reglab/statecodes huggingface dataset:
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 5 - Corporate Powers, Duties and Safeguards › Section 512 - Loans

§ 512. Loans.
(a) Loans to members only.--
Except as otherwise provided in this title, a credit union may make loans to its members only.
(b) Loans subject to bylaws.--
Loans must be made subject to the conditions contained in the bylaws.
(c) Borrower repayment of loans.--
A borrower may repay the borrower's loan, in whole or in part, any day the office of the credit union is open for business.
(d) Nonpreferential treatment.--
The following may not obtain or guarantee a loan from the credit union on terms, rates or conditions more favorable than those granted to any other member:
(1) A director.
(2) An officer.
(3) A member of any committee.
(4) A member of the immediate family of a director, officer or member of a committee.
(5) Any individual having a common ownership, investment or other pecuniary interest in a business enterprise with a director, officer or member of a committee.
(Dec. 12, 1994, P.L.1067, No.146, eff. 60 days; June 18, 2014, P.L.754, No.62, eff. 60 days)
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 5 - Corporate Powers, Duties and Safeguards › Section 513 - Reserves

§ 513. Reserves.
(a) General rule.
--Each credit union shall establish and maintain a regular reserve account to the same extent and in the same manner as required of a Federal credit union.
(b) Computation of reserve and net worth requirements.
--For the purpose of establishing the reserves required by this section and for the provision and maintenance of adequate equity or net worth, a credit union shall compute its reserve and net worth requirements consistent with section 216 of the Federal Credit Union Act (48 Stat. 1216, 12 U.S.C. § 1790d) and the National Credit Union Administration rules and regulations set forth in 12 CFR Pt. 702 (relating to prompt corrective action).
(c) Allowance for loan loss.
--Each credit union, in addition to maintaining a regular reserve, shall establish an allowance for loan loss. The allowance for loan loss reserve shall be funded in the manner and used for the purposes as designated from time to time by the department. The board of directors shall decide the loans which are to be charged off against the allowance for loan loss, except that the department may, at the time of examination of a credit union, recommend for charge-off such loans which in its opinion are unsound, which loans shall be charged against the allowance for loan loss account within 60 days of the receipt of such recommendation from the department. Any amount received from the repayment of a loan after it has been charged off against the allowance for loan loss account shall be credited back to the account.
(d) Allowance for investment loss.
--(Deleted by amendment). (Dec. 12, 1994, P.L.1067, No.146, eff. 60 days; Dec. 9, 2002, P.L.1572, No.207, eff. 60 days)
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 5 - Corporate Powers, Duties and Safeguards › Section 514 - Dividends

§ 514. Dividends.
(a) General rule.--
The board of directors of a credit union or the members on recommendation of the board of directors, whichever the bylaws provide, may declare dividends to be paid on all shares and share certificates from the net earnings and undivided earnings at such rates and intervals and for such periods as the board of directors may authorize and after provision for the required reserves. Dividends may be added to the credit of the members share accounts, paid in cash, or partially credited to share accounts and partially paid in cash, at the option of the board of directors.
(b) Inactive accounts.--
A share account may be transferred to a special account if, for at least five years, there has been no activity by the owner of the account and all written communications from the credit union to the owner of the account have been returned to the credit union with no forwarding address. After the transfer, the credit union may cease paying dividends on the transferred account and may cease sending notices to the owner. A member whose account has been transferred may reclaim the funds from the credit union at any time prior to the time the account is escheated. After escheat, reclaiming is governed by Article XIII.1 of the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code.
(Dec. 9, 2002, P.L.1572, No.207, eff. 60 days; June 18, 2014, P.L.754, No.62, eff. 60 days)
2014
Amendment.
Act 62 amended subsec. (b).
2002 Amendment.
Act 207 amended subsec. (a).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 5 - Corporate Powers, Duties and Safeguards › Section 515 - Rights and liabilities of terminating members

§ 515. Rights and liabilities of terminating members.
All amounts paid on shares of an expelled or withdrawing member, with any dividends accredited thereto to the date thereof, shall, as funds become available and after deducting all amounts due from the member to the credit union, be paid to him. The credit union may require 60 days' notice of intention to withdraw shares. Withdrawing or expelled members shall have no further rights in the credit union, but they shall not by such withdrawal or expulsion be released from any remaining liability to the credit union.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 5 - Corporate Powers, Duties and Safeguards › Section 516 - Adverse claims

