reglab/statecodes huggingface dataset:
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 3 - Administration and Powers of the Commissioner › ARTICLE 4 - Costs of Administration › Section 14351.

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 thousand dollars ($2,000) or (2) the sum of the products determined by multiplying (A) increments of the credit union’s total assets by (B) percentages of the base assessment rate, according to the following table:
Percentage of Base
Assessment Rate
Total Assets
$0–$3,000,000
85.0%
$3,000,000–$6,000,000
25.0%
$6,000,000–$10,000,000
13.0%
$10,000,000–$100,000,000
12.5%
$100,000,000–$500,000,000
12.25%
$500,000,000–$1,000,000,000
12.0%
$1,000,000,000–$2,000,000,000
11.5%
$2,000,000,000–$5,000,000,000
8.0%
$5,000,000,000–$10,000,000,000
3.5%
Excess over $10,000,000,000
3.0%
(b) The base assessment rate for each annual assessment shall be fixed by the commissioner but shall not exceed two dollars and twenty cents ($2.20) per one thousand dollars ($1,000) of total assets.
(Amended by Stats. 2013, Ch. 115, Sec. 1. (AB 1282) Effective January 1, 2014.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 3 - Administration and Powers of the Commissioner › ARTICLE 4 - Costs of Administration › Section 14352.

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 of a date fixed by the commissioner. However, if a credit union does not hold a certificate authorizing it to act as a credit union as of that date but does so as of the date when the annual assessment is levied, its total assets for purposes of the annual assessment shall be determined as of the date of the levy.
(Repealed (Jan. 1, 1999) and added by Stats. 1998, Ch. 539, Sec. 13. Effective January 1, 1999. Adding action operative July 1, 1999, by Sec. 47 of Ch. 539.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 3 - Administration and Powers of the Commissioner › ARTICLE 4 - Costs of Administration › Section 14353.

14353. (a) Whenever the commissioner levies an annual assessment on credit unions holding certificates authorizing them to act as credit unions, the commissioner shall promptly mail or otherwise deliver to each credit union assessed an invoice that shows (1) the amount of the credit union’s annual assessment and (2) the date when the annual assessment is due and payable.
(b) The annual assessment on a credit union holding a certificate authorizing it to act as a credit union becomes a liability of the credit union on the date on which the commissioner levies the annual assessment.
(c) If the annual assessment on a credit union holding a certificate authorizing it to act as a credit union is not paid on time, the commissioner shall be entitled to and may collect, in addition to the amount of the annual assessment, a penalty of 5 percent of the amount of the unpaid annual assessment for each month or part of a month that the payment is delinquent.
(Repealed (Jan. 1, 1999) and added by Stats. 1998, Ch. 539, Sec. 15. Effective January 1, 1999. Adding action operative July 1, 1999, by Sec. 47 of Ch. 539.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 3 - Administration and Powers of the Commissioner › ARTICLE 4 - Costs of Administration › Section 14353.5.

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 of seventy-five dollars ($75) per hour for each examiner engaged in the extra examination, and the credit union shall, within 10 days after the mailing or other delivery of a statement by the commissioner, pay the fee charged by the commissioner.
(Added by Stats. 1998, Ch. 539, Sec. 16. Effective January 1, 1999. Operative July 1, 1999, by Sec. 47 of Ch. 539.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 3 - Administration and Powers of the Commissioner › ARTICLE 4 - Costs of Administration › Section 14355.

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 at least once each week, accompanied by a detailed statement thereof, into the State Treasury to the credit of the Credit Union Fund.
(Added by renumbering Section 14354 (as amended by Stats. 1992, Ch. 427) by Stats. 1996, Ch. 1064, Sec. 575. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 3 - Administration and Powers of the Commissioner › ARTICLE 4 - Costs of Administration › Section 14356.

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 Credit Union Fund; and, except as otherwise provided in Section 413 or 414, the Credit Union Fund shall be used only for such purposes.
(Amended by Stats. 2014, Ch. 64, Sec. 17. (AB 2742) Effective January 1, 2015.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 3 - Administration and Powers of the Commissioner › ARTICLE 5 - Credit Union Advisory Committee › Section 14380.

14380. There is established in the department a Credit Union Advisory Committee.
(Added by Stats. 1996, Ch. 1064, Sec. 577. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 3 - Administration and Powers of the Commissioner › ARTICLE 5 - Credit Union Advisory Committee › Section 14381.

