N.J. Stat. tit. 17, ch. 13

N.J. Stat. tit. 17, ch. 13
in effect

N.J. Stat. § 17:13-72 Repeal

Sections 17:13-1 to section 17:13-25 inclusive of the Revised Statutes are hereby repealed and all laws and parts of laws inconsistent with or repugnant to the provisions of this act are hereby repealed. L.1938, c. 293, p. 667, s. 47.

N.J. Stat. § 17:13-73 Corporate central credit union; membership; voting representatives

A. One hundred or more credit unions operating under provisions of this act, or operating in this State under the provisions of the federal Credit Union Act may organize a nonprofit single corporate central credit union whose membership shall be limited to: (1) Credit unions operating under the provisions of this act or operating in this State under the provisions of the federal Credit Union Act, and organizations composed of such credit unions; (2) Employees of the corporate central credit union; (3) Employees of the New Jersey Credit Union League; (4) Persons who are members of credit unions in this State which have entered or are about to enter into voluntary or involuntary dissolution or liquidation; (5) Children of members of any New Jersey credit union which does not provide educational loan services, may, with the approval of such credit union, become members of the corporate central credit union for the sole purpose of securing educational loans which are guaranteed by a State or federal agency, and such membership shall terminate when the educational loan is repaid; (6) Employees of small business groups defined as having less than 100 people, which groups are located in the State of New Jersey; (7) Any agency or association organized as a stock company, mutual association or membership corporation, or trade association which is organized to service or assist credit unions; (8) Central credit unions operating under the provisions of the federal Credit Union Act or under the laws of any state of the United States and credit unions operating in any other state of the United States. b. Each credit union, credit union organization, or association becoming a member of the corporate central credit union shall designate one member authorized by the board of directors as the voting representative of the credit union. Such voting representative is eligible for office in the corporate central credit union in the same manner as if he were a member thereof. c. (Deleted by amendment, P.L.1984, c. 171.) d. (Deleted by amendment, P.L.1984, c. 171.) e. (Deleted by amendment, P.L. , c. .) f. (Deleted by amendment, P.L. , c. .) L.1968, c. 196, s. 10, eff. July 19, 1968. Amended by L.1977, c. 232, s. 9, eff. Sept. 23, 1977; L.1984, c. 171, s. 49, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-73.1 Purposes of corporate central credit union; application of Credit Union Act of 1984

The corporate central credit union shall subject to all parts of "The Credit Union Act of 1984," P.L.1984, c. 171, sections 2 to 46 (C. 17:30-80 to C. 17:13-124) not inconsistent with these amendatory and supplementary sections. A corporate central credit union shall be a nonprofit association, the purpose of which is: a. To assist in the management of the liquidity of its member credit unions through interlending and investment and related services; b. To act as an intermediary for the movement of credit union funds between member credit unions and other corporate credit unions; c. To obtain funds from other credit union organizations, financial intermediaries, and other sources; d. To foster and promote, in cooperation with other state, regional, and national central credit unions and credit union organizations or associations, the economic security, growth and development of member credit unions; and e. To perform any other financial services or benefit to its members which are authorized by the commissioner. L.1984, c. 171, s. 50, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-73.2 Powers

The corporate central credit union shall have the power to: a. Accept shares or deposits from its members, other state, regional or national corporate credit unions, and credit union organizations or associations; b. Make loans to credit unions, to other state, regional or national corporate credit unions, organizations or associations of credit unions, and to other members; c. Establish lines of credit for members and participate with other credit unions in making loans to its members under the terms and conditions determined by the board of directors of the corporate central credit union; d. Invest in the shares of, or make deposits in, credit unions; e. Buy and sell any form of marketable debt obligations of domestic or foreign corporations or of federal, state or local governments or other instrumentalities; f. Borrow from any source, without limitation, accept demand deposits from any source, and issue notes or debentures; g. Acquire or sell the assets and assume the liabilities of a member; h. Enter into agreements with credit unions to discount or purchase loans made pursuant to government guaranteed loan programs, real estate loans made by members, or any obligations of the United States or any agency thereof held by members; and i. Exercise any powers or privileges conferred upon a federal corporate credit union, subject to the approval of the commissioner. L.1984, c. 171, s. 51, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-73.3 Agreements; purposes

The corporate central union may enter into agreements for the purpose of: a. Participating in any state or federal central liquidity facility or central financial system for credit unions; b. Aiding credit unions in establishing concentrated lines of credit with other financial institutions; and c. Acting as a depositor and transmitter of funds to carry out these agreements. L.1984, c. 171, s. 52, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-73.4 Setoff against accounts of members; lien on accounts; security for loans

The corporate central union shall have a right of immediate setoff against the balances of the share and deposit accounts of each member for any amounts due from the member to the corporate central credit union. The corporate central credit union shall have a lien on all share and deposit accounts of each member in the amount of the total indebtedness of the member to the corporate central credit union. The lien created herein shall attach to those accounts and be effective whenever the member is indebted to the corporate central credit union. The lien shall have priority over any interests of all members and unsecured creditors of the member credit unions of the corporate central credit union. The board of directors of the corporate central credit union may require and accept additional security for loans to a member in the form of a pledge, assignment, hypothecation or mortgage of any assets of the member or a guarantor. L.1984, c. 171, s. 53, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-73.5 Meetings

a. The board of the corporate central credit union shall meet at least every 30 days as provided in the bylaws. b. The annual meeting of the members of the corporate central credit union shall be held at such time as prescribed in the bylaws. Each corporate member shall be entitled to one vote irrespective of the number of shares held by the member. L.1984, c. 171, s. 54, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-73.6 Reserve requirements

The corporate central credit union shall be exempt from the regular reserve requirements of this act, but shall be required to establish and maintain a reserve to meet losses, in accordance with regulations prescribed by the commissioner. L.1984, c. 171, s. 55, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-73.7 Exemption from insurance requirements of Credit Union Act of 1984

The corporate credit union shall be exempt from the share and deposit insurance requirements of "The Credit Union Act of 1984," P.L.1984, c. 171 sections 2 to 46 (C. 17:13-80 to C. 17:13-124). L.1984, c. 171, s. 56, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-74 Conversion to or from a federal credit union

A credit union organized under the provisions of this act may convert to operation as a Federal Credit Union, or a Federal Credit Union may convert to a credit union operating under the provisions of this act, without undergoing dissolution or liquidation. L.1968, c. 196, s. 11, eff. July 19, 1968.

N.J. Stat. § 17:13-75 Insurance; exception

Within 1 year of the effective date of this act, every credit union incorporated under the act to which this act is a supplement shall, as a condition of its authority to do business in this State, apply for insurance on shares and deposits as provided by the National Credit Union Administration under Title II of the Federal Credit Union Act, Pub.L. 91-468 (12 U.S.C. s. 1781 et seq.), or alternatively, a form and amount of comparable insurance approved by the Commissioner of Banking. This requirement does not apply to a credit union with shares, deposits, debt and equity capital consisting primarily of funds from other credit unions. The commissioner may establish by regulation which credit unions shall qualify for this exception to the requirement for insurance. L.1982, c. 86, s. 1, eff. July 23, 1982.

