The powers of supervision and examination of all credit unions organized under the provisions of this division are vested in the commissioner.
Administration and Powers of the CommissionerGeneral
Section § 14200
This law gives the commissioner the authority to oversee and inspect all credit unions that are set up under this specific division.
credit unions supervision authority examination powers
Section § 14200.1
This section establishes the Office of Credit Unions within the Division of Financial Institutions, part of the Department of Financial Protection and Innovation. This office is responsible for enforcing state laws related to credit unions and credit union business.
There is in the Division of Financial Institutions of the Department of Financial Protection and Innovation the Office of Credit Unions. The Office of Credit Unions has charge of the execution of the laws of this state relating to credit unions or to the credit union business.
Office of Credit Unions Division of Financial Institutions Department of Financial Protection and Innovation
Section § 14200.2
The Deputy Commissioner of the Office of Credit Unions is the chief officer responsible for overseeing California's credit union regulations. This person works under the Senior Deputy Commissioner and is appointed by the Governor, who also decides their salary. The Deputy Commissioner manages all state laws related to credit unions.
The chief officer of the Office of Credit Unions is the Deputy Commissioner of the Office of Credit Unions. The Deputy Commissioner of the Office of Credit Unions, under the direction and on behalf of the Senior Deputy Commissioner of Financial Protection and Innovation for the Division of Financial Institutions, shall administer the laws of this state relating to credit unions or the credit union business. The Deputy Commissioner of the Office of Credit Unions shall be appointed by the Governor and shall hold office at the pleasure of the Governor. The Deputy Commissioner of the Office of Credit Unions shall receive an annual salary as fixed by the Governor.
Deputy Commissioner Office of Credit Unions chief officer
Section § 14201
This law allows the commissioner to either set up or waive rules and regulations that are needed to effectively implement the goals and stipulations of this division.
The commissioner may establish or waive such rules and regulations as may be reasonable or necessary to carry out the purposes and provisions of this division.
commissioner authority establish rules waive regulations
Section § 14202
This law lets the commissioner allow state credit unions to do the same things that federal credit unions can do, if there's a regulation that permits it. However, that regulation automatically stops being valid on January 1st, two years after it was created.
The commissioner may by regulation authorize credit unions organized under the provisions of this division to engage in any activity authorized by law or regulation for credit unions organized under the laws of the United States. Any such regulation shall expire on the first day of January two years following the end of the calendar year in which such regulation was promulgated.
credit unions commissioner authorization state credit unions
Section § 14203
This law requires a credit union to provide consent for a financial examination when the commissioner asks. The examination involves looking into the financial records of the credit union's capital, profits, and reserves, following specific procedures outlined in another section of the Government Code.
Upon request of the commissioner, a credit union shall furnish to the commissioner an authorization for examination of financial records of any capital funds, undivided profits, and reserve funds, maintained in a financial institution, in accordance with the procedures set forth in Section 7473 of the Government Code.
credit union examination authorization for financial records commissioner request
Section § 14204
This law states that if the commissioner finds a credit union violating laws or rules, operating unsafely, or facing financial issues like impaired capital or insolvency, they can order the credit union to stop these practices. The commissioner can also require the credit union to pause some or all of their new business transactions. The credit union has 10 days to request a hearing about this order, but requesting a hearing won't delay the order's implementation.
If the commissioner upon any examination, or from any report made to the commissioner, finds any credit union is violating the provisions of this division or the rules made pursuant to this division, or has impaired capital, or is insolvent, or is conducting its business in an unsafe or unauthorized manner, the commissioner may notify the credit union to, and the credit union shall, cease these practices. The commissioner may notify the credit union to, and the credit union shall, temporarily suspend or entirely cease the transaction of any new business or
the portion thereof as is ordered by the commissioner. Within 10 days from the date of a notification or order pursuant to this section, the credit union may request a hearing. Neither the request for a hearing nor the hearing itself shall stay the notification or order issued by the commissioner under this section.
credit union commissioner powers violating laws
Section § 14205
This law states that the commissioner has the authority to suspend or revoke a credit union's certificate if the credit union breaks any laws or rules related to this division. The commissioner can also do this if there is a condition that would have caused them to deny the certificate when it was first applied for.
The commissioner may, upon reasonable notice and opportunity to be heard, suspend or revoke any certificate if the commissioner finds that the credit union has violated any provisions of this division or any rule or regulation of the commissioner made pursuant to this division, or if any fact or condition exists which, if it had existed at the time of the original application for certificate, reasonably would have warranted the commissioner in refusing originally to issue such certificate.
credit union violation certificate suspension certificate revocation
Section § 14207
If you're trying to claim that you're exempt from or that there's an exception to a rule or definition in a legal case, it's up to you to prove it.
In any proceeding under this law, the burden of proving an exemption or an exception from a definition is upon the person claiming it.
burden of proof claiming exemption exception from definition
Section § 14208
The commissioner has the authority to discipline individuals associated with credit unions if they violate certain rules. After a proper notice and hearing, the commissioner can censure, suspend, or permanently bar these individuals from their positions if it's in the public interest. This applies if the person has committed a rule violation that was intentional and potentially harmful to the credit union or its members.
