Unlocatable Members: Small Share Balances: How to Handle

PURPOSE: This rule gives the procedures for handling inactive accounts of unlocatable members (see sections 370.260.2. and 370.340, RSMo, for statutory requirements on expelling or withdrawing member accounts). (1) Where a member of a credit union cannot be located, and when no contact has been had with the member, and when the member has a small share balance with the credit union, even though the credit union may elect to group the small balances in a single account for bookkeeping purposes, as long as the credit union has not expelled that member pursuant to the provisions of section 370.340, RSMo, the shares remain the property of the member and dividends are to be credited to the account. (2) When nonlocatable members are expelled pursuant to state law, share balances in those members’ accounts shall be transferred to an unlocatable member accounts payable account and no further dividend shall be credited to these accounts; however, a record shall be maintained in the event the member later makes a claim upon the credit union for the member’s share balance, which shall be paid to the member. All credit unions are required to file an annual report and remit all unclaimed property to Missouri per Chapter 470, RSMo. (3) If the total of unlocated member shares exceeds ten percent (10%) of the regular reserve fund, the financial statement will be footnoted to show the entire amount of unlocated shares as a potential liability. (4) When unlocated member share accounts exist and they are grouped together into a single account for bookkeeping purposes, this account should be labeled Unlocatable Member Shares and it should be listed separately on the monthly financial statement, but combined with the regular share accounts on the annual report; and this account shall be credited with dividends each dividend period. (5) Attempts to locate members carried as unlocatable pursuant to this rule may be made by using a locator service under the provision of section 370.260.2., RSMo. AUTHORITY: section 370.100, RSMo Supp. 2011.* This rule originally filed as 4 CSR 100-2.090. Original rule filed Sept. 14, 1972, effective Sept. 24, 1972. Amended: Filed Dec. 15, 1975, effective Dec. 25, 1975. Emergency amendment filed Feb. 14, 1984, effective Feb. 24, 1984, expired June 23, 1984. Amended: Filed March 12, 1984, effective June 11, 1984. Amended: Filed May 4, 1987, effective July 23, 1987. Moved to 20 CSR 1100-2.090, effective Aug. 28, 2006. Amended: Filed May 14, 2012, effective Nov. 30, 2012. *Original authority: 370.100, RSMo 1939, amended 1945, 1945, 1949, 1959, 1967, 1972.