DIVISION 5. CREDIT UNIONS [14000. - 16906.]
Division 5 repealed and added by Stats. 1979, Ch. 112.
§§ 14000–16906 · 329 sections
CHAPTER 1. General Provisions §§ 14000–14053 · 15 sections
ARTICLE 1. Definitions §§ 14000–14007 · 11 sections
- § 14000 This division shall be known as the “California Credit Union Law.”
- § 14001 The definitions given in this division govern the construction of this division unless the context otherwise requires.
- § 14001.1 This division is applicable to any person, other than a federal credit union engaging in the business of a credit union in this state. For purposes of this…
- § 14001.5 If and to the extent that any provision of this division is preempted by federal law, the provision shall not apply and shall not be enforced.
- § 14002 A credit union is a cooperative, organized for the purposes of promoting thrift and savings among its members, creating a source of credit for them at rates of…
- § 14002.5 (a) Except as provided in subdivision (b), all provisions of law applicable to nonprofit mutual benefit corporations generally (including, but not limited to,…
- § 14003 “Commissioner” means the Commissioner of Financial Protection and Innovation.
- § 14004 “Impaired capital” means that the losses or projected losses of a credit union are such that the book value of a member’s share is reduced below 100 percent of…
- § 14005 Unless otherwise defined in this division, “insolvent” means a credit union has ceased to pay its debts in the ordinary course of business, or cannot pay its…
- § 14006 “Credit manager” means a natural person approved by the board of directors and employed by a credit union to supervise the lending activities of the credit…
- § 14007 “Obligation” means any contractual obligation to the credit union for money borrowed or credit extended or guaranteed from its members, including, but not…
ARTICLE 2. General §§ 14050–14053 · 4 sections
- § 14050 The use by any person, other than those authorized by this division, of any name or title which contains the phrase “credit union,” is a misdemeanor. Nonprofit…
- § 14051 Any person who willfully and knowingly makes, circulates, or transmits to another or others any statement or rumor, written, printed or by word of mouth, which…
- § 14052 In addition to the powers enumerated in this division, every credit union has the general powers conferred upon corporations by the Nonprofit Mutual Benefit…
- § 14053 (a) For purposes of this section, the following definitions apply: (1) “Fee” means a nonsufficient funds fee or an overdraft fee. (2) “Nonsufficient funds fee”…
CHAPTER 2. Formation §§ 14100–14156 · 18 sections
ARTICLE 1. Incorporation and Bylaws §§ 14100–14103 · 11 sections
- § 14100 (a) Credit unions shall be incorporated under the Nonprofit Mutual Benefit Corporation Law of this state. (b) The Secretary of State shall not file the…
- § 14101 The articles of incorporation of every credit union shall set forth the following: (a) The name of the corporation, which shall include the phrase “credit…
- § 14101.2 (a) The articles shall be signed by each director named in the articles, acknowledged pursuant to Section 5030 of the Corporations Code and filed in the office…
- § 14101.4 (a) The provisions of Section 14101, except as provided in subdivision (b) of that section, shall not apply to a credit union organized prior to January 1,…
- § 14101.6 (a) Every credit union shall, within 90 days after the filing of its original articles and annually thereafter during the applicable filing period in each…
- § 14101.8 (a) No amendment of the articles of a credit union shall become effective unless the certificate of amendment or other instrument setting forth the amendment…
- § 14102 (a) Amendments to the articles of incorporation of any credit union may be adopted by resolution of the board of directors, which is also adopted by a vote of…
- § 14102.2 (a) No restated articles of a credit union shall become effective unless the certificate setting forth the restated articles, with the commissioner’s approval…
- § 14102.4 (a) No certificate of correction of a credit union shall become effective unless the certificate, with the commissioner’s approval endorsed thereon, is filed…
- § 14102.6 (a) No certificate of revocation by a credit union shall become effective unless the certificate, with the commissioner’s approval endorsed thereon, is filed…
- § 14103 The bylaws shall prescribe the manner in which the business of the credit union shall be conducted with reference to the following matters: (a) The purpose of…
ARTICLE 2. Certificate to Act as a Credit Union §§ 14150–14156 · 7 sections
- § 14150 No membership shares, certificates for funds or other securities shall be issued by any credit union until it has applied for and obtained from the…
- § 14151 Applications for a certificate to act as a credit union shall be made in writing to the commissioner, setting forth such information as the commissioner…
- § 14152 At the time of filing an application to operate as a credit union, the applicant shall pay to the commissioner a filing fee of five dollars ($5).
- § 14153 Upon the filing of the application for a certificate to act as a credit union, the commissioner shall examine the application together with the other papers…
- § 14154 If the commissioner determines that the applicant has satisfied the provisions of this division and does not find facts constituting reasons for denial as…
- § 14155 Upon reasonable notice and opportunity to be heard, the commissioner may deny the application for a certificate to act as a credit union or an expansion of the…
- § 14156 Each certificate issued under this division remains in full force and effect until surrendered and accepted by the commissioner, or until suspended or revoked…
CHAPTER 3. Administration and Powers of the Commissioner §§ 14200–14384 · 54 sections
ARTICLE 1. General §§ 14200–14212 · 13 sections
- § 14200 The powers of supervision and examination of all credit unions organized under the provisions of this division are vested in the commissioner.
- § 14200.1 There is in the Division of Financial Institutions of the Department of Financial Protection and Innovation the Office of Credit Unions. The Office of Credit…
- § 14200.2 The chief officer of the Office of Credit Unions is the Deputy Commissioner of the Office of Credit Unions. The Deputy Commissioner of the Office of Credit…
- § 14201 The commissioner may establish or waive such rules and regulations as may be reasonable or necessary to carry out the purposes and provisions of this division.
