reglab/statecodes huggingface dataset:
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part E - Credit Union Governance › § 26–505.03. Appointment of committees

§ 26–505.03. Appointment of committees.
(a) The board of directors shall appoint an audit committee of no fewer than 3 members of the District credit union, who may, but need be, members of the board of directors. The board shall appoint the audit committee at an organizational meeting held within 30 days of each annual election of directors for the terms provided in the bylaws.
(b) The board of directors may appoint other committees necessary or convenient to the operation of the District credit union.
(c) Unless specifically prohibited by the bylaws, committee members may participate in and act at any meeting of the committee through the use of communications equipment; provided, that all persons participating in the meeting can speak with and hear each other at the same time. Participation in a meeting in this manner shall constitute attendance.
(d) Unless specifically prohibited by the bylaws, any action required by this subchapter to be taken at a committee meeting, or any other action that may be taken at a committee meeting, may be taken without a meeting if all members of the committee sign a consent to the action in a writing that sets forth the action. Consent shall be evidenced by one or more written approvals, which describe the action taken and bear the signature of one or more committee members.
(May 6, 2020, D.C. Law 23-86, § 503, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part E - Credit Union Governance › § 26–505.04. Vacancies

§ 26–505.04. Vacancies.
(a) A seat on a District credit union's board of directors or on one of the District credit union's committees will be considered vacant if a board or committee member:
(1) Resigns from his or her position on the board or committee;
(2) Is removed from the board or committee;
(3) Is unable to carry out his or her duties as a board or committee member; or
(4) Is made ineligible by operation of law.
(b) The board of directors shall fill any vacancies occurring on the board or on any board-appointed committee from among the District credit union's natural person members.
(May 6, 2020, D.C. Law 23-86, § 504, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part E - Credit Union Governance › § 26–505.05. Compensation of officials

§ 26–505.05. Compensation of officials.
(a)(1) A District credit union may compensate an officer, director, or committee member for the member's services to the District credit union.
(2) Life, health, accident, and similar insurance protection provided by a District credit union to an officer, director, or committee member shall not be considered compensation.
(b) A District credit union may reimburse directors, officers, and committee members for necessary expenses incidental to the performance of the official business of the District credit union.
(May 6, 2020, D.C. Law 23-86, § 505, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part E - Credit Union Governance › § 26–505.06. Limited liability of directors and officers

§ 26–505.06. Limited liability of directors and officers.
(a) No director or officer of a District credit union shall be liable, and no cause of action may be brought against a director or officer of a District credit union, for damages resulting from:
(1) The exercise of judgment or discretion in connection with the duties or responsibilities of the director or officer unless the act or omission involved willful or wanton conduct; or
(2) An act or omission in rendering official service unless the act or omission involved willful or wanton conduct.
(b) For the purposes of this section, the term "willful or wanton conduct" means a course of action that shows an actual or deliberate intention to cause harm or violate a statute, or, if not intentional, shows an utter indifference to, or conscious disregard for, the safety of others or their property.
(c) Nothing in this section is intended to bar any cause of action against a District credit union or to change the liability of a District credit union arising out of an act or omission of any director, officer, or person exempt from liability for negligence under this section.
(d) In discharging his or her duties, a director may rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by:
(1) One or more officers or employees of the District credit union whom the director reasonably believes to be reliable and competent in the matters presented;
(2) Legal counsel, public accountants, or other persons as to matters the director reasonably believes are within the person's professional or expert competence; or
(3) A committee of the board of directors of which the director is not a member if the director reasonably believes the committee merits confidence.
(e) A director may not rely on information, opinions, reports, or statements described in subsection (d) of this section if the director has knowledge concerning the matter in question that makes reliance on the information, opinion, report, or statement unwarranted.
(f) A director is not liable for any action taken as a director or for any failure to take any action if the director performed the duties of the director's office in compliance with this section.
(May 6, 2020, D.C. Law 23-86, § 506, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part E - Credit Union Governance › § 26–505.07. Conflicts of interest

