Chapter 1A - 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 ...
- Section 5-17-2 Procedure for organization and incorporation generally
(a) Any seven residents of the State of Alabama may apply to the Administrator of the Alabama Credit Union Administration for permission to organize ...
- 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 ...
- Section 5-17-4 Powers generally
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 ...
- Section 5-17-6 Expulsion or withdrawal of members
A member may be expelled by a two-thirds vote of the members present at a special meeting called to consider the matter, but only ...
- Section 5-17-7 Operating fees; fee filed with certificate of organization
(a) During 1986 and each year thereafter, all state chartered credit unions shall pay an annual operating fee, the exact amount of which shall ...
- 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 on blanks ...
- 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 ...
- 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), the credit union shall elect a board of directors of not ...
- Section 5-17-11 Election of officers; duties of officers and directors generally; compensation of directors, etc
(a) At the first meeting and at subsequent times prescribed in the bylaws, the directors shall elect a president. The president must be either ...
- 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 ...
- 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 ...
- 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. ...
- Section 5-17-15 Deposits for minor or trust beneficiaries; deposits in names of two persons
(a) Shares may be issued and withdrawn and deposits received and paid out in the name of a minor or in trust in such ...
- 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 $5,000.00, the credit union having the share ...
- 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 ...
- 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 ...
- 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 ...
- 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
The process of voluntary dissolution shall be as follows: At a meeting called for that purpose (notice of which purpose must be contained in ...
- Section 5-17-22 Merger and conversion procedures
Any credit union may, with the approval of the Administrator of the Alabama Credit Union Administration, merge with another credit union, under the existing ...
- 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 ...
- Section 5-17-25 Alabama Credit Union League - Advance payment of dues by member credit unions
Each state chartered member credit union, chartered and organized under the provisions of this chapter, is empowered to make advance payment up to and ...
- Section 5-17-26 Alabama Credit Union League - Issuance of advance dues certificates to member credit unions
The Alabama Credit Union League upon the receipt of one year's dues in advance from a state chartered member credit union shall issue advance ...
- Section 5-17-27 Alabama Credit Union League - Amortization of credit represented by advance dues certificate
Each state chartered member credit union holding advance dues certificates as provided for in Section 5-17-26 is authorized to amortize the credit represented by ...
- Section 5-17-28 Alabama Credit Union League - Redemption and purchase of advance dues certificate upon dissolution, etc., of member credit union
The Alabama Credit Union League, in the event any state chartered member credit union ceases to be a member of the Alabama Credit Union ...
- 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 ...
- 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 ...
- 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 ...
- 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, ...
- 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
There shall be an Alabama Credit Union Administration which shall administer the laws of this state which regulate or otherwise relate to credit unions ...
- 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. ...
- Section 5-17-42 Administrator - Oath; bond
The administrator, before entering upon the discharge of his duties, shall take and subscribe to the oath prescribed by the constitution and laws of ...
- 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 ...
- 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 ...
- Section 5-17-45 Legislative findings; authority to expand powers of credit unions; out-of-state credit unions doing business in state; federally chartered credit unions
(a) The Legislature finds as fact and determines that the credit unions having their principal place of business in Alabama must keep pace with ...
- 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 ...
- Section 5-17-47 Procedure for adopting, amending, or repealing regulations and interpretations; contesting regulation for failure to comply with procedure; action to determine validity or applicability
(a) Prior to the adoption, amendment, or repeal of any regulation or interpretation, the administrator shall: (1) Give at least 30 days' notice of ...
- 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 ...
- Section 5-17-49 Violations to be submitted to grand jury
The administrator shall submit to the grand juries in the respective counties of the state any criminal violations of the credit union laws known ...
- 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 ...
- Section 5-17-51 Immunity from personal liability
Neither the administrator, any member of the Credit Union Board nor any employee of the Alabama Credit Union Administration shall be personally liable for ...
- Section 5-17-52 Oath and duties of examiner
Every examiner shall before entering upon the discharge of his duties, take and file with the administrator an oath faithfully to discharge his duties ...
- Section 5-17-53 Furnishing of commission to examiner; exhibit to credit union upon making examination
The administrator shall furnish to each examiner a commission under the signature of the administrator and official seal of the Alabama Credit Union Administration, ...
- Section 5-17-54 Bond of examiners and office assistants
Before entering upon the duties of their respective offices, all examiners and office assistants shall execute to the State of Alabama a bond to ...
- Section 5-17-55 Credit Union Board created; membership; terms of office; vacancies; appeals to board from actions of administrator
(a) There shall be a Credit Union Board of the Alabama Credit Union Administration which shall consist of the administrator, who shall be an ...
- Section 5-17-56 Notice of board meetings; how often held; location
The administrator shall give to each member of said Credit Union Board and all state credit unions at least five days' notice of the ...
- 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 ...
- 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, ...
