State Codes and Statutes

Statutes > California > Fin > 14000-14007

FINANCIAL CODE
SECTION 14000-14007



14000.  This division shall be known as the "California Credit Union
Law."


14001.  The definitions given in this division govern the
construction of this division unless the context otherwise requires.



14001.1.  This division is applicable to any person, other than a
federal credit union engaging in the business of a credit union in
this state. For purposes of this division, "person" shall have the
meaning set forth in Section 5065 of the Corporations Code.




14001.5.  If and to the extent that any provision of this division
is preempted by federal law, the provision shall not apply and shall
not be enforced.


14002.  A credit union is a cooperative, organized for the purposes
of promoting thrift and savings among its members, creating a source
of credit for them at rates of interest set by the board of
directors, and providing an opportunity for them to use and control
their own money on a democratic basis in order to improve their
economic and social conditions. As a cooperative, a credit union
conducts its business for the mutual benefit and general welfare of
its members with the earnings, savings, benefits, or services of the
credit union being distributed to its members as patrons.



14002.5.  (a) Except as provided in subdivision (b), all provisions
of law applicable to nonprofit mutual benefit corporations generally
(including, but not limited to, the Nonprofit Mutual Benefit
Corporation Law (Part 3 (commencing with Section 7110) of Division 2
of Title 1 of the Corporations Code)) shall apply to credit unions.
However, whenever any provision of this division applicable to credit
unions is inconsistent with any provision of law applicable to
nonprofit mutual benefit corporations generally, the provision of
this division shall apply and the inconsistent provision of law
applicable to nonprofit mutual benefit corporations generally shall
not apply to a credit union.
   (b) Notwithstanding the provisions of subdivision (a), the
following provisions of the Corporations Code are not applicable to
credit unions:
   (1) Section 7131.
   (2) Subdivision (a) of Section 7132.
   (3) Section 7142.
   (4) Subdivision (c) of Section 7223.
   (5) Subdivision (c) of Section 7225.
   (6) Article 4 (commencing with Section 7240) of Chapter 2 of Part
3 of Title 1.
   (7) Chapter 11 (commencing with Section 8110) of Part 3 of
Division 2 of Title 1.
   (8) Chapter 16 (commencing with Section 8610) of Part 3 of
Division 2 of Title 1.
   (9) Chapter 17 (commencing with Section 8710) of Part 3 of
Division 2 of Title 1.


14003.  "Commissioner" means the Commissioner of Financial
Institutions of the State of California.



14004.  "Impaired capital" means that the losses or projected losses
of a credit union are such that the book value of a member's share
is reduced below 100 percent of the monetary amount of that share
when initially purchased plus any accumulated dividends.



14005.  Unless otherwise defined in this division, "insolvent" means
a credit union has ceased to pay its debts in the ordinary course of
business, or cannot pay its debts as they become due, or is
insolvent within the meaning of the federal bankruptcy law.




14006.  "Credit manager" means a natural person approved by the
board of directors and employed by a credit union to supervise the
lending activities of the credit union in accordance with the loan
policies established by the board of directors and consistent with
the applicable state and federal law and regulations. A credit
manager may be but is not required to be a member of the credit
union.


14007.  "Obligation" means any contractual obligation to the credit
union for money borrowed or credit extended or guaranteed from its
members, including, but not limited to, loans, lines of credit,
agreements to extend credit, and lease agreements.


State Codes and Statutes

Statutes > California > Fin > 14000-14007

FINANCIAL CODE
SECTION 14000-14007



14000.  This division shall be known as the "California Credit Union
Law."


14001.  The definitions given in this division govern the
construction of this division unless the context otherwise requires.



14001.1.  This division is applicable to any person, other than a
federal credit union engaging in the business of a credit union in
this state. For purposes of this division, "person" shall have the
meaning set forth in Section 5065 of the Corporations Code.




14001.5.  If and to the extent that any provision of this division
is preempted by federal law, the provision shall not apply and shall
not be enforced.


14002.  A credit union is a cooperative, organized for the purposes
of promoting thrift and savings among its members, creating a source
of credit for them at rates of interest set by the board of
directors, and providing an opportunity for them to use and control
their own money on a democratic basis in order to improve their
economic and social conditions. As a cooperative, a credit union
conducts its business for the mutual benefit and general welfare of
its members with the earnings, savings, benefits, or services of the
credit union being distributed to its members as patrons.