§ 26–505.07. Conflicts of interest.
Directors, committee members, and officers shall disclose all existing and potential conflicts of interest to the board of directors. No director, committee member, officer, or employee of a District credit union shall, in any manner, directly or indirectly, participate in the deliberation upon, or the determination of, any question affecting his or her pecuniary interest or the pecuniary interest of any corporation, partnership, or association in which he or she is directly or indirectly interested.
(May 6, 2020, D.C. Law 23-86, § 507, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part E - Credit Union Governance › § 26–505.08. Officers

§ 26–505.08. Officers.
(a) The board of directors, at their organizational meeting, shall elect from their own number, a chairperson of the board, a treasurer, and a secretary. The board may also elect any other officers of the board that are specified in the bylaws.
(b) The term of an officer shall be for one calendar year, or until a successor is chosen and has been duly qualified, unless otherwise provided in the bylaws.
(c) The duties of the officers shall be prescribed in the bylaws.
(d) Notwithstanding any other provision of this subchapter, a District credit union may use any title it chooses for officials holding the positions described in this section, provided that the titles are not misleading.
(May 6, 2020, D.C. Law 23-86, § 508, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part E - Credit Union Governance › § 26–505.09. Meetings of directors

§ 26–505.09. Meetings of directors.
(a) The board of directors shall meet on a regular basis and at least quarterly.
(b) Unless specifically prohibited by the bylaws, directors may participate in, and act at, any meeting of the board through the use of communications equipment through which all persons participating in the meeting can speak with and hear each other at the same time. Participation in the meeting in this manner shall constitute attendance.
(c) Unless specifically prohibited by the bylaws, any action required by this subchapter to be taken at a meeting of the board of directors, or any other action that may be taken at a meeting of the board of directors, may be taken without a meeting if a consent, in writing, setting forth the action is signed by all the directors entitled to vote with respect to the subject matter thereof. Consent shall be evidenced by one or more written approvals, which describe the action taken.
(May 6, 2020, D.C. Law 23-86, § 509, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part E - Credit Union Governance › § 26–505.10. Audits

§ 26–505.10. Audits.
(a) Unless the District credit union has been audited by a licensed public accountant or other qualified person or firm, the audit committee shall make, or cause to be made, a comprehensive annual audit of the books and affairs of the District credit union. The audit committee shall submit a report of each annual audit to the board of directors and a summary of that report to the members of the District credit union at the next annual meeting of the District credit union.
(b) The audit committee shall make, or cause to be made, any supplementary audits, examinations, and verifications of members' accounts that it considers necessary or that are required by the Commissioner or the board of directors of the District credit union. The audit committee shall submit reports of these supplementary audits to the board of directors.
(May 6, 2020, D.C. Law 23-86, § 510, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part E - Credit Union Governance › § 26–505.11. Suspension and removal powers

§ 26–505.11. Suspension and removal powers.
(a) The board of directors may suspend any member of the District credit union's board of directors for cause, as defined in § 26-504.07, by a 2/3 vote of a quorum of the board. The board member shall be suspended until the next members' meeting, which shall be held no fewer than 7 days and not more than 60 days after the suspension. The suspended board member shall be notified of the details of the member's suspension and shall have a right to request a hearing before the board to reconsider the suspension prior to the next membership meeting.
(b) Any suspended board member may be removed by a majority vote of a quorum of members at a properly called membership meeting. The suspended board member shall be notified of the details of the board member's removal. At the membership meeting, the suspended board member shall have the right to appear and be heard. The suspension shall be acted upon by the members and the suspended board member shall be removed from or restored to office.
(c) The board of directors may, by a 2/3 vote of a quorum of the board, suspend or remove any officer from his or her office for cause, as defined in § 26-504.07. The officer affected will be notified of the suspension or removal and shall have the right to request a hearing before the board of directors for reconsideration of the board's decision.
(May 6, 2020, D.C. Law 23-86, § 511, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part F - Member Accounts › § 26–506.01. Shares and membership shares

§ 26–506.01. Shares and membership shares.
(a) Shares and membership shares shall be subscribed to and paid for in the manner prescribed in the bylaws.
(b) The par value of shares and membership shares shall be as prescribed in the bylaws.
(c) Membership shares may not be pledged as security on any loan.
(d) A District credit union may limit the number of shares that may be owned by a single member.
(e) Shares may be subscribed to, paid for, and transferred in the manner prescribed in the bylaws.
(f) The board of directors may establish different classes of share accounts, classified in relation to different rights, restrictions, and dividend rates.
(g) Notwithstanding any other provision of law, funds deposited in a share account, share certificate, or any other program offered by the District credit union for the purpose of promoting consumer savings shall not constitute consideration or a thing of value for the purposes of a promotional contest or raffle under District law.
(May 6, 2020, D.C. Law 23-86, § 601, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part F - Member Accounts › § 26–506.02. Dividends

