This section explains how people can become members of a credit union. To join, individuals can buy a membership or shares, or pay an entrance fee, as detailed in the credit union's bylaws. Credit union officials cannot approve memberships or provide services to non-members, unless they join according to these rules. Additionally, credit unions can collaborate with other businesses to benefit members, and this includes joint service and loan programs. It also specifies that credit unions can admit corporate members if they own shares in them or have certain business interests with them.

In California, credit unions are allowed to offer certain financial services to people who are eligible to be members, even if they haven't officially joined yet. They can charge a fee for these services, but the fee can't be more than what it costs to provide them.

The services include selling checks, electronic fund transfers (both domestic and international), cashing checks, and receiving electronic fund transfers.

The term 'checks' in this law is defined according to another part of the Commercial Code.

This law states that credit unions in California have the authority to expel members according to specific rules outlined in other sections of the law.

If you're a member of a credit union, you need to keep them updated with your current address. If you don't, they can charge you up to $5 to find out where you are. This charge is only for costs from professional services that locate people, and they can only apply this charge to your account once a year.

A credit union isn't allowed to pay someone for signing up new members or for convincing existing members to deposit more money. However, they can offer reasonable incentives for becoming a member, depositing more funds, or for employees who help in these activities, as long as the board approves these incentives. Additionally, credit unions can still use their growth in membership numbers as part of their employee compensation plans.

This law requires credit unions to hold an annual meeting for members where they elect directors, a supervisory committee or an audit committee, and a credit committee if their bylaws allow it. The meeting's time, place, and notice requirements are determined by the credit union's bylaws. Meetings, including the annual one, can be held online if the credit union's rules don't prohibit it, following specific guidelines.

This section explains the rules for holding special meetings in a credit union. The board of directors can order a special meeting, or a meeting must be held if it’s requested in writing by either 10 members or 3% of the membership, whichever is higher. Members must receive notice about the meeting's details, like when and where it will happen and what it’s about.

Also, unless the credit union's official documents say otherwise, both regular and special meetings can be held partly or entirely online, following another law related to remote communication.

This law states that in credit unions created from September 15, 1945, onwards, each member is entitled to only one vote, no matter how many shares they own.

This law explains how a member can withdraw from a credit union. Members can leave at any time but might need to give a notice period before withdrawing their shares or funds, usually 60 days for shares and 30 days for certificates. The credit union’s board may set different notice periods.

Additionally, if a member becomes inactive and doesn’t do what's required to become active again, they might be considered to have left voluntarily. Similarly, if their funds are sent to the Controller’s office for escheat, it's seen as a voluntary withdrawal.

If a member leaves or is removed from a credit union, any money they paid into their shares or certificates, along with earned dividends or interest up to the time they left, will be refunded when possible. However, any debts the member owes to the credit union will be deducted first. Leaving or being expelled doesn't cancel any debts owed to the credit union or its creditors.

If you leave the area or group that qualifies you for credit union membership, you might still be able to keep your membership.

However, whether you can keep it or not depends on the specific rules set out in the credit union's bylaws.

If a credit union member has no debts with the union and their account balance is too low, they can be moved to inactive status. An inactive member loses certain rights, like voting and receiving notices. They can't affect meeting quorums or votes and won't be sent financial reports unless they ask. If they fix their account status, they can become a regular member again. If they stay inactive for 90 days after being notified, they're considered to have quit the union. The notice must explain their inactive status, how to return to regular status, and that failing to do so within 90 days (or a longer period set by the union) means they will be assumed to have left the credit union.

This law covers how credit union members can authorize someone else to vote on their behalf, called a proxy. A proxy is a document that lets another person vote in your place at a credit union. Generally, proxies are valid for up to 11 months, unless stated otherwise, but they can't last more than three years.

If the person who made the proxy passes away or becomes unable to act, it doesn't automatically cancel the proxy unless the credit union receives a written notice before the vote.

In cases where the credit union is facing financial troubles, it can ask members for irrevocable proxies, which can't be taken back, under specific conditions. These conditions include when a member has transferred their membership, or where creditors or employees have certain agreements with the credit union.

Additionally, any changes to the rules about proxies must be approved by members, and current irrevocable proxies remain valid even if the rules change, as long as they were originally issued correctly.

Finally, some proxies dealing with specific matters under the Nonprofit Mutual Benefit Corporation Law need to clearly describe what members will be voting on to be valid.

This section mandates that any proxy or ballot distributed to 10 or more credit union members must allow them to choose whether to approve or disapprove each matter presented at a meeting. Proxies valid for three years require annual notifications about how they may be used. If a member marks 'withhold' on a ballot regarding director elections, their vote will not count for or against those directors. Non-compliance doesn't void any actions but may lead to challenges, and courts can enforce these rules if a member requests it.

This law states that credit union members cannot use a proxy to vote on issues that are mailed out to all members for a written ballot. If there is already a valid proxy, its powers are put on hold when such a written vote is held.