14381. The Credit Union Advisory Committee shall advise the commissioner and the Deputy Commissioner of Financial Protection and Innovation for the Office of Credit Unions on matters relating to credit unions or the credit union business.
(Amended by Stats. 2022, Ch. 452, Sec. 117. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 3 - Administration and Powers of the Commissioner › ARTICLE 5 - Credit Union Advisory Committee › Section 14382.

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 of Business, Consumer Services, and Housing.
(c) The term of a member of the Credit Union Advisory Committee is two years. However, a member may be reappointed.
(d) Membership in the Credit Union Advisory Committee is voluntary. No person is required to accept an appointment to the Credit Union Advisory Committee, and any member may resign by filing a resignation with the commissioner.
(e) No member of the Credit Union Advisory Committee shall receive any compensation, reimbursement for expenses, or other payment from the state in connection with service on the Credit Union Advisory Committee.
(Amended by Stats. 2014, Ch. 401, Sec. 30. (AB 2763) Effective January 1, 2015.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 3 - Administration and Powers of the Commissioner › ARTICLE 5 - Credit Union Advisory Committee › Section 14383.

14383. The Credit Union Advisory Committee shall meet at least once each calendar quarter.
(Added by Stats. 1996, Ch. 1064, Sec. 577. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 3 - Administration and Powers of the Commissioner › ARTICLE 5 - Credit Union Advisory Committee › Section 14384.

14384. The commissioner may by order or regulation prescribe rules governing the Credit Union Advisory Committee and its members, including such matters as meetings, quorum, and actions.
(Added by Stats. 1996, Ch. 1064, Sec. 577. Effective January 1, 1997. Operative July 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 1 - General › Section 14400.

14400. The equity capital of the credit union shall consist of the credit union’s regular reserve account, the undivided earnings account, any appropriated undivided earnings accounts, and other forms of capital approved by the commissioner.
(Amended by Stats. 2018, Ch. 267, Sec. 1. (AB 2862) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 1 - General › Section 14401.

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 union. Loans from the National Credit Union Central Liquidity Facility (12 U.S.C. Sec. 1795 et seq.) shall not be included in computing the aggregate borrowings of a credit union. For the purposes of this division, “certificate for funds” means borrowed money.
(Amended by Stats. 2004, Ch. 183, Sec. 107. Effective January 1, 2005.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 1 - General › Section 14402.

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 employed principally for the transaction of business, and to provide for future expansion of the facilities of those organizations. Any excess space that is not occupied by the organizations purchasing and holding the building may be leased to the public. The lot and building may be sold if all the holders of the property join in its sale.
(Amended by Stats. 2006, Ch. 538, Sec. 172. Effective January 1, 2007.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 1 - General › Section 14403.

14403. Every credit union may purchase and hold, either individually or jointly with other credit unions or affiliated organizations, furniture, fixtures, vaults, and other personal property necessary or proper to carry on its business, and to equip or furnish any space in any building purchased or held individually or jointly with other credit unions or affiliated organizations under authorization of Section 14402, whether occupied by the credit union or leased to the public. The personal property may be sold, if all the holders of the property join in its sale.
(Amended by Stats. 1979, Ch. 811.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 1 - General › Section 14404.

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 forth in Sections 14402, 14403, 14650 and 14651.
(Repealed and added by Stats. 1983, Ch. 743, Sec. 2. Operative July 1, 1984, by Sec. 11 of Ch. 743.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 1 - General › Section 14405.

14405. Every credit union may:
(a) (1) Become a member of any organization or organizations composed of credit unions, credit associations, chambers of commerce, financial institutions, community economic development entities, or business or trade organizations.
(2) Become a member of any nonprofit organization approved by the board of directors.
(b) Pay dues and assessments as may be levied upon it by any organization of which it is a member.
(Amended by Stats. 2007, Ch. 148, Sec. 2. Effective January 1, 2008.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 1 - General › Section 14406.

