17 Pa.C.S. Ch. 3

in effect

17 Pa.C.S. § 301 Purposes.

(a) General rule.--A credit union may be incorporated under this title for the purpose of promoting thrift among its members, creating a source of credit for such members at reasonable rates of interest and providing an opportunity for its members to use and control their own money on a democratic basis in order to improve their economic and social condition. (b) Central or corporate credit unions.--A central or corporate credit union formed primarily to serve other credit unions, including Federal credit unions and out-of-State credit unions, may be incorporated under this title and shall be subject to all provisions of this title not inconsistent with provisions specifically applicable to central or corporate credit unions. The purposes for which a central or corporate credit union may be incorporated are: (1) To accumulate and prudently manage the liquidity of its member credit unions through interlending and investment services. (2) To act as an intermediary for credit union funds between members and other corporate credit unions. (3) To obtain liquid funds from other credit union organizations, financial intermediaries and other sources. (4) To foster and promote, in cooperation with other state, regional and national corporate credit unions and credit union organizations or associations, the economic security, growth and development of member credit unions. Cross References. Section 301 is referred to in section 103 of this title.

17 Pa.C.S. § 302 Number and qualifications of incorporators.

(a) General rule.--A credit union may be incorporated pursuant to the provisions of this title by seven or more incorporators. Such incorporators shall be natural persons of full age, the majority of whom are residents of this Commonwealth and who have a common bond of association as provided in section 701 (relating to membership). (b) Central or corporate credit unions.--A central or corporate credit union may be incorporated, pursuant to the provisions of this title, by 15 or more credit unions chartered under the laws of the United States or of any state, which have agreed to purchase shares in the credit union in amounts not less than the minimum specified in the bylaws.

17 Pa.C.S. § 303 Articles of incorporation.

(a) General rule.--Articles of incorporation shall be signed by each of the incorporators. The articles of incorporation shall set forth: (1) The name of the proposed credit union, which shall contain the words "credit union." (2) The class of services to be performed by the credit union, which services shall be within the scope of activities of such associations as set forth in this title. (3) The principal place where its business is to be transacted, which shall be within this Commonwealth. (4) The term for which it is to exist, which may be perpetual. (5) The par value of its shares. (6) The names and post office addresses of the incorporators and the number of shares subscribed by each. (7) The names and residences of each of the first directors, not less than five in number, who shall serve until the first annual meeting of the credit union, and the name and residence of the treasurer. (8) The common bond of membership. (9) Any provision, not inconsistent with law, which the incorporators may choose to insert for the regulation of the business and the internal affairs of the credit union. (b) Maintenance of copies.--A copy of the original articles of incorporation of the credit union and all amendments thereto shall be maintained by the credit union. (June 18, 2014, P.L.754, No.62, eff. 60 days)

17 Pa.C.S. § 304 Department consideration of articles.

(a) General rule.--The articles of incorporation and two copies of the proposed bylaws for the general governance of the credit union shall be presented to the department, together with such reasonable fees as shall be established by the department, including an application fee and other fees for such examination and such investigation as it may deem necessary to ascertain: (1) Whether the character and general fitness of the incorporators, directors and the treasurer named in the articles of incorporation is satisfactory. (2) Whether the character and number of the group proposed to be served affords reasonable promise of sufficient support for the enterprise so as to make the establishment of the proposed credit union economically advisable. (3) Whether the incorporators, directors and group proposed to be served have a common bond of association as provided in section 701 (relating to membership). (4) Whether the proposed credit union unduly encroaches upon the field of membership of any other credit union. (5) Whether the application is in proper form and within the purpose of this title. (6) Whether the savings of members paid for shares will be insured by the National Credit Union Administration or other share insurance fund approved by the department. Nonprofit corporations created by specific legislation of any state to insure share accounts or depository accounts of credit unions shall not be subject to regulation by the Department of Insurance or to the laws of this Commonwealth concerning insurance. Within 60 days after receipt of the articles, the department shall, upon the basis of the facts disclosed by the application and its investigation, either approve or disapprove the articles. (b) Approval action.--If the department approves the articles, it shall endorse its approval thereon and forward the articles to the Department of State. The Department of State shall, upon the receipt of the articles and the required filing fee, file the same. Upon the filing of the article of incorporation, the corporate existence of the credit union shall begin. The articles of incorporation as filed in the Department of State are conclusive evidence of the fact that the credit union has been incorporated. (c) Disapproval action.--If the department disapproves the articles, it shall return them to the incorporators, stating in detail its reasons for doing so. (d) Cross reference.--See 15 Pa.C.S. § 134 (relating to docketing statement). (Dec. 9, 2002, P.L.1572, No.207, eff. 60 days; June 18, 2014, P.L.754, No.62, eff. 60 days) Amendment. Act 62 amended the section heading. 2002 Amendment. Act 207 amended subsecs. (a), (b) and (c).

