Made available by Touch N' Go Systems, Inc., and the
Law Offices of James B. Gottstein.

You can also go to The Alaska Legal Resource Center or search the entire website search.

Touch N' Go, the DeskTop In-and-Out Board makes your office run smoother. Visit Touch N' Go's Website to see how.
Title 3 . Commerce, Community, and Economic Development
Chapter 3 . Land Sales
Section 160. Reserves

3 AAC 03.160. Reserves

(a) Use of Reserves. The reserve fund will belong to the credit union and will be used to meet losses, except those resulting from an excess of expenses over income, and will not be distributed except on liquidation of the credit union or in accordance with a plan approved by the department.

(b) Risk Assets. For the purposes of establishing reserves required by AS 06.45.180 , all assets except the following will be considered risk assets:

(1) cash on hand;

(2) deposits and shares in federally or state insured banks, savings and loan associations, and credit unions;

(3) assets which are insured by, fully guaranteed as to principal and interest by, or due from the U.S. government, its agencies, the Federal National Mortgage Association, or the Government National Mortgage Association;

(4) loans to other credit unions;

(5) loans to students insured under the provisions of Title IV, Part B of the Higher Education Act of 1965 (20 U.S.C. § 1071), as amended on June 15, 1977, or similar state insurance programs;

(6) loans that are fully or partially insured or guaranteed by the federal or a state government or any federal or state agency;

(7) shares or deposits in corporate credit unions;

(8) common trust investments which deal in investments authorized by FCUA;

(9) prepaid expenses;

(10) accrued interest on nonrisk investments;

(11) furniture and equipment;

(12) land and buildings;

(13) loans fully secured by a pledge of shares in the lending credit union, equal to and maintained to at least the amount of the loan outstanding;

(14) loans which are purchased from liquidating credit unions and guaranteed by NCUA;

(15) National Credit Union Share Insurance Fund Guaranty Accounts established with the authorization of NCUA under the authority of Sec. 208(a)(1) of FCUA (12 U.S.C. § 1788 as amended on November 10, 1978); and

(16) investments in the NCUA Central Liquidity Facility.

(c) Corporate Credit Union.

(1) "Risk assets" of a corporate credit union are defined in (b) of this section, except loans made to its member credit unions will not be considered risk assets.

(2) In addition to the regular reserve required by AS 06.45.180 , a corporate credit union must establish and maintain a corporate reserve which must be established immediately before the payment of each dividend, as follows:

(A) a transfer of two percent of gross income must be made to the corporate reserve until that reserve equals one and one-half percent of the corporate credit union's total assets;

(B) whenever the corporate reserve falls below one and one-half percent of total assets, it must be replenished by regular transfers of two percent of gross income or by contributions in such amounts as may be needed to maintain the corporate reserve at one and one-half percent of total assets, whichever is less;

(C) charges may be made against the corporate reserve to the same extent and in the same manner as those permitted to be made against the regular reserve.

History: Eff. 1/21/81, Register 77

Authority: AS 06.45.010

AS 06.45.180

Note to HTML Version:

The Alaska Administrative Code was automatically converted to HTML from a plain text format. Every effort has been made to ensure its accuracy, but neither Touch N' Go Systems nor the Law Offices of James B. Gottstein can be held responsible for any possible errors. This version of the Alaska Administrative Code is current through June, 2006.

If it is critical that the precise terms of the Alaska Administrative Code be known, it is recommended that more formal sources be consulted. Recent editions of the Alaska Administrative Journal may be obtained from the Alaska Lieutenant Governor's Office on the world wide web. If any errors are found, please e-mail Touch N' Go systems at E-mail. We hope you find this information useful. Copyright 2006. Touch N' Go Systems, Inc. All Rights Reserved.

Last modified 7/05/2006