Credit Unions - 17 Pa. Cons. Stat.

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Chapter 1. Preliminary Provisions

• § 101.  Short title of title.
  This title shall be known and may be cited as the Credit Union Code. ...
• § 102.  Application of title.
  This title applies to and the term "credit union" in this title means a cooperative corporation incorporated under any of the following: (1) The act ...
• § 103.  Definitions.
  The following words and phrases when used in this title shall have the meanings given to them in this section unless the context clearly indicates ...
• § 104.  Prohibition on use of words "credit union.".
  § 104. Prohibition on use of words "credit union." (a) General rule.--Only a credit union subject to this title, a Federal credit union or a ...

Chapter 3. Incorporation

• § 301.  Purposes.
  (a) General rule.--A credit union may be incorporated under this title for the purpose of promoting thrift among its members, creating a source of credit ...
• § 302.  Number and qualifications of incorporators.
  (a) General rule.--A credit union may be incorporated pursuant to the provisions of this title by seven or more incorporators. Such incorporators shall be natural ...
• § 303.  Articles of incorporation.
  Articles of incorporation shall be signed by each of the incorporators. The articles of incorporation shall set forth: (1) The name of the proposed credit ...
• § 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 ...
• § 305.  Bylaws.
  (a) General rule.--The original bylaws of a credit union shall be adopted by the incorporators of the credit union and copies shall be transmitted to ...

Chapter 5. Corporate Powers, Duties and Safeguards

• § 501.  Powers.
  (a) General rule.--A credit union shall have the following general powers: (1) To continue as a corporation for the time specified in its articles of ...
• § 502.  Powers of central or corporate credit unions.
  (a) General rule.--A central or corporate credit union shall have the general power to enjoy the powers and privileges of any other credit union incorporated ...
• § 503.  Regulation by department.
  (a) General rule.--Credit unions shall be under the supervision of the department. The department is hereby authorized and empowered to issue general rules and regulations ...
• § 504.  Fiscal year.
  The fiscal year of all credit unions shall end on December 31 of each year. ...
• § 505.  Capital and shares.
  (a) General rule.--The capital of a credit union shall consist of the payments that have been made to it on shares. (b) Automatic lien.--The credit ...
• § 506.  Joint accounts.
  (a) General rule.--Whenever shares of a credit union shall be issued in the names of two or more persons, the credit union shall not pay ...
• § 507.  Minority and trust accounts.
  (a) General rule.--Shares may be issued and payments on subscribed shares received in the name of a minor, or in trust, in such manner as ...
• § 508.  Estate accounts.
  (a) General rule.--In the absence of a written agreement or document to the contrary, the assets in the account of a deceased member shall be ...
• § 509.  Fees and charges.
  (a) Entrance fees.--A credit union may charge an entrance fee of an amount, not in excess of $1, as may be provided by the bylaws. ...
• § 510.  Loan interest.
  (a) General rule.--Interest rates on loans made by a credit union to its members shall not exceed 15% per annum when calculated on the unpaid ...
• § 511.  Power to borrow.
  (a) General rule.--A credit union may borrow from any source a sum not exceeding 50% of its unimpaired capital, regular reserve, contingency reserves and retained ...
• § 512.  Loans.
  Except as otherwise provided in this title, a credit union may make loans to its members only. Loans must be made subject to the conditions ...
• § 513.  Reserves.
  (a) General rule.--Each credit union shall establish and maintain a regular reserve account to the same extent and in the same manner as required of ...
• § 514.  Dividends.
  (a) General rule.--The board of directors of a credit union or the members on recommendation of the board of directors, whichever the bylaws provide, may ...
• § 515.  Rights and liabilities of terminating members.
  All amounts paid on shares of an expelled or withdrawing member, with any dividends accredited thereto to the date thereof, shall, as funds become available ...
• § 516.  Adverse claims.
  (a) General rule.--Notice to a credit union or Federal credit union of an adverse claim against shares standing in the name of any member shall ...
• § 517.  Taxation.
  A credit union incorporated under or subject to this title shall be deemed an institution for savings, and its assets, together with all the accumulation ...