N.J. Stat. § 17:13-76 Failure to apply or denial of commitment for insurance; extension of time

A credit union which has failed to apply or which has been denied a commitment for such insurance shall within 60 days of the denial of the commitment or 1 year after the date of enactment, whichever is earlier, commence steps to liquidate, or merge with an insured credit union, or apply in writing to the commissioner for an extension of time to obtain an insurance commitment. The commissioner may grant one or more extensions of time, but not exceeding 1 year in the aggregate, for the credit union to obtain an insurance commitment if there is satisfactory evidence that the credit union has made or is making a substantial effort to achieve the financial condition necessary to effectuate an issuance of an insurance commitment. L.1982, c. 86, s. 2, eff. July 23, 1982.

N.J. Stat. § 17:13-77 Charter; necessity of insurance

No credit union shall be granted a charter by the commissioner on or after the effective date of this act, unless the credit union has obtained a commitment for insurance of its member shares and deposit accounts. L.1982, c. 86, s. 3, eff. July 23, 1982.

N.J. Stat. § 17:13-78 Reports of financial condition and examination reports

The commissioner may make available reports of financial condition and examination reports to the National Credit Union Administration or to any qualified insuring organization and may accept any report of examination made on behalf of such agency or organization. The commissioner may appoint an official of the National Credit Union Administration or any qualified insuring organization as liquidating agent of an insured credit union. L.1982, c. 86, s. 4, eff. July 23, 1982.

N.J. Stat. § 17:13-79 Short title

Sections 2 through 46 of this act shall be known and may be cited as "The Credit Union Act of 1984." L.1984, c. 171, s. 1, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-80 Definitions

For the purposes of this act: a. "Board" means the board of directors of the credit union. b. "Commissioner" means the Commissioner of Banking. c. "Credit union" means any organization incorporated under the provisions of this act, or the laws of another state or the "Federal Credit Union Act," 48 Stat. 1216 (12 U.S.C. s. 1751 et seq.), which is a cooperative association organized for the purpose of promoting thrift among its members and creating a fund which will establish a source of credit for them for provident or productive purposes. d. "Director" means a member of the board of directors. e. "Member" means an owner of a share, deposit, or certificate in a credit union. L.1984, c. 171, s. 2, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-81 Incorporation of credit union; application; fee; certificate of incorporation.

3. a. Seven or more natural persons, all of whom are residents of this State, may incorporate a credit union on the terms and conditions provided for in this act. The incorporators shall apply to the Commissioner of Banking and Insurance, on a form supplied by the commissioner, for permission to incorporate a credit union. A certificate of incorporation, executed by the incorporators, shall be submitted with the application, as well as a fee of $50. b. The certificate shall include: (1) The proposed name of the credit union, and the street, street number, and name of the municipality in which it is to be located; (2) The name and street address of its registered agent, where process may be served; (3) The powers which the credit union proposes to exercise; (4) Any natural person, group, or organization or combination of natural persons, groups or organizations permitted pursuant to section 14 of P.L.1984, c.171 (C.17:13-92) to which membership will be limited; (5) The number of directors proposed to serve on the board; (6) The name and address of each of the proposed members, who shall be at least 30 in number, and the number of shares subscribed by each; (7) The original par value of the shares of the corporation, which shall not be less than $5.00; and (8) Any other provision not inconsistent with this act or with the laws of this State for the regulation of the business. c. (1) The incorporators may provide in the certificate of incorporation that any group, combination of groups, organization, combination of organizations or natural persons permitted to be included in a credit union field of membership pursuant to section 14 of P.L.1984, c.171 (C.17:13-92) may be added to the field of membership of the credit union by amendment to the credit union's bylaws, upon approval of the commissioner; (2) The members of a credit union may amend the certificate of incorporation to provide that any group, combination of groups, organization or combination of organizations or natural persons permitted to be included in a credit union field of membership pursuant to section 14 of P.L.1984, c.171 (C.17:13-92) may be added to the field of membership of the credit union by amendment to the credit union's bylaws, upon approval of the commissioner. L.1984,c.171,s.3; amended 1998, c.133, s.1.

N.J. Stat. § 17:13-82 Disapproval of application; annexation; filing of certificate of approval.

4. The commissioner shall disapprove the application if the commissioner finds that: a. The incorporation of the proposed credit union will not be in the public interest; b. The incorporators do not evidence character, responsibility, and general fitness; c. The provisions contained in the certificate of incorporation for the regulation of the business and the provisions creating or limiting the powers of the proposed credit union are improper provisions, or will not serve the best interest of the members of the proposed credit union; or d. The conditions of employment or other conditions prevailing in any group or organization from which the membership is to be drawn are such as to result in financial instability or otherwise render the organization of the credit union inadvisable. If the application is approved by the commissioner, the commissioner shall annex a certificate of approval, and the application shall be filed in the department. L.1984,c.171,s.4; amended 1998, c.133, s.2.

N.J. Stat. § 17:13-83 Organizational meeting; notice

The organizational meeting of the members of the credit union shall take place within ten days of the filing of the certificate of incorporation. A written notice, signed by a majority of the incorporators, shall be given personally or by mail to each of the members proposed in the certificate of incorporation, designating the time, place, and purpose of the meeting. The notice shall be given at least five days before the date on which the meeting is to be held. At the meeting the members present by majority vote shall elect a board of directors as provided for in section 17 of this act and shall transact any other business as may properly come before them. L.1984, c. 171, s. 5, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-84 Affidavit of incorporators

Before the commissioner may issue a certificate of authority, two of the incorporators shall submit an affidavit to the commissioner which attests to the following: a. That the certificate of incorporation has been filed with the commissioner; b. That the shares of the incorporators and thirty members have been fully paid in cash; c. That the cash paid in is on deposit in a depository institution in this State without offset, claim or demand against it whatsoever, and that it is subject to withdrawal on demand. L.1984, c. 171, s. 6, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-85 Issuance of certificate of authority; transaction of business

