reglab/statecodes huggingface dataset:
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 8 - Penalties › Section 14755.

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 just demand with intent to defraud, omits to make or omits to cause to be made a full and true entry thereof in the credit union’s books and accounts, or concurs in omitting to make any material entry thereof, is guilty of a felony.
(Added by Stats. 1986, Ch. 673, Sec. 4.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 8 - Penalties › Section 14756.

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 credit union’s affairs or financial condition containing any material statement which is false, or (2) having the custody of the credit union’s books, willfully refuses or neglects to make any proper entry in those books as required by law, or (3) refuses to allow the books to be inspected or extracts to be taken therefrom by the commissioner or the commissioner’s deputies or examiners, is guilty of a felony.
(Added by Stats. 1986, Ch. 673, Sec. 5.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 8 - Penalties › Section 14758.

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 other person on the condition or with the understanding, whether express or implied, that the person receiving that deposit will make a loan or advance, directly or indirectly, to any director, officer, or employee of the credit union is guilty of a felony.
(Added by Stats. 1986, Ch. 673, Sec. 7.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 8 - Penalties › Section 14759.

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 business or affairs of the credit union, or statement of condition or in connection with any transaction of the credit union with intent to deceive any officer or director thereof, or with intent to deceive any agent or examiner, whether private or public, employed or lawfully appointed to examine into the credit union’s condition or to examine into any of the credit union’s affairs or transactions, or with intent to deceive any public officer, office, or board to which the credit union is required by law to report or which has authority by law to examine into the credit union’s affairs or transactions or to examine into any of the credit union’s affairs or transactions or who, with like intent, willfully omits to make a new entry of any matter particularly pertaining to the business, property, condition, affairs, transactions, assets, or accounts of the credit union in any book, record, report, or statement of the credit union, or who with like intent alters, abstracts, conceals, or destroys any book, record, report, or statement of the credit union made, written, or kept, or required to be made, written, or kept by him or her or under his or her direction, is guilty of a felony.
(Added by Stats. 1986, Ch. 673, Sec. 8.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 8 - Penalties › Section 14760.

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 fraud; or
(2) Willfully does any act in his or her capacity as director which is expressly forbidden by law or willfully omits to perform any duty imposed upon him or her as such a director by law.
(b) The insolvency of a credit union is deemed fraudulent for the purposes of this section, unless its affairs appear upon investigation to have been administered lawfully and with the same care and diligence that agents receiving a compensation for their services are bound to observe.
(Added by Stats. 1986, Ch. 673, Sec. 9.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 8 - Penalties › Section 14761.

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 liable upon any of the credit union’s discounted notes, bills, or obligations in a sum beyond the amount of loans and discounts which the credit union may lawfully make, is guilty of a misdemeanor.
(Added by Stats. 1986, Ch. 673, Sec. 10.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 8 - Penalties › Section 14762.

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 director of the credit union exceeding the amount allowed by law, is guilty of a misdemeanor.
(Added by Stats. 1986, Ch. 673, Sec. 11.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 8 - Penalties › Section 14763.

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 between the regular meetings of its board of directors, or intentionally conceals the purchase of any securities or the sale of the credit union’s securities during that period, or who knowingly fails to report to the board of directors when required to do so by law all discounts or loans made by the credit union and all securities purchased or sold by the credit union between the regular meetings of its board of directors, is guilty of a misdemeanor.
(Added by Stats. 1986, Ch. 673, Sec. 12.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 8 - Penalties › Section 14764.

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 contract arising from the sale of real or personal property or any note or bond in which any officer, director, or employee of the credit union is personally or financially interested, directly or indirectly, for that person’s own account or as the partner or agent of others, without first obtaining the written consent of the commissioner.
(Added by Stats. 1986, Ch. 673, Sec. 13.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 8 - Penalties › Section 14765.

14765. No officer, director, or employee of a credit union shall purchase, directly or indirectly, or be interested in the purchase of, any of the credit union’s assets for an amount less than the then current market value thereof. Every person violating this section shall be liable to the people of this state for each offense in the amount of twice the market value of the assets so purchased.
(Added by Stats. 1986, Ch. 673, Sec. 14.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 8 - Penalties › Section 14766.