§ 516. Adverse claims.
(a) General rule.
--Notice to a credit union or Federal credit union of an adverse claim against shares standing in the name of any member shall not be effectual to cause the credit union or Federal credit union to recognize such adverse claim, unless the adverse claimant shall procure either an attachment or proper restraining order against the credit union or Federal credit union from a court of competent jurisdiction in a cause of action therein instituted by him, wherein the member or his legal representative is made a party in the manner provided by law, or unless he shall execute to the credit union or Federal credit union in form, and with sureties acceptable to it, a bond indemnifying the credit union or Federal credit union from any liability, loss, damages, costs and expenses arising from the recognition of such adverse claim.
(b) Exception.
--This section shall not apply in any instance where the person in whose name the shares are held is a trustee for such adverse claimant, and the facts constituting such relationship, as well as the facts showing reasonable cause of belief on the part of the claimant that such trustee is about to misappropriate the shares, are made to appear by verified statement of such claimant.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 5 - Corporate Powers, Duties and Safeguards › Section 517 - Taxation

§ 517. Taxation.
A credit union incorporated under or subject to this title shall be deemed an institution for savings, and its assets, together with all the accumulation therein, shall not be subject to taxation except as to real estate owned by it. The shares of a credit union shall not be subject to a capital stock bonus tax or a stock transfer tax when issued by the corporation.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 7 - Members, Directors and Officers › Section 701 - Membership

§ 701. Membership.
(a) General rule.--
Credit union organizations shall be limited to groups having a potential membership of 500 or more adult persons and having a common bond of association within a well-defined community or rural district by reason of occupation or of membership in a religious congregation or fraternal or labor organization or residence within a well-defined community or rural district. A credit union may also retain its original field of membership and, additionally, include in its field of membership other occupational groups, as well as like associational groups having a common bond with the original field of membership, with insufficient number of members to form or conduct the affairs of a separate credit union, if the existing credit union obtains prior permission from the department. The membership of a credit union shall be limited to and consist of the incorporators of the credit union and such other persons, having the common bond of association, set forth in the articles of incorporation, as have been duly admitted members, have paid the entrance fee as provided in the bylaws and own and retain one or more shares. Organizations composed principally of the same group as the credit union membership may be members. Employes of credit unions may be members of such credit unions.
(b) Family members.--
Persons who are members of the immediate family of a member of the credit union may be elected to membership.
(c) Trust and joint tenancy deposits.--
Shares may be issued in trust for or in joint tenancy with the right of survivorship with any person designated by the credit union member, but no joint tenant or beneficiary of a trust shall be permitted to vote, obtain a loan or hold office unless he is within the field of membership and is a qualified member in his own right.
(d) Continuation of membership.--
Any member who leaves or has left the field of membership and has not withdrawn all of his share account shall not cease to be a member of the credit union by reason thereof, and he shall have all of the rights and obligations of membership, including, but not limited to, the right to retain and to add to his share account and the right to vote. Upon leaving the field of membership, the provisions of this subsection shall apply to persons who have become members of the credit union solely by reason of the provisions of subsection (b), but the provisions of subsection (c) shall not be affected by this subsection.
(e) Spouse of deceased member.--
The unremarried widow or widower of a deceased member may become a member of the credit union.
(f) Effect of certain association formations.--
Any association formed primarily to obtain a State credit union charter shall not be considered by the department to have a sufficient common bond.
(Dec. 9, 2002, P.L.1572, No.207, eff. 60 days)
2002 Amendment.
Act 207 amended subsec. (a) and added subsec. (f).
Cross References.
Section 701 is referred to in sections 302, 304 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 7 - Members, Directors and Officers › Section 703 - Voting rights and procedures

§ 703. Voting rights and procedures.
At all meetings a member shall have but one vote, irrespective of his shareholdings. There shall be no voting by proxy, but any member, other than a natural person, may cast its vote through an agent duly delegated and appointed agent in writing.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 7 - Members, Directors and Officers › Section 704 - Notice to members

§ 704. Notice to members.
(a) General rule.--
All notices required by this title to be given to members shall be:
(1) delivered in person to each member;
(2) mailed to each member at the address for such member appearing on the records of the credit union; or
(3) by facsimile transmission, e-mail or other electronic communication to each member's facsimile number or address for e-mail or other electronic communications appearing on the records of the credit union. Notice pursuant to this paragraph shall be deemed to have been given to the member entitled to the notice when sent.
(b) Notice of changes in fees, charges or policies.--
Each new member to a credit union shall be provided with notice by the respective credit union listing any fees, service charges or policies regarding the transfer of funds to noninterest bearing accounts. A new member and each existing member shall subsequently be provided with similar notice if there is a change by the credit union in the amount or type of fees or service charges or a change in the policy regarding the transfer of funds to noninterest bearing accounts. The credit union shall also provide such information to any member upon request by that member.
(June 18, 2014, P.L.754, No.62, eff. 60 days)
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 7 - Members, Directors and Officers › Section 705 - Expulsion, suspension and withdrawal

