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Department of Banking consideration of articles - 17 Pa. Cons. Stat. § 304

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     § 304.  Department of Banking consideration of articles.
        (a)  General rule.--The articles of incorporation and two
     copies of the proposed bylaws for the general governance of the
     credit union shall be presented to the department, together with
     such reasonable fees as shall be established by the department,
     including an application fee and other fees for such examination
     and such investigation as it may deem necessary to ascertain:
            (1)  Whether the character and general fitness of the
        incorporators, directors and the treasurer named in the
        articles of incorporation is satisfactory.
            (2)  Whether the character and number of the group
        proposed to be served affords reasonable promise of
        sufficient support for the enterprise so as to make the
        establishment of the proposed credit union economically
        advisable.
            (3)  Whether the incorporators, directors and group
        proposed to be served have a common bond of association as
        provided in section 701 (relating to membership).
            (4)  Whether the proposed credit union unduly encroaches
        upon the field of membership of any other credit union.
            (5)  Whether the application is in proper form and within
        the purpose of this title.
            (6)  Whether the savings of members paid for shares will
        be insured by the National Credit Union Administration or
        other share insurance fund approved by the department.
        Nonprofit corporations created by specific legislation of any
        state to insure share accounts or depository accounts of
        credit unions shall not be subject to regulation by the
        Department of Insurance or to the laws of this Commonwealth
        concerning insurance.
     Within 60 days after receipt of the articles, the department
     shall, upon the basis of the facts disclosed by the application
     and its investigation, either approve or disapprove the
     articles.
        (b)  Approval action.--If the department approves the
     articles, it shall endorse its approval thereon and forward the
     articles to the Department of State. The Department of State
     shall, upon the receipt of the articles and the required filing
     fee, file the same. Upon the filing of the article of
     incorporation, the corporate existence of the credit union shall
     begin. The articles of incorporation as filed in the Department
     of State are conclusive evidence of the fact that the credit
     union has been incorporated.
        (c)  Disapproval action.--If the department disapproves the
     articles, it shall return them to the incorporators, stating in
     detail its reasons for doing so.
        (d)  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 subsecs. (a), (b) and (c).

Last modified: November 27, 2007