- § 14202 The commissioner may by regulation authorize credit unions organized under the provisions of this division to engage in any activity authorized by law or…
- § 14203 Upon request of the commissioner, a credit union shall furnish to the commissioner an authorization for examination of financial records of any capital funds,…
- § 14204 If the commissioner upon any examination, or from any report made to the commissioner, finds any credit union is violating the provisions of this division or…
- § 14205 The commissioner may, upon reasonable notice and opportunity to be heard, suspend or revoke any certificate if the commissioner finds that the credit union has…
- § 14207 In any proceeding under this law, the burden of proving an exemption or an exception from a definition is upon the person claiming it.
- § 14208 The commissioner may, after appropriate notice and opportunity for hearing, by order censure, or suspend for a period not exceeding 12 months, or bar from any…
- § 14209 (a) Whenever it appears to the commissioner that any person has engaged in or is about to engage in any acts or practices constituting a violation of any…
- § 14211 In determining for purposes of this division whether the capital of any credit union is adequate, the commissioner shall consider the following: (a) The nature…
- § 14212 (a) The commissioner, whenever in his or her opinion such action is necessary or appropriate to carry out his or her duties, may call a meeting of the board of…
ARTICLE 2. Examinations and Reports §§ 14250–14257 · 8 sections
- § 14250 (a) (1) The commissioner may at any time investigate into the affairs and examine the books, accounts, records, files, and any office within or outside of this…
- § 14251 The commissioner upon the written consent of any credit union officer or director may make any examination of the credit union in any regularly established…
- § 14252 (a) A credit union with total assets equal to or greater than ten million dollars ($10,000,000) shall, within 105 days after the end of each fiscal year or…
- § 14253 A credit union shall, when requested by the commissioner, submit its unaudited financial statements, prepared in accordance with generally accepted accounting…
- § 14254.5 (a) Except as provided in subdivisions (b) and (c), within 10 business days of opening, closing, or relocating a branch office, a credit union shall notify the…
- § 14255 Every credit union shall make other special reports to the commissioner as the commissioner may from time to time require. Such reports shall be in the form…
- § 14256 (a) If any credit union fails to file with the commissioner any report required by this division on or before the day designated for the filing of the report…
- § 14257 Investigation and examination reports prepared by the commissioner’s duly designated representatives shall not be public records. The reports may be disclosed…
ARTICLE 3. Enforcement §§ 14300–14319 · 20 sections
- § 14300 For purposes of this chapter, the following terms shall have the following meanings: (a) “Officer with a subject institution” means the position of director,…
- § 14301 Any requirement in this chapter for notice or hearing before the commissioner issues an order may be waived by the person to whom the order is issued.
- § 14302 (a) The commissioner may bring an action in the name of the people of this state in the superior court to enjoin any violation of, to enforce compliance with,…
- § 14303 (a) The commissioner may, without any prior notice or hearing, order a person to cease and desist from violating Section 14150 if either of the following…
- § 14304 If, after notice and a hearing, the commissioner finds any of the factors set forth in subdivision (a) or (b) with respect to a subject institution or subject…
- § 14305 (a) If the commissioner finds that any of the factors set forth in Section 14304 is true with respect to a subject institution or subject person and that the…
- § 14306 An order issued pursuant to Sections 14303 to 14305, inclusive, may include any of the following provisions: (a) Require the subject institution or subject…
- § 14307 (a) If the commissioner finds that a subject institution’s books or records are so incomplete or inaccurate that the commissioner is unable through the normal…
- § 14308 If, after notice and a hearing, the commissioner finds that any of the factors set forth in subdivision (a), any of the factors set forth in subdivision (b),…
- § 14309 (a) If the commissioner finds that any of the factors set forth in subdivision (a) of Section 14308, any of the factors set forth in subdivision (b) of Section…
- § 14310 (a) If the commissioner finds that any of the factors set forth in paragraph (1) and the factor set forth in paragraph (2) are true with respect to a subject…
- § 14311 (a) Any subject institution, subject person of a subject institution, or former subject person of a subject institution to whom an order is issued under…
- § 14312 (a) For purposes of this section, “subject depository institution” means any of the following: (1) A credit union that is organized under the laws of this…
- § 14313 If the commissioner finds that any of the factors set forth in subdivisions (a) to (g), inclusive, are true with respect to a California credit union, the…
- § 14314 (a) If the commissioner takes possession of the property and business of a California credit union pursuant to Section 14313, the California credit union may,…
- § 14315 (a) On taking possession of the business and assets of any credit union as provided in this chapter, the commissioner may proceed to liquidate the credit union…
- § 14316 The commissioner shall supervise the acts of the liquidating agent or the liquidating committee appointed under this article and may remove the liquidating…
- § 14317 If required by the commissioner, the liquidating agent or the members of the liquidating committee appointed under this article shall provide proof of bond…
- § 14318 If the commissioner retains possession of the assets of a credit union for purposes of liquidation, the commissioner shall use the services of civil service…
- § 14319 In any case where the commissioner takes possession of a subject institution pursuant to this article without a prior notice or hearing, or takes action…
ARTICLE 4. Costs of Administration §§ 14350–14356 · 8 sections
- § 14350 The commissioner shall annually levy on and collect from credit unions holding certificates authorizing them to act as credit unions, pro rata on the basis of…
- § 14351 (a) The amount of the annual assessment on any credit union holding a certificate authorizing it to act as a credit union shall be the greater of (1) two…
- § 14352 For purposes of the annual assessment, the total assets of a credit union holding a certificate authorizing it to act as a credit union shall be determined as…
- § 14353 (a) Whenever the commissioner levies an annual assessment on credit unions holding certificates authorizing them to act as credit unions, the commissioner…
- § 14353.5 Whenever the commissioner finds it necessary or advisable to make an extra examination of a credit union, the commissioner may charge the credit union a fee…
- § 14354 There is established the Credit Union Fund in the State Treasury.
- § 14355 All money received or collected by the commissioner under this division or any other law relating to credit unions or the credit union business shall be paid…
- § 14356 All expenses of the department in administering this division and other laws relating to credit unions or the credit union business shall be paid out of the…
ARTICLE 5. Credit Union Advisory Committee §§ 14380–14384 · 5 sections
- § 14380 There is established in the department a Credit Union Advisory Committee.