§ 705. Expulsion, suspension and withdrawal.
(a) Expulsion.--
Unless otherwise provided in the credit union's bylaws:
(1) The board of directors may expel a member for cause by a majority vote of a quorum of directors pursuant to a written policy adopted by the board. For the purposes of this subsection, "cause" includes a loss to the credit union, a violation of the membership agreement or any policy or procedure adopted by the board or inappropriate behavior, such as physical or verbal abuse of credit union members or staff. All members shall be given written notice of such policies. Any person expelled by the board shall have the right to request a hearing before the board to reconsider the expulsion.
(2) A credit union may terminate the membership of any member who withdraws the member's shares to less than one share.
(3) Persons whose membership has been terminated, whether by withdrawal or expulsion, shall have no further rights in the credit union, but are not released from any obligation owed to the credit union.
(4) A member who has been expelled, as provided by this subsection, may not be readmitted to membership except upon approval by a majority vote of the board after application and proof that the applicant remains within the credit union's field of membership, has adequately explained, addressed or remedied the conditions leading to expulsion and will abide by the terms and conditions of membership. Not more than one such application for readmission may be made within any 12-month calendar period.
(a.1) Suspension.--
Unless otherwise provided in the credit union's bylaws, a credit union may, for cause, suspend certain services to a credit union member under a policy adopted by the credit union's board of directors. Members with suspended services may maintain a share account and continue to vote at annual and special meetings.
(b) Withdrawal.--
Any member may withdraw from the credit union at any time, but notice of withdrawal may be required.
(June 18, 2014, P.L.754, No.62, eff. 60 days)
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 7 - Members, Directors and Officers › Section 706 - Election of directors and credit and supervisory committee members

§ 706. Election of directors and credit and supervisory
committee members.
(a) General rule.
--At the organization meeting and at all subsequent annual meetings, the credit union members shall elect from the membership of the credit union a board of directors of not less than five members, a credit committee of not less than three members if the bylaws so provide and a supervisory committee of not less than three nor more than five members if the bylaws so provide, all to hold office for such terms respectively, as the bylaws provide and until successors are duly qualified. If permitted by the bylaws, the election may be conducted by mail ballot. A member shall not serve on more than one of the committees. Not more than one member of the board, who shall not be the treasurer or an assistant treasurer, may serve as a member of the credit committee. A member of the board of directors, treasurer or an assistant treasurer may not serve on the supervisory committee.
(b) Report to department.
--A statement in writing of the names and addresses of the members of the board and the committees and the officers, as well as any interim appointments, shall be filed with the department within ten days after their election and qualification or interim appointment. For failure to file such statements when due, unless excused for cause, the credit union shall pay to the department $100 for each day of its delinquency. (Dec. 9, 2002, P.L.1572, No.207, eff. 60 days)
2002 Amendment.
Act 207 amended subsec. (b).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 7 - Members, Directors and Officers › Section 707 - Duties of directors generally

§ 707. Duties of directors generally.
(a) General rule.
--The directors of a credit union shall have general management of the affairs of the credit union and are specifically required:
(1) To act on applications for membership.
(2) To determine interest rates on loans.
(3) To fix the amount of the surety bond which shall be required of all officers and employees handling money which amount shall be not less than the minimum schedule established by the department.
(4) To declare dividends or recommend dividends as provided in the bylaws.
(5) To transmit or cause to be transmitted to the members all proposed amendments to the bylaws.
(6) If the bylaws provide for appointed credit or supervisory committees, to appoint individuals to serve on the credit committee or the supervisory committee and to fill vacancies in the board and in the credit committee until successors are duly chosen and qualified.
(7) To determine the maximum individual share holdings and, subject to the limitations contained in this title, the maximum individual loan which can be made with or without security.
(8) To have charge of investments, first mortgage loans and loans to other credit unions and Federal credit unions but not loans to members which are under the supervision of the credit committee as otherwise provided in this title. The board may, however, delegate to the credit committee the authority to approve some or all first mortgage loans and to an investment committee or qualified individual the authority to make all or some investments if the board first establishes guidelines and standards for the approval and making of such loans and investments in accordance with the policies of the board of directors.
(9) To fix the amount of compensation of directors, officers, committee members, loan officers and employees.
(10) To determine whether, to what extent and to what class or classes of borrowers, if any, an interest refund is to be made in any dividend period. Any such interest refund shall be paid in proportion to the interest paid by each borrower within any class during that dividend period.
(11) To appoint alternate credit committee members as needed to serve during incapacity or absence of the credit committee members.
(b) Notice of interest refund to department.
--Immediately upon the board deciding to refund any interest pursuant to subsection (a)(10), notice of such decision and a copy of any board resolution and related documents shall forthwith be sent to the department. The department shall, within 30 days after receipt thereof, have the power to disapprove, for any reasonable cause stated in writing, any such interest refund. If the department does not disapprove the interest refund within 30 days, the interest refund shall become effective. (Dec. 9, 2002, P.L.1572, No.207, eff. 60 days)
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 7 - Members, Directors and Officers › Section 708 - Officers

