.664(2) or order appointing a receiver for a credit union pursuant to RCW 31.12.671, the credit union may serve a notice upon the director to appear at a hearing before the superior court of the county in which the principal place of business of the credit union is located and at a time to be fixed by the court, which may not be less than five or more than fifteen days from the date of the service of the notice. At the hearing, the credit union has the burden to show cause why the director's action ordering involuntary liquidation or appointing a receiver should not be affirmed.
(2) The court shall summarily hear and dismiss the complaint if it finds that the order of involuntary liquidation or order appointing receiver was issued for cause. However, if the court finds that no cause existed for the order of involuntary liquidation or order appointing receiver, the court shall require the director to restore the credit union to possession of its assets and enjoin the director from involuntary liquidation of the credit union or further appointment of a receiver for the credit union without cause.
(3) Failure of the credit union to serve notice of show cause hearing on the director as required under subsection (1) of this section bars a credit union from any judicial review of a director's order of involuntary liquidation under RCW 31.12.664(2) or of a director's appointment of receiver under RCW 31.12.671.
(4) For the purposes of this section, the principal place of business of a foreign or out-of-state credit union is Thurston county.
[ 2015 c 114 s 21; 2010 c 87 s 14; 1997 c 397 s 71.]

catchline: Director's orders—Notice to director of hearing—Hearing—Principal place of business—Superior court.


title: RCW 31.12.677

text:
Upon taking possession of a credit union, the receiver shall proceed to collect the assets of the credit union and preserve, administer, and liquidate its business and assets.
With the approval of the Thurston county superior court or the superior court of the county in which the principal place of business of the credit union is located, the receiver may sell, compound, or compromise bad or doubtful debts, and upon such terms as the court may direct, borrow, mortgage, pledge, or sell all or any part of the real and personal property of the credit union. The receiver may deliver to each purchaser or lender an appropriate deed, mortgage, agreement of pledge, or other instrument of title or security. The receiver may employ an attorney or other assistants to assist in carrying out the receivership, subject to such surety bond as the director may require. The premium for any such bond must be paid out of the assets of the credit union.
In carrying out the receivership, the receiver may without limitation arrange for the merger or consolidation of the credit union in receivership with another credit union, out-of-state credit union, or federal credit union, or may arrange for the purchase of the credit union's assets and the assumption of its liabilities by such a credit union, in whole or in part, or may arrange for such a transaction with another type of financial institution as may be otherwise permitted by law. The receiver shall give preference to transactions with a credit union or a federal credit union that has its principal place of business in this state.
[ 1997 c 397 s 72.]

catchline: Powers and duties of receiver.


title: RCW 31.12.681

text:
The receiver shall publish once a week for four consecutive weeks in a newspaper of general circulation in the county where the credit union's principal place of business is located, a notice requiring all persons having claims against the credit union to file proof of claim not later than ninety days from the date of the first publication of the notice. The receiver shall mail similar notices to all persons whose names appear as creditors upon the books of the credit union. The assets of the credit union are not subject to contingent claims.
After the expiration of the time fixed in the notice, the receiver has no power to accept any claim except the claim of a depositor or share account holder, and all other claims are barred. Claims of depositors or share account holders may be presented after the expiration of the time fixed in the notice and may be approved by the receiver. If such a claim is approved, the depositor or share account holder is entitled to its proportion of prior liquidation dividends, if sufficient funds are available for it, and will share in the distribution of the remaining assets.
The receiver may approve or reject any claim, but shall serve notice of rejection upon the claimant by mail or personally. An affidavit of service of the notice of rejection will serve as prima facie evidence that notice was given. No action may be brought on any claim after three months from the date of service of the notice of rejection.
[ 1997 c 397 s 73.]

catchline: Claims against credit union in receivership—Notice.


title: RCW 31.12.684

text:
Upon taking possession of the credit union, the receiver shall make an inventory of the assets and file the list in the office of the county clerk. Upon the expiration of the time fixed for the presentation of claims, the receiver shall make a list of claims presented, segregating those approved and those rejected, to be filed in the office of the county clerk. The receiver shall also make and file with the office of the county clerk a supplemental list of claims at least fifteen days before the declaration of any liquidation dividend, and in any event at least every six months.
Objection may be made by any interested person to any claim approved by the receiver. Objections to claims approved by the receiver will be resolved by the court after providing notice to both the claimant and objector, as the court may prescribe.
[ 1997 c 397 s 74.]

