Latah Federal Credit Union was established in 1965 with the merger of several credit unions under the name of “Credit Union of Idaho.” The mission of this credit union is to promote good credit by maintaining its members in the full financial activity. The goal of the credit union is to maintain a high-quality operating organization, to enhance economic development of member banks, and to provide low-cost credit services. In the process, it also tries to give a well-balanced development to all its members.
Although all the credit unions of Idaho are basically created in the same manner, the way they function and accomplish their tasks differ greatly. Most of them belong to the non-profit society organization category. Others are strictly profit making clubs. Others still are part of governmental cooperatives. But the most popular and long-standing association with the government is that of the state-chartered latah federal credit union potlatch.
All the Idaho credit unions are owned and operated by the members. They have their own board of directors and officers. The executive management is usually made by one of the members of the board of directors. All decisions are by the members for the most part.
The main responsibility of a credit union is to serve the interests of its members. It should do everything possible to keep the members from being adversely affected by economic hardships. They should use their power to negotiate with the federal government on behalf of their members. When negotiations are successful, the members will receive fair treatment in the operation of their credit union.
Each state has its own set of rules on how a credit union can operate. The officers of each such institution have to adhere to the rules of the state where they operate. The officers may be appointed by the members of the credit union or by a governing body appointed by the state government. A majority of states have a board of directors which consist of a Secretary of State, a treasurer, a marketing or sales agent, and a board of directors.
Every organization has some requirements on the number of members it has before it can join the association. The minimum number of memberships required is one percent of the state’s population. Any credit union which reaches this requirement is then in the process of becoming recognized as an officially recognized agency by the state. Recognized agencies have to pay a certain amount of annual fees which is established by the association.
Every organization has a charter which defines its rules and policies. All charters are also called by different names such as bylaws, resolutions, rules, regulations or by-laws. All charters have to be approved by the members of the association. In case a charter is not passed by the members, the charter is declared null and void. Violation of any provision of the charter is deemed to be a violation of the organization’s right to operate.
There are various ways for a credit union to become recognized. One way is to apply for membership with the Fair Share Commission of North Carolina. Another way is to become a member of the North Carolina Justice Credit Union. This happens if the credit union has served the state for at least one year.
All member of the credit union must be registered members. Non-registration of any individual results in the organization being deemed illegal. Any action taken by the members of the credit union in such a case is deemed illegal as well. It is also possible for a credit union to be nationalized as long as it has been approved by the United States Federal Trade Commission.
Any association which has its operations in another state or in another country other than North Carolina is regarded as a separate entity from the credit union itself. Such an association has to register itself under the laws followed in its own state. In case of any conflict between the creditors of the credit union in one state and in another state, the laws followed in the second state to have more power. Every such instance is referred to arbitration.
Any credit union needs to be in good standing with the Better Business Bureau to be considered genuine. Not only does this make clear to the debtor that the organization is doing business lawfully, but it also acts as a deterrent for those who wish to engage in fraudulent activities with the money belonging to its members. Credit unions are therefore a very important social service in North Carolina. The government is in constant touch with the credit union administration and helps them with suggestions and information required for smooth functioning. In case of any complaints regarding the conduct of the management of the organization, the government takes steps to have it rectified as soon as possible.