Within 30 days of receipt of the affidavit required by section 6 of this act, the commissioner shall issue a certificate of authority for the credit union to begin the transaction of business provided for in the certificate of incorporation if: a. After an examination, he finds that the facts presented in the affidavit are true; b. The incorporators have received firm commitment of the insurance required by section 9 of this act; c. The proposed directors and officers of the credit union possess the qualifications, experience, and character required for the duties and responsibilities with which they will be charged. Upon receipt of the certificate of authority, the credit union may begin transacting business. The commissioner shall file a copy of the certificate of authority with the certificate of incorporation. L.1984, c. 171, s. 7, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-86 Amendment of certificate of incorporation; approval of commissioner

a. A credit union may amend its certificate of incorporation in the following manner: (1) The board shall approve the proposed amendment and direct that it be submitted to a vote at a meeting of the members; (2) The meeting of the members shall be held upon at least 10 days' notice given personally or by mail; (3) If three-fourths of the members present at the meeting approve the amendment the amendment shall be deemed to be adopted. b. Upon adoption by the members, a certificate of amendment shall be executed in the name of the credit union by its president or vice president, attested by its secretary, sealed with the corporate seal, and submitted to the commissioner for his approval. If the commissioner does not notify the credit union of his disapproval in writing within 30 days, it shall be deemed approved. If the commissioner finds that the amendment does not meet the standards set forth in this act, he shall disapprove it. Upon the commissioner's approval, the amendment to the certificate shall be filed with the department. No amendment to a certificate of incorporation shall contain any provision which would not, under the terms of this act, be permitted in the original certificate. L.1984, c. 171, s. 8, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-87 Insurance of accounts; financial condition and examination reports

a. No credit union shall be granted a charter on or after the effective date of this act unless the incorporators have obtained a commitment for the insurance of its accounts from the National Credit Union Administration or another insurer approved by the commissioner. b. The commissioner may make available reports of financial condition and examination reports to the National Credit Union Administration or to any qualified insurer and may accept any report of examination made on behalf of the insurer or insuring agency. The commissioner may appoint an official of the National Credit Union Administration or any qualified insuring organization as liquidating agent of an insured credit union. L.1984, c. 171, s. 9, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-88 Name of credit union; unauthorized use of words "credit union" in name; penalty

a. The name of every credit union incorporated under this act shall contain the words "Credit Union." No name shall be adopted by any credit union which is already in use by another existing credit union of this State or be so similar thereto as to lead to uncertainty or confusion. b. The use by any person, except corporations established under this act or affiliates or associations thereof, or by federal law or by the laws of another state, of a name or title containing the words "credit union" shall be a crime of the fourth degree. L.1984, c. 171, s. 10, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-89 Powers.

11. A credit union's powers shall include, but not be limited to, the power to: a. Make contracts; b. Sue and be sued; c. Adopt and use a common seal and alter same; d. Acquire, lease, hold, assign, pledge, hypothecate, sell and otherwise dispose of property, either in whole or in part, necessary or incidental to its operations; e. Offer its members and other credit unions, shares, share certificates, deposits, deposit certificates, or share drafts as provided in this act; f. Lend its funds to its members as hereinafter provided; g. Borrow money from any source, provided that a credit union shall notify the commissioner in writing of its intention to borrow in excess of an aggregate of 50% of its shares and undivided earnings; h. Discount or sell any of its assets, and purchase the assets of another credit union, subject to the approval of the commissioner; i. Make deposits and invest in legally chartered banks, savings banks, savings and loan associations, trust companies, and other credit unions, including corporate credit unions, and invest funds as otherwise provided in this act; j. Hold membership in other credit unions organized under this act, and in associations and organizations controlled by or fostering the interests of credit unions, including a central liquidity facility organized under state or federal law; k. Act as fiscal agent for and receive payment on shares or deposits, or both, from the federal government, this State, or any agency or political subdivision thereof; l. Have and exercise all the powers of corporations organized under Title 14A of the New Jersey Statutes which are not inconsistent with this act; m. Maintain service facilities, including automated terminals at locations other than its principal office upon the approval of the commissioner. The maintenance of these facilities shall be reasonably necessary to furnish service to its members. A credit union may join with one or more financial institutions in the operation of a service facility to meet member needs; n. Contract with outside vendors to make insurance and group purchasing plans available to its members and receive compensation from the vendors in return for performing administrative functions on their behalf; o. Participate in loans to credit union members jointly with other credit unions, credit union organizations, or financial institutions, provided that the originating credit union retains an interest of at least 10% of the face amount of the loan; p. Participate in any guaranteed loan program of the federal or state government; q. Purchase the conditional sales contracts, notes, and similar instruments of its members; r. Purchase and maintain insurance on behalf of any person who is an officer, director, employee, or agent of the credit union; s. Collect, receive and disburse monies in connection with the providing of negotiable checks, money orders, travelers' checks, and similar instruments, and for any other purposes which may provide benefit or convenience to its members, and to charge a reasonable fee for these services; t. Declare dividends to its members, as provided in the bylaws or by rules and regulations of the commissioner; u. Participate in government programs designed to alleviate social and economic problems at the community, state, or regional levels; and v. Act as a public depository pursuant to the provisions of the "Governmental Unit Deposit Protection Act," P.L.1970, c.236 (C.17:9-41 et seq.). L.1984, c.171, s.11; amended L.2011, c.108, s.4.

N.J. Stat. § 17:13-90 Powers of commissioner.

12. The commissioner shall have the power to make, amend and repeal regulations permitting credit unions to exercise any power, right, benefit, or privilege permitted to federally chartered credit unions. L.1984,c.171,s.12; amended 1998, c.133, s.3.

N.J. Stat. § 17:13-91 Change of location of office; facilities for meetings or services

a. A credit union may change the location of its office by resolution of the board. A copy of the resolution, attested by the secretary, shall be forwarded to the commissioner for his approval. If the resolution is not approved within 30 days by the commissioner, it shall be deemed to be approved. Upon the approval of the commissioner, the resolution shall be filed with the department. b. Any municipality, school board, county, state department, or any agency or instrumentality thereof may make facilities available for use by a credit union as an office or meeting room. c. A credit union may maintain service facilities, or may join with one or more financial institutions in the operation of a service facility to meet member needs, including an automated terminal, if these facilities are reasonably necessary to furnish service to its members, at locations other than its principal office, upon the approval of the commissioner. L.1984, c. 171, s. 13, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-92 Membership of credit union; regulations.

