State Codes and Statutes

Statutes > California > Fin > 14200-14212

FINANCIAL CODE
SECTION 14200-14212



14200.  The powers of supervision and examination of all credit
unions organized under the provisions of this division are vested in
the commissioner.


14200.1.  There is in the Department of Financial Institutions, the
Division of Credit Unions. The Division of Credit Unions has charge
of the execution of the laws of this state relating to credit unions
or to the credit union business.


14200.2.  The Chief Officer of the Division of Credit Unions is the
Deputy Commissioner of Financial Institutions for the Division of
Credit Unions. The Deputy Commissioner of Financial Institutions for
the Division of Credit Unions shall administer the laws of this state
relating to credit unions or the credit union business under the
direction of and on behalf of the commissioner. The Deputy
Commissioner of Financial Institutions for the Division of Credit
Unions shall be appointed by the Governor and shall hold office at
the pleasure of the Governor. The Deputy Commissioner of Financial
Institutions shall receive an annual salary as fixed by the Governor.




14201.  The commissioner may establish or waive such rules and
regulations as may be reasonable or necessary to carry out the
purposes and provisions of this division.



14202.  The commissioner may by regulation authorize credit unions
organized under the provisions of this division to engage in any
activity authorized by law or regulation for credit unions organized
under the laws of the United States. Any such regulation shall expire
on the first day of January two years following the end of the
calendar year in which such regulation was promulgated.



14203.  Upon request of the commissioner, a credit union shall
furnish to the commissioner an authorization for examination of
financial records of any capital funds, undivided profits, and
reserve funds, maintained in a financial institution, in accordance
with the procedures set forth in Section 7473 of the Government Code.




14204.  If the commissioner upon any examination, or from any report
made to the commissioner, finds any credit union is violating the
provisions of this division or the rules made pursuant to this
division, or has impaired capital, or is insolvent, or is conducting
its business in an unsafe or unauthorized manner, the commissioner
may notify the credit union to, and the credit union shall, cease
these practices. The commissioner may notify the credit union to, and
the credit union shall, temporarily suspend or entirely cease the
transaction of any new business or the portion thereof as is ordered
by the commissioner. Within 10 days from the date of a notification
or order pursuant to this section, the credit union may request a
hearing. Neither the request for a hearing nor the hearing itself
shall stay the notification or order issued by the commissioner under
this section.



14205.  The commissioner may, upon reasonable notice and opportunity
to be heard, suspend or revoke any certificate if the commissioner
finds that the credit union has violated any provisions of this
division or any rule or regulation of the commissioner made pursuant
to this division, or if any fact or condition exists which, if it had
existed at the time of the original application for certificate,
reasonably would have warranted the commissioner in refusing
originally to issue such certificate.



14207.  In any proceeding under this law, the burden of proving an
exemption or an exception from a definition is upon the person
claiming it.


14208.  The commissioner may, after appropriate notice and
opportunity for hearing, by order censure, or suspend for a period
not exceeding 12 months, or bar from any position of employment or
management of, any credit union, any officer, director, or employee
of, or person performing similar functions for, a credit union, if
the commissioner finds that:
   (1) The censure, suspension or bar is in the public interest, that
the person has committed a violation of this division or rule of the
commissioner, and that the violation was either willful or caused,
or will probably cause, material damage to the credit union or any
member thereof.
   (2) Any officer, director, employee of, or person performing
similar functions for a credit union has been convicted of, or
pleaded nolo contendere to, a crime, or has been held liable in a
civil action by final judgment if the crime or civil action involved
fraud, embezzlement, fraudulent conversion or misappropriation of
property.



14209.  (a) Whenever it appears to the commissioner that any person
has engaged in or is about to engage in any acts or practices
constituting a violation of any provision of this division or any
rule or order adopted pursuant to this division, the commissioner may
in the commissioner's discretion bring an action in the name of the
people of the State of California in the superior court to enjoin the
acts or practices or to enforce compliance. Upon a proper showing a
permanent or preliminary injunction, restraining order, or writ of
mandate shall be granted and a receiver or conservator, which may
include the commissioner, may be appointed for the defendant or the
defendant's assets, and any other ancillary relief may be granted as
appropriate. A receiver or conservator appointed by the court
pursuant to this section may, with the approval of the court,
exercise all of the powers of the defendant's officers, directors,
trustees, or persons who exercise similar powers and perform similar
duties, including the powers expressly authorized by subdivision (b)
of Section 14300.
   (b) If the commissioner determines it is in the public interest,
the commissioner may include in any action authorized by subdivision
(a), a claim for ancillary relief, including, but not limited to, a
claim for restitution or disgorgement or damages on behalf of the
persons injured by the act or practice constituting the subject
matter of the action, and the court shall have jurisdiction to award
the additional relief.


