J. MILLARD TAWES, Governor                     1245

panies", sub-title "Credit Unions", be and they are hereby repealed
and re-enacted, With amendments; and that a new Section 157A be
and it is hereby added to said sub-title, to follow immediately after
Section 157 thereof, and all to read as follows:

139. A credit union may receive the savings of its members in
payment of shares or any deposit; may loan to its members at rea-
sonable rates, which shall not exceed one per cent, a month, on un-
paid balance; [or] may invest as hereinafter provided the funds so
accumulated, or may, in accordance with rules and regulations pre-
scribed by the Bank Commissioner, sell to members negotiable
checks, including travelers' checks, and money orders, and cash
checks and money orders for a fee which does not exceed the direct
and indirect costs incident to providing such service, and may under-
take such other activities relating to the purposes of the corporation
as may be consistent with this sub-title and authorized by the bylaws.

152 (a). A credit union may loan to its members for such pur-
poses, and upon such security and terms as the bylaws shall provide,
and the credit committee may approve, but security need not be taken
for any loan of [four hundred dollars ($400,005 OR LESS seven
hundred fifty dollars ($750.00) or less, or for the sum of [ four hun-
dred dollars ($400.00)] seven hundred fifty dollars ($750.00) in any

case where the loan is in excess of said amount subject to the prior

approval of the Bank Commissioner. IN ANY CASE WHERE THE
LOAN IS IN EXCESS OF FOUR HUNDRED DOLLARS ($400.00)
UP TO A MAXIMUM OF SEVEN HUNDRED FIFTY DOLLARS
($750.00), IT SHALL BE SUBJECT TO THE PRIOR WRITTEN
APPROVAL OF THE BANK COMMISSIONER.

155. The board of directors of a credit union may declare a
dividend, not in excess of six per cent, from so much of its net pro-
fits at the close of any fiscal year as may be available after providing
for expenses, interest and taxes accrued. Provided, however, that no
dividend shall be declared until the amount of net earnings shall have
been transferred to the reserve fund, as required by this article. Any
losses sustained may be charged against the reserve fund, surplus
or undivided earnings, and no dividends shall be declared if the
known losses existing at the close of any fiscal year exceed the balance
of the reserve fund, surplus or undivided earnings after the payment
of said dividend. Dividends [shall be paid in the way and manner
provided in the bylaws.] may be paid annually or semi-annually, as
the bylaws may provide, and after provision for the required reserves,
the board of directors may declare a dividend to be paid from the
remaining net earnings. Such dividend shall be paid on all paid-up
shares outstanding at the end of the period for which the dividend
is declared. Shares which become fully paid up during such dividend
period and are outstanding at the close of the period shall be entitled
to a proportional part of such dividend. Dividend credit for a month
may be accrued on shares which are or become fully paid up during
the first five days of that month.

157A. A state credit union may be converted into a federal credit
union under federal law, by complying with the following require-
ments :

(a) The proposition for such conversion shall first be approved,
and a date set for a vote thereon by the members (either at a meet-