14406. The savings capital, undivided profits, and reserve funds of a credit union shall be deposited only in the following:
(a) Commercial banks or trust companies, incorporated under the laws of this state.
(b) National banks doing business in this state.
(c) Shares or periodic certificates for funds received by or any form of evidence of interest or indebtedness issued by any credit union organized under this division or by any other credit union if its member accounts are insured as provided for by Subchapter II of the Federal Credit Union Act (12 U.S.C. Sec. 1781 et seq.), or, alternatively, are insured by other means determined acceptable by the commissioner.
(d) Accounts with, investment certificates or withdrawable shares of, any savings and loan association doing business in this state that is an insured institution pursuant to the Federal Deposit Insurance Corporation Act (12 U.S.C. Sec. 1811 et seq.).
(Added by Stats. 2000, Ch. 529, Sec. 1. Effective January 1, 2001.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 1 - General › Section 14407.

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 fund so that the estimated value of its assets is less than the total amount due its shareholders, the credit union may, if approved by a majority of all members at a meeting called to consider the matter, order a reduction of the liability to each of its shareholders, so as to divide the loss equitably among the shareholders. If thereafter the credit union realizes from its assets a greater amount than was fixed in the order of reduction, the excess shall be divided among the shareholders whose assets were reduced, but to the extent of the reduction only.
(b) The commissioner may approve a reduction in the liability on shares approved by less than a majority of all members as provided in subdivision (a) if the commissioner finds, upon the written and verified application filed by the board of directors, that (1) notice of the meeting called to consider the question was mailed to each member entitled to vote upon the question, (2) the notice disclosed the purpose of the meeting and properly informed the membership that approval of the reduction in liability might be sought pursuant to this subdivision, and (3) that a majority of the votes cast upon the question were in favor of the reduction in liability.
(Amended by Stats. 1998, Ch. 539, Sec. 18. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 1 - General › Section 14408.

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 interest of the credit union, is approved by a resolution of the board of directors and is in conformance with any regulation or order that the commissioner may issue. The resolution of the board of directors approving the gift or donation shall identify the recipient of the gift or donation, state the value of the gift or donation, and specify the basis for the board’s determination that the gift or donation is in the best interests of the credit union. The board may establish a budget for gifts and donations and authorize appropriate officials of the credit union to select recipients and disburse budgeted funds among those recipients.
(Amended by Stats. 2007, Ch. 148, Sec. 3. Effective January 1, 2008.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 1 - General › Section 14409.

14409. (a) Every credit union shall obtain adequate bond or insurance coverage, for each director, officer, supervisory committee member, audit committee member, and credit committee member, for the credit manager, and for each employee.
(b) The commissioner may adopt regulations setting forth guidelines with respect to the minimum amount of the bond or insurance coverage deemed adequate. The regulations may be based upon the gross assets of the credit union and may contain a formula or schedule for the calculation of minimum bond or insurance coverage.
(Amended by Stats. 2021, Ch. 762, Sec. 2. (SB 269) Effective January 1, 2022.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 1 - General › Section 14409.2.

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 employee thereof may deliver fingerprints taken of an applicant for employment by the credit union to local, state, or federal law enforcement agencies for the purpose of obtaining information as to the existence and nature of a criminal record, if any, of the applicant relating to convictions, and to any arrest for which the applicant is released on bail or on his or her own recognizance pending trial, for the commission or attempted commission of a crime involving robbery, burglary, theft, embezzlement, fraud, forgery, bookmaking, receiving stolen property, counterfeiting, or involving checks or credit cards or using computers.
(b) The Department of Justice shall, pursuant to Section 11105 of the Penal Code, and a local agency may, pursuant to Section 13300 of the Penal Code, furnish to the officer of the credit union responsible for the final decision regarding employment of the applicant, or to his or her designees having responsibilities for personnel or security decisions in the usual scope and course of their employment with the credit union, summary criminal history information when requested pursuant to this section. If, upon evaluation of the criminal history information received pursuant to this section, the credit union determines that employment of the applicant would constitute an unreasonable risk to the credit union or its customers, the applicant may be denied employment.
(c) A request for records pursuant to this section made of the Department of Justice shall be on a form approved by the department. The department may charge a fee to be paid by the requesting credit union pursuant to subdivision (e) of Section 11105 of the Penal Code. No request shall be submitted without the written consent of the applicant.
(d) Any criminal history information obtained pursuant to this section is confidential and no recipient shall disclose its contents other than for the purpose for which it was acquired.
(Amended by Stats. 1982, Ch. 1203, Sec. 13. Effective September 22, 1982. Operative January 1, 1983, by Sec. 20 of Ch. 1203.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 1 - General › Section 14410.