14211.  In determining for purposes of this division whether the
capital of any credit union is adequate, the commissioner shall
consider the following:
   (a) The nature and volume of the business and the proposed
business of the credit union.
   (b) The amount, nature, quality, and liquidity of the assets of
the credit union.
   (c) The amount and nature of the liabilities, including contingent
liabilities, of the credit union.
   (d) The history of, and prospects for, the credit union to earn
and retain income.
   (e) The nature and scope of the operations of the credit union.
   (f) The performance of the management of the credit union.
   (g) Any other factors as are, in the opinion of the commissioner,
relevant.



14212.  (a) The commissioner, whenever in his or her opinion such
action is necessary or appropriate to carry out his or her duties,
may call a meeting of the board of directors of a credit union.
   (b) A meeting of the board of a credit union called by the
commissioner shall be held upon four days' notice by first class mail
or 24 hours' notice delivered personally or by telephone. The notice
shall be given by the commissioner or, if the commissioner so
orders, by an officer of the credit union.
   (c) A meeting of the board of a credit union called by the
commissioner shall be held at the head office of the credit union,
the department office closest to the head office of the credit union,
or any other place within a reasonable distance to the head office
of the credit union as may be designated by the commissioner and
specified in the notice of that meeting.
   (d) The expenses of the credit union pertaining to a meeting of
the board of a credit union called by the commissioner shall be paid
by the credit union.

State Codes and Statutes

Statutes > California > Fin > 14200-14212

FINANCIAL CODE
SECTION 14200-14212



14200.  The powers of supervision and examination of all credit
unions organized under the provisions of this division are vested in
the commissioner.


14200.1.  There is in the Department of Financial Institutions, the
Division of Credit Unions. The Division of Credit Unions has charge
of the execution of the laws of this state relating to credit unions
or to the credit union business.


14200.2.  The Chief Officer of the Division of Credit Unions is the
Deputy Commissioner of Financial Institutions for the Division of
Credit Unions. The Deputy Commissioner of Financial Institutions for
the Division of Credit Unions shall administer the laws of this state
relating to credit unions or the credit union business under the
direction of and on behalf of the commissioner. The Deputy
Commissioner of Financial Institutions for the Division of Credit
Unions shall be appointed by the Governor and shall hold office at
the pleasure of the Governor. The Deputy Commissioner of Financial
Institutions shall receive an annual salary as fixed by the Governor.




14201.  The commissioner may establish or waive such rules and
regulations as may be reasonable or necessary to carry out the
purposes and provisions of this division.



14202.  The commissioner may by regulation authorize credit unions
organized under the provisions of this division to engage in any
activity authorized by law or regulation for credit unions organized
under the laws of the United States. Any such regulation shall expire
on the first day of January two years following the end of the
calendar year in which such regulation was promulgated.



14203.  Upon request of the commissioner, a credit union shall
furnish to the commissioner an authorization for examination of
financial records of any capital funds, undivided profits, and
reserve funds, maintained in a financial institution, in accordance
with the procedures set forth in Section 7473 of the Government Code.




14204.  If the commissioner upon any examination, or from any report
made to the commissioner, finds any credit union is violating the
provisions of this division or the rules made pursuant to this
division, or has impaired capital, or is insolvent, or is conducting
its business in an unsafe or unauthorized manner, the commissioner
may notify the credit union to, and the credit union shall, cease
these practices. The commissioner may notify the credit union to, and
the credit union shall, temporarily suspend or entirely cease the
transaction of any new business or the portion thereof as is ordered
by the commissioner. Within 10 days from the date of a notification
or order pursuant to this section, the credit union may request a
hearing. Neither the request for a hearing nor the hearing itself
shall stay the notification or order issued by the commissioner under
this section.



14205.  The commissioner may, upon reasonable notice and opportunity
to be heard, suspend or revoke any certificate if the commissioner
finds that the credit union has violated any provisions of this
division or any rule or regulation of the commissioner made pursuant
to this division, or if any fact or condition exists which, if it had
existed at the time of the original application for certificate,
reasonably would have warranted the commissioner in refusing
originally to issue such certificate.



14207.  In any proceeding under this law, the burden of proving an
exemption or an exception from a definition is upon the person
claiming it.


