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HB2979 - 572R - H Ver
House Engrossed
credit unions;
certificates; powers; committee
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 2979
AN
ACT
amending sections 6-506, 6-508,
6-509, 6-510, 6-516, 6-517, 6-538 and 6-551,
arizona revised statutes; RELATING to credit unions.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Section 6-506, Arizona Revised
Statutes, is amended to read:
START_STATUTE
6-506.
Organization procedure
A. Any seven or more residents of this state who are
of legal age and who have a common bond of interest or association may apply to
the deputy director for permission to organize a credit union under this
chapter.
B. The incorporators shall prepare, adopt and
execute a certificate of organization and shall agree to comply with the
requirements of the certificate and with all of the laws and rules applicable
to credit unions. The certificate shall state:
1. The credit union's name and the location of the
proposed principal place of business.
2. That the existence of the credit union is
perpetual.
3. The names and addresses of the incorporators and
the number of shares subscribed to by each.
4. The purpose for which the credit union is formed.
C. The incorporators shall prepare, adopt and
execute bylaws consistent with this chapter for the general governance of the
credit union.� The bylaws, among other things, shall provide:
1. The proposed field of membership that shall
consist of one or more groups having a common bond of interest, occupation or
association or to groups within a well-defined neighborhood, community or
rural district consistent with the purposes of the credit union.
2. The par value
, if any,
of
shares.
3. The number of directors of the credit union,
which shall not be fewer than five, all of whom shall be members, together with
the titles of the officers and the number of members of the supervisory
committee, which shall not be fewer than three.
4. The conditions under which shares may be issued,
transferred or withdrawn, loans may be made and repaid and monies may be
otherwise invested.
5. The number of members of the credit committee,
which shall not be fewer than three, or the authorization of a credit manager.
D. The incorporators shall select at least five
persons who are eligible for membership and who agree to become members and
serve on the board of directors, and at least three persons who are eligible
for membership and who agree to become members and serve on the supervisory
committee.� The persons selected to serve on the board of directors and the
supervisory committee shall execute an agreement to serve in those capacities
until the first annual meeting or until the election of their respective
successors, whichever is later.
E. The incorporators
shall forward to the deputy director such application as is required by the
deputy director, along with the application fee provided for in section 6-126,
the certificate of organization, the bylaws and the agreements to serve and any
additional information that the deputy director may request.
F. The incorporators shall not transact any business
in the name of the credit union until the certificate of incorporation has been
issued by the corporation commission and the application and the bylaws have
been approved by the deputy director.
END_STATUTE
Sec. 2. Section 6-508, Arizona Revised
Statutes, is amended to read:
START_STATUTE
6-508.
Certificate of organization and bylaws
A. The deputy director shall prepare standard forms
of the certificate of organization and bylaws
,
that are
consistent with this chapter
, which
and that
may be used by credit union incorporators.
B. The board of directors may adopt proposed
amendments to the certificate of organization at a duly held
meeting. The board of directors shall submit the proposed amendments
to the members for ratification at a regular or special meeting, after which
they shall be submitted to the deputy director for the deputy director's
approval or disapproval. If approved by the deputy director, the
board of directors shall follow the procedure for organization prescribed in
section 6-507, subsection B.
C. The board of directors may adopt proposed
amendments to the bylaws at any duly held meeting by a three-fourths
majority vote. After proposed amendments have been approved, the board shall
submit the proposed amendments to the deputy director for the deputy director's
approval.
Within ten business days after receiving a
completed proposed amendment request, the deputy director shall submit an
acknowledgment of receipt or request additional information.� The deputy
director shall make a decision within thirty business days after the date that
the acknowledgment of receipt is submitted to the credit union.� For good cause
shown, the deputy director may extend the response time.
The amendments
are effective on approval of the deputy director. At the next
regular or special meeting of the membership
,
the board
shall submit all amendments to the bylaws to the members for ratification.
END_STATUTE
Sec. 3. Section 6-509, Arizona Revised
Statutes, is amended to read:
START_STATUTE
6-509.
Exclusive use of name; exception
A. The name of every credit union organized under
this chapter shall include the words "credit union". A
credit union shall not adopt a name either identical to the name of any other
credit union doing business in this state or so similar as to be misleading or
cause confusion.
B. It is unlawful for
any person to engage in this state in the business of a credit union or to make
use of the words "credit union" or any other words in a manner
reasonably calculated to convey the impression that the person is engaged in
the business of a credit union in this state, unless the act is done by or on
behalf of a person having authority under this chapter, except an association
of credit unions, or an organization, corporation or association whose
membership or ownership consists primarily of credit unions or credit union
organizations, may use a name or title containing the words "credit
union".
C. A credit union may change its name only on the
written authorization of the deputy director.
Within
ten business days after receiving a completed request for a credit union name
change, the deputy director shall submit an acknowledgment of RECEIPT or
request additional information. The deputy director shall make a
decision within thirty business days after the date that the acknowledgment of
RECEIPT is submitted to the credit union.
