Code of Alabama - Title 5: Banks and Financial Institutions - Chapter 17 - Credit Unions

• Article 1 General Provisions.
• Section 5-17-1 "Credit union" defined
  A credit union is a cooperative society, incorporated for the twofold purpose of promoting thrift among its members and creating a source of credit for...
• Section 5-17-2 Procedure for organization and incorporation
  (a) For the purposes of this chapter, both a natural person credit union and a corporate credit union are considered a credit union unless otherwise...
• Section 5-17-3 Use of words "credit union" in name or title
  It shall be a misdemeanor for any person, association, copartnership, or corporation, except corporations organized in accordance with the provisions of this chapter, credit unions...
• Section 5-17-4 Powers generally
  (a) A credit union shall have all of the following powers: (1) To receive the savings of its members either as payment on shares or...
• Section 5-17-5 Membership
  Credit union membership shall consist of the incorporators and such other persons as may be elected to membership and who subscribe to at least one...
• Section 5-17-6 Withdrawal of members; expulsion for cause; termination of membership; readmission
  (a) Any member may withdraw from the credit union at any time, but notice of withdrawal may be required. All amounts paid on shares or...
• Section 5-17-7 Operating fees; fee filed with certificate of organization
  (a) All state chartered credit unions shall pay an annual operating fee and, if deemed necessary by the administrator, an assessment, the exact amount of...
• Section 5-17-8 Reports to Administrator of Alabama Credit Union Administration; powers of administrator
  (a) Credit unions shall report to the Administrator of the Alabama Credit Union Administration at least annually on or before January 31 in such manner...
• Section 5-17-8.1 Investigatory and enforcement powers of administrator, board, designee, etc
  (a) The administrator or the administrator's designee, in consultation with the agency's legal counsel acting under the administrator, may administer oaths and may examine under...
• Section 5-17-9 Fiscal year; meetings of members; amendment of bylaws
  The fiscal year of all credit unions shall end December 31. Special meetings may be held in the manner indicated in the bylaws. At all...
• Section 5-17-10 Election of board of directors, credit committee, and supervisory committee
  At the annual meeting (the organization meeting shall be the first annual meeting), members of the credit union shall elect a board of directors of...
• Section 5-17-11 Election of officers; duties of officers and directors; compensation; liability
  (a) At the first meeting and at subsequent times prescribed in the bylaws, the directors shall elect a president. The president must be either a...
• Section 5-17-12 Powers and duties of credit committee
  The credit committee shall have the general supervision of all loans to members. Applications for loans shall be on a form prepared by the credit...
• Section 5-17-13 Powers and duties of supervisory committee
  (a) The supervisory committee shall make or cause to be made a comprehensive annual audit of the books and affairs of the credit union and...
• Section 5-17-14 Capital; lien on shares and deposits of members; entrance fee
  The capital of a credit union shall consist of the payments that have been made to it by the several members thereof on shares. The...
• Section 5-17-15 Deposits for minor or trust beneficiaries; deposits in names of two persons
  (a) A minor, in his or her own name, may make a general or special deposit in any credit union. The deposit shall be paid...
• Section 5-17-16 Disposition of shares or deposit account of deceased person
  Whenever a person shall die leaving a share or deposit account in a credit union not exceeding ten thousand dollars ($10,000), the credit union having...
• Section 5-17-17 Loans to members, directors, officers, etc
  Loans are made subject to the conditions contained in the bylaws. A borrower may repay his loan in whole or in part any day the...
• Section 5-17-18 Interest rates and finance charges on loans; late charge
  State chartered credit unions may charge such rates of interest and other finance charges as are authorized for other financial institutions pursuant to the Alabama...
• Section 5-17-19 Insurance and reserves
  (a) Every credit union shall set aside such regular reserves as are required to be set aside by the credit union in order to maintain...
• Section 5-17-20 Dividends
  The directors may declare a dividend from net earnings as the bylaws may provide.
• Section 5-17-21 Voluntary dissolution
  (a) Unless otherwise provided in the bylaws of the credit union, the membership of the credit union may elect to dissolve the credit union upon...
• Section 5-17-22 Merger and conversion procedures
  Any credit union, with the approval of the Administrator of the Alabama Credit Union Administration, may merge with another credit union, under the existing certificate...
• Section 5-17-23 Change of place of business
  A credit union may change its place of business on written notice to the Administrator of the Alabama Credit Union Administration.
• Section 5-17-24 Taxation
  A credit union shall be deemed an institution for savings and, together with all the accumulations therein, shall not be subject to taxation except as...
• Section 5-17-25 Alabama Credit Union League - Advance payment of dues by member credit unions
  Repealed by Act 2014-317, §2, effective May 1, 2014.
• Section 5-17-26 Alabama Credit Union League - Issuance of advance dues certificates to member credit unions
  Repealed by Act 2014-317, §2, effective May 1, 2014.
• Section 5-17-27 Alabama Credit Union League - Amortization of credit represented by advance dues certificate
  Repealed by Act 2014-317, §2, effective May 1, 2014.