14766. No officer, director, or employee of a credit union, directly or indirectly, shall purchase or be interested in the purchase of, any of the credit union’s obligations or assets for an amount less than the book value thereof, unless all the directors of the credit union previously approve the purchase by resolution and a copy of the resolution is delivered to the commissioner immediately after adoption. Every person violating this section shall be liable to the people of this state for each offense in the amount of twice the book value of the assets so purchased.
(Amended by Stats. 1998, Ch. 539, Sec. 29. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 8 - Penalties › Section 14767.

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 willfully to omit to state in any document any material fact which is required to be stated therein.
(Added by Stats. 1988, Ch. 651, Sec. 5.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 4 - Management and Operations › ARTICLE 8 - Penalties › Section 14768.

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, or willfully misapplies its credit, is guilty of a felony. Upon conviction, the court shall, in addition to any other punishment imposed, order the person to make full restitution to the credit union. Nothing in this section shall be deemed or construed to repeal, amend, or impair any existing provision of law prescribing a punishment for such an offense.
(Added by Stats. 1990, Ch. 947, Sec. 4.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 5 - Members › Section 14800.

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 membership in the credit union as provided in the credit union’s bylaws.
(2) Upon the payment of an entrance fee established from time to time by the board of directors.
(3) Upon the purchase of one or more shares in the credit union as provided in the credit union’s bylaws.
(b) No officer, director, committee member, or employee of any credit union shall approve a person for admission to membership or admit an applicant for membership in the credit union or extend any benefit or service of the credit union to any person, unless that person is admitted to membership in the credit union pursuant to subdivision (a).
(c) Nothing in subdivisions (a) and (b) shall be construed to limit the powers of a credit union to engage in joint service programs or business relationships for the benefit of their members where some incidental benefit may flow to third parties to the transaction or the authority for a credit union to engage in joint loan programs pursuant to Section 14959.
(d) Nothing in this section prohibits a credit union from admitting to membership a corporation in which the credit union holds shares pursuant to Section 14650 or a corporation formed to provide services to credit unions or to credit union members in which the credit union holds shares or a 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.
(Amended by Stats. 2000, Ch. 411, Sec. 3. Effective September 12, 2000.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 5 - Members › Section 14800.1.

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 paragraph (2) to a natural person within the field of membership, regardless of whether the person is admitted to membership, and charge a fee for the provision of those services, which fee shall not exceed the cost to provide those services.
(2) (A) Sell checks and other similar money transfer instruments, including international and domestic electronic fund transfers.
(B) Cash checks and other similar money transfer instruments and receive international and domestic electronic fund transfers.
(b) For purposes of this section, “checks” shall have the same meaning as set forth in subdivision (f) of Section 3104 of the Commercial Code.
(Added by Stats. 2012, Ch. 246, Sec. 1. (AB 2006) Effective January 1, 2013.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 5 - Members › Section 14802.

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 account for the actual cost of necessary locator service incurred in determining such an address; provided, however, that such charge shall not exceed five dollars ($5). Such charge shall be made only for amounts paid to a person or concern normally engaged in providing such service and shall be made against the account or accounts of any one member no more than once in any 12-month period.
(Repealed and added by Stats. 1979, Ch. 112.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 5 - Members › Section 14803.

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 deposit.
(b) Notwithstanding subdivision (a), a credit union may, pursuant to an incentive policy approved by the board of directors, offer and pay a reasonable incentive or inducement to (1) a nonmember for becoming a member of the credit union, (2) an existing member for depositing additional funds, and (3) an employee or member who assists in getting a nonmember to become a new member of the credit union or who assists in getting an existing member to make an additional deposit.
(c) Nothing in subdivision (a) limits a credit union from using growth in the number of members in the credit union as part of its compensation program for its employees.
(Amended by Stats. 1998, Ch. 539, Sec. 31. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 5 - Members › Section 14804.

14804. The members of a credit union shall hold an annual meeting for the election of: (a) directors; (b) a supervisory committee, unless the board of directors has appointed an audit committee pursuant to Section 14556; and (c) a credit committee, if provided for in its bylaws. The annual meeting shall be held upon such notice and at such time and place as the bylaws provide.
(Amended by Stats. 2016, Ch. 353, Sec. 7. (AB 2274) Effective January 1, 2017.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 5 - Members › Section 14805.

14805. 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 members or 3 percent of the membership, whichever is greater. Notice of special meetings shall be given to all members specifying the date, time, place, and purpose of the meeting.
(Amended by Stats. 1998, Ch. 539, Sec. 31.5. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 5 - Members › Section 14806.

