Central credit unions may be organized and operated under this division. Each such credit union shall use the word “central” in its official name.
Central Credit UnionGeneral
Section § 15450
This law section allows central credit unions to be formed and managed under the given regulations. These credit unions are required to include the word “central” in their official names.
central credit unions credit union formation credit union regulations
Section § 15451
This section explains that a central credit union in California can allow groups of employees from the same employer to become members, as long as they work within 25 miles of the union's main office, or within an area set by the commissioner. Membership also requires approval from the credit union's board and the commissioner. If these employees meet certain criteria, they can create their own credit union. In such cases, the central credit union can transfer their accounts to the new credit union, following a plan approved by the commissioner.
(a)CA Financial Code § 15451(a) A central credit union may, with the approval of the commissioner and under such regulations as he shall prescribe, admit to membership groups of employees of a common employer, including the employer, whose place of employment is located within 25 miles of the principal office of the central credit union, or is located within the boundaries of a greater or lesser geographic area prescribed by the commissioner, upon application made by the employer and approval of the board of directors of the central credit union.
(b)CA Financial Code § 15451(b) In the event the employee group qualifies
under the provisions of Section 14154, these employees may organize a separate credit union. The central credit union may, upon a plan approved by the commissioner, transfer the member accounts of these employees to any credit union formed by them.
central credit union membership employee group membership common employer group