§ 26–506.02. Dividends.
(a) The board of directors may, after making provisions for required reserves, declare dividends to be paid on share accounts and membership shares, if any, from the net earnings or undivided earnings, as provided in the bylaws. The board may authorize the intervals and periods for dividend payments.
(b) Dividends may be paid at various rates with due regard to the conditions that pertain to each type of account, such as minimum balance, notice, and time requirements.
(c) Dividends need not be paid on membership shares, but if a dividend is paid, it may be added to the membership share held by each member.
(d) Dividends shall not be declared or paid at a time when the District credit union is insolvent, its net assets are less than its stated capital, or when the payment thereof would render the District credit union insolvent or reduce its net assets below its stated capital.
(May 6, 2020, D.C. Law 23-86, § 602, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part F - Member Accounts › § 26–506.03. Deposit Accounts

§ 26–506.03. Deposit Accounts.
(a) A District credit union may accept deposit accounts from its members, other District credit unions, federal credit unions, foreign credit unions, and government units, subject to the terms, rates, and conditions established by the board of directors and applicable local and federal laws and regulations.
(b) Interest may be paid on deposit accounts at various rates with due regard to the conditions that pertain to each type of account, such as minimum balance, notice, and time requirements.
(c) A District credit union may engage in savings or account programs established by federal, state, or local governments.
(d) A District credit union designated as a low-income credit union may accept non-member deposits.
(May 6, 2020, D.C. Law 23-86, § 603, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part F - Member Accounts › § 26–506.04. Withdrawals

§ 26–506.04. Withdrawals.
(a) Funds in share and deposit accounts may be withdrawn for payment to the account holder or to third parties, in the manner and in accordance with the procedures that are established by the board of directors, subject to any regulations the Commissioner prescribes.
(b) Share, membership share, and deposit accounts shall be subject to any withdrawal notice requirement imposed by the bylaws.
(c) A membership share may only be redeemed or withdrawn after termination of membership in the District credit union, and at a value proportionate to its current value.
(May 6, 2020, D.C. Law 23-86, § 604, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part F - Member Accounts › § 26–506.05. Accounts for minors

§ 26–506.05. Accounts for minors.
Payments on share and deposit accounts may be received from a minor with consent from the minor's parent or guardian. The minor may withdraw funds from these accounts, including the dividends and interest thereon. If shares are issued in the name of a minor, the redemption of any part or all of the shares, or a withdrawal of funds by payment to the minor of the shares or funds, and any declared dividends or interest, releases the District credit union from all obligations to the minor as to the shares redeemed or funds withdrawn.
(May 6, 2020, D.C. Law 23-86, § 605, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part F - Member Accounts › § 26–506.06. Joint accounts

§ 26–506.06. Joint accounts.
(a) A member may designate any person or persons to own a share account with the member, in joint tenancy with the right of survivorship, as a tenant in common, or under any other form of joint ownership permitted by law and allowed by the District credit union.
(b) Payment may be made, in whole or in part, to any of the joint owners, if an agreement permitting the payment was signed and dated by all persons when the shares were issued or thereafter. Payment made pursuant to this section shall discharge the District credit union from all claims for amounts paid, whether or not the payment is consistent with the beneficial ownership of the account.
(c) If more than one joint owner seeks District credit union membership through a joint account, each prospective member shall meet any membership requirements described in the District credit union's bylaws.
(May 6, 2020, D.C. Law 23-86, § 606, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part F - Member Accounts › § 26–506.07. Payable on death accounts

§ 26–506.07. Payable on death accounts.
Notwithstanding any other provision of law, a District credit union may establish share and deposit accounts payable to one or more persons during their lifetimes, and upon the death of every included account holder to one or more payable on death payees. A transfer to a payable on death payee is effective by reason of the account contract and shall not be considered a testamentary transfer.
(May 6, 2020, D.C. Law 23-86, § 607, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part F - Member Accounts › § 26–506.08. Trust accounts