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.
(Amended by Stats. 1998, Ch. 539, Sec. 32. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 5 - Members › Section 14807.

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 withdraw shares and 30 days’ notice of intention to withdraw certificates for funds, except when a different period of notice is required by the commissioner for the withdrawal of shares or share certificates that may be established by the board of directors.
(b) A member who fails to take steps necessary to be removed from inactive status pursuant to Section 14811 may be deemed to have voluntarily withdrawn from credit union membership.
(c) A member whose funds have been remitted to the Controller’s office for purposes of escheat consistent with Section 1513 of the Code of Civil Procedure shall be deemed to have voluntarily withdrawn from membership.
(Amended by Stats. 2021, Ch. 762, Sec. 7. (SB 269) Effective January 1, 2022.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 5 - Members › Section 14808.

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 withdrawal or expulsion, shall be paid to such members as funds become available, and after deducting all amounts due from the member to the credit union. Withdrawing or expelled members have no further rights in the credit union, but are not by expulsion or withdrawal released from any liability to the credit union or its creditors.
(Amended by Stats. 1983, Ch. 89, Sec. 7.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 5 - Members › Section 14811.

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 to inactive member status.
(b) An inactive member has no voting rights, has no right to notice of meetings of members, shall not be considered a member for purposes of determination of a quorum or a required vote and need not be sent the annual report or financial statements except upon request.
(c) When one or more of the conditions in subdivision (a) cease to be applicable, an inactive member may be transferred back to regular member status.
(d) (1) A member who remains on inactive status for a period of at least 90 days after written notice from the credit union may be deemed to have voluntarily withdrawn from credit union membership.
(2) The written notice referred to in paragraph (1) shall notify the member of, at a minimum, all of the following:
(A) That the member has been transferred to inactive status.
(B) The steps that the member may take to be transferred back to regular member status.
(C) That failure to take the steps necessary to be transferred back to regular member status within 90 days, or another period of time in excess of 90 days that the credit union specifies in its bylaws, will be deemed a voluntary withdrawal from credit union membership.
(Amended by Stats. 2021, Ch. 762, Sec. 8. (SB 269) Effective January 1, 2022.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 5 - Members › Section 14821.

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 or written ballot distributed to 10 or more members of a credit union shall afford an opportunity on the proxy or form of written ballot to specify at the time the written ballot or proxy is distributed, a choice between approval and disapproval of each matter or group of related matters intended to be acted upon at the meeting for which the proxy is solicited or by such written ballot, and shall provide, subject to reasonable specified conditions, that where the person solicited specifies a choice with respect to any such matter the vote shall be cast in accordance therewith.
(b) In any election of directors, any form of proxy or written ballot in which the directors to be voted upon are named therein as candidates and which is marked by a member “withhold” or otherwise marked in a manner indicating that the authority to vote for the election of directors is withheld, shall not be voted either for or against the election of a director.
(c) In the case of any solicited proxy which on its face provides for a period of validity of three years from the date of execution of the proxy, the credit union shall provide to the person executing the proxy a written notice at the time of solicitation and in each succeeding year of validity thereof, which shall advise the member of the nature of each matter or group of related matters on which the proxy may be voted. Notice pursuant to this subdivision may be sent with notice to the members of the date, time, and place of the annual meeting.
(d) Failure to comply with this section shall not invalidate any corporate action taken, but may be the basis for challenging any proxy at a meeting or written ballot and the superior court may compel compliance therewith at the suit of any member.
(Amended by Stats. 1987, Ch. 1045, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 5 - Members › Section 14822.

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 written ballot pursuant to Chapter 5 (commencing with Section 7510) of Part 3 of Division 2 of Title 1 of the Corporations Code, and the powers of any previously issued or outstanding valid, revocable proxy are suspended when any matter is submitted by mail to all members in a written ballot pursuant to Chapter 5 (commencing with Section 7510) of Part 3 of Division 2 of Title 1 of the Corporations Code.
(Added by Stats. 1984, Ch. 209, Sec. 7.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 6 - Share Accounts and Certificates for Funds › ARTICLE 1 - General › Section 14850.

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, certificates for funds, and other securities, by credit unions organized under this division or lawfully doing business in this state. No credit union lawfully doing business in this state shall be required to file a certificate for determination of preference with the office of the Secretary of State in connection with any share offering so long as it complies with all applicable provisions of this division and the rules of the commissioner.
(Amended by Stats. 1980, Ch. 321, Sec. 12.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 6 - Share Accounts and Certificates for Funds › ARTICLE 1 - General › Section 14851.

