Note: This archive was produced by Heartland Credit Union Association before it merged with Cornerstone League and is intended for Kansas and Missouri credit unions.
Our compliance team, on behalf of our member credit unions, has requested legal opinions regarding the topics shown below.
To request a full opinion regarding a topic, please send us an email to compliance@cornerstoneleague.coop using the name of the topic in the subject line, or call 800-446-3620.
Kansas and Missouri - July 2019
This legal opinion provides recommendations regarding providing advance notice before closing an account and what to do if federal benefits are received after the account has been closed. There are two separate legal opinions, one for Kansas and one for Missouri.
Kansas and Missouri - Nov. 2022
Many issues can arise with joint accounts. This white paper addresses angles such as one account owner requesting to remove another, who can close the account, freeze the funds, place stop pays, request account information, perform various transactions, and more. There are two separate white papers -- one for Kansas and one for Missouri.
Kansas and Missouri - Aug. 2018
This memo addresses whether a credit union can photocopy a driver’s license. There are two separate memos, one for Kansas and one for Missouri.
Kansas and Missouri - Feb. 2020
This legal opinion is for federally-chartered credit unions and addresses reasons for expulsion, how a member may be expelled, and details regarding the process that must be followed. Recent Federal Credit Union Bylaw changes have been incorporated.
Kansas - March 2019
State-chartered versions address reasons for expulsion, how a member may be expelled, and details regarding the process that must be followed. A sample policy is included. Note: Missouri and Federal Charter versions are also available.
Missouri - Nov. 2020
State-chartered version addresses reasons for expulsion, how a member may be expelled, and details regarding the process that must be followed. A sample policy is included. Has been updated to include recent statutory changes. Note: Kansas and federal charter versions are also available.
Kansas and Missouri - May 2018
When a member presents a Power of Attorney, many questions can arise regarding the document itself, what an attorney in fact can do on behalf of the principal, how it can be revoked, when it terminates, etc. This legal opinion answers many of the questions credit unions have regarding Powers of Attorney. There are two separate legal opinions, one for Kansas and one for Missouri.
Kansas and Missouri - June 2019
Credit unions, and other financial institutions across the country, have
been the subject of class-action lawsuits relating to their practices
for charging overdraft and NSF fees. This white paper identifies
potential areas for concern, suggests what each credit union should
review, and the changes that should be considered to minimize risk.
Also, a portion of the white paper provides advice regarding how to
respond to the requests credit unions are receiving to forgive certain
fees. Information is not state-specific.
Kansas and Missouri - Dec. 2022
This white paper answers common questions regarding whether electronic copies of documents can be kept in the place of the originals. Citations are provided for resources available at both the state and federal levels. Prudent practices and angles that should be considered are included. There are two separate white papers – one for Kansas and one for Missouri.
Kansas and Missouri - Nov. 2019
This legal opinion provides an overview of the unclaimed property process, i.e., what it is, the difference between unclaimed and dormant/inactive, how best to handle, charging fees, sending statements, additional considerations for certificates and IRAs, how other state laws are involved, recovering funds, etc. There are two separate legal opinions, one for Kansas and one for Missouri.
Kansas and Missouri - Feb. 2021
This legal opinion provides guidance regarding a credit union’s ability to rely solely on account numbers when accepting Automated Clearing House (ACH) transfers. Some of the angles covered: whether or not the source of funds matters, specific information regarding tax refunds – both federal and state, how to handle misdirected or fraudulent deposits, offsets, closed accounts, and more. One legal opinion covers federal charters; and Kansas, and Missouri state-chartered credit unions.
Kansas and Missouri - Dec. 2018
This email provides guidance regarding situations where a member is depositing a check and the payee line is blank, e.g., whether the credit union should have the member write in their name on the payee line before depositing, deposit the item with the payee link blank or not accept the item at all. Information is not state-specific.
Kansas and Missouri - June 2019
This email provides guidance for situations where the endorsement area on the back of a check has certain language scratched out or the mobile deposit box is checked or was checked then scratched out. Information is not state-specific.