- § 14381 The Credit Union Advisory Committee shall advise the commissioner and the Deputy Commissioner of Financial Protection and Innovation for the Office of Credit…
- § 14382 (a) The Credit Union Advisory Committee consists of seven members. (b) The members of the Credit Union Advisory Committee shall be appointed by the Secretary…
- § 14383 The Credit Union Advisory Committee shall meet at least once each calendar quarter.
- § 14384 The commissioner may by order or regulation prescribe rules governing the Credit Union Advisory Committee and its members, including such matters as meetings,…
CHAPTER 4. Management and Operations §§ 14400–14768 · 68 sections
ARTICLE 1. General §§ 14400–14410 · 12 sections
- § 14400 (a) The equity capital of the credit union shall consist of the credit union’s regular reserve account, the undivided earnings account, any appropriated…
- § 14401 A credit union may borrow money from any source in an aggregate amount not to exceed 50 percent of the paid-in and unimpaired capital and surplus of the credit…
- § 14402 Every credit union may purchase and hold, either individually or jointly with other credit unions or affiliated organizations, a lot and building to be…
- § 14403 Every credit union may purchase and hold, either individually or jointly with other credit unions or affiliated organizations, furniture, fixtures, vaults, and…
- § 14404 A credit union shall not invest more than the amounts permitted pursuant to regulations which shall be promulgated by the commissioner for the investments set…
- § 14405 Every credit union may: (a) (1) Become a member of any organization or organizations composed of credit unions, credit associations, chambers of commerce,…
- § 14406 The savings capital, as defined in Section 14400, undivided profits, and reserve funds of a credit union shall be deposited only in the following: (a)…
- § 14407 (a) Whenever the losses of any credit union resulting from a depreciation in the value of its securities or otherwise exceed its undivided earnings and reserve…
- § 14408 No credit union shall make any gift or donation having a value in excess of twenty-five thousand dollars ($25,000) unless the gift or donation is in the best…
- § 14409 (a) Every credit union shall obtain adequate bond or insurance coverage, for each director, officer, supervisory committee member, audit committee member, and…
- § 14409.2 (a) Notwithstanding the provisions of Sections 1051, 1052, and 1054 of the Labor Code and Section 2947 of the Penal Code, any credit union or officer or…
- § 14410 (a) (1) A member of the board of directors, supervisory committee, audit committee, or credit committee shall not receive compensation for that member’s…
ARTICLE 2. Directors §§ 14450–14456 · 7 sections
- § 14450 The credit union shall be directed by a board consisting of an odd number of directors, at least five in number, each of whom shall be a member of the credit…
- § 14451 Directors may be elected for a term of three years or less. If directors are elected for terms in excess of one year their terms of office shall be staggered…
- § 14452 The office of any director shall be declared vacant if such director is absent from three consecutive regular meetings of the board of directors unless excused…
- § 14452.5 A vacancy on the board of directors shall be filled in accordance with Section 7224 of the Corporations Code, subject to the following: (a) A vacancy that…
- § 14453 The board of directors of every credit union shall have the general management of the affairs, funds, and records of the credit union. The board shall meet on…
- § 14454 The directors shall hold a meeting of all directors within 10 days after the annual meeting of members pursuant to Section 14804 for the purpose of electing…
- § 14456 Unless the bylaws expressly reserve any or all of the following duties to the members, the directors have all of the following special duties: (a) (1) To act…
ARTICLE 3. Officers §§ 14500–14502 · 3 sections
- § 14500 (a) The officers of every credit union shall include a chairman or president, one or more vice chairmen or vice presidents, a secretary and a treasurer or…
- § 14501 If the bylaws so provide, the directors may elect the same person as secretary and treasurer or chief financial officer.
- § 14502 The powers and duties of the officers of any credit union required pursuant to subdivision (a) of Section 14500 are as prescribed in the bylaws.
ARTICLE 4. Supervisory Committee §§ 14550–14556 · 8 sections
- § 14550 Every credit union shall have a supervisory committee of at least three persons, provided that the number of members on the committee is an odd number, each of…
- § 14551 The supervisory committee may: (a) Suspend at any time by unanimous vote, at a meeting called for that purpose, the credit committee, or any member thereof, or…
- § 14551.5 The supervisory committee shall be responsible for reviewing the credit union’s policies and control procedures to safeguard against fraud and self-dealing,…
- § 14552 The supervisory committee shall, within seven days after suspension of any or all members of the credit committee, or any member of the board of directors, or…
- § 14553 (a) The supervisory committee shall at least once each year make or cause to be made an audit of the books and records and an examination of the business and…
- § 14554 No member of the supervisory committee shall serve as a member of the credit committee, as the credit manager, as a member of the board of directors, or as an…
- § 14555 The commissioner may, after investigation and finding that the supervisory committee is not performing in conformance with this article, declare all offices of…
- § 14556 (a) The board of directors may, by resolution, establish an audit committee in lieu of a supervisory committee. An audit committee that meets all the…
ARTICLE 5. Credit Committee and Loan Officers §§ 14600–14605 · 6 sections
- § 14600 Every credit union shall have a credit committee of at least three persons, each of whom shall be a member of the credit union, or in the alternative, a credit…
- § 14601 No member of the credit committee or the credit manager or any loan officer shall serve as a member of the supervisory committee.