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 nonmember units of federal, Indian tribal, state, or local governments, and political subdivisions thereof, when acting in that officer’s, employee’s, or agent’s official capacity.
(3) To a member or nonmember state or federal credit union.
(4) (A) In coownership to a member and a person designated by the member.
(B) As used in this paragraph, coownership includes, but is not limited to, joint tenancy, tenancy in common, or community property forms of ownership.
(b) Membership privileges, including voting and obtaining a loan, may not be made available to a nonmember as a result of ownership of shares solely as a coowner of shares with a member. A certificate or other evidence of shares that is issued shall contain the words “No transfer of voting rights or other membership privilege is permitted by virtue of a transfer of shares.” Shares may be transferred to a public agency lawfully entitled to receive the shares when designated by a member as an assignee of an account pledged as a surety deposit to the public agency by the member.
(c) A credit union that has a low-income designation pursuant to Section 701.34 of the regulations of the National Credit Union Administration (12 C.F.R. Sec. 701.34) may issue shares to nonmembers. Except with the written approval of the commissioner, the total number of shares issued by the credit union to nonmembers pursuant to this subdivision shall not exceed 20 percent of the unimpaired capital and surplus of the credit union.
(Amended by Stats. 2021, Ch. 762, Sec. 9. (SB 269) Effective January 1, 2022.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 6 - Share Accounts and Certificates for Funds › ARTICLE 1 - General › Section 14853.

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, and receive payments thereon by or for the minor. The minor is entitled to withdraw, transfer, or pledge any shares or certificates or other moneys owned by him or her and to receive from the credit union all dividends, interest, or other money due thereon in the same manner and subject to the same conditions as an adult. The receipt or acquittance of a minor constitutes a valid release and discharge of the credit union for the payment of dividends, interest, or other money due to the minor.
(Amended by Stats. 1983, Ch. 6, Sec. 4.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 6 - Share Accounts and Certificates for Funds › ARTICLE 1 - General › Section 14854.

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 (commencing with Section 5100) of Division 5 of the Probate Code.
(Amended by Stats. 1990, Ch. 79, Sec. 9. Operative July 1, 1991, pursuant to Stats. 1990, Ch. 710, Sec. 46.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 6 - Share Accounts and Certificates for Funds › ARTICLE 1 - General › Section 14855.

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 shall specify the date, amount, rate of interest, and when the principal and interest are payable.
(Added by Stats. 1979, Ch. 112.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 6 - Share Accounts and Certificates for Funds › ARTICLE 1 - General › Section 14856.

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 dues or charges payable by that member.
(Amended by Stats. 1984, Ch. 789, Sec. 9.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 6 - Share Accounts and Certificates for Funds › ARTICLE 1 - General › Section 14857.

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 indebtedness to the credit union.
(Added by Stats. 1979, Ch. 112.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 6 - Share Accounts and Certificates for Funds › ARTICLE 1 - General › Section 14858.

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 other insurance or guaranty of shares that is not unsatisfactory to the commissioner. In seeking and retaining this insurance or guaranty, a credit union may do all things and assume and discharge all obligations required of it when not in conflict with the laws of this state.
(Amended by Stats. 1998, Ch. 539, Sec. 33. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 6 - Share Accounts and Certificates for Funds › ARTICLE 1 - General › Section 14860.