14002.5.  (a) Except as provided in subdivision (b), all provisions
of law applicable to nonprofit mutual benefit corporations generally
(including, but not limited to, the Nonprofit Mutual Benefit
Corporation Law (Part 3 (commencing with Section 7110) of Division 2
of Title 1 of the Corporations Code)) shall apply to credit unions.
However, whenever any provision of this division applicable to credit
unions is inconsistent with any provision of law applicable to
nonprofit mutual benefit corporations generally, the provision of
this division shall apply and the inconsistent provision of law
applicable to nonprofit mutual benefit corporations generally shall
not apply to a credit union.
   (b) Notwithstanding the provisions of subdivision (a), the
following provisions of the Corporations Code are not applicable to
credit unions:
   (1) Section 7131.
   (2) Subdivision (a) of Section 7132.
   (3) Section 7142.
   (4) Subdivision (c) of Section 7223.
   (5) Subdivision (c) of Section 7225.
   (6) Article 4 (commencing with Section 7240) of Chapter 2 of Part
3 of Title 1.
   (7) Chapter 11 (commencing with Section 8110) of Part 3 of
Division 2 of Title 1.
   (8) Chapter 16 (commencing with Section 8610) of Part 3 of
Division 2 of Title 1.
   (9) Chapter 17 (commencing with Section 8710) of Part 3 of
Division 2 of Title 1.


14003.  "Commissioner" means the Commissioner of Financial
Institutions of the State of California.



14004.  "Impaired capital" means that the losses or projected losses
of a credit union are such that the book value of a member's share
is reduced below 100 percent of the monetary amount of that share
when initially purchased plus any accumulated dividends.



14005.  Unless otherwise defined in this division, "insolvent" means
a credit union has ceased to pay its debts in the ordinary course of
business, or cannot pay its debts as they become due, or is
insolvent within the meaning of the federal bankruptcy law.




14006.  "Credit manager" means a natural person approved by the
board of directors and employed by a credit union to supervise the
lending activities of the credit union in accordance with the loan
policies established by the board of directors and consistent with
the applicable state and federal law and regulations. A credit
manager may be but is not required to be a member of the credit
union.


14007.  "Obligation" means any contractual obligation to the credit
union for money borrowed or credit extended or guaranteed from its
members, including, but not limited to, loans, lines of credit,
agreements to extend credit, and lease agreements.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Fin > 14000-14007

FINANCIAL CODE
SECTION 14000-14007



14000.  This division shall be known as the "California Credit Union
Law."


14001.  The definitions given in this division govern the
construction of this division unless the context otherwise requires.



14001.1.  This division is applicable to any person, other than a
federal credit union engaging in the business of a credit union in
this state. For purposes of this division, "person" shall have the
meaning set forth in Section 5065 of the Corporations Code.




14001.5.  If and to the extent that any provision of this division
is preempted by federal law, the provision shall not apply and shall
not be enforced.


14002.  A credit union is a cooperative, organized for the purposes
of promoting thrift and savings among its members, creating a source
of credit for them at rates of interest set by the board of
directors, and providing an opportunity for them to use and control
their own money on a democratic basis in order to improve their
economic and social conditions. As a cooperative, a credit union
conducts its business for the mutual benefit and general welfare of
its members with the earnings, savings, benefits, or services of the
credit union being distributed to its members as patrons.



14002.5.  (a) Except as provided in subdivision (b), all provisions
of law applicable to nonprofit mutual benefit corporations generally
(including, but not limited to, the Nonprofit Mutual Benefit
Corporation Law (Part 3 (commencing with Section 7110) of Division 2
of Title 1 of the Corporations Code)) shall apply to credit unions.
However, whenever any provision of this division applicable to credit
unions is inconsistent with any provision of law applicable to
nonprofit mutual benefit corporations generally, the provision of
this division shall apply and the inconsistent provision of law
applicable to nonprofit mutual benefit corporations generally shall
not apply to a credit union.
   (b) Notwithstanding the provisions of subdivision (a), the
following provisions of the Corporations Code are not applicable to
credit unions:
   (1) Section 7131.
   (2) Subdivision (a) of Section 7132.
   (3) Section 7142.
   (4) Subdivision (c) of Section 7223.
   (5) Subdivision (c) of Section 7225.
   (6) Article 4 (commencing with Section 7240) of Chapter 2 of Part
3 of Title 1.
   (7) Chapter 11 (commencing with Section 8110) of Part 3 of
Division 2 of Title 1.
   (8) Chapter 16 (commencing with Section 8610) of Part 3 of
Division 2 of Title 1.
   (9) Chapter 17 (commencing with Section 8710) of Part 3 of
Division 2 of Title 1.


14003.  "Commissioner" means the Commissioner of Financial
Institutions of the State of California.



14004.  "Impaired capital" means that the losses or projected losses
of a credit union are such that the book value of a member's share
is reduced below 100 percent of the monetary amount of that share
when initially purchased plus any accumulated dividends.



14005.  Unless otherwise defined in this division, "insolvent" means
a credit union has ceased to pay its debts in the ordinary course of
business, or cannot pay its debts as they become due, or is
insolvent within the meaning of the federal bankruptcy law.




14006.  "Credit manager" means a natural person approved by the
board of directors and employed by a credit union to supervise the
lending activities of the credit union in accordance with the loan
policies established by the board of directors and consistent with
the applicable state and federal law and regulations. A credit
manager may be but is not required to be a member of the credit
union.


14007.  "Obligation" means any contractual obligation to the credit
union for money borrowed or credit extended or guaranteed from its
members, including, but not limited to, loans, lines of credit,
agreements to extend credit, and lease agreements.


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