17 Pa.C.S. § 305 Bylaws.

(a) General rule.--The original bylaws of a credit union shall be adopted by the incorporators of the credit union and copies shall be transmitted to the department along with the articles of incorporation as provided in this chapter. The original bylaws of the credit union and all amendments thereto shall be maintained by the credit union. (b) Board-initiated bylaw amendments.-- (1) Bylaws may be amended or repealed by the affirmative vote of a majority of directors at any regular or special meeting of the board. Whenever the board of directors amends the bylaws, notice thereof shall be given to the members prior to the next meeting of the members or within 90 days after such action by the board of directors, whichever is sooner. (2) (Deleted by amendment). (3) The members of a credit union may amend the bylaws pursuant to procedures set forth in subsections (d), (d.1) and (d.2), whichever subsection is appropriate. (c) Restrictions on board of directors.--The board of directors shall not amend any bylaws fixing their qualifications, classification, term of office or compensation. (d) Member-initiated bylaw amendment or repeal for credit unions with more than 10,000 members.-- (1) Bylaws of a credit union with more than 10,000 members may be amended or repealed upon member-initiated petition and the affirmative vote of two-thirds of the members voting thereon by mail ballot. (2) Written petition signed by 1% of all the members of a credit union with more than 10,000 members shall be the exclusive method by which such members may amend or repeal the bylaws. (3) Whenever the board of directors receives a member-initiated petition to amend or repeal the bylaws, notice thereof shall be given to all members of the credit union within 90 days, and a mail ballot vote of the matter shall be held during a period of at least ten days after the mailing of the ballot. (d.1) Procedure.-- (1) To initiate the procedure to amend or repeal the bylaws set forth in subsection (d), a member of a credit union must circulate a petition to all members of the credit union. (2) Upon the request of a member, the credit union shall provide the member with a list of all groups and their business addresses that are included as members of the credit union. (3) The member seeking to amend or repeal the bylaws shall circulate the petition and obtain the requisite number of signatures from members of the credit union. The petition shall clearly identify the bylaw to be amended or repealed and include the language of the proposed bylaw. (4) (Deleted by amendment). (5) The secretary of the credit union shall verify that the signatures on the petition are the signatures of members of the credit union and that the petition contains the requisite number of signatures. (6) The ballot may not be mailed if the credit union determines that any of the following conditions have not been met: (i) the petition does not contain the requisite number of signatures of members of the credit union; or (ii) for any other specified reason. If the credit union determines that the ballot will not be mailed, then the secretary of the credit union shall notify in writing the member who initiated the petition drive within ten days of receipt of the petition by the credit union. The notification shall inform the member that the ballot will not be mailed and the reason. It shall also inform the member of right to appeal to the department. (7) Any member seeking to contest a determination by the credit union not to mail the ballot provided for in subsection (d) may file a complaint with the department within 30 days of receiving notice from the secretary of the credit union's decision not to mail such ballot, and the department shall adjudicate the matter. (8) The department may provide any person or governmental entity with a copy of the petition as well as any complaints filed with the department and other documents related to the ballot procedure. (9) If the credit union mails the ballot provided for in subsection (d) or is ordered to do so by the department, then the credit union shall provide an official notice to all members of the credit union, prepare and mail the ballots, arrange for tallying of the votes and report the results to all members in accordance with subsection (d). (10) The credit union shall bear the reasonable expenses associated with: (i) Verifying that the signatures on the petition are the signatures of members of the credit union and that the petition contains the requisite number of signatures. (ii) Notifying the members. (iii) Preparing and mailing the ballots. (iv) Tallying the vote and reporting the results. (d.2) Member-initiated amendment or repeal of bylaws for credit unions with 10,000 or fewer members.--A credit union with 10,000 or fewer members may amend or repeal the bylaws, in accordance with existing bylaws of the credit union, as follows: (1) by following the procedure outlined in subsections (d) and (d.1); or (2) by a two-thirds vote of the members present and voting at a regular, special or annual meeting of the credit union. If the vote is taken at a special meeting: (i) Subsequent to the vote, if a majority of the board of directors vote to resubmit the amendment or repeal by mail ballot to all of the members, it shall be resubmitted. (ii) If the bylaws provide for a mail ballot procedure, then it will require two-thirds of the responding member ballots to sustain the original vote. (e) Appeal procedure.--In the event that a bylaw amendment approved by the board of directors is rejected or changed by the members at an annual or special meeting, the board of directors may resubmit the original amendment to a vote of the entire membership through mail ballot procedures. The board of directors may take such action if the resubmittal motion is approved by a vote of at least a majority of the board of directors. (Dec. 12, 1994, P.L.1067, No.146, eff. 60 days; Dec. 9, 2002, P.L.1572, No.207, eff. 60 days; June 18, 2014, P.L.754, No.62, eff. 60 days) 2014 Amendment. Act 62 amended subsecs. (a), (b), (d)(3) and (d.1)(1), (3), (7), (8) and (9) and deleted subsec. (d.1)(4). 2002 Amendment. Act 207 amended subsecs. (a), (b) and (d) and added subsecs. (d.1) and (d.2).

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=17Fetched: 10/16/2026