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 except upon qualifying as a trust company pursuant to Division 1 (commencing with Section 99).
(a) Notwithstanding any other law relating to trusts and trust authority, subject to the regulations of the commissioner, a credit union may act as a trustee or custodian, and may receive reasonable compensation for so acting, under any written trust instrument or custodial agreement created or organized in the United States which is a part of a pension, education, or medical plan for its members or groups or organizations of its members, which qualifies or has qualified for specific tax treatment under Section 220, 223, 401, 408, 408A, 457, or 530 of the Internal Revenue Code, Title 26 of the United States Code, or any deferred compensation plan for the benefit of the credit union’s employees, provided the funds received pursuant to these plans are invested as provided in Section 16040 of the Probate Code. All funds held by a credit union as trustee or in a custodial capacity shall be maintained in accordance with applicable laws and rules and regulations as may be promulgated by the Secretary of Labor, the Secretary of the Treasury, or any other authority exercising jurisdiction over the trust or custodial accounts. The credit union shall maintain individual records for each participant or beneficiary that show in detail all transactions relating to the funds of each participant or beneficiary.
The trust instrument or agreement shall provide for the appointment of a successor trustee or custodian by a person, committee, corporation, or organization other than the credit union or any person acting in his or her capacity as a director, employee, or agent of the credit union, upon notice from the credit union or the commissioner that the credit union is unwilling or unable to continue to act as trustee or custodian.
(b) Shares may be issued in a revocable or irrevocable trust subject to the following:
(1) When shares are issued in a revocable trust, the settlor shall be a member of the credit union issuing the shares in his or her own right. If the trust has joint settlors, who are spouses, then only one settlor need be a member of the credit union.
(2) When shares are issued in an irrevocable trust, the settlor or the beneficiary shall be a member of this credit union in his or her own right. For purposes of this section, shares issued pursuant to a pension plan authorized by this section shall be treated as an irrevocable trust unless otherwise indicated in rules and regulations issued by the commissioner.
(3) This subdivision does not apply to trust accounts established prior to the effective date of this subdivision.
(Amended by Stats. 2016, Ch. 50, Sec. 37. (SB 1005) Effective January 1, 2017.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 6 - Share Accounts and Certificates for Funds › ARTICLE 1 - General › Section 14861.

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.
(Amended by Stats. 1980, Ch. 52, Sec. 9.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 6 - Share Accounts and Certificates for Funds › ARTICLE 1 - General › Section 14863.

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 invest, or for the late investment of, any agreed periodic installment investment in such a periodic certificate for funds. A credit union shall pay interest on periodic certificates for funds at the same rate of interest per annum as is paid on certificates for funds as to which a member or depositor has not agreed to make periodic installment investments.
(b) As used in this section “periodic certificate for funds” means a certificate for funds under which a member or depositor undertakes to make periodic investments of a specified amount into one account, except, however, a periodic certificate for funds shall not mean an impound account established for the purpose of payment of taxes or other expenses and obligations in connection with a loan secured by real property.
(Added by Stats. 1979, Ch. 112.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 6 - Share Accounts and Certificates for Funds › ARTICLE 1 - General › Section 14865.

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 referred to as a “share account”. There shall be no limit to the amount of shares which a credit union may issue.
(Added by Stats. 1980, Ch. 321, Sec. 14.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 6 - Share Accounts and Certificates for Funds › ARTICLE 1 - General › Section 14866.

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 evidence of any credit union shares shall not constitute an “investment security” under Division 8 (commencing with Section 8101) of the Commercial Code.
(Amended by Stats. 1983, Ch. 89, Sec. 8.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 6 - Share Accounts and Certificates for Funds › ARTICLE 1 - General › Section 14867.

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 accordance with written procedures which shall be established by the board of directors.
(b) The board of directors may waive any requirement of notice of intent to withdraw or provide that there is no requirement of notice of intent to withdraw or to transfer funds, except when requirement of the notice is imposed by applicable law.
(c) Unless otherwise provided by written agreement of the parties, the rights, responsibilities, and liabilities of a person regarding an item withdrawn from a credit union, or transferred to a credit union or otherwise handled by a credit union are defined in and determined by the provisions of Division 3 (commencing with Section 3101) and Division 4 (commencing with Section 4101) of the Commercial Code, as if the credit union were a bank.
(Amended by Stats. 1984, Ch. 452, Sec. 4.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 6 - Share Accounts and Certificates for Funds › ARTICLE 1 - General › Section 14868.

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 given that term in Section 80 of the Probate Code.
(b) In the case of a Totten trust account, the deposit agreement shall indicate the current address of each beneficiary.
(Added by Stats. 1989, Ch. 397, Sec. 18. Operative July 1, 1990, by Sec. 42 of Ch. 397.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 6 - Share Accounts and Certificates for Funds › ARTICLE 1 - General › Section 14870.