Additionally, any credit union officer or similar person can be disciplined if they've been convicted of crimes like fraud or embezzlement, or if they've been found liable for civil actions involving similar issues.
The commissioner may, after appropriate notice and opportunity for hearing, by order censure, or suspend for a period not exceeding 12 months, or bar from any position of employment or management of, any credit union, any officer, director, or employee of, or person performing similar functions for, a credit union, if the commissioner finds that:
(1)CA Financial Code § 14208(1) The censure, suspension or bar is in the public interest, that the person has committed a violation of this division or rule of the commissioner, and that the violation was either willful or caused, or will probably cause, material damage to
the credit union or any member thereof.
(2)CA Financial Code § 14208(2) Any officer, director, employee of, or person performing similar functions for a credit union has been convicted of, or pleaded nolo contendere to, a crime, or has been held liable in a civil action by final judgment if the crime or civil action involved fraud, embezzlement, fraudulent conversion or misappropriation of property.
credit union discipline credit union violation public interest censure
Section § 14209
This law allows a commissioner to take action against someone violating financial rules or laws. If someone is suspected of breaking such rules, the commissioner can go to court to stop them and make sure they follow the law. The court can then issue orders, appoint a manager to handle the violator's assets, and provide other necessary actions. This manager, with court approval, can take control of the violator's operations.
Additionally, if it's beneficial for the public, the commissioner can ask the court to order the violator to repay or compensate those harmed by their actions. The court has the authority to grant these additional remedies.
(a)CA Financial Code § 14209(a) Whenever it appears to the commissioner that any person has engaged in or is about to engage in any acts or practices constituting a violation of any provision of this division or any rule or order adopted pursuant to this division, the commissioner may in the commissioner’s discretion bring an action in the name of the people of the State of California in the superior court to enjoin the acts or practices or to enforce compliance. Upon a proper showing a permanent or preliminary injunction, restraining order, or writ of mandate shall be granted and a receiver or conservator, which may include the commissioner, may be appointed
for the defendant or the defendant’s assets, and any other ancillary relief may be granted as appropriate. A receiver or conservator appointed by the court pursuant to this section may, with the approval of the court, exercise all of the powers of the defendant’s officers, directors, trustees, or persons who exercise similar powers and perform similar duties, including the powers expressly authorized by subdivision (b) of Section 14300.
(b)CA Financial Code § 14209(b) If the commissioner determines it is in the public interest, the commissioner may include in any action authorized by subdivision (a), a claim for ancillary relief, including, but not limited to, a claim for restitution or disgorgement or damages on behalf of the persons injured by the act or practice constituting the subject matter of the action, and the court shall have jurisdiction to award the additional relief.
financial violations commissioner authority court injunction
Section § 14211
This section details how the commissioner assesses whether a credit union has adequate capital. The commissioner looks at several factors, including the credit union's business activities, asset quality, liabilities, income history and potential, operations, management performance, and any other relevant factors he deems important. These considerations help ensure the financial health and stability of the credit union.
In determining for purposes of this division whether the capital of any credit union is adequate, the commissioner shall consider the following:
(a)CA Financial Code § 14211(a) The nature and volume of the business and the proposed business of the credit union.
(b)CA Financial Code § 14211(b) The amount, nature, quality, and liquidity of the assets of the credit union.
(c)CA Financial Code § 14211(c) The amount and nature of the liabilities, including
contingent liabilities, of the credit union.
(d)CA Financial Code § 14211(d) The history of, and prospects for, the credit union to earn and retain income.
(e)CA Financial Code § 14211(e) The nature and scope of the operations of the credit union.
(f)CA Financial Code § 14211(f) The performance of the management of the credit union.
(g)CA Financial Code § 14211(g) Any other factors as are, in the opinion of the commissioner, relevant.
credit union capital asset quality liabilities assessment
Section § 14212
The commissioner can call a meeting of a credit union's board of directors if they think it's necessary for their duties. The meeting can be scheduled with four days' notice by mail or 24 hours' notice in person or by phone.
The meeting will be held at the credit union's main office, the nearest department office, or another nearby place chosen by the commissioner. The credit union is responsible for covering any meeting expenses.
(a)CA Financial Code § 14212(a) The commissioner, whenever in his or her opinion such action is necessary or appropriate to carry out his or her duties, may call a meeting of the board of directors of a credit union.
(b)CA Financial Code § 14212(b) A meeting of the board of a credit union called by the commissioner shall be held upon four days’ notice by first class mail or 24 hours’ notice delivered personally or by telephone. The notice shall be given
by the commissioner or, if the commissioner so orders, by an officer of the credit union.
(c)CA Financial Code § 14212(c) A meeting of the board of a credit union called by the commissioner shall be held at the head office of the credit union, the department office closest to the head office of the credit union, or any other place within a reasonable distance to the head office of the credit union as may be designated by the commissioner and specified in the notice of that meeting.
(d)CA Financial Code § 14212(d) The expenses of the credit union pertaining to a meeting of the board of a credit union called by the commissioner shall be paid by the credit union.
credit union board meeting commissioner authority meeting notice period
