§412:10-107  Grant of approval.  (a) Approval of the application for charter shall be granted if the commissionerfinds that:

(1)  The proposed credit union will be formed forlegitimate purposes contemplated by this article;

(2)  The qualifications, character, experience, andgeneral fitness of the original chartering applicants and proposed executiveofficers are such as will command public confidence.  For purposes of thissection, the commissioner may presume that in the absence of credible evidenceto the contrary, an original chartering applicant or proposed executive officeris of good character and is qualified to participate in the affairs of theproposed credit union.  Such presumption may be rebutted by evidence to thecontrary, including without limitation a finding that such applicant orexecutive officer has:

(A)  Been convicted of, or has pleaded nolocontendere to, any crime involving an act of fraud or dishonesty;

(B)  Consented to or suffered a judgment in anycivil action based upon conduct involving an act of fraud or dishonesty;

(C)  Consented to or suffered the suspension orrevocation of any professional, occupational, or vocational license based uponconduct involving an act of fraud or dishonesty;

(D)  Wilfully made or caused to be made in anyapplication or report filed with the commissioner, or in any proceeding beforethe commissioner, any statement which was at the time and in the light of thecircumstances under which it was made false or misleading with respect to anymaterial fact, or has wilfully omitted to state in any application or reportany material fact which was required to be stated therein; or

(E)  Wilfully committed any violation of, orhas wilfully aided, abetted, counseled, commanded, induced, or procured the violationby any other person of, any provision of this chapter or of any rule or orderissued under this chapter;

(3)  The characteristics of the common bond of theproposed field of membership set forth in the proposed articles of associationare favorable to the economic viability of the proposed credit union;

(4)  The proposed operations of the credit union willbe conducted in a safe and sound manner; and

(5)  The articles of association and bylaws are incompliance with this article.

(b)  Upon approval of the application by thecommissioner, the credit union shall be a body corporate and as such, subjectto the limitations herein contained, shall be vested with all the powers andcharged with all the liabilities conferred and imposed by this article.

(c)  In granting approval of the application,the commissioner may impose such conditions and restrictions as shall be in thepublic interest, including without limitation requiring the applicants tofulfill representations contained in their application and agreements made withthe commissioner during the application process.

(d)  Upon issuance of a charter, thecommissioner shall return the articles of association and bylaws to theapplicants or their representatives.  The original articles and bylaws shall bepreserved in the permanent files of the credit union.

(e)  The applicants shall not transact anycredit union business until the application has been approved by thecommissioner and a charter has been issued. [L 1993, c 350, pt of §1]