14208.  The commissioner may, after appropriate notice and
opportunity for hearing, by order censure, or suspend for a period
not exceeding 12 months, or bar from any position of employment or
management of, any credit union, any officer, director, or employee
of, or person performing similar functions for, a credit union, if
the commissioner finds that:
   (1) The censure, suspension or bar is in the public interest, that
the person has committed a violation of this division or rule of the
commissioner, and that the violation was either willful or caused,
or will probably cause, material damage to the credit union or any
member thereof.
   (2) Any officer, director, employee of, or person performing
similar functions for a credit union has been convicted of, or
pleaded nolo contendere to, a crime, or has been held liable in a
civil action by final judgment if the crime or civil action involved
fraud, embezzlement, fraudulent conversion or misappropriation of
property.



14209.  (a) Whenever it appears to the commissioner that any person
has engaged in or is about to engage in any acts or practices
constituting a violation of any provision of this division or any
rule or order adopted pursuant to this division, the commissioner may
in the commissioner's discretion bring an action in the name of the
people of the State of California in the superior court to enjoin the
acts or practices or to enforce compliance. Upon a proper showing a
permanent or preliminary injunction, restraining order, or writ of
mandate shall be granted and a receiver or conservator, which may
include the commissioner, may be appointed for the defendant or the
defendant's assets, and any other ancillary relief may be granted as
appropriate. A receiver or conservator appointed by the court
pursuant to this section may, with the approval of the court,
exercise all of the powers of the defendant's officers, directors,
trustees, or persons who exercise similar powers and perform similar
duties, including the powers expressly authorized by subdivision (b)
of Section 14300.
   (b) If the commissioner determines it is in the public interest,
the commissioner may include in any action authorized by subdivision
(a), a claim for ancillary relief, including, but not limited to, a
claim for restitution or disgorgement or damages on behalf of the
persons injured by the act or practice constituting the subject
matter of the action, and the court shall have jurisdiction to award
the additional relief.


14211.  In determining for purposes of this division whether the
capital of any credit union is adequate, the commissioner shall
consider the following:
   (a) The nature and volume of the business and the proposed
business of the credit union.
   (b) The amount, nature, quality, and liquidity of the assets of
the credit union.
   (c) The amount and nature of the liabilities, including contingent
liabilities, of the credit union.
   (d) The history of, and prospects for, the credit union to earn
and retain income.
   (e) The nature and scope of the operations of the credit union.
   (f) The performance of the management of the credit union.
   (g) Any other factors as are, in the opinion of the commissioner,
relevant.



14212.  (a) The commissioner, whenever in his or her opinion such
action is necessary or appropriate to carry out his or her duties,
may call a meeting of the board of directors of a credit union.
   (b) A meeting of the board of a credit union called by the
commissioner shall be held upon four days' notice by first class mail
or 24 hours' notice delivered personally or by telephone. The notice
shall be given by the commissioner or, if the commissioner so
orders, by an officer of the credit union.
   (c) A meeting of the board of a credit union called by the
commissioner shall be held at the head office of the credit union,
the department office closest to the head office of the credit union,
or any other place within a reasonable distance to the head office
of the credit union as may be designated by the commissioner and
specified in the notice of that meeting.
   (d) The expenses of the credit union pertaining to a meeting of
the board of a credit union called by the commissioner shall be paid
by the credit union.


State Codes and Statutes

State Codes and Statutes

Statutes > California > Fin > 14200-14212

FINANCIAL CODE
SECTION 14200-14212



14200.  The powers of supervision and examination of all credit
unions organized under the provisions of this division are vested in
the commissioner.


14200.1.  There is in the Department of Financial Institutions, the
Division of Credit Unions. The Division of Credit Unions has charge
of the execution of the laws of this state relating to credit unions
or to the credit union business.


14200.2.  The Chief Officer of the Division of Credit Unions is the
Deputy Commissioner of Financial Institutions for the Division of
Credit Unions. The Deputy Commissioner of Financial Institutions for
the Division of Credit Unions shall administer the laws of this state
relating to credit unions or the credit union business under the
direction of and on behalf of the commissioner. The Deputy
Commissioner of Financial Institutions for the Division of Credit
Unions shall be appointed by the Governor and shall hold office at
the pleasure of the Governor. The Deputy Commissioner of Financial
Institutions shall receive an annual salary as fixed by the Governor.




14201.  The commissioner may establish or waive such rules and
regulations as may be reasonable or necessary to carry out the
purposes and provisions of this division.



14202.  The commissioner may by regulation authorize credit unions
organized under the provisions of this division to engage in any
activity authorized by law or regulation for credit unions organized
under the laws of the United States. Any such regulation shall expire
on the first day of January two years following the end of the
calendar year in which such regulation was promulgated.



14203.  Upon request of the commissioner, a credit union shall
furnish to the commissioner an authorization for examination of
financial records of any capital funds, undivided profits, and
reserve funds, maintained in a financial institution, in accordance
with the procedures set forth in Section 7473 of the Government Code.