§ 708. Officers.
At their organizational meeting and within 30 days following each annual meeting of the members, the directors shall elect from their own number either a president and one or more vice presidents or a chairman and one or more vice chairmen, a treasurer and a secretary. The same individual may be both treasurer and secretary. The directors may appoint one or more assistant treasurers. The directors may appoint a membership officer from among the members of the credit union, other than the treasurer, an assistant treasurer or a loan officer. The directors may employ an officer in charge of operations, who shall be under the direction and control of the board or of the treasurer, as determined by the board of directors. The membership officer or the officer in charge shall have the authority to approve applications for membership under such conditions as the directors may prescribe. The membership officer or officer in charge so authorized shall submit to the directors at each monthly meeting a list of approved or pending applications for membership received since the previous monthly meeting, together with such other related information as the bylaws or the board may require.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 7 - Members, Directors and Officers › Section 709 - Compensation of directors and officers

§ 709. Compensation of directors and officers.
Members of the board of directors, the credit committee and the supervisory committee may be compensated if the credit union pays dividends to its members commensurate with prevailing market rates during the preceding year. A credit union shall be deemed to pay dividends commensurate with prevailing market rates if declared dividend rates on share accounts are competitive with dividend or interest rates offered by other credit unions, Federal credit unions or other financial institutions authorized to engage in the business of receiving money for deposit. The department may prohibit or regulate the payment of compensation of directors, committee members and officers, exclusive of the treasurer, if it deems such compensation excessive or if, in its opinion, the financial condition of the credit union is not such as to warrant the payment of such compensation. (Dec. 9, 2002, P.L.1572, No.207, eff. 60 days)
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 7 - Members, Directors and Officers › Section 711 - Procedures for approving service by certain persons

§ 711. Procedures for approving service by certain persons.
(a) General rule.
--No person who has been convicted of a misdemeanor or a felony involving dishonesty, breach of trust or violation of this title or corresponding provisions of prior law may serve as an officer, director, committee member, employee, volunteer or agent of a credit union unless the person has or obtains the unanimous approval of the board of directors of the credit union.
(b) Disclosure statement.
--Every officer, director, committee member and employee shall sign a sworn statement disclosing whether he has ever been convicted of a misdemeanor or a felony involving dishonesty, breach of trust or violation of this title or corresponding provisions of prior law. (Dec. 9, 2002, P.L.1572, No.207, eff. 60 days)
2002 Amendment.
Act 207 amended subsec. (a).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 7 - Members, Directors and Officers › Section 712 - Indemnification and exoneration from liability of directors and officers

§ 712. Indemnification and exoneration from liability of
directors and officers.
(a) Indemnification.
--A credit union shall be governed by the provisions of 15 Pa.C.S. Ch. 17 Subch. D (relating to indemnification).
(b) Exoneration from liability of volunteer officers.
-- Volunteer officers of Federal, State and out-of-State credit unions shall be entitled to the protection and rights set forth in 15 Pa.C.S. § 513 (relating to personal liability of directors) if the membership adopts a bylaw to that effect.
(c) Standard of care and personal liability of directors.
-- See 15 Pa.C.S. §§ 512 (relating to standard of care and justifiable reliance) and 513.
Cross References.
Section 712 is referred to in section 715 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 7 - Members, Directors and Officers › Section 715 - Actions by members to enforce a secondary right

