The materials included for review encompass basic information about credit unions and fundamentals for chartering a Tennessee state-chartered credit union. These are some of the most frequently asked questions about credit union organization. A Credit Union is a cooperative corporation organized for the purpose of promoting thrift among its members and creating a source of credit for them at legal rates of interest for provident purposes. Certificates of Approval are issued by the Commissioner of Financial Institutions. The Commissioner shall approve the Certificate of Charter if satisfied that the proposed field of operation is favorable to the success of such corporation and the standing of the proposed incorporators is such as to give assurance the affairs will be properly administered.
Capital is raised by the members making deposits into the credit unions.
Savings in a credit union are referred to as shares. A member must have at least a full share to be eligible for benefits and to vote. A charge is made by the Department of Financial Institutions based on June 30 assets. The powers of a credit union are only those specifically enumerated in the Credit Union Laws and Bylaws approved by the Commissioner. Each credit union must have a Board of Directors of at least five members elected from their own group.