catchline: Receiver shall inventory assets—File lists of assets and claims—Objections to approved claims.


title: RCW 31.12.687

text:
All expenses incurred by the receiver in relation to the receivership of a credit union, including, but not limited to, reasonable attorneys' fees, become a first charge upon the assets of the credit union. The charges shall be fixed and determined by the receiver, subject to the approval of the court.
[ 1997 c 397 s 75.]

catchline: Expenses incurred by receiver.


title: RCW 31.12.691

text:
At any time after the expiration of the date fixed for the presentation of claims, the receiver, subject to the approval of the court, may declare one or more liquidation dividends out of the funds remaining after the payment of expenses.
[ 1997 c 397 s 76.]

catchline: Liquidation dividends—Approval of court.


title: RCW 31.12.694

text:
When all expenses of the receivership have been paid, as well as all proper claims of share account holders, depositors, and other creditors, and proper provision has been made for unclaimed or unpaid debts and liquidation dividends, and assets of the credit union still remain, the receiver shall wind up the affairs of the credit union and distribute its assets to those entitled to them. Each share account holder and depositor at the credit union is entitled to a proportionate share of the assets remaining. The proportionate allocation shall be based on account balances as of a date determined by the board. For the purposes of liquidation, shares and deposits are equivalent.
[ 1997 c 397 s 77.]

catchline: Remaining assets—Distribution.


title: RCW 31.12.697

text:
Any liquidation dividends to share account holders, depositors, or other creditors of the credit union remaining uncalled for and unpaid in the hands of the receiver for six months after the order of final distribution, must be deposited in a financial institution to each share account holder's, depositor's, or creditor's credit. The funds must be held in trust for the benefit of the persons entitled to the funds and, subject to the supervision of the court, must be paid by the receiver to them upon presentation of satisfactory evidence of their right to the funds.
[ 1997 c 397 s 78.]

catchline: Unclaimed liquidation dividends.


title: RCW 31.12.701

text:
(1) The receiver shall inventory, package, and seal uncalled for and unclaimed personal property left with the credit union, including, but not limited to, property held in safe deposit boxes, and arrange for the packages to be held in safekeeping. The credit union, its directors and officers, and the receiver, shall be relieved of responsibility and liability for the property held in safekeeping. The receiver shall promptly send to each person in whose name the property stood on the books of the credit union, at the person's last known address, a registered letter notifying the person that the property will be held in the person's name for a period of not less than two years.
(2) After the expiration of two years from the date of mailing the notice, the receiver shall promptly send to each person in whose name the property stood on the books of the credit union, at the person's last known address, a registered letter providing notice of sale. The letter must indicate that the receiver will sell the property set out in the notice, at a public auction at a specified time and place, not less than thirty days after the date of mailing the letter. The receiver may sell the property unless the person, prior to the sale, presents satisfactory evidence of the person's right to the property. A notice of the time and place of the sale must be published once within ten days prior to the sale in a newspaper of general circulation in the county where the sale is to be held.
(3) Any property, for which the address of the owner or owners is not known, may be sold at public auction after it has been held by the receiver for two years. A notice of the time and place of the sale must be published once within ten days prior to the sale in a newspaper of general circulation in the county where the sale is to be held.
(4) Whenever the personal property left with the credit union consists either wholly or in part, of documents, letters, or other papers of a private nature, the documents, letters, or papers may not be sold, but must be retained by the receiver and may be destroyed after a period of five years.
[ 1997 c 397 s 79.]

catchline: Personal property—Receiver's duties.


title: RCW 31.12.704

text:
The proceeds of the sale less any amounts for costs and charges incurred in safekeeping and sale must be deposited by the receiver in a financial institution, in trust for the benefit of the person entitled to the property. The sale proceeds must be paid by the receiver to the person upon presentation of satisfactory evidence of the person's right to the funds.
[ 1997 c 397 s 80.]

