750 Ind. Admin. Code 3-1-3
Authority: IC 28-1-2-8
Affected: IC 28-7-1; IC 28-7-1-10
Sec. 3.
Any person, firm, corporation, or organization which becomes a member of a credit union contrary to the provisions of I.C. 28-7-1-10 or the by-laws of such credit union, as evidenced by the membership card or otherwise, shall be deemed by the Department to be an illegal member. The membership of any illegal member, as determined by the Department, shall be terminated and all such accounts shall be purged from the active share accounts of the credit union within the period of time specified in writing by the Department. Provided however, any loan agreement between a terminated member and the credit union shall be unaffected by such termination and, in the event that a loan involving an illegal member is secured by shares, the share account shall, to the extent encumbered by the loan, remain valid until unencumbered.
750 IAC 3-1-3