14. a. The membership of a credit union shall be limited to and consist of the incorporators and other persons that are members of any group, combination of groups, organization, combination of organizations or natural persons specified in the certificate of incorporation, or any group, combination of groups, organization, combination of organizations or natural person that has been added to the membership by amendment to the credit union's bylaws, who have paid any required entrance fee or membership fee, or both, have subscribed to one or more shares, have paid the initial installment thereon, and have complied with any other requirements as the certificate of incorporation or bylaws specify. b. Except as otherwise provided in this section, credit union membership shall be limited to the types of membership described in one of the following categories : (1) one group which has a common bond of occupation or association; or (2) more than one group with each group having within that group a common bond of occupation or association and a membership of less than 3,000 members at the time that group is first included within the field of membership of a credit union made up of more than one group; or (3) persons or organizations, or any combination of organizations within a well-defined neighborhood, local community or rural district; or (4) any combination of membership fields from paragraphs (1), (2) and (3) of this subsection b., provided, however, that the combining of membership fields pursuant to this paragraph shall only be used with respect to an existing credit union and only if, in the determination of the commissioner, it is found that the combination is necessary to maintain the safety and soundness of that existing credit union and, with respect to any group eligible to be part of a credit union pursuant to paragraph (2) or organization eligible to be part of a credit union pursuant to paragraph (3) of this subsection which is to be combined, the membership of that group or organization shall be subject to the same limitation on the number of members as provided for groups under paragraph (2) of this subsection; and (5) members of the immediate family of persons in a credit union or in any group or organization which makes up the membership of a credit union. c. Societies and copartnerships composed primarily of persons who are eligible for membership, and corporations, including cooperative organizations, whose stockholders are composed primarily of persons who are eligible for individual membership, may be admitted to membership. Any entity thus admitted to membership shall not borrow in excess of its shareholdings unless at least 10% of its members are qualified members of the credit union. d. Members who leave the field of membership may be permitted to retain their memberships in the credit union under reasonable standards established by the board. e. Members of the credit union shall not be personally or individually liable for the payment of the credit union's debts. f. (1) The commissioner may, by regulation, provide that a credit union may add to its field of membership any natural person who resides in a primary metropolitan statistical area in which the credit union is located and meets at least one of the following criteria: (a) is a person of low income as defined pursuant to 42 U.S.C. s.5302(a)(20)(A); (b) resides in a low median income census tract as defined by the commissioner pursuant to 12 C.F.R. s.228.12; or (c) has been or is the recipient of State or federally funded public assistance. (2) The commissioner may require that a natural person meet more than one of the criteria established under paragraph (1) of this subsection f.; (3) If a natural person who is a member of a credit union has immediate family members living in the same primary metropolitan statistical area as that natural person, a credit union may also add any member of that immediate family to its field of membership; (4) A credit union may establish areas within a primary metropolitan statistical area for purposes of paragraphs (1) and (3) of this subsection f. g. (1) For a credit union whose field of membership is described under paragraph (2) of subsection b. of this section, the requirement that a group have a membership of less than 3,000 members shall not apply if the commissioner determines, in writing and in accordance with the guidelines and regulations issued pursuant to paragraph (2) of this subsection, that the group could not feasibly or reasonably establish a new single common-bond credit union pursuant to paragraph (1) of subsection b. of this section, because: (a) the group lacks sufficient volunteer and other resources to support the efficient and effective operation of a single common-bond credit union; (b) the group does not meet the criteria that the commissioner has determined to be important for the likelihood of success in establishing and managing a new single common-bond credit union, including the demographic characteristics such as geographical location of members, diversity of ages and income levels, and other factors that may affect the financial viability and stability of a single common-bond credit union; or (c) the group would be unlikely to operate a safe and sound single common-bond credit union. (2) The commissioner shall promulgate regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), setting forth the criteria that the commissioner shall apply in determining whether a credit union may be established as provided pursuant to paragraph (2) of subsection b. of this section, which regulations shall be directed at assuring substantial parity between the field of membership standards and requirements of State and federal credit unions. L.1984,c.171,s.14; amended 1998, c.133, s.4.

N.J. Stat. § 17:13-92.1 Credit unions approved for inclusion of more than one group; continuation permitted.

5. A credit union that has been approved to include more than one group within its field of membership prior to the effective date of this act may continue to operate in accordance with that approval, provided however, that any change to its field of membership after the effective date of this act shall be subject to the provisions of this act. L.1998,c.133,s.5.

N.J. Stat. § 17:13-93 Meetings; vote of members; quorum

a. The annual meeting of the members of the credit union shall be held on a date to be designated by the board for the election of directors and committee members and the transaction of any other business as may properly come before the meeting. b. Regular and special meetings may be held in the manner prescribed in the bylaws. c. At all of these meetings a member shall have one vote. No member may vote by proxy, but a member may vote by absentee ballot if the bylaws of the credit union so provide. d. The bylaws shall prescribe the number of members which constitute a quorum, but less than a quorum may adjourn the meeting from time to time. e. A society, association, copartnership or corporation, having membership in the credit union, may be represented and have its vote cast by one of its members or shareholders, if the person has been so authorized by resolution of the organization's board of directors. L.1984, c. 171, s. 15, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-94 Bylaws; approval of commissioner

Every credit union shall, by majority vote of its members, adopt bylaws consistent with the laws of this State. The bylaws may be amended from time to time. A copy of the bylaws and all amendments thereto shall be certified by the secretary and forwarded to the commissioner, but shall not become effective until approved by the commissioner. If the commissioner does not approve the bylaws or any amendments thereto within 30 days of their submission, they shall be deemed approved. Upon the commissioner's approval the bylaws or any amendments thereto shall be filed with the department. L.1984, c. 171, s. 16, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-95 Board of directors; membership; vacancy; meetings

The credit union shall be directed by a board consisting of an odd number of directors, not less than five in number, who shall be members and who shall be elected by ballot of the members at the annual meeting for terms as the bylaws provide, except that the bylaws shall provide for staggered terms. The directors shall be at least 18 years of age and a majority of the directors shall be residents of this State. Every director shall subscribe to an oath in a form prescribed by the commissioner, and the form shall be filed with the commissioner within five days of its execution. A vacancy on the board shall be filled by the directors until the next annual meeting, when it shall be filled by the members for the unexpired term. The board or the executive committee shall meet at least once a month and upon any other occasions which it deems necessary. L.1984, c. 171, s. 17, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-96 Chairman of board; officers; compensation; bond of officers; duties

The board of directors or the members, as provided by the bylaws, shall elect a chairman, who shall be a member of the board, a vice chairman, a secretary, and a treasurer, who shall hold their offices at the pleasure of the board or of the members, as the case may be. Officers and members of committees may be compensated for their services as provided for in the bylaws. The commissioner may, at any time, order the compensation reduced if in his judgment it is excessive. The board shall require any officer or employee having custody of or handling funds to give bond with good and sufficient surety in an amount and character to be determined by the board in compliance with regulations prescribed by the commissioner. The commissioner shall promulgate rules and regulations establishing the duties of directors. L.1984, c. 171, s. 18, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-97 Executive committee of board; powers; limitations; minutes

a. The board may appoint an executive committee of the board, consisting of not less than three directors, which may be authorized to act for the board, as provided in the bylaws, except that the executive committee may not: (1) Exercise any powers granted to it while a quorum of the board is actually convened for the conduct of business; (2) Declare a dividend, or make any other kind of distribution to members; (3) Make, alter, or repeal the bylaws of the credit union; (4) Elect or appoint any officer or director; or (5) Exercise any other power which this act specifically provides shall be exercised by at least a majority of all the directors. b. The minutes of the proceedings of the executive committee shall be presented to the board at the meeting next following any meeting of the executive committee. L.1984, c. 171, s. 19, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-98 Examining committee; members; audit or examination of credit union