14870. (a) For purposes of this section, the following definitions apply:
(1) “Nonqualifying account” means a deposit account, other than a demand deposit account, that is not a qualifying account.
(2) “Qualifying account” means a deposit account, other than a demand deposit account, through which a credit union’s depositors may obtain chances to win prizes in a savings promotion.
(3) “Savings promotion” means a contest or promotion to encourage savings deposits that is sponsored by one or more credit unions, or by a credit union trade association or its subsidiary in conjunction with one or more credit unions, and in which credit union depositors are offered a chance to win designated prizes.
(b) A credit union may sponsor or participate in a savings promotion if all of the following requirements are satisfied:
(1) Credit union depositors are not required to pay any fee or otherwise provide any consideration in order to enter the savings promotion.
(2) All material terms of, and fees charged by a credit union in connection with, a qualifying account are comparable to those of comparable nonqualifying accounts offered by the credit union.
(3) Each entry in the savings promotion has an equal chance of winning.
(4) Participants in the savings promotion are not required to be present at a prize drawing in order to win.
(c) For purposes of this section, a depositor’s deposit of at least a specified amount of money in a qualifying account, which is required in order to enter the savings promotion, is not consideration if the interest rate associated with the qualifying account is not reduced, as compared to comparable nonqualifying accounts offered by the credit union, to account for the possibility of winning a prize.
(d) A savings promotion offered by a credit union shall not be considered a lottery within the meaning of Section 319 or 319.3 of the Penal Code, or a raffle within the meaning of Section 320.5 of the Penal Code.
(Added by Stats. 2018, Ch. 847, Sec. 2. (SB 1055) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 6 - Share Accounts and Certificates for Funds › ARTICLE 2 - Dividends › Section 14900.

14900. Dividends need not be paid on a share account having less than the minimum balance prescribed in the bylaws.
(Amended by Stats. 2018, Ch. 267, Sec. 7. (AB 2862) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 6 - Share Accounts and Certificates for Funds › ARTICLE 2 - Dividends › Section 14901.

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 construed to permit any credit union to pay a dividend except as provided in Section 14902.
(Amended by Stats. 1998, Ch. 539, Sec. 34.7. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 6 - Share Accounts and Certificates for Funds › ARTICLE 2 - Dividends › Section 14902.

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 credit or pay any dividends or pay loan interest refunds to its members until it has transferred to its regular reserve such part of its gross income as is required by Section 14700. However, nothing in this division shall be construed to permit the credit union to credit or pay a dividend from its undivided profits account when the credit or payment would result in a deficit in the undivided profits account.
(Amended by Stats. 1983, Ch. 263, Sec. 4.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 6 - Share Accounts and Certificates for Funds › ARTICLE 2 - Dividends › Section 14905.

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 purposes as paid or credited by the credit union upon the last day of the income year. This section is applicable only to credit unions as entities and does not apply to the members or depositors thereof.
(Added by renumbering Section 14907 by Stats. 1984, Ch. 303, Sec. 9.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 7 - Loans › ARTICLE 1 - General › Section 14950.

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, subject to the terms and conditions established by the board of directors pursuant to Section 15100.
(b) (1) The board of directors of a credit union shall adopt a policy governing the acceptance by the credit union of notes receivable from nonmembers as consideration for the sale of assets owned by the credit union through bona fide transactions.
(2) No credit union may accept notes receivable from nonmembers as consideration for the sale of assets owned by the credit union except in accordance with a policy adopted by the board of directors pursuant to paragraph (1).
(3) Transactions subject to this subdivision shall not be deemed to be loans to nonmembers for purposes of Section 14750.
(c) Notwithstanding subdivision (a), a credit union may permit a nonmember to participate in an obligation or extension of credit to a member as a joint applicant, co-obligor, coborrower, surety, or guarantor. An obligation or extension of credit made pursuant to this subdivision shall not be deemed a violation of subdivision (b) of Section 14800. Except as otherwise permitted by statute or regulation, the credit union shall not extend any other benefit or service of the credit union to the nonmember solely as a result of participation as a joint applicant, co-obligor, coborrower, surety, or guarantor unless the nonmember is thereafter admitted to membership.
(Amended by Stats. 2016, Ch. 353, Sec. 8. (AB 2274) Effective January 1, 2017.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 7 - Loans › ARTICLE 1 - General › Section 14952.

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 other than a case (1) where the member is an emancipated minor or (2) where the loan is secured in the manner provided for in Section 14955.
(b) No credit union shall make a loan to a member under 18 years of age that will result in the member being obligated to the credit union in excess of the maximum amount established by the board of directors pursuant to subdivision (a) unless the member is an emancipated minor or the loan is secured in the manner provided for in Section 14955.
(Amended by Stats. 1998, Ch. 539, Sec. 36.5. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 7 - Loans › ARTICLE 1 - General › Section 14953.

