ARIZONA
HOUSE OF REPRESENTATIVES
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HB 2284: credit unions; declaration of purpose |
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PRIME SPONSOR: Representative Weninger, LD 17 BILL STATUS: Caucus & COW |
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Establishes a declaration of purpose for credit
unions.
History
Title 6, Chapter 4 governs the formation and powers of credit unions. A credit union is an incorporated cooperative nonprofit association that encourages thrift among its members and creates a source of credit and other financial services at fair and reasonable cost (A.R.S. § 6-501).
Any seven or more individuals who have a common bond of interest or association may submit a certificate of organization to the Superintendent of the Department of Financial Institutions (Superintendent) for permission to organize a credit union (A.R.S. § 6-506). The Superintendent issues a certificate of approval given the satisfaction of certain criteria (A.R.S. § 6-507). The Department of Financial Institutions requires $100 to organize and establish a credit union and $250 for each established credit union branch (A.R.S. § 6-126).
Pursuant to A.R.S. § 6-181, the purpose of laws that govern banks is to provide for: 1) safe and sound conduct of banks, 2) conservation of bank assets, 3) maintenance of public confidence in banks, 4) protection of the interests of depositors and fiduciary beneficiaries and of the interest of the public in the soundness and preservation of the banking system, 5) opportunity for banks to remain competitive with each other, with financial institutions existing under other laws of this state and with banking and financial institutions existing under the laws of other states, the United States and foreign countries, 6) opportunity for banks to serve effectively the convenience and needs of their depositors, borrowers and other customers, to participate in and promote the economic progress of Arizona and the United States and to improve and expand their services and facilities for those purposes, 7) opportunity for management of banks to exercise business judgment in conducting banking affairs subject to the provisions of this chapter, 8) simplification and modernization of the law governing banking and governing the exercise of fiduciary and other representative powers by banks, and 9) implementation and execution of the provisions of this chapter by the full utilization of the rule making and administrative discretions of the superintendent.
Provisions
1. Declares the purpose of laws that govern credit unions is to provide opportunity for credit unions to remain competitive with each other, with financial institutions existing under other laws of this state and with banking and financial institutions existing under other states', federal, and foreign countries' laws. (Sec. 1)
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5. Fifty-fourth Legislature HB 2284
6. First Regular Session Version 2: Caucus & COW
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