The members of each credit union shall elect an examining committee, composed of at least three members, none of whom shall be officers, directors, or members of the credit committee. The members of the committee shall be elected for staggered terms, and at least one-third of the membership of the committee shall be elected by the members at the annual meeting each year. Every member of the examining committee shall subscribe to an oath in a form prescribed by the commissioner. The examining committee shall make, or cause to be made, a thorough audit or examination of the condition of the credit union as of December 31 of each year, and a verification of member accounts at least once every year. The report of the examining committee shall be signed and sworn to by the members of the committee and filed with the board on or before March 31 of each year. The examining committee shall perform any other duties as may be provided for in the bylaws of the credit union. L.1984, c. 171, s. 20, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-99 Special meeting called by examining committee; suspension of officer or member

a. The examining committee may, by a majority vote of its members, call a special meeting of the members to consider any violation of this act, the credit union's charter or bylaws, or any practice of the credit union deemed by the committee to be unsafe or unauthorized. b. The examining committee may, by a unanimous vote of its members, suspend any officer, member of the board of directors, or member of the credit committee for good cause until a meeting of the members, which shall be held not less than seven nor more than 21 days after the suspension to ratify the action of the examining committee. c. Subsequent to ratification by the members, the examining committee shall refer the matter to the board for appropriate action. L.1984, c. 171, s. 21, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-100 Credit committee

22. a. If the bylaws provide for a credit committee, then pursuant to the provisions of the bylaws, the board shall appoint, or the members shall elect a credit committee of not less than three nor more than seven members, who shall serve as set forth in the bylaws. The committee shall approve or deny written applications for loans from members pursuant to and consistent with the general loan policy and rules and regulations established by the board for member loans. The credit committee shall elect a chairman and a secretary and any other officers which it deems necessary. It shall be the duty of the secretary of the credit committee to keep permanent minutes of all of its meetings. b. A majority of members of the credit committee shall constitute a quorum. No member loans shall be approved except at meetings of the credit committee, and the approval shall be signed by a majority of those members present. c. If the bylaws provide for a credit committee, the credit committee may appoint one or more loan officers, to whom it may delegate the power to approve applications for loans from members pursuant to and consistent with the general loan policy and rules and regulations established by the board for member loans. Each loan officer shall submit to the credit committee a record of each application approved or denied by him, at the next meeting of the credit union or within 30 days of the receipt of the loan application, whichever is earlier. All applications denied by a loan officer shall be reviewed by the credit committee. No person shall have the authority to disburse funds for any loan which has been approved by him as loan officer. Not more than one member of the credit committee may be appointed as loan officer. d. If there is no credit committee, a member shall have the right, upon written request to the board of directors, to review by the board of a loan application which has been denied by a loan officer. L.1984,c.171,s.22; amended 1993,c.280,s.1.

N.J. Stat. § 17:13-101 Issuance of shares and certificates; deposits; accounts offered; trustee or custodian of accounts and funds; payment of dividends

a. A credit union shall issue shares and share certificates, which shall constitute the capital of the credit union. Shares may be subscribed to, paid for and transferred in any manner prescribed by the bylaws. Ownership of shares or share certificates shall confer membership and voting rights. b. A credit union may accept deposits from and issue deposit certificates to its members and to other credit unions, subject to terms, rates, and conditions prescribed by the board and regulations established by the commissioner. c. A credit union may offer special purpose share or deposit accounts, including, but not limited to, Christmas club accounts and vacation club accounts, under terms and conditions established by the board. d. A credit union may offer joint accounts, trust accounts, or pay-on-death accounts, as provided in the "Multiple-party Deposit Account Act," P.L. 1979, c. 491 (C. 17:16I-1 et seq.). These accounts may be held as shares, share certificates, deposits, deposit certificates, or any other form provided by law. e. A credit union may act as trustee or custodian of (1) individual retirement accounts authorized by State or federal law; (2) pension funds of self-employed individuals or of a company or organization sponsoring the credit union; or (3) other similar retirement or pension plans; or (4) pension and profit-sharing plans. f. The board may authorize the payment of dividends from the undivided earnings. Dividends may be paid at varying rates with respect to the conditions which pertain to each type of account including, but not limited to, minimum balance, notice and time requirements. L.1984, c. 171, s. 23, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-101.1 Savings promotion conducted by credit union.

3. a. A credit union may conduct a savings promotion provided that the credit union: (1) conducts the promotion in a manner so as to ensure that each entry has an equal chance of winning the designated prize; (2) fully discloses the terms and conditions of the promotion to each of its account holders; (3) maintains records sufficient to facilitate an audit of the promotion; (4) ensures that only account holders 18 years of age and older are permitted to participate in the promotion; (5) does not require any consideration, other than the requirement that the participant deposit money into a savings account or other savings program to obtain entries in the promotion, to participate in the promotion; and (6) offers an interest rate and charges fees on any qualifying account that are approximately the same as those on a comparable non-qualifying account. b. For the purposes of this section, "savings promotion" means a raffle in which the sole consideration required for a chance of winning designated prizes is the deposit of a minimum specified amount of money in a savings account or other savings program, and "credit union" means credit union as defined in section 2 of P.L.1984, c.171 (C.17:13-80). L.2015, c.236, s.3.

N.J. Stat. § 17:13-102 Minors; transactions; membership privileges

a. Shares, share certificates, and deposit certificates may be issued to, and deposits received from, a minor who may withdraw the shares and deposits, including the dividends and interest thereon. Deposits and share payments made by a minor and withdrawals thereof by the minor, shall be valid in all respects. b. No minor may hold office within the credit union until he shall have reached his eighteenth birthday. c. In exercising his membership privileges with a credit union, a minor may make all contracts which any other of its members may make. Any contract of a member who is a minor shall be binding and enforceable against the member in the same manner as if he were of full age at the time of entering the contract. L.1984, c. 171, s. 24, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-103 Withdrawal of funds for payment; nonmembers; retirement of shares

a. Shares, share certificates, deposits and deposit certificates of a credit union may be withdrawn for payment to the account holder or to third parties in accordance with procedures established by the board and subject to regulation of the commissioner. The bylaws may provide for members giving written notice of withdrawal, not exceeding 30 days. If the funds available to the credit union are insufficient to pay all withdrawals, then each member seeking withdrawal shall receive a pro rata share of the assets of the credit union which are available for withdrawal. b. Any non-member who, by assignment, as a legal representative, trustee, or otherwise, acquires title to the shares of a member, may withdraw the shares on the same basis as a member, except that unless he becomes a member, he shall have no other rights attendant to membership. c. The board shall have the authority to retire the shares of any member or group of members in the manner provided in its bylaws. Shares retired shall be paid in the same manner and subject to the same conditions as withdrawals. L.1984, c. 171, s. 25, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-104 Loans to members; security; interest; fees; lien on accounts

a. A credit union may make loans to its members, evidenced by a written instrument, upon terms and upon any security, including, but not limited to, the endorsement of a note by a surety, comaker, or guarantor, assignment of an interest in real or personal property, or assignment of shares, as the board may provide. The adequacy of any security shall be determined by the credit committee. No loan shall be made to any member when the aggregate amount of all that member's loans outstanding exceeds 10% of the credit union's total assets. The board, in its discretion, may fix a lower amount. b. Notwithstanding the provisions of R.S. 31:1-1 to the contrary, a credit union may charge, contract for, and receive interest on loans at a rate or rates agreed to by the credit union and the member. A credit union may charge late fees and lawful fees paid to any public officer for filing, recording, or releasing a document, and may charge collection fees, not to exceed 20% of the principal balance and interest outstanding, which may be added to the principal balance of any loan placed for collection after default thereon. c. A credit union shall have a lien on the shares, share certificates, deposits, deposit certificates, and accumulated interest or dividends of a member in any individual, joint, or trust account, for any sum past due the credit union from the member or for any loan endorsed by him. The credit union shall have a right of immediate set-off with respect to these accounts. L.1984, c. 171, s. 26, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-105 Manner of payment of loans to members