• Section 5-17-28 Alabama Credit Union League - Redemption and purchase of advance dues certificate upon dissolution, etc., of member credit union
  Repealed by Act 2014-317, §2, effective May 1, 2014.
• Section 5-17-29 Penalties - Concealment of discounts or loans
  Any officer, director, employee, or committee member of a credit union who intentionally conceals from the directors or a committee of such credit union any...
• Section 5-17-30 Penalties - Overdraws; receipt of commission, emolument, etc., for procuring loans
  Any officer, director, committee member, or employee of a credit union who willfully and knowingly overdraws his own account with such credit union and thereby...
• Section 5-17-31 Penalties - Receipt of property other than in payment for just demand
  Any director, officer, committee member, or employee of a credit union who knowingly receives or possesses himself of any of its property otherwise than in...
• Section 5-17-32 Penalties - False or omitted entries
  Any director, officer, committee member or employee of a credit union who with intent to defraud makes or concurs in making any false entry, or...
• Article 2 Alabama Credit Union Administration.
• Section 5-17-40 Alabama Credit Union Administration created; functions; transfer of authority previously vested in State Banking Department
  THIS SECTION WAS AMENDED BY ACT 2018-470 IN THE 2018 REGULAR SESSION, EFFECTIVE JUNE 1, 2018. THIS IS NOT IN THE CURRENT CODE SUPPLEMENT. (a)...
• Section 5-17-41 Administrator - Appointment; vacancy; eligibility
  (a) The Alabama Credit Union Administration shall be in the charge of the administrator who shall be the chief executive officer of the administration. (b)...
• Section 5-17-42 Administrator - Oath; bond
  The administrator, before entering upon the discharge of his or her duties, shall take and subscribe to the oath prescribed by the constitution and laws...
• Section 5-17-43 Official seal; use of sealed papers as evidence; recording
  The Secretary of State shall provide the administrator with an official seal. Every paper executed by him as such administrator, in pursuance of any authority...
• Section 5-17-44 Removal from office of administrator or board member
  (a) The administrator or any member of the Credit Union Board may be removed from office by a vote of two thirds of the members...
• Section 5-17-45 Legislative findings; powers of credit unions; agreements; reports
  (a) The Legislature finds as fact and determines that the credit unions having their principal place of business in Alabama must keep pace with technological...
• Section 5-17-46 Policies, regulations, and interpretations; review for ratification; procedure for adopting, amending or repealing
  (a) The administrator may, with the concurrence of a majority of the members of the Credit Union Board, promulgate such reasonable regulations, consistent with the...
• Section 5-17-47 Procedure for adopting, amending, or repealing regulations and interpretations; contesting regulations
  (a) Prior to the adoption, amendment, or repeal of any regulation or interpretation, the administrator shall: (1) Give at least 30 days' notice of the...
• Section 5-17-48 Annual report; public distribution of report and other material
  The administrator shall make from the reports of the department during the year an annual report to the Governor on the activities of the Alabama...
• Section 5-17-49 Violations to be submitted to grand jury
  Repealed by Act 2014-317, §2, effective May 1, 2014.
• Section 5-17-50 Employment and compensation of necessary personnel; assistant administrator
  (a) Subject to the provisions of Section 36-26-1, et seq., the administrator may appoint or employ such assistants, employees, and attorneys as may be necessary...
• Section 5-17-51 Immunity from personal liability
  Neither the administrator, any member of the Credit Union Board nor any special agent or employee of the Alabama Credit Union Administration shall be personally...
• Section 5-17-52 Oath and duties of examiner
  Before entering upon the discharge of his or her duties, every examiner shall take and file with the administrator an oath faithfully to discharge his...
• Section 5-17-53 Furnishing of commission to examiner; exhibit to credit union upon making examination
  Repealed by Act 2014-317, §2, effective May 1, 2014.
• Section 5-17-54 Bond of Alabama Credit Union Administration employees
  Before entering upon the duties of their respective offices, the administrator shall cause the Division of Risk Management of the Department of Finance or its...
• Section 5-17-55 Credit Union Board created; composition; appeals
  (a) There shall be a Credit Union Board of the Alabama Credit Union Administration which shall consist of the administrator, who shall be an ex...
• Section 5-17-56 Meetings; executive sessions; confidential information
  (a) The administrator shall comply with the Alabama Open Meetings Law, Chapter 25A of Title 36. The Credit Union Board shall meet not less than...
• Section 5-17-57 Quorum
  A majority of the Credit Union Board shall constitute a quorum for the transaction of any business.
• Section 5-17-58 Compensation and expenses of board members
  No person appointed as member of said Credit Union Board shall receive any compensation for his services; except, that each appointed member of said Credit...
• Section 5-17-59 Applicability of Alabama Business Corporation Act
  Any Alabama state chartered credit union shall be subject to the provisions of the Alabama Business Corporation Act, specifically to Sections 10-2A-260, 10-2A-261, 10-2A-283, 10-2A-284,...
• Section 5-17-60 Confidentiality of conditions and affairs of credit unions; disclosures
  (a) Except as otherwise provided in this title or under state or federal law, the administrator, a member of the Credit Union Board, or an...

Last modified: May 3, 2021