END_STATUTE
Sec. 4. Section 6-510, Arizona Revised
Statutes, is amended to read:
START_STATUTE
6-510.
Principal place of business; branch office
A. A credit union may change its principal place of
business or branch within this state with the prior approval of the deputy
director and the payment of the fee provided in section 6-126.
B. A credit union may establish a branch office with
the prior approval of the deputy director.
C. A credit union organized under this chapter may
conduct business in other states or territories of the United States where it
is allowed to do so on approval of the deputy director, if it is reasonably
necessary to service its members.
D. Within ten business days after
receiving a completed request for a change in the credit union's PRINCIPAL
place of business or branch that is located in this state, the deputy director
shall submit an acknowledgment of RECEIPT or request additional information.�
the deputy director shall make a decision within sixty business days after the
date that the acknowledgment of receipt is submitted to the credit union.� For
good cause shown, the deputy director may extend the response time.
END_STATUTE
Sec. 5. Section 6-516, Arizona Revised
Statutes, is amended to read:
START_STATUTE
6-516.
General powers
A. In addition to the powers prescribed elsewhere in
this chapter and except as prohibited by law, a credit union may:
1. Enter into contracts of any nature.
2. Sue or be sued.
3. Adopt, use and display a corporate seal.
4. Acquire, lease, hold, assign, pledge,
hypothecate, sell, discount or otherwise dispose of property or assets, either
in whole or in part, necessary or incidental to its operations.
5. Borrow money from any source, except that a
credit union shall obtain the prior written approval of the deputy director to
borrow in excess of an aggregate of fifty percent of its capital.
6. Purchase all or a portion of the assets and
assume all or a portion of the liabilities of a credit union chartered under
the laws of any state, a federal credit union, a bank or an out-of-state
bank.
7. Offer financial services incidental to the
purposes of a credit union, including electronic fund transfers, safe deposit
boxes and leasing and correspondent arrangements with other financial
institutions.
8. Hold membership in other credit unions organized
under this chapter or other laws or in other associations and organizations.
9. Engage in activities and programs offered by any
governmental unit that are incidental or reasonably related to credit union
activities.
10. Act as a fiscal agent for and receive payments
on share and deposit accounts from a governmental unit.
11. Make contributions to any nonprofit civic,
charitable or service organizations.
B. A credit union may exercise all incidental powers
that are convenient, suitable or necessary to enable it to promote or carry out
its purposes.
C. A credit union shall not delegate the management
of a credit union
or the exercise of any power set forth in this
section
to any person who is not an officer, director or employee of the
credit union without the prior written approval of the deputy director.� The
deputy director may examine the books, records and business affairs of any
person or entity to whom the credit union proposes to delegate any such
authority.
END_STATUTE
Sec. 6. Section 6-517, Arizona Revised
Statutes, is amended to read:
START_STATUTE
6-517.
Federal parity
In addition to all other rights, powers and privileges, a
credit union
that is
organized under the laws of this
state
and
whose accounts are insured by an insuring
organization
:
1.
Has all of the rights,
powers and privileges and is entitled to the same exemptions and immunities as
any credit union
that is
chartered under the laws of the
United States.
2. May exercise all of the rights,
powers and privileges of any out-of-state credit union
with the prior approval of the deputy director.� the credit union
shall submit a request to the deputy director on a form prescribed by the
deputy director and reference the specific statutory or regulatory source of
the rights, powers or privileges that the credit union wishes to exercise.
END_STATUTE
Sec. 7. Section 6-538, Arizona Revised
Statutes, is amended to read:
START_STATUTE
6-538.
Credit committee
A. The credit committee has the general supervision
of all loans to members, unless it is replaced by a credit manager as provided
in section 6-539.� The credit committee may approve or disapprove loans
subject to written policies established by the board of directors.
B. The credit committee shall meet as often as the
business of the credit union requires but not less frequently than monthly, to
review the lending activities of the credit union and to consider applications
for loans.
A loan shall not be made unless it is
Appeals to the credit committee as provided in section 6-540
shall be
approved
or denied
by a majority of the
members of the committee who are present at the meeting at which the
application is considered.
C. The credit committee or the credit manager shall
keep a record of all actions taken and shall report on such actions to the
board at its next meeting.
END_STATUTE
Sec. 8. Section 6-551, Arizona Revised
Statutes, is amended to read:
START_STATUTE
6-551.
Share accounts
A. Share accounts shall be subscribed to and paid
for in such manner as the board of directors prescribes. A credit
union may require its members to subscribe to and make payments on membership
shares. Membership shares may not be pledged as security on any
loan.
B. The par value
, if any,
of
any membership shares may differ from the par value of other shares.
C. A credit union may limit the amount in share
accounts and deposit accounts and any such limit must apply to all account
holders.
END_STATUTE