Chapter 7. Members, Directors and Officers

• § 701.  Membership.
  (a) General rule.--Credit union organizations shall be limited to groups having a potential membership of 500 or more adult persons and having a common bond ...
• § 702.  Meetings.
  The annual meeting shall be held at the time, place and in the manner indicated in the bylaws. Special meetings may also be held in ...
• § 703.  Voting rights and procedures.
  At all meetings a member shall have but one vote, irrespective of his shareholdings. There shall be no voting by proxy, but any member, other ...
• § 704.  Notice to members.
  (a) General rule.--All written notices required by this title to be given to members shall be delivered in person to each member or mailed to ...
• § 705.  Expulsion and withdrawal.
  (a) Expulsion.--A member may be expelled: (1) by a vote of a majority of the members present at a regular or a special meeting called ...
• § 706.  Election of directors and credit and supervisory committee members.
  § 706. Election of directors and credit and supervisory committee members. (a) General rule.--At the organization meeting and at all subsequent annual meetings, the credit ...
• § 707.  Duties of directors generally.
  (a) General rule.--The directors of a credit union shall have general management of the affairs of the credit union and are specifically required: (1) To ...
• § 708.  Officers.
  At their organizational meeting and within 30 days following each annual meeting of the members, the directors shall elect from their own number either a ...
• § 709.  Compensation of directors and officers.
  Members of the board of directors, the credit committee and the supervisory committee may be compensated if the credit union pays dividends to its members ...
• § 710.  Executive committee.
  The directors may appoint from their own number an executive committee of not less than three directors, who may be authorized to act for the ...
• § 711.  Procedures for approving service by certain persons.
  (a) General rule.--No person who has been convicted of a misdemeanor or a felony involving dishonesty, breach of trust or violation of this title or ...
• § 712.  Indemnification and exoneration from liability of directors and officers.
  § 712. Indemnification and exoneration from liability of directors and officers. (a) Indemnification.--A credit union shall be governed by the provisions of 15 Pa.C.S. Ch. ...
• § 713.  Loan procedures.
  (a) Credit committee.--If the bylaws provide for a credit committee, the credit committee shall have the supervision of all loans to members other than first ...
• § 714.  Annual audit.
  (a) Supervisory committee.--If the bylaws of the credit union provide for a supervisory committee, the duties of the supervisory committee shall be as follows: (1) ...
• § 715.  Actions by members to enforce a secondary right.
  (a) General rule.--In any action brought to enforce a secondary right on the part of one or more members against any officer or director or ...

Chapter 9. Amendment of Articles

• § 901.  Procedure for amendment of articles.
  The articles of incorporation may be amended at any regular or special meeting of the credit union, if written notice of the meeting and of ...
• § 902.  Articles of amendment.
  The articles of amendment shall be signed by an officer of the credit union and shall set forth: (1) The name and principal place of ...
• § 903.  Filing and review of articles of amendment.
  (a) General rule.--Articles of amendment shall be filed with the department. If the department finds that the articles of amendment conform to law, it shall ...
• § 904.  Place of business.
  (a) Change in principal place of business.--A credit union may change its place of business upon the filing of a statement of change of principal ...

Chapter 11. Conversion, Merger and Consolidation

• § 1101.  Conversion into Federal credit union.
  (a) General rule.--A credit union may be converted into a Federal credit union by complying with the following requirements: (1) The proposition for such conversion ...
• § 1102.  Conversion from Federal credit union.
  (a) General rule.--A Federal credit union may be converted into a credit union subject to the provisions of this title by: (1) Complying with all ...
• § 1103.  Merger and consolidation authorized.
  (a) General rule.--A credit union subject to this title may merge or consolidate with other credit unions, with Federal credit unions, with out-of-State credit unions ...
• § 1104.  Adoption of plan.
  (a) General rule.--The board of directors of each of the credit unions, Federal credit unions or out-of-State credit unions which desire to merge or consolidate ...
• § 1105.  Articles of merger or consolidation.
  (a) General rule.--Upon the adoption, pursuant to the provisions of this chapter, of the plan of merger or consolidation by the credit unions, Federal credit ...
• § 1106.  Supervisory mergers or consolidations by department.
  Notwithstanding any other provision of this title, the department may require a merger or consolidation of a credit union which is insolvent or is in ...

Chapter 13. Dissolution

• § 1301.  Dissolution authorized.
  Any credit union may elect to dissolve voluntarily and wind up its affairs in the manner provided in this chapter. However, if it shall appear ...
• § 1302.  Approval of voluntary dissolution.
  (a) General rule.--The procedure for voluntary dissolution shall be as follows: (1) A plan of dissolution, setting forth in detail the number of liquidating trustees, ...
• § 1303.  Dissolution proceedings.
  (a) Collection and distribution of assets.--The liquidating trustee or trustees shall proceed in the manner provided by the department to gather the assets, determine the ...
• § 1304.  Department supervision.
  The department shall continue to supervise the credit union, in the hands of the liquidating trustee or trustees, until the liquidation is complete and the ...
• § 1305.  Articles of dissolution.
  (a) General rule.--When, in the opinion of the department, the liquidation of a credit union is complete and its affairs are fully settled, the department ...
• § 1306.  Involuntary dissolution.
  (a) Issuance of certificate of dissolution by department.-- In the event the department finds, after issuing written notice of a hearing and an opportunity to ...

Chapter 15. Out-of-State Credit Unions

• § 1501.  Authorization to do business.
  (a) General rule.--A credit union organized in another state may conduct business as an out-of-State credit union in this Commonwealth with the approval of the ...
• § 1502.  Covenants by applicant.
  To conduct business in this Commonwealth, an out-of-State credit union must agree to: (1) Grant loans at rates not higher than those permitted for credit ...
• § 1503.  Supervision by department.
  (a) General rule.--The department may examine an out-of- State credit union: (1) to the same extent that a Pennsylvania credit union is examined by the ...
• § 1504.  Revocation of authorization to do business.
  The department may revoke the approval of an out-of-State credit union to conduct business as a credit union in this Commonwealth if the department makes ...

Last modified: November 22, 2007