§ 715. Actions by members to enforce a secondary right.
(a) General rule.
--In any action brought to enforce a secondary right on the part of one or more members against any officer or director or former officer or director of a credit union because the corporation refuses to enforce rights which may properly be asserted by it, the plaintiff or plaintiffs must aver and it must be made to appear that the plaintiff or each plaintiff was a member of the corporation at the time of the transaction of which he complains or that his membership devolved upon him by operation of law from a person who was a member at that time.
(b) Security for costs.
--In any such action instituted or maintained by a holder or holders of less than 5% of the outstanding share accounts of the credit union, the credit union in whose right the action is brought shall be entitled, at any stage of the proceedings, to require the plaintiff or plaintiffs to give security for the reasonable expenses, including attorney fees, which may be incurred by it in connection therewith and for which it may become liable pursuant to section 712(a) (relating to indemnification) (but only insofar as relates to mandatory indemnification in actions by or in the right of the corporation), to which security the corporation shall have recourse in such amount as the court having jurisdiction shall determine upon the termination of the action. The amount of the security may, from time to time, be increased or decreased in the discretion of the court having jurisdiction of the action upon showing that the security provided has or may become inadequate or excessive.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 9 - Amendment of Articles › Section 901 - Procedure for amendment of articles

§ 901. Procedure for amendment of articles.
The articles of incorporation may be amended at any regular or special meeting of the credit union, if notice of the meeting and of the proposed amendment or amendments is furnished each member at least ten days prior to the meeting at which such amendment or amendments will be considered. Notwithstanding statutory provisions to the contrary, the articles of incorporation may alternatively be amended by the members through mail ballot voting as provided in the bylaws. Amendments to the articles of incorporation must be approved by a majority of the members present at any meeting at which the amendments are considered or, in the case of a mail ballot, by a majority of the members responding by mail ballot. The proposed amendments shall be acted upon only in the event a quorum of the members, as provided in the bylaws, is present or, in the case of a mail ballot vote, a number of returned mail ballots equal to the quorum of the members, as provided in the bylaws, exists.
(June 18, 2014, P.L.754, No.62, eff. 60 days)
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 9 - Amendment of Articles › Section 902 - Articles of amendment

§ 902. Articles of amendment.
The articles of amendment shall be signed by an officer of the credit union and shall set forth:
(1) The name and principal place of business of the credit union.
(2) The amendment or amendments as adopted by the members.
(3) The date of the meeting at which the amendment, or amendments, was adopted.
(4) That notice of the meeting at which the amendment, or amendments, was considered was given to each member as provided in this title.
(5) That, at the meeting at which the amendment, or amendments, was considered, a quorum of the members was present as provided in the bylaws.
(6) That the amendment, or amendments, was approved by a majority of the members voting.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 9 - Amendment of Articles › Section 903 - Filing and review of articles of amendment

§ 903. Filing and review of articles of amendment.
(a) General rule.
--Articles of amendment shall be filed with the department. If the department finds that the articles of amendment conform to law, it shall endorse its approval thereon and forward the articles of amendment to the Department of State. Upon receipt of the articles of amendment, the Department of State shall file the same.
(b) Cross reference.
--See 15 Pa.C.S. § 134 (relating to docketing statement). (Dec. 9, 2002, P.L.1572, No.207, eff. 60 days)
2002 Amendment.
Act 207 amended subsec. (a).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 9 - Amendment of Articles › Section 904 - Place of business

§ 904. Place of business.
(a) Change in principal place of business.
--A credit union may change its place of business upon the filing of a statement of change of principal place of business with the Department of State and the department.
(b) Branch offices and service facilities.
--If a credit union gives the department prior written notification and, in the case of branch offices, receives prior approval from the department, it may establish and maintain, at locations other than its principal place of business, additional branch offices and service facilities to furnish services to its members.
(c) Discontinuance of branch offices or service facilities.
--If a credit union pursuant to a resolution of its board of directors provides the department prior written notification, the credit union may discontinue the operation of and close branch offices or service facilities.
(d) Cross reference.
--See 15 Pa.C.S. § 134 (relating to docketing statement). (Dec. 9, 2002, P.L.1572, No.207, eff. 60 days)
Cross References.
Section 904 is referred to in section 503 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 11 - Conversion, Merger and Consolidation › Section 1101 - Conversion into Federal credit union

