Article 2. Certificate To Act As A Credit Union of California Financial Code >> Division 5. >> Chapter 2. >> Article 2.
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 commissioner a certificate authorizing it
to act as a credit union.
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 requires. The application shall be
verified by one or more officers of the credit union authorized by
its board of directors.
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).
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 and documents filed therewith. The
commissioner may make any further investigation of the applicant and
its affairs that he deems advisable.
If the commissioner determines that the applicant has
satisfied the provisions of this division and does not find facts
constituting reasons for denial as specified in Section 14155, the
commissioner shall issue and deliver a certificate to the applicant
to engage in business in accordance with the provisions of this
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 field of membership of an
existing credit union for any of the following reasons:
(a) The field of membership of the applicant is contrary to the
principles of organizing credit unions, including principles of
organizing credit unions based on common bond of occupation,
association, or groups within a well-defined neighborhood, community
or rural district.
(b) A false statement of a material fact has been made in the
application for certificate.
(c) Any officer, director, or committee member of the applicant
has, within the last 10 years, been (1) convicted of or pleaded nolo
contendere to a crime, or (2) committed any act involving dishonesty,
fraud, or deceit, which crime or act is substantially related to the
qualifications, functions, or duties of a person engaged in business
in accordance with the provisions of this division.
(d) The applicant or any officer, director, or committee member of
the applicant has violated any provision of this division or the
rules thereunder or any similar regulatory scheme of a foreign
(e) The number of persons eligible for membership is less than
(f) The applicant's showing as to the economic feasibility of the
proposed credit union is inadequate. Notwithstanding anything to the
contrary, nothing shall prohibit a credit union from admitting to
membership any corporation formed to provide services to credit
unions or to credit union members in which the credit union holds
shares pursuant to Sections 14650 and 14651 and any limited liability
company formed to provide services to credit unions or to credit
union members in which the credit union holds membership or economic
interests pursuant to Section 14651.
Each certificate issued under this division remains in full
force and effect until surrendered and accepted by the commissioner,
or until suspended or revoked by the commissioner.