14204.  If the commissioner upon any examination, or from any report
made to the commissioner, finds any credit union is violating the
provisions of this division or the rules made pursuant to this
division, or has impaired capital, or is insolvent, or is conducting
its business in an unsafe or unauthorized manner, the commissioner
may notify the credit union to, and the credit union shall, cease
these practices. The commissioner may notify the credit union to, and
the credit union shall, temporarily suspend or entirely cease the
transaction of any new business or the portion thereof as is ordered
by the commissioner. Within 10 days from the date of a notification
or order pursuant to this section, the credit union may request a
hearing. Neither the request for a hearing nor the hearing itself
shall stay the notification or order issued by the commissioner under
this section.



14205.  The commissioner may, upon reasonable notice and opportunity
to be heard, suspend or revoke any certificate if the commissioner
finds that the credit union has violated any provisions of this
division or any rule or regulation of the commissioner made pursuant
to this division, or if any fact or condition exists which, if it had
existed at the time of the original application for certificate,
reasonably would have warranted the commissioner in refusing
originally to issue such certificate.



14207.  In any proceeding under this law, the burden of proving an
exemption or an exception from a definition is upon the person
claiming it.


14208.  The commissioner may, after appropriate notice and
opportunity for hearing, by order censure, or suspend for a period
not exceeding 12 months, or bar from any position of employment or
management of, any credit union, any officer, director, or employee
of, or person performing similar functions for, a credit union, if
the commissioner finds that:
   (1) The censure, suspension or bar is in the public interest, that
the person has committed a violation of this division or rule of the
commissioner, and that the violation was either willful or caused,
or will probably cause, material damage to the credit union or any
member thereof.
   (2) Any officer, director, employee of, or person performing
similar functions for a credit union has been convicted of, or
pleaded nolo contendere to, a crime, or has been held liable in a
civil action by final judgment if the crime or civil action involved
fraud, embezzlement, fraudulent conversion or misappropriation of
property.



14209.  (a) Whenever it appears to the commissioner that any person
has engaged in or is about to engage in any acts or practices
constituting a violation of any provision of this division or any
rule or order adopted pursuant to this division, the commissioner may
in the commissioner's discretion bring an action in the name of the
people of the State of California in the superior court to enjoin the
acts or practices or to enforce compliance. Upon a proper showing a
permanent or preliminary injunction, restraining order, or writ of
mandate shall be granted and a receiver or conservator, which may
include the commissioner, may be appointed for the defendant or the
defendant's assets, and any other ancillary relief may be granted as
appropriate. A receiver or conservator appointed by the court
pursuant to this section may, with the approval of the court,
exercise all of the powers of the defendant's officers, directors,
trustees, or persons who exercise similar powers and perform similar
duties, including the powers expressly authorized by subdivision (b)
of Section 14300.
   (b) If the commissioner determines it is in the public interest,
the commissioner may include in any action authorized by subdivision
(a), a claim for ancillary relief, including, but not limited to, a
claim for restitution or disgorgement or damages on behalf of the
persons injured by the act or practice constituting the subject
matter of the action, and the court shall have jurisdiction to award
the additional relief.


14211.  In determining for purposes of this division whether the
capital of any credit union is adequate, the commissioner shall
consider the following:
   (a) The nature and volume of the business and the proposed
business of the credit union.
   (b) The amount, nature, quality, and liquidity of the assets of
the credit union.
   (c) The amount and nature of the liabilities, including contingent
liabilities, of the credit union.
   (d) The history of, and prospects for, the credit union to earn
and retain income.
   (e) The nature and scope of the operations of the credit union.
   (f) The performance of the management of the credit union.
   (g) Any other factors as are, in the opinion of the commissioner,
relevant.



14212.  (a) The commissioner, whenever in his or her opinion such
action is necessary or appropriate to carry out his or her duties,
may call a meeting of the board of directors of a credit union.
   (b) A meeting of the board of a credit union called by the
commissioner shall be held upon four days' notice by first class mail
or 24 hours' notice delivered personally or by telephone. The notice
shall be given by the commissioner or, if the commissioner so
orders, by an officer of the credit union.
   (c) A meeting of the board of a credit union called by the
commissioner shall be held at the head office of the credit union,
the department office closest to the head office of the credit union,
or any other place within a reasonable distance to the head office
of the credit union as may be designated by the commissioner and
specified in the notice of that meeting.
   (d) The expenses of the credit union pertaining to a meeting of
the board of a credit union called by the commissioner shall be paid
by the credit union.

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