45-4-101 - Corporation for carrying on credit union Formation Par value of shares.
45-4-101. Corporation for carrying on credit union Formation Par value of shares.
(a) Seven (7) persons, residents of this state, who are all bona fide residents of this state and who have a common bond of occupation and association or reside within a well defined neighborhood, community or rural district, by complying with this chapter, may become together with others who may hereafter be associated with them or their successors, a body corporate for the purpose of carrying on a credit union as herein provided.
(b) The par value of the shares of capital stock shall be five dollars ($5.00).
(c) The commissioner of financial institutions may designate or approve, upon application, charters for credit unions to be designated as central credit unions and each of which must contain in its name the word central. A proposed central credit union must also meet the following criteria:
(1) Fulfillment of such requirements as would apply to any other credit union chartered pursuant to this title and chapter;
(2) Demonstrated need for central credit union services of the one (1) or more areas of the state, or if appropriate, the entire state, that would be served by the proposed central credit union, giving particular consideration to the adequacy of existing central credit unions serving the state; and
(3) The ability of the field of membership and the area to be served to support the proposed central credit union, giving consideration to:
(A) The competition offered by existing central credit unions;
(B) The history of the potential field of membership and area to be served as it is related to the potential support for an additional central credit union;
(C) Opportunities for profitable employment for central credit union funds as indicated by the commissioner's review of credit union transactions and the number of potential credit union members of the proposed central credit union; and
(D) Other facts and circumstances bearing on the proposed central credit union and its relationship to the proposed field of membership, that, in the opinion of the commissioner, may be relevant.
(d) Membership in a central credit union initially shall include not less than fifteen (15) credit unions organized and operating under this chapter or under any other credit union act, and may also include, but not be limited to:
(1) Officers, directors, committee members and employees of the credit unions; officials and employees of any association of credit unions; and employees of federal or state government agencies responsible for the supervision of credit unions in this state;
(2) Organizations and associations of credit unions or of those persons or organizations enumerated in subdivision (d)(1);
(3) Employees of an employer with insufficient numbers to form or conduct the affairs of a separate credit union, as determined by the commissioner;
(4) Persons in the field of membership of liquidated credit unions or of credit unions that have entered into or are about to enter into voluntary or involuntary liquidation proceedings; and
(5) Members of the immediate families of all members qualified in subdivisions (d)(1)-(4).
[Acts 1923, ch. 68, §§ 1, 2; Shan. Supp., §§ 2198a3, 2198a4; Code 1932, § 3833; Acts 1937, ch. 264, §§ 1, 2; C. Supp. 1950, § 3833 (Williams, §§ 3832.1, 3833); Acts 1978, ch. 552, § 1; T.C.A. (orig. ed.), § 45-1802; Acts 1986, ch. 558, § 5.]