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 services as a member of the board of directors, supervisory committee, audit committee, or credit committee, but the member may be provided with reasonable health, accident, and similar insurance.
(2) This subdivision does not prohibit a member of the board of directors, supervisory committee, audit committee, or credit committee from receiving nonmonetary compensation that is incidental to the person’s service as a member of the board of directors, supervisory committee, audit committee, or credit committee, if and as approved by regulation or order of the commissioner.
(b) Notwithstanding subdivision (a), a director or committee member may be reimbursed for actual expenses incurred in the performance of that person’s duties if reimbursement is made pursuant to the requirements of the commissioner’s regulations controlling expense reimbursement by the credit union. Reimbursement for actual expenses may include, among other things, travel expenses incurred on or relating to credit union businesses and any other matters, categories, or items of expense that the commissioner establishes by regulation.
(c) This section shall not prevent any person from receiving compensation for actual services as a general manager, credit manager, loan officer, or other position as an employee of the credit union.
(Amended by Stats. 2021, Ch. 762, Sec. 3. (SB 269) Effective January 1, 2022.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 2 - Directors › Section 14450.

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 union in his own right, to be elected by the members at their annual meeting.
(Amended by Stats. 1979, Ch. 811.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 2 - Directors › Section 14451.

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 so that insofar as possible an equal number of such terms shall expire each year.
(Repealed and added by Stats. 1979, Ch. 112.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 2 - Directors › Section 14452.5.

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 exists due to the expiration of the term of a director shall be filled only by the members of a credit union.
(b) If the board of directors elects a director to fill a vacancy, the director so elected shall hold office only until the next annual meeting at which time the members shall elect a director to hold office until the expiration of the term for which elected.
(c) If the members elect a director to fill a vacancy, the director so elected shall hold office until the expiration of the term for which elected.
(Added by Stats. 1998, Ch. 539, Sec. 22. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 2 - Directors › Section 14453.

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 a regular basis, not less than quarterly, as reasonably determined by the board. The board may appoint an executive committee of no fewer than three directors, to serve at its pleasure, to act as expressly approved by the board of directors in accordance with the laws and regulations.
(Amended by Stats. 2016, Ch. 353, Sec. 3. (AB 2274) Effective January 1, 2017.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 2 - Directors › Section 14454.

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 the officers of the credit union as prescribed in Sections 14500 and 14501.
(Amended by Stats. 1985, Ch. 951, Sec. 4.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 3 - Officers › Section 14500.

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 chief financial officer.
(b) The officers of any credit union may include other officers with titles and duties specified in the bylaws or determined by resolution of the board as may be necessary for the conduct of its affairs. The president, or if there is no president, the chairman of the board, is the general manager and chief executive officer of the credit union, unless otherwise provided in the bylaws.
(c) Except as otherwise provided in a credit union’s bylaws, officers, other than those officers elected pursuant to Section 14454 and required pursuant to subdivision (a), shall be chosen by the board and serve at the pleasure of the board, subject to the rights, if any, of an officer under any contract of employment. Any officer may resign at any time upon written notice to the corporation without prejudice to the rights, if any, of the corporation under any contract or obligation with the credit union to which the officer is a party. An officer other than those officers required pursuant to subdivision (a), may, but need not be, a director of the credit union.
(Amended by Stats. 1985, Ch. 951, Sec. 6.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 3 - Officers › Section 14502.

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.
(Amended by Stats. 1985, Ch. 951, Sec. 8.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 4 - Supervisory Committee › Section 14550.

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 whom shall be a member of the credit union and elected by the members of the credit union. In the alternative, the board of directors may establish an audit committee subject to the requirements of Section 14556.
(Amended by Stats. 2016, Ch. 353, Sec. 5. (AB 2274) Effective January 1, 2017.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 4 - Supervisory Committee › Section 14551.

