Code of the District of Columbia

Part B. Credit Union Organization.


§ 26–502.01. District credit union charter application procedures.

(a) An organizing group consisting of 7 or more persons within the credit union's field of membership, the majority of whom are residents of the District, may apply to organize and charter a District credit union by filing a written charter application with the Commissioner. The application shall be prepared and filed by the organizers in accordance with the forms and procedures prescribed by the Commissioner by rule.

(b) The charter application required in subsection (a) of this section shall include:

(1) The name of the District credit union, which shall include the phrase "credit union" and the location of the District credit union's principal office;

(2) The initial field of membership of the District credit union;

(3) The term of the existence of the organization, which may be perpetual;

(4) The par value of shares of the District credit union, each of which shall be $5 or more in value;

(5) The charter statement for the District credit union;

(6) The names, addresses, and taxpayer identification numbers of each organizer of the District credit union and the number of shares subscribed to by each organizer;

(7) The name, address, and taxpayer identification number of each member of the initial board of directors of the District credit union and each member of the supervisory committee of the District credit union, selected pursuant to subsection (c) of this section, and the number of shares, if any, subscribed to by each;

(8) Articles of incorporation, which the Commissioner shall have the authority to approve, prepared in accordance with the rules set forth by the Commissioner;

(9) Bylaws prepared by the organizers of the District credit union, which shall be consistent with this subchapter for the general governance of the District credit union and comply with the form the Commissioner prescribes by rule; and

(10) Any other information the Commissioner requires by rule.

(c)(1) The organizers shall select an odd number of directors, not fewer than 5 and not more than 15, who are eligible for membership and who agree to become members and serve on the board of directors.

(2) The organizers of the District credit union may select 3 or 5 people to serve on a supervisory committee. People chosen to serve on a supervisory committee shall be people who are eligible for membership in the District credit union, agree to become members of the credit union, and agree to serve on the supervisory committee.

(3) The persons selected to serve on the board of directors and a supervisory committee shall execute an agreement of service, on a form the Commissioner prescribes by rule, to serve in these capacities until the first annual meeting or until the election of their respective successors, whichever is later.

(d) The organizers of the District credit union shall apply for insurance on share and deposit accounts pursuant to § 26-502.08 prior to, or at the same time as, the time when the organizers file the charter application with the Commissioner.

(e) The organizers shall forward to the Commissioner the chartering fee, the duplicate charter statement, bylaws, agreements of service, articles of incorporation, and proof of application for insurance on share and deposit accounts.

(f) The Commissioner shall issue the applicant, in a time period prescribed by the Commissioner by rule, a certification letter in a form that enables the applicant to obtain necessary routing, transit, and bank identification numbers and to secure the necessary contractual arrangements required of a full-service financial institution.


(May 6, 2020, D.C. Law 23-86, § 201, 67 DCR 3476.)


§ 26–502.02. Certificate of charter.

(a) The following procedures shall apply upon the filing of a complete charter application pursuant to § 26-502.01:

(1) The Commissioner shall prepare a periodic bulletin listing all pending charter applications. The bulletin shall be published in the District of Columbia Register and be available from the Commissioner.

(2) The Commissioner shall accept public comment on the application prior to deciding whether to grant final approval of the application, according to procedures established by the Commissioner by rule. Public comments shall be accepted for 30 days from the date of publication of notice of the application by the Commissioner pursuant to paragraph (1) of this subsection. Any result from the public comment period held under this section may not extend the approval or disapproval time frame as required in paragraph (3) of this subsection.

(3)(A) The Commissioner shall, pursuant to subsection (b) of this section, approve or disapprove the charter application, and provide the reasons for approving or disapproving the application, within 90 days after receipt of the application. The Commissioner may extend this 90-day period for up to an additional 60 days.

(B) No application required by this section shall be complete unless it is accompanied by an application fee in an amount to be established by the Commissioner and made payable to the District Treasurer.

(C) No credit union shall commence operation until the organizers have submitted evidence that the required insurance has been acquired.

(b)(1) A charter application may be approved, and a certificate of charter may be issued, if the charter application, the charter statement, and bylaws conform to this subchapter and the Commissioner determines that:

(A) The characteristics of the field of membership set forth in the proposed bylaws are favorable to the economic viability of the proposed District credit union;

(B) The reputation and character of the initial board of directors and supervisory committee provide assurance that the District credit union's affairs will be properly administered;

(C) The applicant has provided a viable plan for conducting business that demonstrates a likelihood for success; and

(D) The District credit union has obtained share insurance.