Loans made by credit unions may be payable to the members in a lump sum or in installments, of the following types: a. Loans to be repaid in a lump sum by the member; b. Loans to be repaid in two or more installments, which installments are approximately equal in amount; c. A line of credit to be made available to the member by the credit union, whereby funds may be advanced to the member pursuant to the member's written authorization and repaid upon terms as established by the board. L.1984, c. 171, s. 27, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-106 Credit to director, officer, employee, or committee member; participation in determination of question of interest

a. No credit union may extend credit to any member of the board, any officer, or member of a committee or to any related interest of that person unless the extension of credit is made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions by the credit union with other members, and does not involve more than normal risk of repayment or present other unfavorable features. b. No director, committee member, officer, agent, or employee of the credit union shall in any manner, directly or indirectly, participate in the deliberation upon or the determination of any question affecting his pecuniary interest or the pecuniary interest of any corporation, partnership, or association other than the credit union, in which he has a direct or indirect interest. L.1984, c. 171, s. 28, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-107 Investment of funds

Funds not used in loans to members may be invested: a. In securities, obligations, or other instruments of or issued by or fully guaranteed as to principal and interest by the United States of America or any agency thereof or in any trust or trusts established for investing directly or collectively in the same; b. In obligations of any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and the several territories organized by Congress, or any political subdivision thereof; c. In certificates of deposit or passbook-type accounts issued by a state or federally chartered bank, savings bank, or savings and loan association; d. In loans to or in shares or deposits of other credit unions, corporate central credit unions, or a central liquidity facility established under any state or federal law; e. In shares, stocks, loans or other obligations of any organization, corporation, or association membership or ownership of which is primarily confined or restricted to credit unions, or organizations of credit unions, and the purpose of which is to strengthen or advance the development of credit unions or credit union organizations; f. In shares of a cooperative society organized under the laws of this State or of the laws of the United States in a total amount not exceeding 10% of the shares, deposits, and surplus of the credit union. L.1984, c. 171, s. 29, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-108 Inactive accounts; special reserve accounts; escheat of funds

When no transaction has occurred in a member's share or deposit account for 12 months and his whereabouts are unknown, as verified by the return of a certified letter addressed to him at his last known address, all sums due to the member shall be credited to a special reserve account. If the sums are not reclaimed within a five year period, they shall escheat to the State and be forwarded to the Treasurer of the State of New Jersey. L.1984, c. 171, s. 30, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-109 Gross earnings; reserve funds; contributions; regulation of reserve requirements

a. Immediately before the payment of each dividend, the gross earnings of the credit union shall be determined, and from this amount there shall be set aside, as a regular reserve against contingencies, sums in accordance with the following schedule: (1) A credit union in operation for more than four years and having assets of $500,000.00 or more shall set aside: (a) 10% of gross income until the regular reserve shall equal 4% of the total of outstanding loans and risk assets; then (b) 5% of gross income until the regular reserve shall equal 6% of the total of outstanding loans and risk assets. (2) A credit union in operation less than four years or having assets of less than $500,000.00 shall set aside: (a) 10% of gross income until the regular reserve shall equal 7 1/2 % of the total of outstanding loans and risk assets, then (b) 5% of gross income until the regular reserve shall equal 10% of the total of outstanding loans and risk assets. (3) Whenever the regular reserve falls below the stated per cent of the total of outstanding loans and risk assets, it shall be replenished by regular contributions in any amounts as may be needed to maintain the stated reserve. b. The Commissioner of Banking may decrease the reserve requirement set forth in subsection a. of this section when in his opinion a decrease is necessary or desirable. The Commissioner of Banking may also require special reserves to protect the interests of members either by regulation or for an individual credit union in any special case. L.1984, c. 171, s. 31, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-110 Merger of credit unions

a. Any credit union may, with the approval of the commissioner, merge with another credit union under the existing charter of the continuing credit union, pursuant to any plan agreed upon by the majority of the board of each credit union joining in the merger, approved by the affirmative vote of a majority of the members of the merging credit union present at a meeting of its members duly called for that purpose, and consented to by any government agency or other organization insuring the accounts of the credit union. b. The commissioner may approve a merger according to the plan agreed upon by the majority of the board of each credit union even if approved by less than a majority of the entire membership, if he finds upon the written and verified application filed by the board that: (1) Notice of the meeting called to consider the merger was mailed to each member entitled to vote upon the question; (2) The notice disclosed the purpose of the meeting and properly informed the membership that approval of the merger might be sought pursuant to this section; and (3) A majority of the votes cast upon the question were in favor of the merger. c. After agreement by the board and approval by the members of the merging credit union, the chairman and secretary of the credit union shall execute a Certificate of Merger, which shall set forth all of the following: (1) The time and place of the meeting of the board at which the plan was agreed upon; (2) The vote in favor of the adoption of the plan; (3) A copy of the resolution or other action by which the plan was agreed upon; (4) The time and place of the meeting of the members at which the plan agreed upon was approved; and (5) The vote by which the plan was approved by the members. d. The certificate and a copy of the plan of merger agreed upon shall not become effective until approved by the commissioner. If the commissioner has not notified the credit union of his action within sixty days of receipt, the merger shall be deemed to be approved. Upon the commissioner's approval, the Certificate of Merger shall be filed with the department. e. Upon filing of the Certificate of Merger with the department, all property, property rights, and members' interest of the merged credit union shall vest in the surviving credit union, without deed, endorsement, or other instrument of transfer, and all debts, obligations and liabilities of the merged credit union shall remain in effect; f. This section shall be construed, whenever possible, to permit a credit union organized under any other act to merge with one incorporated under this act, or to permit one incorporated under this act to merge with one organized under any other act. L.1984, c. 171, s. 32, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-111 Annual report by credit union; violations, penalties.

33. Every credit union shall submit a report in writing to the commissioner of its condition at the close of business on the 31st day of December. The report shall be submitted to the commissioner in a form and within the time specified by the commissioner by regulation. The report shall be verified by the oath of the president and the treasurer of the credit union, and the statement of assets and liabilities shall be verified by the oath of the examining committee that the statement is a true and correct statement of the condition of the credit union based on the audit or examination made by the examining committee as of the December 31 preceding the report. The credit union shall furnish the commissioner with any other reports as he may deem advisable. Any false statement or oath shall be deemed to be perjury. A credit union that fails to make and file its annual report in the form and within the time provided in this section shall be subject to a penalty of not more than $100 for each day's failure, and the commissioner may revoke or suspend its authority to do business in this State. The penalty may be collected in a summary proceeding pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.). A warrant may issue in lieu of a summons. L.1984,c.171,s.33; amended 2007, c.81, s.13.

