The use by any person, other than those authorized by this division, of any name or title which contains the phrase “credit union,” is a misdemeanor. Nonprofit associations, which are formed for the mutual benefit and protection of credit unions, by credit unions organized under this division, or under the provisions of the statutes of the United States applicable to credit unions or any nonprofit association formed for the mutual benefit and protection of credit union employees by bona fide employees of credit unions, may use the phrase “credit union” in the name or title designating any such association.
General ProvisionsGeneral
Section § 14050
It's illegal for anyone not authorized by law to use the term "credit union" in a name or title. The only exceptions are nonprofit associations that are set up to help and protect credit unions or their employees. These nonprofit groups, either made by the credit unions themselves or their employees, are allowed to use "credit union" in their names.
credit union unauthorized use nonprofit association
Section § 14051
This law states that if someone intentionally spreads false information about a credit union's financial health, they can be fined up to $1,000, jailed for up to a year, or both. The rule covers false statements made in writing, speech, or rumors and also applies to anyone helping others to spread such false information.
Any person who willfully and knowingly makes, circulates, or transmits to another or others any statement or rumor, written, printed or by word of mouth, which is untrue in facts and is directly or by inference derogatory to the financial condition or affects the solvency or financial standing of any credit union doing business in this state, or who knowingly counsels, aids, procures, or induces another to start, transmit, or circulate any such statement or rumor, is guilty of a misdemeanor and shall be punished by a fine of not more than one thousand dollars ($1,000) or by imprisonment for not more than one year, or both.
false information financial condition credit union
Section § 14052
This law states that credit unions in California have the same general powers as corporations under the state's Nonprofit Mutual Benefit Corporation Law, unless this division of the law specifically restricts those powers.
In addition to the powers enumerated in this division, every credit union has the general powers conferred upon corporations by the Nonprofit Mutual Benefit Corporation Law of this state unless restricted by this division.
credit union powers Nonprofit Mutual Benefit Corporation Law corporate powers
Section § 14053
This section outlines rules for credit unions regarding fees like nonsufficient funds or overdraft fees. When a credit union charges such a fee, it must notify the member on the same business day or the next, using the member's preferred communication method. The notice must include details about the transaction, such as the date, type, whether it was declined or processed, and any overdraft amount. Additionally, if multiple people hold an account, notifying one person is enough. Starting January 1, 2026, credit unions cannot charge more than $14 or the fee amount set by the federal Consumer Financial Protection Bureau, whichever is lower.
(a)CA Financial Code § 14053(a) For purposes of this section, the following definitions apply:
(1)CA Financial Code § 14053(a)(1) “Fee” means a nonsufficient funds fee or an overdraft fee.
(2)CA Financial Code § 14053(a)(2) “Nonsufficient funds fee” means a fee resulting from the initiation of a transaction that exceeds the member’s available account balance if the
member’s credit union declines to make the payment.
(3)CA Financial Code § 14053(a)(3) “Overdraft fee” means a fee resulting from the processing of a transaction that exceeds a member’s available account balance.
(b)Copy CA Financial Code § 14053(b)
(1)Copy CA Financial Code § 14053(b)(1) A credit union shall provide a notice to a member each time the credit union assesses a fee that meets all of the following requirements:
(A)CA Financial Code § 14053(b)(1)(A) The notice shall be provided to the member using a communication method designated by the member for receiving this type of notice.
(B)CA Financial Code § 14053(b)(1)(B) The notice shall be provided on the same business day the transaction that resulted in the fee occurred, unless
it is not feasible to provide the notice that day, in which case the notice shall be provided on the next business day.
(C)CA Financial Code § 14053(b)(1)(C) The notice shall contain all of the following:
(i)CA Financial Code § 14053(b)(1)(C)(i) The date of the transaction.
(ii)CA Financial Code § 14053(b)(1)(C)(ii) The type of transaction.
(iii)CA Financial Code § 14053(b)(1)(C)(iii) Whether the transaction was declined or processed.
(iv)CA Financial Code § 14053(b)(1)(C)(iv) If applicable, the amount of the overdraft that results from the transaction.
(v)CA Financial Code § 14053(b)(1)(C)(v) If applicable, the amount necessary to return the account to a positive balance.
(vi)CA Financial Code § 14053(b)(1)(C)(vi) If applicable, the consequences of not returning the account to a positive balance within a certain
timeframe.
(vii)CA Financial Code § 14053(b)(1)(C)(vii) If applicable, the amount of time the member has to return the account to a positive balance to avoid the consequences described in clause (vi).
(2)CA Financial Code § 14053(b)(2) If the account has more than one accountholder, provision of the notice described in paragraph (1) to any accountholder shall be sufficient.
(c)CA Financial Code § 14053(c) Beginning January 1, 2026, a credit union shall not charge a fee exceeding fourteen dollars ($14) or the amount set by the
federal Consumer Financial Protection Bureau for the fee, whichever is lower.
credit union fees nonsufficient funds fee overdraft fee