§ 26–506.08. Trust accounts.
(a) Share and deposit accounts may be owned by one or more members in trust for one or more beneficiaries or by one or more nonmembers in trust for one or more beneficiaries who are members.
(b) Payment of part or all of a trust account to the party in whose name the account is held shall, to the extent of the payment, discharge the liability of the District credit union to that party and the beneficiary, and the District credit union shall be under no obligation to verify the application of the payment.
(May 6, 2020, D.C. Law 23-86, § 608, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part F - Member Accounts › § 26–506.09. Trust services

§ 26–506.09. Trust services.
A District credit union may accept and execute trusts pursuant to the laws of the District.
(May 6, 2020, D.C. Law 23-86, § 609, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part F - Member Accounts › § 26–506.10. Liens

§ 26–506.10. Liens.
(a) The District credit union shall have a lien on the membership share, shares, deposits, and accumulated dividends and interest of a member in the member's individual, joint, trust, or payable on death account for any obligation owed to the District credit union by the member or for any loan co-signed or guaranteed by the member; except, that a District credit union shall not have a lien on any funds in an Individual Retirement Account or an account established pursuant to the Internal Revenue Code of the United States.
(b) The District credit union shall have a right of immediate set-off with respect to every deposit and share account. The District credit union may refuse to allow withdrawals from any share or deposit account while the member has any outstanding obligation to the District credit union.
(May 6, 2020, D.C. Law 23-86, § 610, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part F - Member Accounts › § 26–506.11. Reduction in membership shares

§ 26–506.11. Reduction in membership shares.
(a) The board of directors of a District credit union may propose a reduction in membership shares when the losses of the District credit union resulting from a depreciation in value of its loans, investments, or otherwise exceed the District credit union's undivided earnings and reserves so that the estimated value of the District credit union's assets is less than its liabilities, and the board of directors determines that the District credit union may be subject to involuntary liquidation. The District credit union may, by a majority vote of those voting on the proposition, order a reduction in the membership shares, and of each of its shareholders, to divide the loss in proportion to the shares held by shareholders in their respective membership share accounts ("order of reduction").
(b) If the District credit union thereafter realizes a greater amount from its assets than what was fixed by the order of reduction, the excess shall be proportionately restored to the shareholders whose assets were reduced, but only to the extent of the reduction.
(c) Deposit accounts and regular share accounts shall not be subject to a reduction in shares pursuant to this section.
(May 6, 2020, D.C. Law 23-86, § 611, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part F - Member Accounts › § 26–506.12. Share and deposit insurance

§ 26–506.12. Share and deposit insurance.
(a) A District credit union shall apply for and obtain insurance on its members' share and deposit accounts as provided by NCUA or comparable insurance approved by the Commissioner.
(b) No District credit union shall be granted a charter by the Commissioner unless the District credit union has applied for and obtained insurance of its members' share and deposit accounts as provided by this section or received a written commitment to insure or guarantee member accounts.
(c) A District credit union with debt and equity capital consisting primarily of funds received from other credit unions and any membership share issued by a District credit union shall not be subject to the requirements of this section.
(d) A District credit union that has been denied a commitment of insurance or guarantee of its members' share and deposit accounts or that has had that insurance or guarantee revoked, cancelled, or terminated shall, within 30 days of the effective date of the revocation, cancellation, or termination, commence steps to liquidate, merge with an insured credit union, or apply in writing to the Commissioner for an extension of time to obtain an insurance commitment.
(e) The Commissioner may grant one or more extensions of time in which to obtain the insurance commitment upon satisfactory evidence that the District credit union has made, or is making, a substantial effort to satisfy the conditions precedent to the issuance of an insurance commitment.
(f) To permit NCUA or an authorized share guaranty corporation to assess the financial condition and performance of a District credit union, the Commissioner may provide NCUA or an authorized share guaranty corporation with any and all reports of examination conducted by the Commissioner, and copies of orders and notices issued by the Commissioner, regarding any District credit union under the Commissioner's supervision.
(g) NCUA or an authorized share guaranty corporation shall provide to the Commissioner copies of any reports of examinations conducted by NCUA or the authorized share guaranty corporation on a District credit union.
(h) In addition to the primary guaranteed amount, an authorized share guaranty corporation or other insurance company may provide an excess coverage guarantee for the benefit of those District credit unions that voluntarily elect to obtain an additional guarantee.
(i) The Commissioner may appoint NCUA or any official of an authorized share guaranty corporation as the liquidating agent of a District credit union. This appointment is limited to actions arising under §§ 26-509.01 and 26-510.05.
(May 6, 2020, D.C. Law 23-86, § 612, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part F - Member Accounts › § 26–506.13. Authority to withhold payment