N.J. Stat. § 17:13-112 Supervision and examination by commissioner; exhibition of papers and documents; subpenas; perjury

34. a. Every credit union shall be subject to the supervision and examination of the commissioner. In lieu of making an examination of a credit union, the commissioner may accept the examination of a certified public accountant who has examined the records of the credit union and who files an opinion of his examination with the commissioner. If an examiner deems it advisable, he may verify the liabilities of the credit union to its members by an inspection and verification of their accounts. The commissioner shall promptly communicate the results of each examination to the president of the credit union examined, who shall present the report to the board at the next regular meeting or a special meeting if the commissioner so directs. The action taken by the board shall be communicated by the president to the commissioner within five days. b. The officers, directors and employees of the credit union under examination shall exhibit its books, papers, records, documents, and securities to the commissioner or his representative and shall act to facilitate the examination. The commissioner or his representative may administer an oath to any person whose testimony is required on any examination and may compel by subpoena the appearance of any person for the purpose of examination or for the production of books, papers, records, documents and securities. The subpoena may be served by any police officer of the municipality in which the person resides. If any person fails to obey the subpoena, give testimony, answer questions or produce any books, papers, records, documents, securities or other things which may be required by the commissioner, the Superior Court may compel the person to do so. c. A person who shall willfully testify falsely to a material matter upon an oath administered by the commissioner or his representative upon an investigation or inquiry, or in regard to a report made by the commissioner, shall be guilty of perjury. L.1984, c. 171, s. 34, eff. Oct. 31, 1984; amended 2023, c.250, s.20.

N.J. Stat. § 17:13-113 Expenses of examination

Every credit union examined by the commissioner shall pay the actual expenses of the examination, and the commissioner may maintain an action against any credit union to recover the fees and expenses herein provided for. L.1984, c. 171, s. 35, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-114 Discontinuation of illegal activity; order

If it appears to the commissioner that any credit union has violated its certificate of incorporation, bylaws, or any law of this State, or if he determines that the credit union is conducting its business in an illegal unsafe, or unauthorized manner, he shall direct the credit union to discontinue the illegal, unsafe, or unauthorized conduct of business. The order shall be sent to the president of the credit union. The president shall present the order to the board at its next regular meeting or at a special meeting if a special meeting is ordered by the commissioner. The action taken by the board with respect to the commissioner's order shall be communicated by the president to the commissioner within five days. L.1984, c. 171, s. 36, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-115 Violation of law, unauthorized actions, or refusal to be examined; institution of court action for possession

Whenever it appears to the commissioner: a. That a credit union has violated its charter or any law of this State; or b. That a credit union is conducting its business in an unsafe or unauthorized manner; or c. That a credit union has refused to submit its books, papers, records, documents, securities, or anything else to the inspection of the commissioner or his representative; or d. That any officer or director of a credit union has refused to be examined under oath with respect to the affairs of the credit union or has refused to answer questions under oath or to produce any books, papers, records, documents, securities, or any other thing in his possession, custody or control requested by the commissioner; or e. That a credit union has suspended payment of its obligations; or f. That an examination or report provided for by this act discloses facts from which the commissioner shall have reason to conclude that a credit union is in an unsound or unsafe condition to transact business or is insolvent or that it is unsafe or that it is inexpedient for it to continue business; or g. That a credit union has neglected or refused to observe an order of the commissioner issued pursuant to this act; He shall have the authority to institute an action in the Superior Court or to take possession of the property and business of the credit union. L.1984, c. 171, s. 37, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-116 Injunctions; receivers; other relief or correction

In any action instituted in the Superior Court pursuant to section 37 of this act, the court may enjoin the credit union from the transaction of any further business or the transfer or disposal of its property in any manner whatsoever, and the court may appoint a receiver with the power to sue for, collect, receive and take into his possession all of the goods and chattels, rights and credits, moneys and effects, lands and tenements, books, papers, choses in action, bills, notes and property of every description belonging to the credit union and to sell, convey and assign the same and hold and dispose of the proceeds thereof under the direction of the court, or the court may enjoin excessive expenses of management, remove one or more of the officers, directors, employees or agents of the credit union and grant other relief or correction as the facts demand. The court may proceed in a summary manner or otherwise. L.1984, c. 171, s. 38, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-117 Possession by commissioner of property and business; dissolution of credit union; trustees in dissolution

Whenever the commissioner shall take possession of the property and business of a credit union pursuant to section 37 of this act, he shall retain possession until the property and business of the credit union may be returned by him to the management of its board on terms satisfactory to him, except the commissioner shall have the authority to institute an action in the Superior Court as provided by this act while in possession of the property and business of the credit union, in which case he shall retain the possession of the property and business of the credit union until otherwise ordered by the court. The commissioner may, if he deems it advisable and in the best interest of the members, permit the voluntary dissolution of the credit union and surrender to its officers and directors any powers which may be necessary to effect a dissolution as provided in this act, but in this case the trustees in dissolution to be appointed by the members shall be persons satisfactory to the commissioner and the bonds to be given by them shall be approved as to form, sufficiency and amount by the commissioner. L.1984, c. 171, s. 39, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-118 Continuation of business by commissioner; authority and powers

Upon taking possession of the property and business of a credit union, the commissioner may, pending the return of its property and business to the management of its board or the order or judgment of the Superior Court in an action instituted under sections 37 and 38 of this act or its dissolution as herein provided, continue the operation of the business of the credit union. For that purpose, the commissioner shall have and may exercise every authority and power theretofore conferred by law, by the provisions of its certificate of incorporation and by its bylaws upon its board and committees and upon all and any of its officers, directors and committee members. However, this section shall not be construed to deprive any credit union at any time of title to its property, and all transfers and conveyances of property to the credit union during the commissioner's possession thereof shall be made in its name and all transfers and conveyances of property from the credit union shall be made in the name of the credit union, under its seal or otherwise as the circumstances may require, by the commissioner. Any act or thing done by the credit union, during the commissioner's possession as aforesaid, over the signature of or by order of the commissioner shall be construed to be the act of the credit union and shall be valid and effectual in law if the statutes of this State, the certificate of incorporation of the credit union or its bylaws shall have authorized its board, committees, any director thereof, any committee member thereof or any officer thereof to do or perform any act. The commissioner shall not be obligated to carry on the business of the credit union in possession unless he deems it proper and expedient so to do but may, during his possession thereof, conserve its assets until a time as he shall determine it expedient and proper to continue the business or until otherwise directed by the Superior Court in an action instituted pursuant to sections 39 and 40 of this act or until its dissolution. L.1984, c. 171, s. 40, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-119 Assistant deputy commissioners; employment of counsel and other expert assistance; powers on receivership of commissioner and members

