Main office and branch offices

(a) For purposes of this Code section, the term: (1) “Branch office” means any location of a credit union other than the main office where financial services are offered to members. (2) “Main office” means the principal location of a credit union as such location appears in the records of the department. (b) A credit union shall indicate its principal location with the department, and if it fails to do so, the department shall choose a location of such credit union to be the main office and shall so notify such credit union. (c) A credit union may maintain offices at locations other than its main office if the maintenance of such branch offices shall be reasonably necessary to furnish service to its membership. The establishment of 373 7-1-665 branch offices shall be subject to the prior approval of the department upon application to it in such form as it may prescribe by regulation. Participation in shared branching networks does not constitute the establishment of branch offices under this Code section. (d) The department shall exercise its discretion in its consideration of an application to establish a branch office; provided, however, that the department shall not approve an application until it has satisfactorily ascertained that a need exists and the establishment of the proposed branch office would be advantageous to members. Such determination may be made upon consideration of the following factors: (1) Reasonable opportunity for the proposed branch office to generate a sufficient profit; (2) The character and fitness of the board of directors and management of the credit union to command the confidence of the membership and to warrant the belief that the business of the credit union at the branch office will be honestly and efficiently conducted; (3) The adequacy of the capital structure of the credit union, particularly in view of the anticipated business to be generated by the proposed branch office; and (4) The overall financial condition and safety and soundness of the applicant credit union. Where the department by rule, regulation, or written policy has provided for expedited processing of applications or for notice procedures, it may abbreviate its review of these criteria. (e) After receipt of a complete application, the department shall have 30 days within which to approve or disapprove such application. (f) The department may approve an application contingent upon the satisfaction of additional conditions, including the submission of information such as the date of opening and the capital outlay for the branch office. The department may revoke such contingent approval if conditions in the approval have not been satisfied or if other violations of law occur as a result of the branch office’s opening or operation. (g) If the department disapproves an application to establish a branch office, it shall notify the applicant of its disapproval and state generally in writing the unfavorable factors influencing its decision. The decision of the department is final, except that it may be subject to judicial review as provided in Code Section 7-1-90. (h) The department may provide by regulation that a credit union which meets certain criteria may, in lieu of filing a branch application, file a written notification with the department. (i) In the event of merger or consolidation of two or more credit 374 7-1-666 unions, the resulting credit union shall indicate its main office with the department and may retain and continue to operate as branch offices any or all credit union locations of the merged institutions which had been approved by the department prior to such merger or consolidation. In the event of the purchase of substantially all of the assets of a credit union, subject to the review and approval by the department of such transaction, the purchasing credit union may retain and continue to operate as branch offices any or all credit union locations of the selling credit union which had been approved by the department prior to such purchase. History. Code 1933, § 41A-3116, enacted by Ga. L. 1974, p. 705, § 1; Ga. L. 2005, p. 826, § 22/SB 82; Ga. L. 2020, p. 320, § 13/HB 781. 7-1-666. Deposit insurance requirements; public notices when deposits not properly insured. (a) Every credit union shall be required to obtain deposit insurance satisfactory to the department before it may conduct business and accept deposits, except that credit unions which have had their deposit insurance coverage withdrawn or canceled may, in the discretion of the department, continue to accept deposits, provided that, within six months after withdrawal or cancellation of insurance, such credit unions shall obtain deposit insurance written by an insurance company authorized to transact business in this state and acceptable to the department or by the National Credit Union Administration. The department may, in its discretion, for cause shown, extend the time limitation in which deposit insurance must be obtained. (b) Deposit insurance required to be obtained in subsection (a) of this Code section need not be in excess of amounts insured by the National Credit Union Administration at the time the insurance is obtained; but, whenever the insurance coverage is, in the opinion of the department, less than amounts insured by the National Credit Union Administration, the credit union shall be required to post a sign in boldface print, in letters at least four inches high, at a conspicuous place near the entrance of such credit union, which states “Deposits Not Insured” or “Deposits Insured Up To (insert amount of deposit insurance).” Such wording shall also follow the name of the credit union wherever it is written or printed and shall be posted in writing which is easily legible in letters at least one inch high at each window or desk receiving deposits. History. Code 1933, § 41A-3117, enacted by Ga. L. 1974, p. 705, § 1.