§ 26–506.13. Authority to withhold payment.
(a) Nothing contained in this subchapter shall be deemed to require a District credit union to make any payment from an account to a depositor, shareholder, trust, or payable-on-death account beneficiary, or any other person claiming an interest in any funds in an account, if the District credit union has actual knowledge of the existence of a dispute between the depositors, shareholders, beneficiaries, or other persons concerning their respective rights of ownership to the funds contained in, proposed to be withdrawn from, previously withdrawn from, the account, or if the District credit union is otherwise uncertain as to who is entitled to the funds pursuant to the account agreement.
(b) The District credit union may, without liability, notify in writing, all depositors, shareholders, beneficiaries, or other persons claiming an interest in the account of the District credit union's uncertainty as to who is entitled to the funds or of the existence of a dispute and may, without liability, refuse to disburse any funds contained in the account to any depositor, shareholder, trust, payable on death account beneficiary of the account, or other persons claiming an interest in the account until:
(1) Each of the depositors, shareholders, and beneficiaries has consented to the requested payment in writing; or
(2) The payment is authorized or directed by a court of proper jurisdiction.
(May 6, 2020, D.C. Law 23-86, § 613, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part G - Loans › § 26–507.01. Purpose and conditions of loans

§ 26–507.01. Purpose and conditions of loans.
A District credit union may issue loans to members for the purposes and on the conditions prescribed by the board of directors. The board of directors shall establish written policies with respect to granting loans and extending lines of credit, including the terms, conditions, and acceptable forms of security.
(May 6, 2020, D.C. Law 23-86, § 701, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part G - Loans › § 26–507.02. Interest rate

§ 26–507.02. Interest rate.
Notwithstanding the provisions of any other law in connection with extensions of credit, a District credit union may elect to contract for and receive interest for extensions of credit subject only to the provisions of this subchapter and rules promulgated pursuant to this subchapter.
(May 6, 2020, D.C. Law 23-86, § 702, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part G - Loans › § 26–507.03. Other loan-related charges

§ 26–507.03. Other loan-related charges.
(a) Notwithstanding the provisions of any other law in connection with extensions of credit, a District credit union may elect to contract for and receive fees and other charges for extensions of credit in connection with making, closing, disbursing, extending, collecting, renewing, or enforcing a debt in the event of a member's delinquency or breach of any obligation under the District credit union's loan contract, subject only to the provisions of this subchapter and rules promulgated pursuant to this subchapter.
(b) A contingency or hourly arrangement established under an agreement and entered into by a District credit union with an attorney or collection agency to collect a loan of a member who is in default shall be prima facie presumed reasonable.
(May 6, 2020, D.C. Law 23-86, § 703, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part G - Loans › § 26–507.04. Loan limit

§ 26–507.04. Loan limit.
The board of directors may place a limit on the aggregate amount to be loaned to, or co-signed by, any one member. The aggregate of loans to any one member shall not exceed 5% of the District credit union's capital or 1% of shares and deposits, whichever is greater. This limit shall not apply to loans that are fully secured by shares or deposits in the District credit union.
(May 6, 2020, D.C. Law 23-86, § 704, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part G - Loans › § 26–507.05. Lines of credit

§ 26–507.05. Lines of credit.
(a) A District credit union may approve lines of credit to members and loan advances may be granted to members within the limit of the approved lines of credit. The terms and conditions upon which a line of credit is extended to any member may be different from the terms and conditions established for another member. Where a line of credit has been approved, no additional credit application is required as long as the aggregate indebtedness does not exceed the approved limit.
(b) Lines of credit shall be subject to periodic review by the District credit union, in accordance with the written policies adopted by the board of directors.
(May 6, 2020, D.C. Law 23-86, § 705, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part G - Loans › § 26–507.06. Participation loans

