Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.
This chapter may be cited as the “Foreign (Other State) Credit Union Law.”
Article 1 - General Provisions
California Financial Code — §§ 16000-16013
Sections (14)
Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.
In this chapter:
(a)“Branch business” means the business of issuing share accounts, certificates for funds, and share drafts, receiving deposits, paying checks, making loans and other obligations, and other activities that the commissioner may specify by order or regulation.
(b)“California branch office,” when used with respect to a foreign (other state) credit union, means an office in this state at which the foreign (other state)
credit union engages in branch business.
(c)(1) “California facility,” when used with respect to a foreign (other state) credit union, means an office in this state at which the foreign (other state) credit union engages in business other than branch business.
(2)In the case of an employer-supported foreign (other state) credit union, a “California facility” does not include a table, counter, or booth on the premises of the employer’s place of business at which a volunteer of the foreign (other state) credit union provides information or services to members but does not engage in branch business.
(d)“Foreign nation” means any nation other than the United States, including, without limitation, any subdivision, territory, trust territory, dependency, colony, or possession of any nation other
than the United States.
(e)“Foreign (other nation) credit union” means any credit union or similar institution that is organized under the laws of a foreign nation.
(f)“Foreign (other state) credit union” means a credit union that is organized under the laws of any state of the United States other than this state.
(g)“Home state,” when used with respect to a foreign (other state) credit union, means the state of the United States under which the foreign (other state) credit union is organized.
(h)“Home state regulator,” when used with respect to a foreign (other state) credit union, means the state regulatory agency in the home state of the foreign (other state) credit union which has primary regulatory authority over the foreign (other state)
credit union.
(i)“State of the United States” means any state of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands.
Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.
Nothing in this chapter shall be deemed to authorize a foreign (other nation) credit union to transact business in this state.
Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.
No foreign (other state) credit union may establish or maintain a California branch office or California facility unless it is qualified to transact intrastate business under Chapter 21 (commencing with Section 2100) of Division 1 of Title 1 of the Corporations Code, except as provided in Section 8910 of the Corporations Code.
Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.
No foreign (other state) credit union may establish a California branch office or California facility unless its deposit or share accounts are insured by the National Credit Union Administration or other insurer that is not unsatisfactory to the commissioner.
Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.
Each application filed with the commissioner under this chapter or under any regulation or order issued under this chapter shall be in the form, shall contain the information, shall be signed in the manner, and shall (if the commissioner requires by regulation or order) be verified in the manner that the commissioner may by regulation or order require.
Amended by Stats. 2025, Ch. 20, Sec. 13. (AB 137) Effective June 30, 2025.
Fees shall be paid to and collected by the commissioner as follows:
(a)The fee for an application by a foreign (other state) credit union that is not licensed to transact business in this state for approval to establish a branch office is one thousand dollars ($1,000).
(b)The fee for an application by a foreign (other state) credit union that is licensed to transact business in this state for approval to establish a California branch office is five hundred dollars ($500).
(c)The fee for issuing a license to establish and maintain a California branch office or California facility is twenty-five dollars ($25).
(d)Each foreign (other state) credit union that on June 1 of any year maintains one or more California branch offices or California facilities shall pay, on or before the following July 1, a fee of two hundred fifty dollars ($250) per California branch office and one hundred dollars ($100) per California facility. However, the maximum fee shall be not more than one thousand dollars ($1,000).
(e)If the commissioner makes an examination in connection with a pending application, the foreign (other state) credit union making the application shall pay a fee for the examination, as determined by the commissioner. In determining the fee, the commissioner may use the estimated average hourly cost, including, but not limited to, overhead, for all persons performing the examination, plus, if in the opinion of the commissioner it is necessary for any examiner engaged in the examination to travel outside this state, the travel expenses of the examiner.
(f)If the commissioner makes an examination of a foreign (other state) credit union that maintains a California branch office or California facility, the foreign (other state) credit union shall pay a fee for the examination, as determined by the commissioner. In determining the fee, the commissioner may use the estimated average hourly cost, including, but not limited to, overhead, for all persons performing the examination, plus, if in the opinion of the commissioner it is necessary for any examiner engaged in the examination to travel outside this state, the travel expenses of the examiner.
Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.
(a)Not less than 30 days before a foreign (other state) credit union establishes a California branch office or a California facility, the foreign (other state) credit union shall file with the commissioner, in the form that the commissioner may by regulation or order require, an appointment irrevocably appointing the commissioner and the commissioner’s successor from time to time in office to be the foreign (other state) credit union’s attorney to receive service of any lawful process in any noncriminal judicial or administrative proceeding
against the foreign (other state) credit union or any of its successors that arises out of the activities of the California branch office or California facility after the appointment has been filed, with the same force and validity as if served personally on the foreign (other state) credit union or its successors, as the case may be.
(b)Any foreign (other state) credit union that maintains a California branch office or California facility that has not filed with the commissioner an appointment pursuant to subdivision (a) is deemed by the maintenance of the branch office or facility to have appointed the commissioner as its attorney to receive service of any lawful process in any noncriminal judicial or administrative proceeding against the foreign (other state) credit union or any of its successors that arises out of the activities of the California branch office or California facility, with the same force and validity as if served personally
on the credit union or its successor, as the case may be.
(c)Service may be made on a foreign (other state) credit union that has appointed or is deemed to have appointed the commissioner as its attorney for service of process by leaving a copy of the process at any office of the commissioner. However, the service is not effective unless (1) the party making the service, who may be the commissioner, forthwith sends notice of the service and a copy of the process by registered or certified mail to the foreign (other state) credit union served at the last address on file with the commissioner for any of the foreign (other state) credit union’s offices in this state or at its head office, and (2) an affidavit of compliance with this subdivision by the party making the service is filed in the case on or before the return date if any, or within any further time that the court, in the case of a judicial proceeding, or the administrative agency, in
the case of an administrative proceeding, allows.
Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.
In administering the provisions of this chapter, the commissioner may share information with federal and home state regulators of foreign (other state) credit unions.
Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.
A foreign (other state) credit union that is licensed to establish an office shall post at a conspicuous place at the office a notice to the public which states the name of the foreign (other state) credit union, the type of office it is, and the state of the United States under whose laws it was organized or chartered.
Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.
No license shall be transferable or assignable.
Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.
Whenever a foreign (other state) credit union is licensed to establish more than one office, it shall designate one of its offices as its primary office.
Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.
Each foreign (other state) credit union that is licensed to establish an office shall conduct all of the business of the office in a single building or in adjoining buildings. However, with prior to notice to the commissioner, the foreign (other state) credit union may conduct part of the business of the office elsewhere in the same vicinity.
Added by Stats. 2000, Ch. 612, Sec. 3. Effective January 1, 2001.
Whenever any provision of this chapter or of any regulation or order issued under this chapter which is applicable to or with respect to a foreign (other state) credit union that maintains a California branch office or California facility is inconsistent with any provision of any other chapter of this division, the provision of the other chapter applies, and the latter provision does not apply.