catchline: Proceeds of sale—Deposit or payment by receiver.


title: RCW 31.12.707

text:
Upon the completion of a receivership through merger, purchase of assets and assumption of liabilities, or liquidation, the director shall terminate the credit union's authority to conduct business and certify that fact to the secretary of state. Upon certification, the credit union shall cease to exist and the secretary of state shall note that fact upon his or her records.
[ 1997 c 397 s 81.]

catchline: Completion of receivership—Merger, purchase, or liquidation—Secretary of state.


title: RCW 31.12.711

text:
If at any time after a receiver is appointed, the director determines that all material deficiencies at the credit union have been corrected, and that the credit union is in a safe and sound condition to resume conducting business, the director may terminate the receivership and permit the credit union to reopen upon such terms and conditions as the director may prescribe. Before being permitted to reopen, the credit union must pay all of the expenses of the receiver.
[ 1997 c 397 s 82.]

catchline: Director may terminate receivership—Expenses.


title: RCW 31.12.714

text:
The receiver or director, as appropriate, may at any time after the expiration of one year from the order of final distribution, or from the date when the receivership has been completed, destroy any of the remaining files, records, documents, books of account, or other papers of the credit union that appear to be obsolete or unnecessary for future reference as part of the receivership files.
[ 1997 c 397 s 83.]

catchline: Receivership files.


title: RCW 31.12.717

text:
The pendency of any proceedings for judicial review of the appointment of a receiver may not operate to prevent the payment or acquisition of the share and deposit liabilities of the credit union by the national credit union administration or other insurer or guarantor of the share and deposit liabilities of the credit union. During the pendency of the proceedings, the receiver shall make credit union facilities, books, records, and other relevant credit union data available to the insurer or guarantor as may be necessary or appropriate to enable the insurer or guarantor to pay out or to acquire the insured or guaranteed share and deposit liabilities of the credit union. The national credit union administration and any other insurer or guarantor of the credit union's share and deposit liabilities, together with their directors, officers, agents, and employees, and the director and receiver and their agents and employees, will be free from liability to the credit union, its directors, members, and creditors, for or on account of any action taken in connection with the receivership.
[ 1997 c 397 s 84.]

catchline: Pendency of proceedings for review of appointment of receiver—Liabilities of credit union—Availability of relevant data.


title: RCW 31.12.721

text:
No receiver may be appointed by any court for any credit union, except that a court otherwise having jurisdiction may in case of imminent necessity appoint a temporary receiver to take possession of and preserve the assets of the credit union. Immediately upon appointment, the clerk of the court shall notify the director in writing of the appointment and the director shall appoint a receiver to take possession of the credit union and the temporary receiver shall upon demand surrender possession of the assets of the credit union to the receiver. The receiver may in due course pay the temporary receiver out of the assets of the credit union, subject to the approval of the court.
[ 1997 c 397 s 85.]

catchline: Appointment by court of temporary receiver—Notice to director.


title: RCW 31.12.724

text:
(1) Every transfer of a credit union's property or assets, and every assignment by a credit union for the benefit of creditors, made in contemplation of insolvency, or after it has become insolvent, to intentionally prefer one creditor over another, or to intentionally prevent the equal distribution of its property and assets among its creditors, is void.
(2) Every credit union director, officer, or employee making any transfer described in subsection (1) of this section is guilty of a class B felony punishable according to chapter 9A.20 RCW.
(3) An officer, director, or employee of a credit union who fraudulently receives any share or deposit on behalf of the credit union, knowing that the credit union is insolvent, is guilty of a class B felony punishable according to chapter 9A.20 RCW.
[ 2003 c 53 s 192; 1997 c 397 s 86.]
Notes:
Intent—Effective date—2003 c 53: See notes following RCW 2.48.180.

catchline: Actions that are void—Felonious conduct—Penalties.


title: RCW 31.12.726

text:
After the taking of possession of the property and business of a credit union, through conservatorship or receivership, the conservator or receiver may terminate or adopt any executory contract to which the credit union may be a party, including leases of real or personal property. The termination or adoption shall be made within six months after obtaining knowledge of the existence of the contract or lease. Any provision in the contract or lease which provides for damages or cancellation fees upon termination shall not be binding on the conservator, receiver, or credit union. The director, conservator, or receiver, and credit union are not liable for damages.
[ 2010 c 87 s 18.]