§ 1101. Conversion into Federal credit union.
(a) General rule.--
A credit union may be converted into a Federal credit union by complying with the following requirements:
(1) The proposition for such conversion shall first be approved by a majority vote of the directors of the credit union who shall also set a date for the vote thereon by the members. The vote of the members shall be conducted at a meeting held on such date, or by written ballot if the bylaws so provide to be filed on or before such date. Notice of the proposition and of the date set for the vote shall be given each member not more than 30 nor less than ten days prior to such date. Approval of the proposition shall be by the affirmative vote of a majority of the members voting, in person or in writing, either at a meeting of the credit union or through a mail ballot vote. In order for a vote to be considered valid, there must be a quorum established. In the case of a meeting of the credit union, a quorum shall be established by the presence of at least 10% of the credit union's membership. In the case of a mail ballot vote, a quorum shall be established by the written response of at least 10% of the credit union's membership.
(2) A statement of the result of the vote, certified by an officer of the credit union, shall be filed with the department within ten days after the vote is taken.
(3) Promptly after the vote is taken and in no event later than 90 days thereafter, if the proposition for conversion was approved, the credit union shall take such action as may be necessary under the applicable laws of the United States to make it a Federal credit union, and, within ten days after receipt of the Federal credit union charter, it shall file a copy of the charter thus issued with the Department of State which shall furnish a copy thereof to the department. Upon such filing with the Department of State, the credit union shall no longer be subject to any of the provisions of this title. The successor Federal credit union shall be vested with all of the assets and shall continue to be responsible for all of the obligations of the credit union thus converted to the same extent as though the conversion had not taken place.
(b) Cross reference.--
See 15 Pa.C.S. § 134 (relating to docketing statement).
(Dec. 12, 1994, P.L.1067, No.146, eff. 60 days; Dec. 9, 2002, P.L.1572, No.207, eff. 60 days; June 18, 2014, P.L.754, No.62, eff. 60 days)
2014
Amendment.
Act 62 amended subsec. (a)(1).
2002 Amendment.
Act 207 amended subsec. (a).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 11 - Conversion, Merger and Consolidation › Section 1103 - Merger and consolidation authorized

§ 1103. Merger and consolidation authorized.
(a) General rule.
--A credit union subject to this title may merge or consolidate with other credit unions, with Federal credit unions, with out-of-State credit unions or with a combination of other credit unions, Federal credit unions and out-of-State credit unions to form a credit union, Federal credit union or out-of-State credit union.
(b) Approvals and conditions.
--Before merging or consolidating, the credit unions involved must obtain prior approval from the department. In the case of a merger or consolidation with a Federal credit union, the merger or consolidation shall be made pursuant to Federal law in addition to the provisions of this title. In the case of a merger or consolidation with an out-of-State credit union, the merger or consolidation shall be made pursuant to the credit union law of the state of incorporation of the out-of-State credit union or, if credit unions incorporated in different states are involved, pursuant to the credit union laws of the various states of incorporation of the out-of-State credit unions in addition to the provisions of this title. (Dec. 9, 2002, P.L.1572, No.207, eff. 60 days)
2002 Amendment.
Act 207 amended subsec. (b).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 11 - Conversion, Merger and Consolidation › Section 1104 - Adoption of plan

§ 1104. Adoption of plan.
(a) General rule.--
The board of directors of each of the credit unions, Federal credit unions or out-of-State credit unions which desire to merge or consolidate shall, by resolution adopted by at least a majority of all the members of each board, approve a plan of merger or consolidation setting forth the terms and conditions of the merger or consolidation and the mode of carrying the same into effect, the manner and basis of converting the shares of each credit union, Federal credit union or out-of-State credit union into shares or other securities or obligations of the surviving or new credit union, Federal credit union or out-of-State credit union, and such other details and provisions as are deemed necessary. Except where the approval of the members is not required, the board of directors shall direct that the plan be submitted to a vote of the members of such credit union, Federal credit union or out-of-State credit union entitled to vote thereon at an annual or special meeting of the members to be held on not less than 15 days prior notice thereof given to each member of record, which notice shall state the place, day, hour and purpose of the meeting and shall have included therein or enclosed therewith a copy or summary of the plan of merger or consolidation.
(b) Domestic approval.--
The plan of merger or consolidation to form a surviving or new credit union, Federal credit union or out-of-State credit union shall be adopted upon receiving, if the credit union is not the surviving institution, the affirmative vote of at least a majority of the members voting thereon or upon receiving, if the credit union is the surviving institution, the affirmative vote of at least a majority of the board of directors voting thereon.
(c) Federal or out-of-State approval.--
The plan of merger or consolidation shall be authorized, adopted or approved by each of the merging or consolidating Federal credit unions and out-of-State credit unions in accordance with applicable Federal or State law.
(June 18, 2014, P.L.754, No.62, eff. 60 days)
2014 Amendment.
Act 62 amended subsec (a).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 11 - Conversion, Merger and Consolidation › Section 1106 - Supervisory mergers or consolidations by department