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 the credit manager, or any member of the board of directors, or any officer.
(b) By a majority vote call a meeting of the members to consider any violation of this division or the bylaws, or any practices of the credit union which, in the opinion of the committee, are unsafe or unauthorized.
(c) Inspect the securities, cash, and accounts of the credit union.
(d) Fill vacancies in the supervisory committee until the next annual meeting of the members.
(e) Declare vacant any office of a member of the supervisory committee if such member is absent from three consecutive regular meetings of the supervisory committee unless excused therefrom or is completely inactive as a member of the supervisory committee for a consecutive 12 months’ period.
(Amended by Stats. 1996, Ch. 330, Sec. 1. Effective January 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 4 - Supervisory Committee › Section 14551.5.

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, and the supervisory committee shall exercise whatever efforts are necessary pursuant to Sections 14551 and 14553 to meet those responsibilities.
(Added by Stats. 1996, Ch. 330, Sec. 2. Effective January 1, 1997.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 4 - Supervisory Committee › Section 14552.

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 any other officer, cause notice of a special meeting to be given to the members to take such action regarding the suspension as the members deem necessary.
(Amended by Stats. 1985, Ch. 951, Sec. 9.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 4 - Supervisory Committee › Section 14553.

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 affairs of the credit union. The supervisory committee shall make a full report of the assets and liabilities, receipts and disbursements of the credit union to the board of directors. Those reports shall be presented at the annual meeting of members and filed with the records of the credit union.
(b) The supervisory committee may make or cause to be made any supplementary inspections of the securities, cash, and accounts of the credit union or audits as it deems necessary, and submit reports of those audits to the board of directors.
(Amended by Stats. 1998, Ch. 539, Sec. 23. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 4 - Supervisory Committee › Section 14554.

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 employee of the credit union.
(Amended by Stats. 1982, Ch. 691, Sec. 6.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 4 - Supervisory Committee › Section 14555.

14555. The commissioner may, after investigation and finding that the supervisory committee is not performing in conformance with this article, declare all offices of the supervisory committee of a credit union vacant and shall direct the board of directors of the credit union to call a special meeting of the members for the purpose of electing a new supervisory committee to serve until the next regular annual meeting.
(Amended by Stats. 1979, Ch. 811.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 4 - Supervisory Committee › Section 14556.

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 requirements of this section shall be deemed to satisfy the requirements for a supervisory committee set forth in Sections 14550 to 14555, inclusive, or in any applicable bylaw provision.
(b) The vote of the board of directors to establish an audit committee in lieu of a supervisory committee shall be affirmed by a majority vote of members voting. A membership vote may occur at any regular or special meeting of the members, or by written ballot subject to Section 7513 of the Corporations Code. Following the affirmative vote of the membership, the supervisory committee shall be deemed dissolved upon the appointment of an audit committee and the adoption of appropriate amendments to the credit union bylaws, consistent with subdivision (e) of Section 14103, by the board of directors.
(c) The audit committee shall consist of at least three persons, provided that it is an odd number, each of whom shall be a member of the credit union and appointed by a majority of the board of directors.
(1) Notwithstanding the limitations of subdivision (b) of Section 7212 of the Corporations Code, the audit committee may be composed of directors, or both directors and nondirectors, provided that no less than a majority of the members of the audit committee at any given time shall be composed of directors.
(2) A member of the audit committee shall not serve as a member of the credit committee, as the credit manager, as the board chairman, or as an employee of the credit union.
(3) An audit committee member may be appointed or removed by a majority vote of the board of directors and shall serve at the pleasure of the board. The removal of an audit committee member who is also a director of the credit union, for any reason, shall not impact their status as a director.
(4) The commissioner, after investigation and finding that the audit committee is not performing in conformance with this article, may direct the board to replace any or all audit committee members.
(d) The audit committee shall carry out the responsibilities set forth in subdivisions (a) to (c), inclusive, of Section 14551 and Sections 14551.5, 14552, and 14553 and shall:
(1) Ensure that the credit union complies with Section 14252.
(2) Ensure that the credit union maintains an effective internal audit program, including a system of internal controls and individuals with sufficient training and experience to adequately and timely review all key areas of a credit union’s operations.
(e) The board of directors may, by subsequent resolution, reestablish a supervisory committee in lieu of an audit committee, which shall be affirmed by membership vote. The audit committee shall be deemed dissolved upon the election of a supervisory committee by the membership.
(Amended by Stats. 2021, Ch. 762, Sec. 5. (SB 269) Effective January 1, 2022.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 5 - Credit Committee and Loan Officers › Section 14600.

