The equity capital of a credit union includes its regular reserve account, undivided earnings account, any designated undivided earnings accounts, and other capital types that the commissioner approves.

The savings capital is made up of payments made by members on their shares.

This law states that a credit union in California can borrow money from various sources but cannot exceed borrowing more than half of its total invested and available funds, which include capital and surplus. Additionally, loans from the National Credit Union Central Liquidity Facility are not counted in this borrowing limit. The term 'certificate for funds' in this context means borrowed money.

This law allows credit unions to buy and hold real estate, like a lot and building, either on their own or with other credit unions or affiliated groups. They can use these properties mainly for their business activities and future growth. If there's extra space that they're not using, they can rent it out to others. However, if they want to sell the property, all parties involved in the ownership must agree to the sale.

Credit unions in California can buy and hold items like furniture and equipment that are necessary for running their business. They can do this alone or together with other credit unions or related organizations. They can even equip spaces in buildings they own or share with others. If they decide to sell these items, all owners must agree to the sale.

A credit union in California cannot invest more than certain limits as set by the commissioner's regulations for specific types of investments mentioned in other sections of the law.

Every credit union can join various organizations, including those made up of other credit unions, financial institutions, and community development entities. They can also join nonprofit organizations if their board of directors approves.

Credit unions are allowed to pay any dues or fees required by these member organizations.

This law outlines where a credit union in California can deposit its savings capital, undivided profits, and reserve funds. These can only be deposited in: California-based commercial banks or trust companies; national banks operating in California; shares or certificates from credited unions with insured member accounts; or accounts with savings and loan associations insured by the Federal Deposit Insurance Corporation (FDIC).

If a credit union's losses are so big that its assets are worth less than what it owes its members, it can decide to reduce what it owes each member, sharing the loss fairly among them. This requires a majority vote from all its members in a special meeting. If later on, the credit union manages to regain some value, the extra money goes back to the members who took the hit.

However, the Commissioner can allow these reductions even if less than a majority participates but votes in favor, as long as every member got a notice about the meeting and it clearly explained what the meeting was about.

This law says that credit unions in California can't make any gifts or donations over $25,000 unless it's in the credit union's best interest. Such decisions must be approved by the board of directors. The board's approval should include details about who gets the gift, its value, and why it's beneficial for the credit union. The board can also create a budget for gifts and let officials manage who gets the funds and how much.

This law requires every credit union to have sufficient bond or insurance coverage for its board members, officers, and employees. This means everyone in a leadership role or with significant responsibilities should be covered. The law also allows the commissioner to set rules on what is considered an adequate amount of coverage. These rules might be based on the credit union's total assets and include a formula for calculating the necessary coverage.

Credit unions can share fingerprints of job applicants with law enforcement to check for criminal records. This allows them to see if someone has been convicted or is awaiting trial for certain crimes like theft or fraud. If a credit union finds through these checks that hiring the applicant might be risky for them or their customers, they can refuse employment. Applicants must agree in writing to this background check, and any criminal information gathered must remain confidential, used only for hiring decisions.

This section explains that members of a credit union's board or committees are not allowed to be paid for serving on these bodies but can receive things like health insurance. However, members can receive small non-cash perks if approved by the commissioner. Members are also allowed to get reimbursed for actual expenses incurred, like travel related to credit union work, as long as it follows the commissioner's rules. Lastly, if someone works as an employee, like a manager or loan officer, they can still be paid for their work.