The commissioner may, under his hand and official seal, appoint one or more special assistant deputy commissioners as agent or agents to assist him in the operation of the business or conservation of the assets of any credit union in his possession; and the commissioner may, from time to time, delegate to any special assistant deputy commissioner the powers conferred on him by this act with respect to the operation of the business or conservation of the assets of the credit union in his possession as he may deem necessary. The commissioner may employ counsel, other expert assistance, or any other persons as shall in his opinion be needed for the continuation of the business or conservation of the assets of any credit union, and the compensations and salaries of all special assistant deputy commissioners, attorneys, expert assistants and other persons together with all other costs and expenses of a continuation of the business or conservation of the assets of the credit union shall be fixed by the commissioner and paid by the credit union and shall, until paid, constitute a prior claim against its assets. The commissioner shall require from special assistant deputy commissioners and other employees any security for the faithful performance of their respective duties as he may deem proper. Upon taking possession of any credit union the commissioner shall have power to terminate the employment of any employee of a credit union and no officer or director shall thereafter and until notified by the commissioner resume the exercise of any power in the management of the business or conduct of the affairs of the credit union. The commissioner shall have authority to call meetings of members for any purpose. The members present at any meeting may, by majority vote, and notwithstanding the provisions of the bylaws or certificate of incorporation of the credit union, and without showing cause, declare vacant the office of any director or committee member of the credit union and appoint a successor to fill the vacancy thus arising. L.1984, c. 171, s. 41, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-120 Notice of possession of business and property by commissioner; stay of levies and executions

Upon taking possession of the property and business of any credit union, the commission shall give notice of this fact to all banks, trust companies, corporations, associations and individuals holding any assets of the credit union. No bank, trust company, corporation, association or individual who knows of the commissioner's taking possession or who has been notified pursuant to this section shall have a lien or charge for any payment, advance or clearance made thereafter or liability incurred thereafter against any of the assets of the credit union in his possession unless the payment, advance, clearance or liability has been authorized by the commissioner. Upon the commissioner's taking possession of the property and business of the credit union all judgments, decrees, levies and executions against the property of the credit union shall be thereafter stayed until otherwise directed by the Superior Court or until the property and business of the credit union has been returned to the management of its board. L.1984, c. 171, s. 42, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-121 Grievance with action of commissioner; court proceedings for injunction

Whenever any credit union or a member thereof deems itself or himself aggrieved by the commissioner's taking possession of that credit union, that credit union or member may at any time after the commissioner's taking possession, institute an action in the Superior Court to enjoin further proceedings. The court may proceed in a summary manner or otherwise. L.1984, c. 171, s. 43, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-122 Voluntary dissolution; liquidation; notice to authorities; suspension of activities; approval of members; wind-up of affairs; distribution of assets; certificate of dissolution

a. A credit union may elect to dissolve voluntarily and liquidate its affairs in the manner prescribed in this section. b. The board shall adopt a resolution recommending the credit union be dissolved voluntarily, and directing that the question of liquidation be submitted to the members. c. Within 10 days after the board decides to submit the question of liquidation to the members, the chairman shall notify the commissioner and any government agency or other organization insuring member accounts thereof in writing, setting forth the reasons for the proposed liquidation. Within 10 days after the members act on the question of liquidation, the chairman shall notify the commissioner and any government agency or other organization insuring member accounts, in writing, as to the action of the members on the proposal. d. As soon as the board decides to submit the question of liquidation to the members, payments on shares, share certificates, deposits, deposit certificates, withdrawal of shares, making any transfer of shares to loans and interest, making investments of any kind, and granting loans shall be suspended pending action by members on the proposal to liquidate. On approval by the members of the proposal, all business transactions shall be permanently discontinued. Necessary expenses of operation shall, however, continue to be paid on authorization of the board or liquidating agent during the period of liquidation. e. For a credit union to enter voluntary liquidation, approval by a majority of the members in writing or by a two-thirds majority of the members present at a regular or special meeting of the members is required. Where authorization for liquidation is to be obtained at a meeting of the members, notice in writing shall be given to each member, by first class mail at least 10 days prior to the meeting. f. A liquidating credit union shall continue in existence for the purpose of discharging its debts, collecting on loans and distributing its assets, and doing all acts required in order to wind up its business and may sue and be sued for the purpose of enforcing the debts and obligations until its affairs are fully concluded. g. The board or the liquidating agent shall use the assets of the credit union to pay: (1) expenses incidental to liquidation including any surety bond that may be required; (2) any liability due nonmembers; and (3) deposits and deposit certificates as provided in this act. Assets then remaining shall be distributed to the members proportionately to the shares held by each member as of the date dissolution was voted. h. As soon as the board or the liquidating agent determines that all assets from which there is a reasonable expectancy of realization have been liquidated and distributed as set forth in this section, they shall execute a Certificate of Dissolution, on a form prescribed by the commissioner, and file the same, together with all pertinent books and records of the liquidating credit union, with the commissioner, whereupon the credit union shall be dissolved. L.1984, c. 171, s. 44, eff. Oct. 31, 1984.

N.J. Stat. § 17:13-123 Conversion to or from a federal credit union

A credit union organized under the provisions of this act may convert to operation as a federal Credit Union, or a federal Credit Union may convert to a credit union operating under the provisions of this act, without undergoing dissolution or liquidation. L.1984, c. 171, s. 45, eff. Oct. 31, 1985.

N.J. Stat. § 17:13-124 Credit union advisory council.

46. a. A Credit Union Advisory Council is created which shall consult with, advise, and make recommendations to the commissioner on matters pertaining to the chartering, operation and supervision of credit unions. b. The council shall consist of seven persons to be appointed by the Governor, with the advice and consent of the Senate, who are members of the State chartered and federally chartered credit unions within the State, at least two of whom shall be members of federally chartered credit unions within the State and at least four of whom shall be members of State chartered credit unions within the State. Four members of the council shall have had a minimum of three years' experience as a credit union officer or director or a similar management position. Appointments to the council shall be for terms of five years except that four of the initial appointments shall be for terms of four, three, two, and one years respectively, so that in each subsequent year one member shall be appointed to a full term. The two initial members of the federally chartered credit unions shall be appointed for terms of four and three years, respectively. c. All members shall serve until their successors have been appointed and qualified. In the event a vacancy occurs, the appointment to fill the vacancy for the unexpired term shall be in the manner of the original appointment. d. The chairman of the council shall be elected annually and from the members thereof. e. The initial meeting of the council shall be called by the commissioner. Thereafter, regular meetings shall be held at times and places as shall be determined by the chairman, the commissioner, or a majority of the council members. The council may establish its own procedures and practices. f. Expenses of the council shall be borne by the credit unions. L.1984, c.171, s.46; amended 2013, c.215.

N.J. Stat. § 17:13-125 Rules and regulations

The commissioner shall promulgate any rules and regulations which he deems necessary to effectuate the purposes of this act. L.1984, c. 171, s. 57, eff. Oct. 31, 1984.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.njleg.state.nj.us/legislative-activity/statutesFetched: 10/17/2026