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 manager, to have general supervision of all obligations of members. The bylaws of the credit union shall provide that either: (1) the members of the credit committee shall be elected by the members of the credit union at their annual meeting, or (2) they shall be appointed by the board of directors, or (3) that the board of directors may establish the position of credit manager in lieu of a credit committee. The bylaws of the credit union shall provide for the terms of office of the credit committee, where the credit committee has been provided for in the bylaws, which shall not exceed three years, and which may be staggered.
(Amended by Stats. 1984, Ch. 789, Sec. 3.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 5 - Credit Committee and Loan Officers › Section 14601.

14601. No member of the credit committee or the credit manager or any loan officer shall serve as a member of the supervisory committee.
(Amended by Stats. 1998, Ch. 539, Sec. 24. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 5 - Credit Committee and Loan Officers › Section 14602.

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 committee, the credit manager, or a loan officer appointed as provided in this section.
(2) Paragraph (1) does not apply to the creation of an obligation in accordance with a credit scoring program, preapproval credit program, or similar program, if the program was adopted by the board of directors, credit committee, or credit manager and complies with a written lending policy on programs of that type established by the board of directors in accordance with Section 15100.
(b) The credit committee or the credit manager may, with the approval of the board of directors, appoint one or more loan officers who shall be authorized to approve obligations with credit union members.
(c) Neither the credit committee, a credit manager, or any loan officer shall have the power to approve membership applications.
(d) No loan officers shall be permitted to approve any extension agreement of any obligation or the refinancing of any obligation except as prescribed in regulations promulgated by the commissioner.
(e) The credit committee, or in the alternative, the credit manager shall be provided with a record of each obligation approved or not approved by any loan officer, within 30 days of the approval or disapproval.
(Amended by Stats. 1998, Ch. 539, Sec. 25. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 5 - Credit Committee and Loan Officers › Section 14603.

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 of credit to any member and loans may be granted to such member within the limit of such extension of credit authorized by the board of directors pursuant to Section 15100. Where an extension of credit has been approved, applications for any extension of credit need not be approved by the credit committee, the credit manager, or loan officer as long as the aggregate amount of such obligations does not exceed the limit of such extension of credit authorized by the board of directors pursuant to Section 15100. The credit committee, the credit manager, or loan officer shall review, from time to time, all extensions of credit approved by them and any extension of credit approved for any member shall expire if such member becomes ineligible for a loan or becomes more than 90 days delinquent in his obligations to the credit union.
(Amended by Stats. 1984, Ch. 209, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 5 - Credit Committee and Loan Officers › Section 14604.

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, or loan officer to the board of directors.
(Amended by Stats. 1984, Ch. 789, Sec. 5.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 5 - Credit Committee and Loan Officers › Section 14605.

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 make loans to other credit unions.
(Added by Stats. 1982, Ch. 691, Sec. 12.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 6 - Investments › Section 14650.

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 corporation engaged exclusively in holding property of the character described in Section 14402 and which property is or is to be used for the purposes set forth in Section 14402. The purchase or acquisition of stock of any such corporation shall be approved by two-thirds of all the directors of such credit union or credit unions.
(Added by Stats. 1979, Ch. 112.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 6 - Investments › Section 14651.

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 solely for the purpose of providing services to credit unions, provided the corporation or limited liability company is formed by a credit union or group of credit unions.
(b) Every credit union may invest in the securities of a corporation or in membership or economic interests of a limited liability company that is not a corporation or limited liability company of the type described in subdivision (a) and that provides services to credit unions, provided the investment is approved by the commissioner.
(Amended by Stats. 1998, Ch. 539, Sec. 25.3. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 6 - Investments › Section 14652.

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 nonbank licensees.
(Amended by Stats. 2011, Ch. 243, Sec. 16. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 6 - Investments › Section 14652.5.

14652.5. A credit union may organize, sponsor, operate, control, or render investment advice to, an investment company, or underwrite, distribute, or sell securities of any investment company which has qualified to sell its securities in this state pursuant to Part 2 (commencing with Section 25100) of Division 1 of Title 4 of the Corporations Code, if the officers and employees of the credit union who sell these securities meet such standards with respect to training, experience, and sales practices as established by the Secretary of Business, Consumer Services, and Housing or the secretary’s designee. For the purpose of this section, “investment company” means an investment company as defined in the Investment Company Act of 1940 (15 U.S.C., Sec. 80a-1 et seq.).
(Amended by Stats. 2014, Ch. 401, Sec. 31. (AB 2763) Effective January 1, 2015.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 6 - Investments › Section 14653.