catchline: Conservator or receiver may terminate or adopt executory contracts—Timing—Binding terms—Liability.


title: RCW 31.12.728

text:
Except in cases in which a receiver is appointed by a court on a temporary basis under RCW 31.12.721, the provisions of Title 7 RCW generally applicable to receivers and receiverships do not apply to receivers elected or appointed under this chapter.
[ 2004 c 165 s 42.]
Notes:
Purpose—Captions not law—2004 c 165: See notes following RCW 7.60.005.

catchline: Applicability of general receivership law.


title: RCW 31.12.850

text:
(1)(a) It is unlawful for a director, supervisory committee member, officer, employee, or agent of a credit union to knowingly violate or consent to a violation of this chapter.
(b) It is unlawful for any person to knowingly make or disseminate a false report or other misrepresentation about the financial condition of any credit union.
(c) Unless otherwise provided by law, a violation of this subsection is a misdemeanor under chapter 9A.20 RCW.
(2)(a) It is unlawful for a person to perform any of the following acts:
(i) To knowingly subscribe to, make, or cause to be made a false statement or entry in the books of a credit union;
(ii) To knowingly make a false statement or entry in a report required to be made to the director; or
(iii) To knowingly exhibit a false or fictitious paper, instrument, or security to a person authorized to examine a credit union.
(b) A violation of this subsection is a class C felony under chapter 9A.20 RCW.
[ 2010 c 87 s 15; 2003 c 53 s 193; 1997 c 397 s 87; 1994 c 92 s 215; 1984 c 31 s 65. Formerly RCW 31.12.635.]
Notes:
Intent—Effective date—2003 c 53: See notes following RCW 2.48.180.

catchline: Prohibited acts—Criminal penalties.


title: RCW 31.12.853

text:
(1) The department is authorized to assess civil fines to the credit union for violation of any of the following:
(a) Any material provision of this chapter or related rules;
(b) Any final or temporary order, including a cease and desist, suspension, removal, or prohibition order;
(c) Any supervisory agreement;
(d) Any condition imposed in writing in connection with the grant of any application or other request; or
(e) Any other written agreement entered into with the director.
(2) At the option of the director, a violation of this section subjects the violator to a fine of up to ten thousand dollars per violation. A continuing violation shall be considered a single violation for this purpose. The fine is payable upon issuance of any order or directive of the director, and may be recovered by the attorney general in a civil action in the name of the department.
(3) The department is authorized to adopt rules for the implementation of this section.
[ 2010 c 87 s 16.]

catchline: Prohibited acts—Civil penalties—Rules.


title: RCW 31.12.860

text:
Neither a credit union nor its members may be taxed upon its shares and deposits as property. A credit union shall be taxable upon its real property and tangible personal property, and every credit union shall be termed a mutual institution for savings and neither it nor its property may be taxable under any law which exempts savings banks or institutions for savings from taxation. For all purposes of taxation, the assets represented by the regular reserve and other reserves, other than reserves for expenses and losses of a credit union, shall be deemed its only permanent capital, and in computing any tax, whether it be property, income, or excise, appropriate adjustment shall be made to give effect to the mutual nature of such credit union.
[ 1984 c 31 s 75. Formerly RCW 31.12.735.]

catchline: Taxation of credit unions.


title: RCW 31.12.890

text:
See chapter 30A.43 RCW.
Notes:

catchline: Satellite facilities.


title: RCW 31.12.891

text:
Chapter 19.174 RCW applies to automated teller machines and night depositories regulated under this title.
[ 1993 c 324 s 11. Formerly RCW 31.12.740.]
Notes:
Effective date—1993 c 324: See RCW 19.174.900.

catchline: Automated teller machines and night depositories security.


title: RCW 31.12.902

text:
This chapter may be known and cited as the "Washington State Credit Union Act."
[ 1984 c 31 s 76.]

catchline: Short title.