- § 14602 (a) (1) No credit union shall create any obligation with a credit union member, without the written approval of a majority of all the members of the credit…
- § 14603 The credit committee, the credit manager, or a loan officer may approve in advance, upon their own motion or upon the application of any member, the extension…
- § 14604 A credit union member whose written application to enter into any obligation is denied, may appeal from the denial of the credit committee, the credit manager,…
- § 14605 A credit manager shall not disburse or have the authority to authorize any person to disburse the proceeds of any loan. A credit manager shall not authorize or…
ARTICLE 6. Investments §§ 14650–14659 · 10 sections
- § 14650 Subject to the limitations of Sections 14402, 14403, and 14404, any credit union or credit unions may purchase, acquire and hold outstanding shares of a…
- § 14651 (a) Every credit union may invest in the shares of stock of a corporation, or in membership or economic interests of a limited liability company, organized…
- § 14652 Every credit union may invest in securities and other assets described in Chapter 10 (commencing with Section 800) of Division 1 as legal investments for…
- § 14652.5 (a) A credit union may organize, sponsor, operate, control, or render investment advice to, an investment company, or underwrite, distribute, or sell…
- § 14653 Credit unions may invest in a trust organized solely for the purpose of investing in United States government securities and United States government agency…
- § 14653.5 Notwithstanding any other provision of law, a credit union may make any investment authorized by regulation or in writing by the commissioner.
- § 14654 Credit unions may purchase from the vendor or lessor of any personal property, conditional sale contracts or vehicle lease agreements covering the sale or…
- § 14656 A credit union may, in accordance with rules and regulations prescribed by the commissioner, purchase from any liquidating credit union notes made by…
- § 14657 (a) A credit union may invest in charitable donation accounts, or CDAs, in accordance with this section as a means of providing charitable contributions and…
- § 14659 (a) A credit union that is investing to fund an employee benefit plan obligation may purchase an investment that would otherwise be impermissible if the…
ARTICLE 7. Reserves §§ 14700–14703 · 4 sections
- § 14700 Every credit union shall create and maintain a regular reserve as specified by the commissioner.
- § 14701 Losses incurred by a credit union may be charged to its regular reserve as permitted by rule of the commissioner.
- § 14702 In addition to the regular reserve, special reserves shall be established when required by regulation or when found necessary by the board of directors of the…
- § 14703 A credit union shall establish and maintain an allowance-for-loan-losses account in accordance with generally accepted accounting principles. The commissioner…
ARTICLE 8. Penalties §§ 14750–14768 · 18 sections
- § 14750 Except as provided in Section 14950, any officer, director, member of a committee of a credit union, loan officer appointed pursuant to Section 14602, or…
- § 14751 Any officer, director, member of a committee, credit manager, or loan officer appointed pursuant to Section 14602 who violates Section 14750 is primarily…
- § 14752 Except as provided for in Section 14051 and this article, any person who willfully violates any provision of this division, or who willfully violates any rule…
- § 14753 Any director, officer, or employee of a credit union who asks for, receives, or agrees to receive any money, property, or thing of value for his personal…
- § 14754 Any director, officer, or employee of a credit union who knowingly overdraws his or her account with that credit union, except for any overdraft pursuant to an…
- § 14755 Any director, officer, agent, or employee of any credit union who knowingly receives or possesses the credit union’s property otherwise than in payment of a…
- § 14756 Any director, officer, agent, or employee of a credit union who (1) knowingly concurs in making or publishing any written report, exhibit, or statement of the…
- § 14758 Any director, officer, or employee of a credit union who makes or maintains, or attempts to make or maintain, a deposit of the credit union’s funds with any…
- § 14759 Any officer, director, employee, or agent of any credit union who willfully makes a false or untrue entry in any book, record, report, statement concerning the…
- § 14760 (a) Every director of a credit union is guilty of a misdemeanor who: (1) In case of the fraudulent insolvency of that credit union, has participated in the…
- § 14761 Any officer or agent of any credit union who makes or delivers any guaranty or endorsement on behalf of the credit union whereby the credit union may become…
- § 14762 A director of a credit union who concurs in any vote or act of the directors of the credit union by which it is intended to make a loan or discount to any…
- § 14763 Any officer or employee of any credit union who intentionally conceals from the directors of the credit union any discounts or loans made by the credit union…
- § 14764 No credit union shall purchase any real or personal property or any interest in real or personal property, including, but not limited to, a leasehold, or any…
- § 14765 (a) An officer, as described in Section 14500, a director, or an employee of a credit union shall not purchase, directly or indirectly, or be interested in the…
- § 14766 (a) An officer, as described in Section 14500, a director, or an employee of a credit union shall not purchase, directly or indirectly, or be interested in the…
- § 14767 It is unlawful for any person willfully to make any untrue statement of a material fact in any document filed with the commissioner under this division, or…
- § 14768 Any officer, director, employee, or agent of any credit union who abstracts or willfully misapplies any of the money, funds, or property of the credit union,…
CHAPTER 5. Members §§ 14800–14822 · 16 sections
- § 14800 (a) Every credit union may admit to membership those persons qualified for membership upon the occurrence of any of the following: (1) Upon the purchase of a…
- § 14800.1 (a) Notwithstanding subdivision (b) of Section 14800 or Section 14750, a credit union may do all of the following: (1) Provide the services specified in…
- § 14801 Every credit union may expel members as provided in Section 14456 of this division and Section 7341 of the Corporations Code.
- § 14802 Each member shall keep the credit union informed of his current address. In the event a member fails to do this, a charge may be made to the member’s share…
- § 14803 (a) No credit union shall pay any commission or compensation to any person for securing a new member or for getting an existing member to make an additional…
- § 14804 (a) (1) The members of a credit union shall hold an annual meeting for the election of all of the following: (A) Directors. (B) A supervisory committee, unless…
- § 14805 (a) Special meetings of members may be held upon order of the board of directors. Special meetings of members shall be held upon the written request of 10…
- § 14806 In credit unions formed on or after September 15, 1945, no member shall have more than one vote irrespective of the number of shares held by the member.
- § 14807 (a) A member may withdraw from membership in the credit union at any time. A withdrawing member may be required to give 60 days’ notice of intention to…
- § 14808 All amounts paid on shares or on certificates for funds of an expelled or withdrawn member, with any dividends or interest credited thereto to the date of…
- § 14809 Members who leave the field of membership may be permitted to retain their membership in the credit union unless otherwise provided in the credit union’s…
- § 14811 (a) A member who has no outstanding obligations with the credit union and whose share account is below the amount established by the bylaws may be transferred…
- § 14812 Unless otherwise provided in the bylaws, a quorum for a meeting of members shall be 10 percent of the members or 50 members, whichever is less.