§ 1106. Supervisory mergers or consolidations by department.
Notwithstanding any other provision of this title, the department may require a merger or consolidation of a credit union which is insolvent or is in danger of insolvency with any other credit union, Federal credit union or out-of-State credit union or may authorize a credit union to purchase any of the assets of, or assume any of the liabilities and capital of, any other credit union, Federal credit union or out-of-State credit union if the department is satisfied that:
(1) an emergency requiring expeditious action exists with respect to such a credit union;
(2) other alternatives are not reasonably available; and
(3) the public interest would best be served by approval of such merger, consolidation, purchase or assumption. (Dec. 9, 2002, P.L.1572, No.207, eff. 60 days)
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 13 - Dissolution › Section 1301 - Dissolution authorized

§ 1301. Dissolution authorized.
Any credit union may elect to dissolve voluntarily and wind up its affairs in the manner provided in this chapter. However, if it shall appear to the department, upon an examination of the business, assets and affairs of the credit union, that its assets will probably be insufficient to pay in full its members and creditors, it shall take possession of the business and property of the credit union and retain possession until its affairs are finally liquidated. (Dec. 9, 2002, P.L.1572, No.207, eff. 60 days)
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 13 - Dissolution › Section 1303 - Dissolution proceedings

§ 1303. Dissolution proceedings.
(a) Collection and distribution of assets.
--The liquidating trustee or trustees shall proceed in the manner provided by the department to gather the assets, determine the liabilities and distribute the assets of the credit union until its affairs are fully adjusted and wound up. Under this section the department shall set forth the order of the distribution of the assets. The provisions of this section on distribution of assets apply whether the dissolution is voluntary or involuntary.
(b) Proof of claims.
--The liquidating trustee or trustees shall notify all creditors and members appearing on the records of the association, by notice sent to or given at the address appearing for such creditor or member on the records or, if no address appears there, at the last known address of the creditor or member, of the amount which the records show to be due such member or creditor. The liquidating trustee or trustees shall also advertise, for three successive weeks in a newspaper of general circulation and in a legal newspaper, if any, in the county in which the credit union is located, that the credit union is liquidating pursuant to a plan of voluntary liquidation. The advertisement shall set forth a date not less than 90 days after the date of the first published advertisement before which all creditors or members must present their claims, under oath or affirmation, to the trustee or trustees or be bound by the amount shown on the records of the credit union to be due them. Thereafter, all claims shall be permanently barred.
(c) Limitation period.
--Any claim which is rejected or disallowed by the trustee or trustees shall be barred unless an action is brought thereon within 90 days after mailing of the notice of rejection or disallowance.
(d) Transfer possession.
--If the department takes possession of the credit union under section 503(c) (relating to regulation by department) and appoints the National Credit Union Administration to liquidate the credit union or take other action deemed appropriate regarding the credit union, then the department shall be deemed to have surrendered jurisdiction of the credit union and the department shall have no liability related to such credit union. (Dec. 9, 2002, P.L.1572, No.207, eff. 60 days)
2002 Amendment.
Act 207 amended subsec. (a) and added subsec. (d).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 13 - Dissolution › Section 1304 - Department supervision

§ 1304. Department supervision.
The department shall continue to supervise the credit union, in the hands of the liquidating trustee or trustees, until the liquidation is complete and the affairs of the credit union are fully settled. (Dec. 9, 2002, P.L.1572, No.207, eff. 60 days)
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 13 - Dissolution › Section 1305 - Articles of dissolution

§ 1305. Articles of dissolution.
(a) General rule.
--When, in the opinion of the department, the liquidation of a credit union is complete and its affairs are fully settled, the department shall execute and file in the Department of State articles of dissolution, which shall set forth:
(1) The name of the credit union.
(2) The statute under which the credit union was incorporated and the date of incorporation.
(3) A statement that the liquidation of the credit union is complete and its affairs are fully settled.
(b) Filing procedures.
--A certificate or statement provided for by 15 Pa.C.S. § 139 (relating to tax clearance of certain fundamental transactions) shall not be required and the Department of State shall not charge a fee in connection with the filing of articles of dissolution under this section. See 15 Pa.C.S. § 134 (relating to docketing statement).
(c) Effect.
--Upon the filing of the articles of dissolution in the Department of State, the existence of the credit union shall cease. (Dec. 9, 2002, P.L.1572, No.207, eff. 60 days)
2002 Amendment.
Act 207 amended subsec. (a).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 13 - Dissolution › Section 1306 - Involuntary dissolution