title: RCW 31.12.906

text:
Except for sections 35 and 50 of this act, this act takes effect January 1, 1998.
[ 1997 c 397 s 92.]

catchline: Effective date—1997 c 397.


title: RCW 31.12.909

text:
For the purposes of this chapter, the terms spouse, marriage, marital, husband, wife, widow, widower, next of kin, and family shall be interpreted as applying equally to state registered domestic partnerships or individuals in state registered domestic partnerships as well as to marital relationships and married persons, and references to dissolution of marriage shall apply equally to state registered domestic partnerships that have been terminated, dissolved, or invalidated, to the extent that such interpretation does not conflict with federal law. Where necessary to implement chapter 521, Laws of 2009, gender-specific terms such as husband and wife used in any statute, rule, or other law shall be construed to be gender neutral, and applicable to individuals in state registered domestic partnerships.
[ 2009 c 521 s 77.]

catchline: Construction—Chapter applicable to state registered domestic partnerships—2009 c 521.


title: RCW 31.12.910

text:
This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [March 17, 2010].
[ 2010 c 87 s 21.]

catchline: Effective date—2010 c 87.


title: RCW 31.13.010

text:
As used in this chapter, unless the context in which it is used clearly indicates otherwise, the term "corporate credit union" or "corporate" means a credit union organized under this chapter.
[ 2001 c 83 s 36; 1984 c 31 s 79; 1977 ex.s. c 207 s 5.]

catchline: Definition of corporate credit union or corporate.


title: RCW 31.13.020

text:
(1) Corporate credit unions may be organized and operated under this chapter. A corporate credit union has all the powers and authorities granted in, and is subject to, all of the provisions of chapter 31.12 RCW which are not inconsistent with this chapter. A corporate must use the term "corporate" in its official name. The director may adopt rules for the organization and operation of corporate credit unions.
(2) Notwithstanding any other provision of law, and in addition to all powers and authorities, express or implied, that a corporate credit union has under the laws of this state, a corporate has the powers and authorities that a federal or Kansas state corporate credit union had on July 22, 2001. However, a corporate must still comply with RCW 31.12.408.
(3) Notwithstanding any other provision of law, and in addition to the powers and authorities, express or implied, that a corporate has under subsection (2) of this section, a corporate credit union has the powers and authorities that a federal or Kansas state corporate credit union has subsequent to July 22, 2001, if the director finds that the exercise of the power and authority serves the convenience and advantage of members of credit unions, and maintains the fairness of competition and parity between corporate credit unions. However, a corporate must still comply with RCW 31.12.408.
(4) The restrictions, limitations, and requirements applicable to specific powers or authorities of federal or Kansas state corporate credit unions apply to corporate credit unions exercising those powers or authorities permitted under this section but only insofar as the restrictions, limitations, and requirements relate to the specific exercise of the powers or authorities granted corporate credit unions solely under this section.
(5) As used in this section, "powers and authorities" include, but are not limited to, powers and authorities in corporate governance matters.
[ 2001 c 83 s 37; 1977 ex.s. c 207 s 1.]

catchline: Authority to organize and operate—Powers and authorities—Name—Federal or Kansas state corporate credit unions.


title: RCW 31.20.010

text:
Organizations to provide development credit are authorized to be created under the general corporation laws of the state, with all of the powers, privileges and immunities conferred on corporations by such laws.
[ 1959 c 213 s 1.]

catchline: Creation under general corporation laws authorized.


title: RCW 31.20.020

text:
The purposes of development credit corporations as authorized herein shall be: (1) To promote, aid, and, through the united efforts of the institutions and corporations which shall from time to time become members thereof, develop and advance the industrial and business prosperity and welfare of the state of Washington; (2) To encourage new industries; (3) To stimulate and help to expand all kinds of business ventures which tend to promote the growth of the state; (4) To act whenever and wherever deemed by it advisable in conjunction with other organizations, the objects of which are the promotion of industrial, agricultural or recreational developments within the state; and (5) To furnish for approved and deserving applicants ready and required money for the carrying on and development of every kind of business or industrial undertaking whereby a medium of credit is established not otherwise readily available therefor.
[ 1959 c 213 s 2.]

catchline: Purposes specified.