- § 14820 (a) Any member of a credit union may authorize another person or persons to act by proxy with respect to such membership, subject to subdivision (e). Any proxy…
- § 14821 (a) Except for solicited proxies which on their face provide for a period of validity of three years from the date of execution of the proxy, any form of proxy…
- § 14822 Notwithstanding any other provision to the contrary, no member shall vote by proxy on any matter submitted by mail to all members of a credit union in a…
CHAPTER 6. Share Accounts and Certificates for Funds §§ 14850–14905 · 21 sections
ARTICLE 1. General §§ 14850–14870 · 17 sections
- § 14850 The Corporate Securities Law relating to the necessity of qualification of the sale of securities does not apply to the sale and issue of membership shares,…
- § 14851 (a) A credit union may issue shares as follows: (1) To a member qualified pursuant to the credit union’s bylaws. (2) To an officer, employee, or agent of…
- § 14852 Every credit union may charge a reasonable fee for the transfer of its shares.
- § 14853 A credit union may issue shares or certificates for funds to a minor of any age or maintain any other account authorized for credit union members for a minor,…
- § 14854 Subject to Section 14860, a credit union share account that is a multiple-party account, as defined in Section 5132 of the Probate Code, is governed by Part 2…
- § 14855 Every credit union may receive money and accumulate funds to be loaned and execute certificates for funds for the money received. The certificates for funds…
- § 14856 Every credit union may impress a lien upon the shares and dividends of any member to the extent of any obligations entered into with that member and for any…
- § 14857 Every credit union may cancel the shares of any member who withdraws or is expelled, and apply the value of the shares to the liquidation of the member’s…
- § 14858 Every credit union shall apply for and obtain insurance as provided for by Title II of the Federal Credit Union Act (12 U.S.C. Sec. 1781 and following), or…
- § 14860 Except as provided in this section and Part 2 (commencing with Section 5100) of Division 5 of the Probate Code, no credit union shall exercise trust powers…
- § 14861 No credit union shall issue shares to anyone not qualified for membership under its bylaws, except shares issued in coownership as provided in Section 14851.
- § 14863 (a) A credit union shall not impose any charge on a member or depositor holding a periodic certificate for funds for the failure of such member or depositor to…
- § 14865 Shares issued by a credit union to a member shall be evidenced in monetary amounts rather than by numbers of shares. The shares owned by a member also may be…
- § 14866 The evidence of credit union shares issued shall be a certificate, a passbook, a statement or other evidence approved by regulation of the commissioner. The…
- § 14867 (a) Shares, including special shares, and certificates for funds may be withdrawn for payment to the owner or for any third party, in the manner and in…
- § 14868 (a) As used in this section: (1) “Beneficiary” has the meaning given that term in Section 5126 of the Probate Code. (2) “Totten trust account” has the meaning…
- § 14870 (a) For purposes of this section, the following definitions apply: (1) “Nonqualifying account” means a deposit account, other than a demand deposit account,…
ARTICLE 2. Dividends §§ 14900–14905 · 4 sections
- § 14900 Dividends need not be paid on a share account having less than the minimum balance prescribed in the bylaws.
- § 14901 The rates of dividends and terms of payment may be established in advance by action of the board of directors. However, nothing in this section shall be…
- § 14902 The directors of any credit union may, for the dividend period, declare dividends from its undivided profits as provided by law, but no credit union shall…
- § 14905 Amounts paid or credited by a credit union to its members or depositors on or before the 30th day after the close of its income year shall be deemed for all…
CHAPTER 7. Loans §§ 14950–15103 · 17 sections
ARTICLE 1. General §§ 14950–14961 · 10 sections
- § 14950 (a) Every credit union may enter into obligations with its members upon the approval of the credit committee or, in the alternative, the credit manager,…
- § 14952 (a) The board of directors of a credit union shall establish the maximum amount that the credit union may lend to a member under 18 years of age in any case…
- § 14953 (a) Any extension of credit in excess of the unsecured loan limit set by the board of directors pursuant to Section 15100 shall be secured either (1) by real…
- § 14954 For the purposes of this chapter, a person who is not an applicant for an extension of credit or the creation of an obligation with the credit union but…
- § 14955 “Security” includes, but is not limited to, the following: (a) A note endorsed by any member of the credit union or by any other person. (b) Any obligation…
- § 14957 Whenever the directors, the credit committee, or if applicable, the credit manager, deem any loan unsafe, they may require additional security to be given by…
- § 14958 A credit union may participate in guaranteed loan programs of the federal or state governments, subject to the limitations on loans set forth in this division.
- § 14959 (a) A credit union may do either or both of the following: (1) Purchase, in whole or in part, from any source, loans made to its members. (2) Sell, in whole or…
- § 14960 (a) Any credit union that extends consumer credit to a covered borrower, as those terms are defined in Part 232 (commencing with Section 232.1) of Subchapter M…
- § 14961 Any licensee that violates any provision of any of the following federal acts or regulations violates this division: (a) The federal Real Estate Settlement…
ARTICLE 2. Maximum Charges and Fees § 15001 · 1 section
- § 15001 Every credit union may assess charges as approved by the board of directors for failure to meet punctually obligations to the credit union. Any late charge…
ARTICLE 3. Loans to Directors, Officers and Committee Members §§ 15050–15051 · 2 sections
- § 15050 (a) For purposes of this section: (1) “Credit manager” means any individual, regardless of title, designated pursuant to Section 14600 to fulfill the duties of…
- § 15051 The board of directors shall declare the office of any director, officer, committee member, or the credit manager vacant if the person fails to reduce any…
ARTICLE 4. Limitations §§ 15100–15103 · 4 sections
- § 15100 (a) The board of directors shall establish written policies which shall set forth the policies of the credit union with respect to any obligation that is…
- § 15101 Notwithstanding the provisions of Section 15100, if a loan is made for educational purposes and such loan would cause the aggregate of loans to an individual…
- § 15102 (a) Notwithstanding Section 726 of the Code of Civil Procedure or any other provision of law to the contrary, a credit union, an affiliate of a credit union, a…
- § 15103 A credit union, or the agent of a credit union, that has received a notice pursuant to Section 7507.6 of the Business and Professions Code, shall not make a…
CHAPTER 9. Merger, Dissolution and Conversion §§ 15200–15359 · 32 sections
ARTICLE 1. Merger §§ 15200–15204 · 5 sections
- § 15200 Any credit union may, with the approval of the commissioner, merge with another credit union or with a central credit union.
