A. At the end of each accounting period, but not less frequently than quarterly, the credit union shall set aside, as a regular reserve against losses, amounts in accordance with the schedule set by the share insuring organization. The credit union shall set aside the amounts before the declaration or payment of any dividends.

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In Arizona Laws 6-581

  • Credit union: means a cooperative nonprofit association that is incorporated under this chapter for the purposes of encouraging thrift among its members and creating a source of credit and other financial services at fair and reasonable cost. See Arizona Laws 6-501
  • Insuring organization: means the national credit union administration or successor organization or any other equivalent insurer approved by the deputy director. See Arizona Laws 6-501

B. The board of directors may increase, or if the reserve equals or exceeds the requirement prescribed in subsection A, decrease, the amount to be set aside.