§ 26–507.06. Participation loans.
(a) A District credit union may participate in loans to District credit union members jointly with other credit unions, credit union organizations, or other organizations pursuant to written policies established by the board of directors.
(b) If the aggregate amount of participation loans exceeds the District credit union's lending limitations, the District credit union may originate the participation loans only on a non-recourse basis. An interest in a participation loan may be negotiated to another credit union, credit union organization, or other approved organization.
(c) A member benefiting from the proceeds of a participation loan need not be a member of every credit union participating in the loan.
(May 6, 2020, D.C. Law 23-86, § 706, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part G - Loans › § 26–507.07. Other loan programs

§ 26–507.07. Other loan programs.
(a) A District credit union may participate in any guaranteed loan program of the federal or District government under the terms and conditions specified in the law under which the type of program is provided.
(b) A District credit union may purchase the conditional sales contracts, notes, and similar instruments that evidence the indebtedness of its members, persons within its field of membership, or members of another credit union, subject to applicable law.
(c) A District credit union may finance for any person the sale of the District credit union's property, including property obtained as a result of defaults on obligations owed to the District credit union.
(d) A District credit union may issue student loans to its members in accordance with District law or scholarship programs that are subject to a federal or District law providing a 100% repayment guarantee.
(May 6, 2020, D.C. Law 23-86, § 707, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part G - Loans › § 26–507.08. Loans to officials

§ 26–507.08. Loans to officials.
(a) A District credit union may make loans to its officers, directors, and members of its committees, provided that the loan complies with all requirements of this subchapter and is not on terms or conditions more favorable than those extended to other borrowers.
(b) A District credit union may permit officers, directors, and members of its committees to act as co-makers, cosigners, or guarantors of loans to other members, subject to the requirements of subsection (a) of this section.
(May 6, 2020, D.C. Law 23-86, § 708, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part I - Change in Corporate Status › § 26–509.03. Credit union conversion

§ 26–509.03. Credit union conversion.
(a) A District credit union may be converted to a federal credit union or a foreign credit union, subject to rules issued by the Commissioner and applicable laws governing the prospective chartering jurisdiction.
(b) A federal credit union or a foreign credit union may convert to a District credit union incorporated under this subchapter if the converting federal or foreign credit union complies with all requirements of its current chartering jurisdiction and the requirements of the Commissioner and files proof of such compliance with the Commissioner.
(May 6, 2020, D.C. Law 23-86, § 903, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part I - Change in Corporate Status › § 26–509.04. Bank to credit union conversion

§ 26–509.04. Bank to credit union conversion.
(a) A locally regulated or federally regulated bank may convert its charter to a District credit union charter under this subchapter, subject to applicable local and federal laws and regulations governing the bank.
(b) The Commissioner shall prescribe procedures by which a locally regulated or federally regulated bank may convert to a District credit union charter, and those procedures shall include the following:
(1) The converting bank shall prepare and submit to the Commissioner a conversion plan that provides how the converting bank will:
(A) Comply with the membership requirements under this subchapter, including the possible divestiture of customers who do not meet membership limitations;
(B) Convert its board to a voluntary, non-paid structure if the District credit union does not provide for the compensation of its directors;
(C) Divest its board of stock options;
(D) Divest its capital stock;
(E) Phase out all impermissible investments; and
(F) Comply with District credit union business loan limitations.
(2) A converting bank shall perform a complete policy review to address appraisal restrictions, lending restrictions, investment restrictions, corporate structure restrictions, and power structure to ensure compliance with this subchapter and the Commissioner's rules.
(c) The conversion plan shall be adopted by not less than a majority of the board of directors of the converting bank.
(d) Upon approval of a plan of conversion by the board of directors of a converting bank, the conversion plan and certified copy of the resolution of the board of directors approving the conversion plan shall be submitted to the Commissioner for approval.
(e) The Commissioner may authorize a District credit union resulting from a charter conversion under this subchapter to:
(1) Windup any activities that the converting bank legally engaged in at the effective time of the charter conversion but that otherwise are not permitted for District credit unions; or
(2) Retain, for a transitional period, any assets that the converting bank legally held at the effective time of the charter conversion that otherwise may not be held by District credit unions.
(f) The terms and conditions for the windup of activities under subsection (e)(1) of this section, and the retention of assets under subsection (e)(2) of this section shall be at the Commissioner's discretion; except, that the transitional period during which activities under subsection (e)(1) of this section may be carried out or assets retained under subsection (e)(2) of this section shall not exceed 10 years after the effective date of the charter conversion.
(May 6, 2020, D.C. Law 23-86, § 904, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part J - Supervision and Regulation › § 26–510.01. Supervision and regulation of credit unions