- § 15201 (a) The merger shall be made pursuant to any plan agreed upon by the majority of the board of directors of each credit union joining in the merger, and…
- § 15202 (a) After the requirement of approval as provided in Section 15201 is satisfied, each credit union shall execute a certificate of merger as an officers’…
- § 15203 Each certificate of merger called for in Section 15202 shall be filed in the office of the Secretary of State. After the filing in the office of the Secretary…
- § 15204 (a) Upon any merger effectuated as provided in this article, all property, property rights, and interests of the merged credit union shall vest in the…
ARTICLE 2. Dissolution §§ 15250–15260 · 10 sections
- § 15250 (a) Whenever the board of directors of a credit union recommends by a vote of a majority of all its members the dissolution of the credit union, the members of…
- § 15251 If the dissolution of the credit union is approved pursuant to subdivision (a) or (b) of Section 15250, the board of directors of the credit union shall elect…
- § 15252 Promptly thereafter the president or vice president and secretary or assistant secretary, or a majority of the committee or the liquidating agent in charge of…
- § 15253 After a vote to dissolve a credit union no business may be carried on by the credit union except in the proper course of liquidation.
- § 15254 The committee or the liquidating agent in charge of liquidation may sue in the name and on behalf of the credit union, and may sell or otherwise dispose of the…
- § 15255 After determining that all known debts and liabilities of the credit union have been paid or adequately provided for, the committee or the liquidating agent in…
- § 15257 When a credit union has completely wound up, all of its known debts and liabilities actually paid or adequately provided for or paid as far as its assets…
- § 15258 The certificate of dissolution shall be filed in the office of the Secretary of State and copies, certified by him, shall be filed in the office of the…
- § 15259 At any time during the liquidation process, the committee or the liquidating agent in charge of liquidation may be relieved of their duties at the discretion…
- § 15260 Where the commissioner finds that on the date of filing with the Secretary of State of the certificate of election to wind up and dissolve, the credit union…
ARTICLE 3. Conversion Into Federal Credit Unions §§ 15300–15306 · 7 sections
- § 15300 A credit union may convert itself into a federal credit union by following the procedure contained in this article.
- § 15301 Upon recommendation of the board of directors the members of any credit union may by an affirmative majority vote of such members resolve to convert such…
- § 15302 Within 10 days after the meeting or written vote at which the members determine to convert into a federal credit union, the credit union shall file with the…
- § 15303 A certified copy of the certificate required by Section 15302 filed in the office of the Secretary of State is presumptive evidence of the holding of the…
- § 15304 After the meeting or the written vote of the members, the credit union shall take such action as is necessary to make it a federal credit union, and within 10…
- § 15305 At the time the conversion into a federal credit union becomes effective, the credit union ceases to be supervised by this state and all of the property of the…
- § 15306 The converted federal credit union shall have, hold, and enjoy the property mentioned in Section 15305 in its own right as fully and to the same extent as the…
ARTICLE 4. Conversion of Federal Credit Union §§ 15350–15359 · 10 sections
- § 15350 Upon recommendation of its board of directors, any federal credit union may convert into a credit union under the laws of this state by complying with the…
- § 15351 The officers and directors of the federal credit union shall be the officers and directors of the credit union after conversion takes effect, to hold office…
- § 15352 The commissioner may conduct a joint audit of the federal credit union with federal auditors. Upon completion of such audit, he shall issue a certificate to…
- § 15353 Copies of the minutes of the proceedings of the meeting of the members or the written ballot and the record of written vote of the members in which they voted…
- § 15354 The verified copies of the minutes of the meeting or the record of written vote, when filed as required by Section 15353, are presumptive evidence of the…
- § 15355 After an affirmative vote as provided in Section 15350, the federal credit union shall take or cause to be taken such action in the manner prescribed and…
- § 15356 The directors of a credit union converted from a federal credit union may insert in the articles of incorporation the following statement: “This credit union…
- § 15357 Within 10 days after the filing of the articles of incorporation with the Secretary of State, there shall be filed, with the National Credit Union…
- § 15358 Upon the filing of the articles of incorporation with the Secretary of State and the issuance of a certificate by the commissioner authorizing the federal…
- § 15359 The converted credit union shall have, hold, and enjoy the property mentioned in Section 15358 in its own right as fully and to the same extent as the property…
CHAPTER 10. Central Credit Union §§ 15400–15451 · 3 sections
ARTICLE 1. Definition § 15400 · 1 section
- § 15400 “Central credit union” means a credit union whose membership includes, but is not limited to, other credit unions, members of credit unions, credit union…
ARTICLE 2. General §§ 15450–15451 · 2 sections
- § 15450 Central credit unions may be organized and operated under this division. Each such credit union shall use the word “central” in its official name.
- § 15451 (a) A central credit union may, with the approval of the commissioner and under such regulations as he shall prescribe, admit to membership groups of employees…
CHAPTER 11. Foreign (Other State) Credit Unions §§ 16000–16206 · 39 sections
ARTICLE 1. General Provisions §§ 16000–16013 · 14 sections
- § 16000 This chapter may be cited as the “Foreign (Other State) Credit Union Law.”