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 securities, provided the trust is formed by an organization composed of credit unions or an organization of credit union associations.
(Amended by Stats. 1998, Ch. 539, Sec. 26. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 6 - Investments › Section 14653.5.

14653.5. Notwithstanding any other provision of law, a credit union may make any investment authorized by regulation or in writing by the commissioner.
(Added by Stats. 1985, Ch. 951, Sec. 10.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 6 - Investments › Section 14654.

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 lease of that property or vehicle to its members. The credit union may hold and retain any such conditional sale contract or vehicle lease agreement as an investment.
(Amended by Stats. 1982, Ch. 1570, Sec. 4.5.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 6 - Investments › Section 14656.

14656. A credit union may, in accordance with rules and regulations prescribed by the commissioner, purchase from any liquidating credit union notes made by individual members of such liquidating credit union, at such prices and under such terms as may be agreed upon by the board of directors of the purchasing credit union and the board of directors, or liquidating agent, of the liquidating credit union.
(Added by Stats. 1979, Ch. 112.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 6 - Investments › Section 14659.

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 investment is directly related to the credit union’s obligation or potential obligation under the employee benefit plan and the credit union holds the investment only for as long as it has an actual or potential obligation under the employee benefit plan.
(b)  For purposes of this section, specific authorization pursuant to Section 14653.5 is not required.
(Added by Stats. 2018, Ch. 267, Sec. 4. (AB 2862) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 7 - Reserves › Section 14702.

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 credit union or by the commissioner.
(Amended by Stats. 1980, Ch. 1097, Sec. 6.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 7 - Reserves › Section 14703.

14703. A credit union shall establish and maintain an allowance-for-loan-losses account in accordance with generally accepted accounting principles. The commissioner may order the credit union to increase the amount of its allowance-for-loan-losses account if the commissioner finds that the amount of the account is not adequate.
(Amended by Stats. 2004, Ch. 324, Sec. 2. Effective January 1, 2005.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 8 - Penalties › Section 14750.

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 employee who knowingly permits the creation of an obligation with, or participates in the creation of an obligation with, a nonmember of the credit union, or knowingly permits the creation of an obligation or participates in the creation of an obligation which is not made in conformity with the requirements of this division, is guilty of a misdemeanor.
(Amended by Stats. 2007, Ch. 148, Sec. 6. Effective January 1, 2008.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 8 - Penalties › Section 14751.

14751. Any officer, director, member of a committee, credit manager, or loan officer appointed pursuant to Section 14602 who violates Section 14750 is primarily liable to the credit union for the amount of any obligation that was created in violation of Section 14750. The illegality of the creation of the obligation is no defense in an action by the credit union to recover any amounts owing as a result of any obligation created in violation of Section 14750.
(Amended by Stats. 1984, Ch. 789, Sec. 7.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 8 - Penalties › Section 14752.

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 or order issued pursuant to this division, shall upon conviction be fined not more than ten thousand dollars ($10,000) or imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or in a county jail for not more than one year, or be punished by both that fine and imprisonment, but no person may be imprisoned for the violation of any rule or order unless he or she had knowledge of the rule or order. Conviction under this section shall not bar the exercise of the administrative authority of the commissioner provided in Section 14208.
(Amended by Stats. 2011, Ch. 15, Sec. 108. (AB 109) Effective April 4, 2011. Operative October 1, 2011, by Sec. 636 of Ch. 15, as amended by Stats. 2011, Ch. 39, Sec. 68.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 8 - Penalties › Section 14753.

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 benefit or advantage for (a) procuring or attempting to procure for any person any loan from that credit union, (b) for the purchase or discount of any note, draft, check, bill of exchange, or other obligation by that credit union, or (c) for permitting any person to overdraw any account with that credit union, is guilty of a felony.
(Added by Stats. 1986, Ch. 673, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 8 - Penalties › Section 14754.

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 agreement which is approved in advance as provided in Section 14603 and which is in conformity with Section 15050, is guilty of a felony.
(Added by Stats. 1986, Ch. 673, Sec. 3.)