title: RCW 31.20.030

text:
In furtherance of the purposes set forth in RCW 31.20.020, and in addition to the powers conferred by the general laws relating to corporations, this corporation shall, subject to the restrictions and limitations set forth in this chapter, have the following powers:
(1) To borrow money on secured or unsecured notes from any bank, trust company, savings bank, mutual savings bank, savings and loan association, building and loan association, credit union, insurance company or union funds which shall be members of this corporation and to pledge bonds, notes and other securities as collateral therefor: PROVIDED, In no case shall the amount so loaned by any member exceed the limit as hereinafter defined;
(2) To lend money upon secured or unsecured applications: PROVIDED, It shall not be the purpose hereof to take from other institutions within the state any such loans or commitments as may be desired by such institutions generally in the ordinary course of their business;
(3) To establish and regulate the terms and conditions of any such loans and charges for interest or service connected therewith;
(4) To purchase, hold, lease and otherwise acquire and to convey such real estate as may, from time to time, be acquired by it in satisfaction of debts or may be acquired by it in the foreclosure of mortgages thereon or upon judgments for debts or in settlements to secure debts.
[ 1959 c 213 s 3.]

catchline: Corporate powers.


title: RCW 31.20.040

text:
No development credit corporation shall be organized with a capital stock of less than twenty-five thousand dollars, which shall be paid into the treasury of the corporation in cash before the corporation shall be authorized to transact any business other than such as relates to its organization.
[ 1959 c 213 s 4.]

catchline: Minimum capital stock.


title: RCW 31.20.050

text:
All the corporate powers of a development credit corporation shall be exercised by a board of not less than nine directors who shall be residents of this state. The number of directors and their term of office shall be determined by the stockholders at the first meeting held by the incorporators and at each annual meeting thereafter. In the first instance the directors shall be elected by the stockholders to serve until the first annual meeting. At the first annual meeting, and at each annual meeting thereafter, one-third of the directors shall be elected by a vote of the stockholders and the remaining two-thirds thereof shall be elected by members of the corporation herein provided for, each member having one vote. The removal of any director from this state shall immediately vacate his or her office. If any vacancy occurs in the board of directors through death, resignation, or otherwise, the remaining directors may elect a person to fill the vacancy until the next annual meeting of the corporation. The directors shall be annually sworn to the proper discharge of their duties and they shall hold office until others are elected or appointed and qualified in their stead.
[ 2011 c 336 s 750; 1959 c 213 s 5.]

catchline: Board of directors.


title: RCW 31.20.060

text:
Any member, as set forth in RCW 31.20.070, shall have power and authority to loan any of their funds to any development credit corporation of which they are a member, subject to the restrictions as set forth in RCW 31.20.080, notwithstanding any laws to the contrary pertaining to such member.
[ 1959 c 213 s 6.]

catchline: Members power to loan funds to corporation.


title: RCW 31.20.070

text:
The members of a development credit corporation shall consist of such banks, trust companies, savings banks, mutual savings banks, savings and loan associations, building and loan associations, credit unions, insurance companies or union funds as may make accepted applications to this corporation to lend funds to it upon call and up to the limit herein provided.
[ 1959 c 213 s 7.]

catchline: Members of corporation enumerated.


title: RCW 31.20.080

text:
Each member of a development credit corporation shall lend funds to the development credit corporation as and when called upon by it to do so to the extent of the member's commitment, but the total amount on loan by any member at any one time shall not exceed the following limit: (1) For banks, trust companies, or insurance companies, three percent of capital and surplus; (2) For mutual savings banks, savings and loan associations, or credit unions, three percent of guaranty and reserve funds; and (3) Comparable limits for other institutions. All loan limits shall be established at the thousand dollars amount nearest to the amount computed on an actual basis. All calls when made by this corporation shall be prorated among the members on the same proportion that the maximum lending commitment of each bears to the aggregate maximum lending commitment of all members.
[ 1959 c 213 s 8.]

catchline: Members duty to loan funds to corporation—Maximum limits—Proration of calls.