§ 1306. Involuntary dissolution.
(a) Issuance of certificate of dissolution by department.
-- In the event the department finds, after issuing written notice of a hearing and an opportunity to be heard to a credit union, that the credit union has not exercised any of its powers or opened for business with its proposed members within one year after the date of its incorporation or such longer time as the department may allow, then the department shall issue under its seal a certificate of dissolution reciting the applicable facts and stating that articles of incorporation have been forfeited by reason of such facts and shall file the certificate of dissolution with the Department of State.
(b) Effect of certificate of dissolution.
--Upon filing of the certificate of dissolution in the Department of State, all rights of the credit union under its articles of incorporation shall cease and its existence shall cease. (Dec. 9, 2002, P.L.1572, No.207, eff. 60 days)
2002 Amendment.
Act 207 added section 1306.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 15 - Out-of-State Credit Unions › Extra - Chapter Notes

Enactment.
Chapter 15 was added December 19, 1990, P.L.834, No.198, effective in two months.
Cross References.
Chapter 15 is referred to in section 1105 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 15 - Out-of-State Credit Unions › Section 1501 - Authorization to do business

§ 1501. Authorization to do business.
(a) General rule.
--A credit union organized in another state may conduct business as an out-of-State credit union in this Commonwealth with the approval of the department as long as a credit union chartered under the laws of this Commonwealth is permitted to do business in the state in which the credit union is organized.
(b) Findings.
--To grant approval the department must find that the out-of-State credit union:
(1) Is a credit union organized under a statute similar to this title.
(2) Is financially solvent.
(3) Has required account insurance acceptable to the department.
(4) Is effectively examined and supervised by the regulatory authority of the state in which it is organized.
(5) Needs to conduct business in this Commonwealth to adequately serve its members in this Commonwealth. (Dec. 9, 2002, P.L.1572, No.207, eff. 60 days)
2002 Amendment.
Act 207 amended subsec. (a).
Cross References.
Section 1501 is referred to in section 1504 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 15 - Out-of-State Credit Unions › Section 1502 - Covenants by applicant

§ 1502. Covenants by applicant.
To conduct business in this Commonwealth, an out-of-State credit union must agree to:
(1) Grant loans at rates not higher than those permitted for credit unions incorporated under this title.
(2) Comply with the same consumer protection provisions that apply to credit unions incorporated under this title.
(3) Accept service of process as contemplated by 42 Pa.C.S. § 5301(a)(2)(i) (relating to persons).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 15 - Out-of-State Credit Unions › Section 1503 - Supervision by department

§ 1503. Supervision by department.
(a) General rule.
--The department may examine an out-of- State credit union:
(1) to the same extent that a Pennsylvania credit union is examined by the regulatory agency with jurisdiction over credit unions in the state in which the out-of-State credit union is incorporated; or
(2) pursuant to an agreement between the department and the regulatory agency with jurisdiction over credit unions in the state in which the out-of-State credit union is incorporated.
(b) Reports of other examinations.
--The department may require, as a condition for permitting an out-of-State credit union to operate or to continue to operate in this Commonwealth, that the regulatory agency with jurisdiction over the out-of- State credit union furnish reports of examination regarding the out-of-State credit union to the department. (Dec. 9, 2002, P.L.1572, No.207, eff. 60 days)
2002 Amendment.
Act 207 amended the section heading and subsec. (a).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 17 - CREDIT UNIONS › Chapter 15 - Out-of-State Credit Unions › Section 1504 - Revocation of authorization to do business

§ 1504. Revocation of authorization to do business.
The department may revoke the approval of an out-of-State credit union to conduct business as a credit union in this Commonwealth if the department makes any of the following findings:
(1) The out-of-State credit union no longer meets the requirements of section 1501 (relating to authorization to do business).
(2) The out-of-State credit union has violated Pennsylvania statutes or regulations or orders of the department.
(3) The out-of-State credit union has engaged in a pattern of unsafe or unsound credit union practices.
(4) Continued operation by the out-of-State credit union is likely to have a substantially adverse impact on the financial, economic or other interests of residents of this Commonwealth served by the out-of-State credit union. (Dec. 9, 2002, P.L.1572, No.207, eff. 60 days)