Kansas and Missouri - June 2019
This legal opinion provides information as to whether a credit union can: 1) refuse to accept e-checks entirely (a class of checks), or 2) reject them on an individual basis. Information is not state-specific.
Kansas and Missouri - March 2019
This legal opinion addresses participation, prohibitions, qualifications, rules notification, IRS reporting, and more. There are two separate legal opinions, one for Kansas and one for Missouri.
Kansas, and Missouri - Dec. 2021
This legal opinion provides an overview of the credit union’s right of set-off against a member’s shares on deposit. It discusses the right to set-off when a member defaults on loan payments and when a member’s account balance goes negative. Three separate legal opinions are available, one for Federal, one for Kansas, and one for Missouri.
Missouri - Aug. 2021
As a result of litigation involving a few Missouri credit unions, Missouri CEOs inquired as to the best practices for their institutions at the CEO Roundtable. This white paper discusses the Consumer Financial Protection Bureau‘s (CFPB’s) consent order against Navy Federal Credit Union and best practices under Missouri law regarding a credit union’s response to loan default, including repossession and disposition or sale of collateral.
Kansas and Missouri - Oct. 2018
Per this legal opinion, the credit union is liable for property taxes on repossessed vehicles. Information is included regarding how to minimize liability. There are two separate legal opinions, one for Kansas and one for Missouri.
Kansas and Missouri - Aug. 2021
A recent trend has emerged among consumer advocates seeking to challenge the accrual of prejudgment interest on defaulted loans. While this practice is relatively common, a new legal theory is gaining traction. This white paper seeks to strengthen awareness of this claim and likely areas of exposure while equipping credit unions to make informed decisions pertaining to the new risks. There are two separate white papers, one for Kansas and one for Missouri.
Kansas and Missouri - Dec. 2019
Can/should a credit union include the member/borrower’s name on a Right to Cure notice? Statutes that address content, model forms and the legal opinions we have regarding this topic do not specifically state to list the member’s name. Since there have many lawsuits regarding the Right to Cure process, credit unions are understandably extremely cautious about form content. This e-mail provides a recommendation and additional information. One email covers both Kansas and Missouri.
Kansas and Missouri - Sept. 2021
This legal opinion provides an overview of the Right to Cure Process. Information such as when a notice is required, who should receive it, timing, content, accepting partial payments, etc. There are two separate legal opinions, one for Kansas and one for Missouri.
Kansas and Missouri - Oct. 2020
This legal opinion provides guidance regarding a multitude of deceased member issues that can arise, such as various probate procedures, how to handle funds going into or out of the account (via ACH, wire transfer, and/or check), joint account owner considerations, transfers to payable on death (POD) beneficiaries, safe deposit box rentals, the credit union’s rights to set-off, Powers of Attorney, and more! There are two separate legal opinions, one for Kansas and one for Missouri.
Kansas and Missouri - July 2019
As a result of ongoing confusion regarding the Electronic Signatures in Global & National Commerce Act (E-SIGN Act), we requested a white paper regarding this topic that provides information regarding the following:
Missouri - Jan. 2020
Child Support Data Match became mandatory in Missouri on August 28, 2019. Credit unions are now wondering if they can charge a fee to place this type of lien on a member’s account. Our attorney does not recommend a credit union charge a fee for this type of lien. For additional information, please request a copy of the email. Note: This applies to Missouri only, as Kansas does not have this type of program in place.
Kansas and Missouri - Dec. 2018
This email addresses whether or not Individual Retirement Accounts (IRAs) and Health Savings Accounts (HSAs) are subject to, or exempt from, garnishment in both Missouri and Kansas.
Kansas - Oct. 2018, Missouri - Sept. 2018
This legal opinion outlines the procedures for responding to
garnishments on members’ accounts. There are two separate legal
opinions, one for Kansas and one for Missouri.
