PRIA, Government Policy, Made Personal

Summary

Seven or more natural persons who want to form a Federal credit union must each sign, before an official who can give oaths, two copies of an organization certificate. The certificate must say the credit union’s name; where it will be located and the area it will serve; the names and addresses of the people who signed and how many shares each took; the initial par value of the shares; the proposed field of membership in detail; the term of the corporation (it may be perpetual); and that they are forming it under this law. The certificate may also include any management or governance rules the Board approves, including rules about the powers of directors, officers, or stockholders.

Title 12, §1753

Banks and Banking, Source: USLM XML via OLRC

Any seven or more natural persons who desire to form a Federal credit union shall each subscribe either individually or collectively before some officer competent to administer oaths an organization certificate in duplicate which shall specifically state:

(1)the name of the association;

(2)the location of the proposed Federal credit union and the territory in which it will operate;

(3)the names and addresses of the subscribers to the certificate and the number of shares subscribed by each;

(4)the initial par value of the shares;

(5)the proposed field of membership, specified in detail;

(6)the term of the existence of the corporation, which may be perpetual; and

(7)the fact that the certificate is made to enable such persons to avail themselves of the advantages of this chapter.

Such organization certificate may also contain any provisions approved by the Board for the management of the business of the association and for the conduct of its affairs and relative to the powers of its directors, officers, or stockholders.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1982—Pub. L. 97–320, § 503, substituted “each subscribe either individually or collectively” for “subscribe”. Par. (4). Pub. L. 97–320, § 504, substituted “the initial par value of the shares” for “the par value of the shares, which shall be $5 each”. 1978—Pub. L. 95–630 substituted “Board” for “Administrator”. 1970—Pub. L. 91–206 substituted “Administrator” for “Director”. 1959—Pub. L. 86–354 changed “The” to “the” in subsecs. (1) to (7) and the period to a semicolon in subsecs. (1) to (6) and inserted “and” at end of subsec. (6).

Statutory Notes and Related Subsidiaries

Effective Date

of 1978 AmendmentAmendment by Pub. L. 95–630 effective on expiration of 120 days after Nov. 10, 1978, and transitional provisions, see section 509 of Pub. L. 95–630, set out as a note under section 1752 of this title.

Executive Documents

Transfer of Functions

of Farm Credit Administration and Governor thereof, generally, see notes set out under section 1751 of this title. Functions of Governor of Farm Credit Administration under this section transferred to Federal Deposit Insurance Corporation by Reorg. Plan No. 1 of 1947.

§1753 Federal Credit Union Organization