title: RCW 31.20.090

text:
Upon notice given one year in advance a member of the corporation may withdraw from membership in the corporation at the expiration date of such notice and from said expiration date shall be free from obligations hereunder except as to those accrued prior to said expiration date.
[ 1959 c 213 s 9.]

catchline: Withdrawal from membership.


title: RCW 31.20.100

text:
A development credit corporation shall set apart a surplus of not less than ten percent of its net earnings in each and every year until such surplus, with any unimpaired surplus paid in, shall amount to one-half of the capital stock. The said surplus shall be kept to secure against losses and contingencies, and whenever the same becomes impaired it shall be reimbursed in the manner provided for its accumulation.
[ 1959 c 213 s 10.]

catchline: Surplus reserve required.


title: RCW 31.20.110

text:
A development credit corporation shall not deposit any of its funds in any institution unless such institution has been designated as a depository by a vote of a majority of the directors, exclusive of the vote of any director who is an officer or director of the depository so designated.
[ 1959 c 213 s 11.]

catchline: Funds to be deposited in designated depository.


title: RCW 31.20.120

text:
A development credit corporation shall not receive money on deposit.
[ 1959 c 213 s 12.]

catchline: Money deposits prohibited.


title: RCW 31.20.130

text:
A development credit corporation, on or before February 15th of each year, shall publish in three consecutive issues of a newspaper of general circulation in the area or areas where the corporation is located a statement of assets and liabilities as of December 31st of the preceding year.
[ 1959 c 213 s 13.]

catchline: Publication of annual statement of assets and liabilities.


title: RCW 31.20.140

text:
Any development credit corporation desiring to qualify and participate in the federal Small Business Investment Act of 1958 and as hereafter amended may do so and to that end may comply with all the laws of the United States and all the rules, regulations and requirements promulgated pursuant thereto.
[ 1959 c 213 s 14.]

catchline: Participation in federal act authorized.


title: RCW 31.24.005

text:
The legislature finds, declares, and intends that:
(1) There exists substantial and growing need in Washington state to enhance the availability of financial assistance for small business and to improve the economy of the localities within this state;
(2) The department, which is charged with (a) the regulation of business development corporations, under this chapter, (b) the regulation of financial institutions and other financial entities as defined in this chapter, and (c) nondepository lenders engaged in guaranteed small business and agricultural lending, under chapters 31.40 and 31.35 RCW, is among those state agencies critical to meeting the needs addressed in subsection (1) of this section; and
(3) It is necessary to assist the department in meeting the needs addressed in subsection (1) of this section and to improve its administration and regulation of this chapter and chapters 31.35 and 31.40 RCW.
[ 2006 c 87 s 1.]

catchline: Findings—Declarations—Intent.