§ 26–510.01. Supervision and regulation of credit unions.
The Commissioner shall be responsible for the supervision and regulation of District credit unions. The Commissioner is the District's credit union regulatory authority, whose purpose shall be to protect members' financial interests, the interests of the general public, and to ensure that District credit unions remain viable and competitive.
(May 6, 2020, D.C. Law 23-86, § 1001, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part J - Supervision and Regulation › § 26–510.02. Deposit of fees in the Securities and Banking Trust Fund

§ 26–510.02. Deposit of fees in the Securities and Banking Trust Fund.
(a) The Commissioner shall deposit into the Securities and Banking Trust Fund ("Fund") all funds received from, or in connection to the regulation of, District credit unions and foreign credit unions authorized to operate in the District and from the federal government, to the extent consistent with federal law.
(b) Money in the Fund shall be available for expenses incurred in the supervision, examination, and regulation of credit unions under this subchapter.
(c) The Commissioner shall establish fees and assessments related to the supervision and regulation of credit unions through rulemaking.
(May 6, 2020, D.C. Law 23-86, § 1002, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part J - Supervision and Regulation › § 26–510.04. Involuntary merger of credit union

§ 26–510.04. Involuntary merger of credit union.
(a) Notwithstanding any other provision of law, if the Commissioner determines that an emergency requiring expeditious action exists with respect to a District credit union, other alternatives are not reasonably available, and the public interest, including the interests of the members of the District credit union, would best be served by taking the following action, the Commissioner may:
(1) Initiate the involuntary merger of a District credit union that is insolvent or is in danger of insolvency with any other District credit union;
(2) If authorized under, and to the extent consistent with, applicable federal or state law:
(A) Initiate actions designed to result in the involuntary merger of a District credit union that is insolvent or is in danger of insolvency with any federal or foreign credit union; or
(B) Authorize a District credit union, federal credit union, or foreign credit union to purchase any of the assets of, or assume any of the liabilities of, a District credit union that is insolvent or in danger of insolvency; or
(3) Authorize a financial institution whose deposits or accounts are insured to purchase any of the assets of, or to assume any of the liabilities of, a District credit union that is insolvent or in danger of insolvency; except, that before exercising this authority, the Commissioner shall attempt to effect a merger with, or purchase and assumption, by another District credit union, federal credit union, or foreign credit union as provided in paragraphs (1) and (2) of this subsection.
(b) For purposes of the authority contained in this section, insured share and deposit accounts of the District credit union undergoing an involuntary merger may, upon consummation of the purchase and assumption, be converted to insured deposits or other comparable accounts in the acquiring institution.
(May 6, 2020, D.C. Law 23-86, § 1004, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part J - Supervision and Regulation › § 26–510.05. Involuntary liquidation

§ 26–510.05. Involuntary liquidation.
(a)(1) If the Commissioner determines that a District credit union is bankrupt or insolvent, the Commissioner may issue a notice of involuntary liquidation, revoke the District credit union's charter, and appoint a liquidating agent.
(2) The District credit union may request the appropriate court to stay execution of the action authorized by this subsection.
(b) In the event of liquidation, the assets of the District credit union or the proceeds from any disposition of assets shall be applied and distributed in the following priority:
(1) Secured creditors up to the value of their collateral;
(2) Costs and expenses of liquidation;
(3) Wages due the employees of the District credit union;
(4) Taxes owed to any government unit;
(5) Debts, other than taxes, owed to the United States;
(6) General creditors, and secured creditors to the extent their claims exceed the value of their collateral;
(7) Costs and expenses incurred by creditors in successfully opposing the release of the District credit union from certain debts as allowed by the Commissioner;
(8) Shareholders or depositors, to the extent of uninsured share or deposit accounts; and
(9) Members, to the extent of membership shares.
(May 6, 2020, D.C. Law 23-86, § 1005, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part J - Supervision and Regulation › § 26–510.07. Examinations

