32-3-805. Membership capital share deposits. (1) A corporate credit union may issue membership capital share deposit or MCSD accounts to members.
     (2) (a) For purposes of this section, "membership capital share deposit" or "MCSD account" means a share, deposit, or other account that:
     (i) is established, at a minimum, as a 12-month notice account;
     (ii) is limited to members;
     (iii) is not subject to share insurance coverage by the national credit union share insurance fund or other deposit insurers; and
     (iv) in the event of liquidation of the corporate credit union, is payable only after satisfaction of all liabilities of the liquidation estate, including uninsured obligations to shareholders and the national credit union share insurance fund.
     (b) An MCSD account is not repayable until notice is given by the account holder credit union that the account holder credit union intends to withdraw MCSD account funds from the corporate credit union, except in the case of a credit union that is placed into liquidation, is purchased and assumed, or is merged.
     (3) An MCSD account may not be used to pledge borrowings.
     (4) Corporate credit unions that issue MCSD accounts shall disclose at least annually to their members the terms and conditions under which the accounts are issued.

     History: En. Sec. 5, Ch. 66, L. 1993.