Title 17, Title 17: CORPORATIONS AND INSTITUTIONS FOR FINANCE AND INSURANCE

17:13-105. Manner of payment of loans to members Loans made by credit unions may be payable to the members in a lump sum or in installments, of the following types: a. Loans to be repaid in a lump sum by the member; b. Loans to be repaid in two or more installments, which install…

17:13-106. Credit to director, officer, employee, or committee member; participation in determination of question of interest a. No credit union may extend credit to any member of the board, any officer, or member of a committee or to any related interest of that person unless th…

17:13-107. Investment of funds Funds not used in loans to members may be invested: a. In securities, obligations, or other instruments of or issued by or fully guaranteed as to principal and interest by the United States of America or any agency thereof or in any trust or trusts …

17:13-108. Inactive accounts; special reserve accounts; escheat of funds When no transaction has occurred in a member's share or deposit account for 12 months and his whereabouts are unknown, as verified by the return of a certified letter addressed to him at his last known addre…

17:13-109. Gross earnings; reserve funds; contributions; regulation of reserve requirements a. Immediately before the payment of each dividend, the gross earnings of the credit union shall be determined, and from this amount there shall be set aside, as a regular reserve against …

17:13-110. Merger of credit unions a. Any credit union may, with the approval of the commissioner, merge with another credit union under the existing charter of the continuing credit union, pursuant to any plan agreed upon by the majority of the board of each credit union joining…

17:13-111 Annual report by credit union; violations, penalties. 33. Every credit union shall submit a report in writing to the commissioner of its condition at the close of business on the 31st day of December. The report shall be submitted to the commissioner in a form and withi…

17:13-112. Supervision and examination by commissioner; exhibition of papers and documents; subpenas; perjury 34. a. Every credit union shall be subject to the supervision and examination of the commissioner. In lieu of making an examination of a credit union, the commissioner ma…

17:13-113. Expenses of examination Every credit union examined by the commissioner shall pay the actual expenses of the examination, and the commissioner may maintain an action against any credit union to recover the fees and expenses herein provided for. L.1984, c. 171, s. 35, e…

17:13-114. Discontinuation of illegal activity; order If it appears to the commissioner that any credit union has violated its certificate of incorporation, bylaws, or any law of this State, or if he determines that the credit union is conducting its business in an illegal unsafe…

17:13-115. Violation of law, unauthorized actions, or refusal to be examined; institution of court action for possession Whenever it appears to the commissioner: a. That a credit union has violated its charter or any law of this State; or b. That a credit union is conducting its …

17:13-116. Injunctions; receivers; other relief or correction In any action instituted in the Superior Court pursuant to section 37 of this act, the court may enjoin the credit union from the transaction of any further business or the transfer or disposal of its property in any m…

17:13-117. Possession by commissioner of property and business; dissolution of credit union; trustees in dissolution Whenever the commissioner shall take possession of the property and business of a credit union pursuant to section 37 of this act, he shall retain possession until…

17:13-118. Continuation of business by commissioner; authority and powers Upon taking possession of the property and business of a credit union, the commissioner may, pending the return of its property and business to the management of its board or the order or judgment of the Su…

17:13-119. Assistant deputy commissioners; employment of counsel and other expert assistance; powers on receivership of commissioner and members The commissioner may, under his hand and official seal, appoint one or more special assistant deputy commissioners as agent or agents t…

17:13-120. Notice of possession of business and property by commissioner; stay of levies and executions Upon taking possession of the property and business of any credit union, the commission shall give notice of this fact to all banks, trust companies, corporations, associations…

17:13-121. Grievance with action of commissioner; court proceedings for injunction Whenever any credit union or a member thereof deems itself or himself aggrieved by the commissioner's taking possession of that credit union, that credit union or member may at any time after the c…

17:13-122. Voluntary dissolution; liquidation; notice to authorities; suspension of activities; approval of members; wind-up of affairs; distribution of assets; certificate of dissolution a. A credit union may elect to dissolve voluntarily and liquidate its affairs in the manner …

17:13-123. Conversion to or from a federal credit union A credit union organized under the provisions of this act may convert to operation as a federal Credit Union, or a federal Credit Union may convert to a credit union operating under the provisions of this act, without underg…

17:13-124 Credit union advisory council. 46. a. A Credit Union Advisory Council is created which shall consult with, advise, and make recommendations to the commissioner on matters pertaining to the chartering, operation and supervision of credit unions. b. The council shall cons…

17:13-125. Rules and regulations The commissioner shall promulgate any rules and regulations which he deems necessary to effectuate the purposes of this act. L.1984, c. 171, s. 57, eff. Oct. 31, 1984.

17:13-72. Repeal Sections 17:13-1 to section 17:13-25 inclusive of the Revised Statutes are hereby repealed and all laws and parts of laws inconsistent with or repugnant to the provisions of this act are hereby repealed. L.1938, c. 293, p. 667, s. 47.