- § 16001 In this chapter: (a) “Branch business” means the business of issuing share accounts, certificates for funds, and share drafts, receiving deposits, paying…
- § 16002 Nothing in this chapter shall be deemed to authorize a foreign (other nation) credit union to transact business in this state.
- § 16003 No foreign (other state) credit union may establish or maintain a California branch office or California facility unless it is qualified to transact intrastate…
- § 16004 No foreign (other state) credit union may establish a California branch office or California facility unless its deposit or share accounts are insured by the…
- § 16005 Each application filed with the commissioner under this chapter or under any regulation or order issued under this chapter shall be in the form, shall contain…
- § 16006 Fees shall be paid to and collected by the commissioner as follows: (a) The fee for an application by a foreign (other state) credit union that is not licensed…
- § 16007 (a) Not less than 30 days before a foreign (other state) credit union establishes a California branch office or a California facility, the foreign (other…
- § 16008 In administering the provisions of this chapter, the commissioner may share information with federal and home state regulators of foreign (other state) credit…
- § 16009 A foreign (other state) credit union that is licensed to establish an office shall post at a conspicuous place at the office a notice to the public which…
- § 16010 No license shall be transferable or assignable.
- § 16011 Whenever a foreign (other state) credit union is licensed to establish more than one office, it shall designate one of its offices as its primary office.
- § 16012 Each foreign (other state) credit union that is licensed to establish an office shall conduct all of the business of the office in a single building or in…
- § 16013 Whenever any provision of this chapter or of any regulation or order issued under this chapter which is applicable to or with respect to a foreign (other…
ARTICLE 2. Establishment of a California Branch Office or California Facility §§ 16020–16024 · 5 sections
- § 16020 (a) Except for the activities described in paragraph (2) of subdivision (c) of Section 16001, no foreign (other state) credit union shall transact business in…
- § 16021 (a) No foreign (other state) credit union shall establish or maintain a California branch office unless the commissioner shall have first approved its…
- § 16022 (a) If the commissioner finds all of the following with respect to an application by a foreign (other state) credit union for approval to establish a…
- § 16023 The approval of an application for approval to establish a California branch office shall be revoked by operation of law if the applicant foreign (other state)…
- § 16024 (a) Within 30 days of establishing a California facility, a foreign (other state) credit union shall notify the commissioner in writing of its intent to…
ARTICLE 5. Relocation or Discontinuance of California Branch Office or California Facility §§ 16075–16077 · 3 sections
- § 16075 Within 10 days of relocating a California branch office or California facility, a foreign (other state) credit union shall file a report with the commissioner…
- § 16076 Not less than 30 days before a foreign (other state) credit union discontinues a California branch office or California facility, it shall file a report with…
- § 16077 Promptly after a foreign (other state) credit union relocates or discontinues a California branch office or California facility pursuant to this article, the…
ARTICLE 6. Conduct of Credit Union Business §§ 16100–16103 · 4 sections
- § 16100 (a) A foreign (other state) credit union that has a license to establish and maintain an office in this state may engage in activities at such office as may be…
- § 16101 (a) The following provisions of this division apply to a foreign (other state) credit union that maintains a California branch office or California facility…
- § 16102 (a) Any foreign (other state) credit union that is authorized to and does maintain a California branch office or California facility is exempted from the…
- § 16103 (a) A foreign (other state) credit union that is licensed to establish and maintain an office or offices in this state shall keep the assets of the offices…
ARTICLE 7. Examination, Reports, and Records §§ 16150–16154 · 5 sections
- § 16150 (a) The commissioner may at any time investigate into the affairs and examine the books, accounts, and other records of a foreign (other state) credit union…
- § 16151 The commissioner may make any examination of a foreign (other state) credit union at any office of the commissioner. The commissioner may make an examination…
- § 16152 (a) Each foreign (other state) credit union shall, within 10 days after receipt or within any extended time that the commissioner may specify, file with the…
- § 16153 A foreign (other state) credit union shall file with the commissioner any other report as the commissioner may from time to time require. Each report shall be…
- § 16154 A foreign (other state) credit union that maintains a California branch office or California facility, if required by the commissioner, shall make, keep, and…
ARTICLE 9. Enforcement §§ 16200–16206 · 8 sections
- § 16200 (a) The commissioner may bring an action in the name of the people of this state in the superior court to enjoin any violation of, to enforce compliance with,…
- § 16200.5 (a) If the commissioner finds that any person has violated, or that there is reasonable cause to believe that any person is about to violate, Section 16020,…
- § 16201 If, after notice and hearing, the commissioner finds that any person has violated any provision of this chapter or of any regulation or order issued under this…
- § 16202 If, after notice and hearing, the commissioner finds any of the following with respect to a foreign (other state) credit union that is licensed to maintain an…
- § 16203 (a) If the commissioner finds that any of the factors set forth in Section 16202 is true with respect to any foreign (other state) credit union that is…
- § 16204 Any foreign (other state) credit union whose license to maintain an office is suspended or revoked shall immediately surrender the license to the commissioner.
- § 16205 (a) Any foreign (other state) credit union to which an order is issued under Section 16202 or 16203 may apply to the commissioner to modify or rescind the…
- § 16206 (a) If the commissioner finds that any of the factors set forth in Section 16202 is true with respect to any foreign (other state) credit union which is…
CHAPTER 12. Foreign (Other Nation) Credit Unions §§ 16500–16906 · 46 sections
ARTICLE 1. General Provisions §§ 16500–16512 · 13 sections
- § 16500 This chapter may be cited as the “Foreign (Other Nation) Credit Union Law.”
- § 16501 In this chapter: (a) “Agency,” when used with respect to a foreign (other nation) credit union, means an office in this state at which the foreign (other…
- § 16502 Nothing in this chapter shall apply to a foreign (other state) state credit union or be deemed to authorize a foreign (other state) state credit union to…
- § 16503 No foreign (other nation) credit union may establish a branch office unless its deposit or share accounts are insured by the National Credit Union…
- § 16504 Each application filed with the commissioner under this chapter or under any regulation or order issued under this chapter shall be in the form, shall contain…
- § 16505 Fees shall be paid to and collected by the commissioner as follows: (a) The fee for filing with the commissioner an application by a foreign (other nation)…
- § 16506 (a) (1) No foreign (other nation) credit union shall be issued a license to maintain an office unless it shall have first filed with the commissioner, in the…
- § 16507 In administering the provisions of this chapter, the commissioner may share information with federal and home country regulators of foreign (other nation)…
- § 16508 No license shall be transferable or assignable.
