3 AAC 03.220 - Organization requirements
(a) Certificate of
Authority to Conduct Credit Union Business. No proposed credit union may
conduct the business of a credit union unless a certificate of authority to
conduct credit union business has been issued by the department and the
certificate is prominently and publicly displayed in the principal
office.
(b) Order of Approval. The
incorporators of a proposed credit union must submit to the department the
following documents, together with supporting materials, which must be reviewed
and approved or disapproved in the following order:
(1) notice of intent to incorporate a credit
union;
(2) application for a
certificate of incorporation;
(3)
request for approval of solicitation materials under
3
AAC 03.230;
(4) application for certificate of authority
to conduct credit union business.
(c) Notice of Intent. The incorporators of a
proposed credit union shall submit to the department a written notice of intent
to organize a credit union which
(1) is signed
originally by at least seven of the incorporators;
(2) contains the name to be reserved for the
proposed credit union;
(3) contains
the field of membership of the proposed credit union;
(4) indicates the city or otherwise specifies
the proposed location of the proposed credit union;
(5) indicates the address, occupation, and
amount of shares subscribed by each incorporator; and
(6) indicates the individual elected as
president by the incorporators who will accept notice from the department on
behalf of all incorporators.
(d) Application For a Certificate of
Incorporation. The following information and fee must be submitted to the
department in support of an application for a certificate of incorporation:
(1) a completed NCUA share insurance
application which may be obtained directly from NCUA;
(2) a copy of the proposed articles of
incorporation of the credit union executed in triplicate with all copies
bearing original signatures;
(3) a
copy of the proposed bylaws;
(4) an
economic analysis to support the need and feasibility of the proposed credit
union including but not limited to the number of potential members, the
dispersion of the group, evidence of group interest, leadership, willingness of
persons to serve as officers of the proposed credit union and otherwise
participate in the affairs of the proposed credit union, economic factors or
conditions present in the area, and the availability of other credit union
services;
(5) any additional
information requested by the department; and
(6) a check or money order for $1,000 made
payable to the State of Alaska as a partial prepayment of investigation
expenses incurred by the department in accordance with
AS
06.01.010.
(e) Expense Fund. An expense fund over which
the department has withdrawal control must be established by the incorporators
subject to approval by the department. All organizational expenses incurred in
establishing the proposed credit union must be paid out of that expense fund.
The expense fund must be established with the minimum balance required by the
department before any withdrawals will be authorized. All payments by
incorporators must be deposited to this account. Individuals making deposits to
this account must absorb any expenses pro rata if the proposed credit union
does not become operational.
(f)
Escrow Accounts. An escrow account over which the department has control must
be established by the incorporators subject to approval by the department. All
share subscriptions are to be deposited to this account prior to the receipt of
the certificate of authority to conduct credit union business.
(g) Preliminary Investigation Report. It is
desirable, although not mandatory, that a third party acceptable to the
department and knowledgeable in credit union operations complete the
department's preliminary investigation report to assist in gathering data on
the proposed credit union.
(h)
Issuance of Certificate of Incorporation. If the department finds that (d), (e)
and (f) of this section and all other requirements of the department have been
complied with by the incorporators, a certificate of incorporation will be
issued.
(i) Application For
Certificate of Authority. A credit union must submit the following information
to the department for its consideration in issuing a certificate of authority
to conduct credit union business:
(1)
evidence that insurance of accounts has been obtained from NCUA;
(2) evidence that the surety bond is in
force, including the amount and type of any excess coverage provided;
(3) a statement of where the proposed credit
union will conduct its business and, if space is leased, a fully executed copy
of all lease documents, which must contain a bankruptcy clause;
(4) a statement of whether or not the
proposed credit union plans to finance any improvements to the property, and,
if it intends to lease, whether the proposed lessor will be a borrowing member
of the proposed credit union;
(5)
the amount of fire and liability insurance coverage to be carried for the
proposed credit union's facilities and equipment, who will pay the premium,
and, if it will be paid by the proposed credit union, the amount of the
premium;
(6) an itemized list of
the proposed credit union's investment in land, building, leasehold
improvements, furniture, fixtures and equipment, and any other proposed amount
(and the method of depreciation to be used) to be reflected on the books of the
proposed credit union;
(7) an
organization chart showing the line of authority to be used by the proposed
credit union in providing its services; and
(8) additional information as requested by
the department.
(j)
Timetable. The credit union will have a maximum of six months from the date of
issuance of its certificate of incorporation until it receives its certificate
of authority to conduct credit union business unless an extension of time has
been approved by the department.
(k) Corporate Credit Union. A corporate
credit union may be incorporated under this chapter and will be subject to the
requirements of this chapter which are consistent with this section.
(1) Purposes. The purposes of a corporate
credit union are
(A) to accumulate and
prudently manage the liquidity of its member credit unions through interlending
and investment services;
(B) to act
as an intermediary for credit union funds between members and other corporate
credit unions;
(C) to obtain liquid
funds from other credit union organizations, financial intermediaries, and
other sources;
(D) to promote, in
cooperation with other state, regional, and national corporate credit unions
and credit union organizations or associations, the economic security, growth
and development of member credit unions; and
(E) to perform other services of benefit to
its members which may be authorized by the department.
(2) Voting Representatives. When becoming a
member of the corporate credit union, the board of directors of each credit
union or organization serving the interest of credit unions shall designate one
person to be a voting representative in the corporate credit union. That voting
representative is eligible to hold office in the corporate credit union as if
the person were a member of the corporate credit union.
(3) Organization.
(A) Application to form a corporate credit
union must be made in writing to the department and will be subject to the same
application process as set out in this section and
3
AAC 03.230 to organize a credit union, except that the
application must contain the names of at least 10 credit unions which have
agreed to subscribe to shares in the corporate credit union at the time the
application is made.
(B) The bylaws
must provide for the selection of a board of directors of at least five members
and must require credit unions applying for membership to subscribe to shares
in a minimum amount as specified in the bylaws.
Notes
Authority:AS 06.45.010
AS 06.45.020
AS 06.45.030
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