17:13-73. Corporate central credit union; membership; voting representatives A. One hundred or more credit unions operating under provisions of this act, or operating in this State under the provisions of the federal Credit Union Act may organize a nonprofit single corporate cent…

17:13-73.1. Purposes of corporate central credit union; application of Credit Union Act of 1984 The corporate central credit union shall subject to all parts of "The Credit Union Act of 1984," P.L.1984, c. 171, sections 2 to 46 (C. 17:30-80 to C. 17:13-124) not inconsistent with …

17:13-73.2. Powers The corporate central credit union shall have the power to: a. Accept shares or deposits from its members, other state, regional or national corporate credit unions, and credit union organizations or associations; b. Make loans to credit unions, to other state,…

17:13-73.3. Agreements; purposes The corporate central union may enter into agreements for the purpose of: a. Participating in any state or federal central liquidity facility or central financial system for credit unions; b. Aiding credit unions in establishing concentrated lines…

17:13-73.4. Setoff against accounts of members; lien on accounts; security for loans The corporate central union shall have a right of immediate setoff against the balances of the share and deposit accounts of each member for any amounts due from the member to the corporate centr…

17:13-73.5. Meetings a. The board of the corporate central credit union shall meet at least every 30 days as provided in the bylaws. b. The annual meeting of the members of the corporate central credit union shall be held at such time as prescribed in the bylaws. Each corporate m…

17:13-73.6. Reserve requirements The corporate central credit union shall be exempt from the regular reserve requirements of this act, but shall be required to establish and maintain a reserve to meet losses, in accordance with regulations prescribed by the commissioner. L.1984, …

17:13-73.7. Exemption from insurance requirements of Credit Union Act of 1984 The corporate credit union shall be exempt from the share and deposit insurance requirements of "The Credit Union Act of 1984," P.L.1984, c. 171 sections 2 to 46 (C. 17:13-80 to C. 17:13-124). L.1984, c…

17:13-74. Conversion to or from a federal credit union A credit union organized under the provisions of this act may convert to operation as a Federal Credit Union, or a Federal Credit Union may convert to a credit union operating under the provisions of this act, without undergo…

17:13-75. Insurance; exception Within 1 year of the effective date of this act, every credit union incorporated under the act to which this act is a supplement shall, as a condition of its authority to do business in this State, apply for insurance on shares and deposits as provi…

17:13-76. Failure to apply or denial of commitment for insurance; extension of time A credit union which has failed to apply or which has been denied a commitment for such insurance shall within 60 days of the denial of the commitment or 1 year after the date of enactment, whiche…

17:13-77. Charter; necessity of insurance No credit union shall be granted a charter by the commissioner on or after the effective date of this act, unless the credit union has obtained a commitment for insurance of its member shares and deposit accounts. L.1982, c. 86, s. 3, eff…

17:13-78. Reports of financial condition and examination reports The commissioner may make available reports of financial condition and examination reports to the National Credit Union Administration or to any qualified insuring organization and may accept any report of examinati…

17:13-79. Short title Sections 2 through 46 of this act shall be known and may be cited as "The Credit Union Act of 1984." L.1984, c. 171, s. 1, eff. Oct. 31, 1984.

17:13-80. Definitions For the purposes of this act: a. "Board" means the board of directors of the credit union. b. "Commissioner" means the Commissioner of Banking. c. "Credit union" means any organization incorporated under the provisions of this act, or the laws of another sta…

17:13-81 Incorporation of credit union; application; fee; certificate of incorporation. 3. a. Seven or more natural persons, all of whom are residents of this State, may incorporate a credit union on the terms and conditions provided for in this act. The incorporators shall apply…

17:13-82 Disapproval of application; annexation; filing of certificate of approval. 4. The commissioner shall disapprove the application if the commissioner finds that: a. The incorporation of the proposed credit union will not be in the public interest; b. The incorporators do n…

17:13-83. Organizational meeting; notice The organizational meeting of the members of the credit union shall take place within ten days of the filing of the certificate of incorporation. A written notice, signed by a majority of the incorporators, shall be given personally or by …

17:13-84. Affidavit of incorporators Before the commissioner may issue a certificate of authority, two of the incorporators shall submit an affidavit to the commissioner which attests to the following: a. That the certificate of incorporation has been filed with the commissioner;…

17:13-85. Issuance of certificate of authority; transaction of business Within 30 days of receipt of the affidavit required by section 6 of this act, the commissioner shall issue a certificate of authority for the credit union to begin the transaction of business provided for in …

17:13-86. Amendment of certificate of incorporation; approval of commissioner a. A credit union may amend its certificate of incorporation in the following manner: (1) The board shall approve the proposed amendment and direct that it be submitted to a vote at a meeting of the mem…

17:13-87. Insurance of accounts; financial condition and examination reports a. No credit union shall be granted a charter on or after the effective date of this act unless the incorporators have obtained a commitment for the insurance of its accounts from the National Credit Uni…

17:13-88. Name of credit union; unauthorized use of words "credit union" in name; penalty a. The name of every credit union incorporated under this act shall contain the words "Credit Union." No name shall be adopted by any credit union which is already in use by another existing…

17:13-89 Powers. 11. A credit union's powers shall include, but not be limited to, the power to: a. Make contracts; b. Sue and be sued; c. Adopt and use a common seal and alter same; d. Acquire, lease, hold, assign, pledge, hypothecate, sell and otherwise dispose of property, eit…