title: RCW 31.24.010

text:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Applicant" means a person who files with the director an application for organization as, or conversion to doing business as, a business development company under this chapter, or who is making application for a material change that requires approval of the director under this chapter.
(2) "Assessable stock" means any stock or class of stock, or equity interest or class of equity interest, in a business development company that:
(a) Has been authorized pursuant to the articles of incorporation of the business development company as approved by the department;
(b) Has been created pursuant to an authorized plan of assessment;
(c) Has been agreed to by a stockholder pursuant to the stockholder's subscription or similar agreement; and
(d) Has been disclosed as being subject to assessment on the face of the stock certificates or certificates of equity interest.
(3) "Board of directors" means the board of directors of a business development company created under this chapter.
(4) "Borrower" means a person, including a controlling person of such person, who obtains a qualified loan from a business development company.
(5) "Business" means a person, including a controlling person of such person, who obtains a qualified loan or qualified investment, or both, from a business development company.
(6) "Business development company" means a company created for the purpose of engaging in any activity authorized by this chapter. A "business development company" created under this chapter is either:
(a) A "general business development company," which is a business development company that may engage in any activity authorized by this chapter; or
(b) A "historic business development company," which is a business development company organized to encourage and stimulate the preservation of historic buildings or historic commercial areas or neighborhoods, and may only engage in activities consistent with the purposes of the limited charter as set forth in RCW 31.24.190.
(7) "Business development project" means a project controlled by a business, in which a business development company may make a qualified investment, qualified loan, or both.
(8) "Control," "controlled," or "controls," in relation to a borrower or business, has the same meaning as "control of a bank" has under Federal Reserve Regulation O, 12 C.F.R. Sec. 215.2, as it existed on June 7, 2006, or such subsequent date as may be provided by the department by rule, consistent with the purposes of this chapter.
(9) "Controlling person" means a person, including an executive officer or director as defined in Federal Reserve Regulation O, 12 C.F.R. Sec. 215.2, as it existed on June 7, 2006, or such subsequent date as may be provided by the department by rule, consistent with the purposes of this chapter, who controls a borrower or business.
(10) "Department" means the Washington state department of financial institutions, or its successor.
(11) "Director" means the director of the department of financial institutions, unless used in the context of a member of the board of directors of a business development company created under this chapter.
(12) "Financial institution" means any federally chartered or state-chartered bank or trust company, savings bank or savings and loan association, or credit union.
(13) "Insider transaction" means a transaction between a business development company and a person who is (a) an affiliate of a business development company or (b) an executive officer, director, or principal shareholder, or a related interest of, such a person. As used in this subsection, "affiliate," "executive officer," "director," "principal shareholder," and "related interest" have the same meaning, in relation to a business development company, as such terms have in relation to a member bank pursuant to Federal Reserve Regulation O, 12 C.F.R. Sec. 215.2, as it existed on June 7, 2006, or such subsequent date as may be provided by the department by rule, consistent with the purposes of this chapter.
(14) "Other financial entity" means an insurance company authorized to do business in Washington state, or any other company, limited liability company, partnership, limited partnership, or foundation, other than a financial institution, engaged as a primary activity in the business of lending or investing funds, and which holds a charter or license from an applicable federal or state regulatory authority to engage in such activity.
(15) "Person" means a natural person, partnership, limited partnership, limited liability company, corporation, association, foundation, or other legal or commercial entity.
(16) "Plan of assessment" means a plan for assessment of stockholders, or a class of stockholders, which is part of the business plan of a business development company that has been approved by the department, and which provides for the periodic, equal assessment of all stockholders, or an affected class of stockholders, according to their interest in the business development company, as provided for in RCW 31.24.066.
(17) "Qualified investment" means any equity investment, or debt investment other than a qualified loan, authorized by this chapter to be made by a business development company to a business:
(a) The principal intent of which:
(i) In the case of a general business development company, is to promote or enhance small business or improvement of the economy of one or more localities within this state, consistent with the general intent and purpose of a business development company, as set forth in RCW 31.24.005, and with its approved business plan; or
(ii) In the case of a historic business development company, is to promote and/or enhance the special purpose and intent of a historic business development company as set forth in RCW 31.24.190, consistent with its approved business plan; and
(b) Which investment, at the time of its origination, has a reasonable likelihood of being used for such purpose.
(18) "Qualified loan" means any loan authorized by this chapter to be made by a business development company to a borrower:
(a) The principal intent of which:
(i) In the case of a general business development company, is to promote or enhance small business or improvement of the economy of one or more localities within this state, consistent with the general intent and purpose of this chapter, and with its approved business plan; or
(ii) In the case of a historic business development company, is to promote or enhance the special purpose and intent of a historic business development company as set forth in RCW 31.24.190, consistent with its approved business plan; and
(b) Which loan, at the time of its origination, has a reasonable likelihood of being used for such purpose.
(19) "Qualified loan participant" means a financial institution or other financial entity, as defined in this section, or any other person engaged in the business of lending, who participates as a funder of a qualified participation loan.
(20) "Qualified participation loan" means a loan to a borrower or business, in relation to a business development project, made, in whole or in part[,] by qualified loan participants, which has been facilitated, arranged, or partially funded by a business development company.
(21) "Stock" means, in relation to a business development company, any stock or equity interest, of whatever class, in a business development company.
(22) "Stockholder" means, in relation to a stockholder of a business development company, any person authorized either by Title 23B RCW to be a shareholder of a corporation or by chapter 25.15 RCW and this chapter to hold an equity interest in a limited liability company, and may include, without limitation, a financial institution or other financial entity.
[ 2006 c 87 s 2; 1963 c 162 s 1.]

catchline: Definitions.