§ 26–510.07. Examinations.
(a) The Commissioner shall examine or cause to be examined each District credit union on a regular basis. A District credit union and any of its officers and agents shall give full access to all books, papers, securities, records, and other sources of information (collectively "sources of information") under their control to the Commissioner or the Commissioner's agents, unless the disclosure of these sources of information is prohibited by law.
(b) A report of the examination conducted pursuant to subsection (a) of this section ("examination report") shall be forwarded by the Commissioner or the Commissioner's designee to the District credit union's chair of the board within 30 days after completion. The examination report shall contain comments relative to the management of the affairs of the District credit union and the general condition of District credit union's assets. The board of directors of the District credit union shall meet to consider and respond to matters contained in the examination report within 30 days of receipt of the report.
(c) All information contained in or related to the examination report prepared by, or on behalf of, the Commissioner shall be deemed the confidential property of the Department. No officer, employee, or agent of the Department or the District credit union may disseminate the contents of an examination report for any reason other than the business of the Department or the District credit union. Violation of this subsection constitutes a misdemeanor and upon conviction thereof the misdemeanant shall be fined not more than $ 1,000 for each violation. The contents of the examination report shall not be subject to subpoena.
(d) The Commissioner may accept an examination of the credit union made by the NCUA in lieu of making an examination of a District credit union. The cost of any examination under this subsection shall be borne by the District credit union; except, that the costs of any regular or special examination shall not be assessed more than once annually.
(e) The Commissioner shall adopt rules that ensure consistency and due process in the examination process. The Commissioner may also establish guidelines and provide formal guidance, interpretive letters, or other written materials that:
(1) Define the scope of the examination process; and
(2) Clarify examination items to be resolved.
(May 6, 2020, D.C. Law 23-86, § 1007, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part J - Supervision and Regulation › § 26–510.08. Records

§ 26–510.08. Records.
(a) A District credit union shall maintain all books, records, accounting systems, and procedures that accurately reflect its operations and which enable the Commissioner to readily ascertain the true financial condition of the District credit union and whether it is complying with this subchapter. These books, records, accounting systems, and procedures shall be maintained at the District credit union's principal place of business in accordance with the District credit union's record retention policy.
(b) The Commissioner shall prescribe the minimum retention requirements for District credit union records by rule.
(May 6, 2020, D.C. Law 23-86, § 1008, 67 DCR 3476.)
2023 District of Columbia Code › Title 26 - Banks and Other Financial Institutions › Chapter 5 - Credit Unions › Subchapter I - Credit Union Act of 2020 › Part J - Supervision and Regulation › § 26–510.09. Records of the Department

§ 26–510.09. Records of the Department.
(a) Information from the records of the Department related to District credit unions shall only be disclosed as required by law.
(b) A copy of any document on file with the Department that is certified by the Commissioner as being a true copy may be introduced as evidence in any court in the District as if it were the original.
(c) The following documents are confidential and privileged and not subject to public disclosure:
(1) Examination reports, as defined in § 26-510.07, and related information from insurers or other regulators;
(2) Business plans and other proprietary information of a District credit union, and its subsidiaries or affiliates;
(3) Reports of investigations; and
(4) Notices related to enforcement actions and consent orders.
(d) Examination reports furnished by the Commissioner remain the property of the Department. No person to whom an examination report is furnished, or any officer, director, or employee thereof may disclose or make public the examination report or information contained in the examination report except information that is already in the public domain. Violation of this subsection constitutes a misdemeanor punishable by a fine of not more than $1,000 for each violation, by imprisonment for not more than one year, or both.
(e) Upon notice to the Commission, a party in a civil action in which an examination report or information discussed in this section is sought to be discovered or used as evidence may petition the court for an in-camera review of the examination report or information. The court may permit discovery and introduction of only those portions of the examination report or information that are relevant and otherwise unobtainable by the requesting party.
(May 6, 2020, D.C. Law 23-86, § 1009, 67 DCR 3476.)