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 or personal property to the extent that the extension of credit exceeds such limit, or (2) in the manner provided in Section 14955.
(b) If the security offered is an endorsed note as provided in subdivision (a) of Section 14955, a signed and dated financial statement shall be taken from each person who endorses the note and the sufficiency of the financial responsibility of every such endorser shall be verified by a majority of the credit committee. Obligations secured by the signatures of a borrower and endorser or endorsers shall not exceed the amount that may be extended to the borrower without security pursuant to Section 15100, plus an equivalent amount for each endorser; plus the amount of shares or certificates for funds pledged to secure the obligation.
(Amended by Stats. 1984, Ch. 209, Sec. 12.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 7 - Loans › ARTICLE 1 - General › Section 14954.

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 guarantees performance of the underlying obligation is a surety. A surety may act as security pursuant to subdivision (a) of Section 14955.
(Amended by Stats. 1985, Ch. 951, Sec. 14.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 7 - Loans › ARTICLE 1 - General › Section 14955.

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 wherein the payment of interest and principal is guaranteed by any municipal government, state government, the government of the United States, or by any instrumentality of the United States.
(c) The amounts which a member has invested in the credit union, either in the form of shares or in funds received. If the amount invested by a member is equal to the loan made to that member, he shall not be required to give further security.
(Added by Stats. 1979, Ch. 112.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 7 - Loans › ARTICLE 1 - General › Section 14957.

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 the borrower, and if such security is not furnished as required, they may declare the loan due and take action to collect the same.
(Amended by Stats. 1983, Ch. 89, Sec. 10.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 7 - Loans › ARTICLE 1 - General › Section 14959.

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 in part, to any source, loans made to its members.
(b) A credit union may purchase, in whole or in part, either or both of the following:
(1) A loan originated by another credit union, which is made to a member of the originating credit union even though the member is not also a member of the credit union purchasing the loan.
(2) A loan from any source, if the purchase will facilitate the purchasing credit union’s packaging of a pool of those loans to be sold or pledged on the secondary market.
(c) A loan purchase that is authorized by this section shall not be an obligation with a nonmember within the meaning of Section 14750.
(Amended by Stats. 2018, Ch. 267, Sec. 8. (AB 2862) Effective January 1, 2019.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 7 - Loans › ARTICLE 1 - General › Section 14960.

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 of Chapter I of Subtitle A of Title 32 of the Code of Federal Regulations, as published on July 22, 2015, on page 43560 in Number 140 of Volume 80 of the Federal Register, shall comply with the applicable provisions of Section 987 of Title 10 of the United States Code, as amended by 126 Stat. 1785 (Public Law 112-239), and Part 232 (commencing with Section 232.1) of Subchapter M of Chapter I of Subtitle A of Title 32 of the Code of Federal Regulations, as amended on the date described above.
(b) A credit union that does not market or extend consumer credit to covered borrowers, as those terms are defined under Part 232 (commencing with Section 232.1) of Subchapter M of Chapter I of Subtitle A of Title 32 of the Code of Federal Regulations, as amended on the date described in subdivision (a), shall not be in violation of Section 394 of the Military and Veterans Code.
(Amended by Stats. 2017, Ch. 514, Sec. 2. (SB 266) Effective January 1, 2018.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 7 - Loans › ARTICLE 1 - General › Section 14961.

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 Procedures Act, as amended (12 U.S.C. Sec. 2601 et seq.).
(b) The federal Truth in Lending Act, as amended (15 U.S.C. Sec. 1601 et seq.).
(c) The federal Home Ownership Equity Protection Act (15 U.S.C. Sec. 1639).
(d) Any regulation promulgated under any of the federal acts in subdivision (a), (b), or (c).
(Added by Stats. 2009, Ch. 629, Sec. 5. (AB 260) Effective January 1, 2010.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 7 - Loans › ARTICLE 2 - Maximum Charges and Fees › Section 15001.

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 shall be made only once for each delinquent payment and shall be subject to Section 2954.5 of the Civil Code, Division 1.1 (commencing with Section 4000) of this code, and any other applicable law.
(Amended by Stats. 1998, Ch. 539, Sec. 39. Effective January 1, 1999.)
2023 California Code › Financial Code - FIN › DIVISION 5 - CREDIT UNIONS › CHAPTER 7 - Loans › ARTICLE 3 - Loans to Directors, Officers and Committee Members › Section 15051.

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 obligation to the credit union for which he or she is liable in a timely manner according to the terms of the obligation.
(Amended by Stats. 1984, Ch. 789, Sec. 16.)