- § 16509 A foreign (other nation) credit union that is licensed to establish an office shall post at a conspicuous place at the office a notice to the public which…
- § 16510 Whenever a foreign (other nation) credit union is licensed to establish more than one office, it shall designate one of its offices as its primary office.
- § 16511 Each foreign (other nation) credit union that is licensed to establish an office shall conduct all of the business of the office in a single building or in…
- § 16512 Whenever any provision of this chapter or of any regulation or order issued under this chapter that is applicable to or with respect to a foreign (other…
ARTICLE 2. Representative Offices §§ 16525–16530 · 6 sections
- § 16525 (a) No foreign (other nation) credit union shall establish or maintain an office in this state at which it engages in representational functions unless it is…
- § 16526 (a) No foreign (other nation) credit union shall establish or maintain a representative office unless the commissioner shall have first approved the…
- § 16527 (a) No foreign (other nation) credit union that is licensed to maintain a representative office shall relocate the office unless the commissioner shall have…
- § 16528 A foreign (other nation) credit union that is licensed to maintain a representative office may, subject to any regulations that the commissioner may prescribe,…
- § 16529 (a) (1) No foreign (other nation) credit union that is licensed to maintain a representative office shall close the office unless the commissioner shall have…
- § 16530 The approval of an application for approval to establish a representative office shall be revoked by operation of law if the applicant foreign (other nation)…
ARTICLE 3. Branch Offices and Agencies §§ 16550–16555 · 6 sections
- § 16550 (a) No foreign (other nation) credit union shall transact business in this state except at a branch office or agency that it is licensed to maintain and at…
- § 16551 No foreign (other nation) credit union shall be licensed to maintain a branch office or agency unless it is qualified to transact intrastate business in this…
- § 16552 (a) No foreign (other nation) credit union shall establish or maintain a branch office or agency unless the commissioner shall have first approved its…
- § 16553 The approval of an application for approval to establish a branch office or agency shall be revoked by operation of law if the applicant foreign (other nation)…
- § 16554 (a) No foreign (other nation) credit union which is licensed to maintain a branch office or agency shall relocate the office unless the commissioner shall have…
- § 16555 (a) (1) No foreign (other nation) credit union that is licensed to maintain a branch office or agency shall close the office unless the commissioner shall have…
ARTICLE 6. Conduct of Credit Union Business §§ 16600–16607 · 7 sections
- § 16600 (a) A foreign (other nation) credit union that has a license to establish and maintain an office may engage in activities at the office as may be authorized…
- § 16601 (a) A foreign (other nation) credit union may not expand its field of membership in this state without first obtaining the commissioner’s approval. (b) An…
- § 16602 (a) The following provisions of this code apply to a foreign (other nation) credit union that maintains a branch office or agency with respect to its business…
- § 16603 (a) Any foreign (other nation) credit union that is authorized to and does maintain a branch office or agency is exempted from the restrictions of Section 1 of…
- § 16604 (a) A foreign (other nation) credit union which is licensed to establish and maintain an office or offices shall keep the assets of the offices separate and…
- § 16605 (a) In this section: (1) “Adjusted liabilities,” when used with respect to a foreign (other nation) credit union, means the liabilities of the foreign (other…
- § 16607 (a) In this section: (1) “Adjusted liabilities,” when used with respect to a foreign (other nation) credit union that is licensed to maintain a branch office,…
ARTICLE 7. Examination, Reports, and Records §§ 16700–16704 · 5 sections
- § 16700 (a) The commissioner may at any time investigate into the affairs and examine the books, accounts, and other records of a foreign (other nation) credit union…
- § 16701 The commissioner may make an examination of a foreign (other nation) credit union at any office of the commissioner. The commissioner may make an examination…
- § 16702 (a) Each foreign (other nation) credit union shall, within 10 days after receipt or within any extended time that the commissioner may specify, file with the…
- § 16703 A foreign (other nation) credit union shall file with the commissioner any other report as the commissioner may from time to time require. Each report shall be…
- § 16704 Each foreign (other nation) credit union that maintains an office shall make, keep, and preserve at that office, or at any other place that the commissioner…
ARTICLE 8. Voluntary Surrender of License § 16800 · 1 section
- § 16800 (a) A foreign (other nation) credit union that is licensed to maintain an office may voluntarily surrender the license for the office by filing the license and…
ARTICLE 9. Enforcement §§ 16900–16906 · 8 sections
- § 16900 (a) The commissioner may bring an action in the name of the people of this state in the superior court to enjoin any violation of, to enforce compliance with,…
- § 16900.5 (a) If the commissioner finds that any person has violated, or that there is reasonable cause to believe that any person is about to violate, Section 16020,…
- § 16901 If, after notice and hearing, the commissioner finds that any person has violated any provision of this chapter or of any regulation or order issued under this…
- § 16902 If, after notice and hearing, the commissioner finds any of the following with respect to a foreign (other nation) credit union that is licensed to maintain an…
- § 16903 (a) If the commissioner finds that any of the factors set forth in Section 16902 is true with respect to any foreign (other nation) credit union that is…
- § 16904 Any foreign (other nation) credit union whose license to maintain an office is suspended or revoked shall immediately surrender the license to the commissioner.
- § 16905 (a) Any foreign (other nation) credit union to which an order is issued under Section 16902 and 16903 may apply to the commissioner to modify or rescind the…
- § 16906 (a) If the commissioner finds that any of the factors set forth in Section 16902 is true with respect to any foreign (other nation) credit union which is…