Kansas and Missouri - July 2018
This legal opinion answers questions credit unions have regarding
processing Internal Revenue Service (IRS) Levies such as which accounts
and funds are subject to a levy, how credit union liens are affected,
notification requirements, charging permissible fees, how to remit, and
more. One legal opinion covers both Kansas and Missouri.
Missouri - July 2021
This legal opinion provides a detailed overview of the state-specific
vehicle lien perfection process, issues that can arise, credit union
options, fees, bankruptcy concerns, and more. The Missouri version has
been updated to include recent statutory changes. Note: A Kansas
version is also available.
Kansas and Missouri
This legal opinion provides an overview of the credit union's right of
set-off against a member's shares on deposit. It discusses the right to
set-off when a member defaults on loan payments and when a member's
account balance goes negative. Three separate legal opinions are
available, one for Federal, one for Kansas, and one for Missouri.
Kansas and Missouri - Dec. 2022
Married couples often enter into joint loan agreements. This white paper addresses what happens to jointly-acquired debt when a couple divorces, e.g., are both parties still liable, who should get loan statements and Right-to-Cure Notices, liens on accounts going forward, titling issues, and more. There are two separate white papers – one for Kansas and one for Missouri.
Kansas and Missouri - May 2022
This legal opinion addresses the restrictions and limitations on certain loan fees, including application, origination, participation, third party, and other fees on various types of loans. Information regarding which fees must be included in the APR calculation, as well as whether up charging is permissible is also included. There are three separate legal opinions - one for Federal, one for Missouri, and one for Kansas.
Kansas and Missouri - Oct. 2018
There are many risks associated with lending to minors. This legal opinion answers many of the questions credit unions have regarding protecting the credit union’s rights and how to avoid pitfalls. There are two separate legal opinions, one for Kansas and one for Missouri.
Kansas and Missouri - Dec. 2021
This legal opinion covers general lending issues around interest rates, timing and amount of payments, and loan terms. Many topics are addressed, including the allowance of prepayments, the allowable length of a loan, and who should sign a security agreement. The opinion touches on personal as well as business loans. Three separate legal opinions are available, one for Federal, one for Kansas, and one for Missouri.
Kansas and Missouri - June 2018
This legal opinion covers whether a credit union is required to return a loan note marked paid and if this can be done electronically. One legal opinion covers both Kansas and Missouri.
Missouri - Aug. 2021, Kansas - Dec. 2021
This legal opinion provides an overview of a credit union’s ability to
collect a fee for allowing a member to defer monthly loan payments
(referred to as “skip a pay”) and includes detailed information
regarding the process that needs to be followed, etc. Three separate
legal opinions are available, one for Federal, one for Kansas, and one
for Missouri.
Kansas - Aug. 2019, Missouri - July 2021
This legal opinion provides a detailed overview of the state-specific vehicle lien perfection process, issues that can arise, credit union options, fees, bankruptcy concerns, and more. There are two separate legal opinions, one for Kansas and one for Missouri.
Kansas and Missouri - Feb. 2021
There is growing concern among credit unions about financial
institutions being the subject of class-action lawsuits involving
refunds for Guaranteed Asset Protection (GAP) waivers and other add-on
loan products, including credit life insurance, credit disability
insurance, mechanical breakdown coverage, and vehicle service
contracts.
This white paper provides information to help mitigate the risk of
litigation, reviews current class action lawsuits involving these
products, addresses federal legal issues, and relevant Kansas and
Missouri statutes and regulations.
Kansas and Missouri - Jan. 2020
This legal opinion addresses:
There are two separate legal opinions, one for Kansas and one for Missouri.
Kansas and Missouri - March 2019
This email provides limited guidance regarding disclosing member information to local law enforcement. One email covers both Kansas and Missouri.
Kansas and Missouri - Aug. 2020
This legal opinion provides a wealth of information regarding trust loans and accounts, such as terminology used, the two primary kinds, components, certifications, titling, TINs, issuing checks and/or debit cards, using a Power of Attorney, loans and credit cards, share insurance coverage, record retention, and frequently asked questions with answers. There are two separate legal opinions, one for Kansas and one for Missouri.