(2) The Commissioner may disapprove the charter application and not issue a certificate of charter for a new District credit union if the Commissioner finds that:

(A) There are no grounds for the likelihood of economic success for the District credit union;

(B) The leadership of the proposed District credit union is not qualified; or

(C) The proposed District credit union has failed to obtain share insurance.

(c) If a certificate of charter is issued, the Commissioner shall return a copy of the bylaws and one of the duplicate originals of the certificate of charter of the District credit union to the organizers of the District credit union or their representatives. The original charter statement and bylaws shall be preserved in the permanent files of the District credit union.

(d) If a certificate of charter is denied, the Commissioner shall notify the organizers of the District credit union and set forth the reasons for the denial. The District credit union organizers may appeal the Commissioner's decision to the District of Columbia Court of Appeals in accordance with § 2-510.

(e) The filing of an appeal under this section shall not stay the effect of the denial or any other action of the Commissioner to the appealing party, unless the District of Columbia Court of Appeals determines, after giving the appealing party notice and an opportunity to be heard, that failure to grant a stay would be detrimental to the interests of policyholders, shareholders, creditors, or the public.

(f) The organizers may not transact any District credit union business until a certificate of charter has been issued and received.


(May 6, 2020, D.C. Law 23-86, § 202, 67 DCR 3476.)


§ 26–502.03. Form of charter statement and bylaws.

(a) The bylaws shall include the following provisions:

(1) The name of the District credit union;

(2) The field of membership of the District credit union;

(3) Qualifications for membership in the District credit union, including the minimum number of shares, the payment of an entrance or membership fee, if any, required for membership, and the policies for expelling a member;

(4) The number of directors, the length of terms a director may serve, and the permissible term length of any interim director;

(5) The qualifications for eligibility to serve on the District credit union's board;

(6) The number of District credit union employees that may serve on the board, if any;

(7) The frequency of regular meetings of the board and the manner in which members of the board are to be notified of those meetings;

(8) The powers and duties of board officers;

(9) The timing of the annual membership meeting;

(10) The manner in which vacancies shall be filled, which shall be either until a successor is elected at the next membership meeting or for the remainder of the unexpired term;

(11) The manner in which members may call a special membership meeting;

(12) The manner in which members are to be notified of membership meetings;

(13) The number of members constituting a quorum at a membership meeting and at a meeting of the board of directors;

(14) Provisions, if any, for the indemnification of directors, officers, employees, and others by the District credit union, if not included in the articles of incorporation; and

(15) Any other provision required by the Commissioner by rule.

(b) The Commissioner may provide a model District credit union charter statement and model District credit union bylaws consistent with this subchapter, which may be used by District credit union organizers in preparing a District credit union charter application.


(May 6, 2020, D.C. Law 23-86, § 203, 67 DCR 3476.)


§ 26–502.04. Amendment of charter and bylaws.

(a) The charter may be amended by the members at any regular or special meeting if the call of the meeting includes the proposed amendment and a quorum of members and at least 2/3 of the board of directors are present at the meeting. The amendment shall be approved by at least 2/3 of the members present and voting.

(b) The bylaws may be amended by a 2/3 vote of the board of directors at any regular or special meeting if the call of the meeting includes the proposed amendment and a quorum is present.

(c)(1) Amendments to the charter and any other amendments prescribed by the Commissioner by rule shall be submitted to the Commissioner. The Commissioner shall have the power to disapprove the proposed amendments within 30 days of submission. The amendment shall be deemed approved if the Commissioner does not disapprove the proposed amendment within 60 days after receiving it.

(2) If the Commissioner disapproves the proposed amendment, the District credit union may appeal the decision to the District of Columbia Court of Appeals in accordance with § 2-510.


(May 6, 2020, D.C. Law 23-86, § 204, 67 DCR 3476.)


§ 26–502.05. Name of District credit union.

(a) The name of a District credit union shall include the phrase "credit union". No District credit union may adopt a name identical to the name of any other federal or foreign credit union doing business in the District, or a name similar to the name of any federal or foreign credit union doing business in the District that will be misleading or cause confusion.

(b) No person, other than a District credit union, a federal credit union, a foreign credit union, an association of credit unions, or an organization or corporation whose membership or ownership is limited to credit unions or credit union organizations may:

(1) Use a name or title containing the phrase "credit union" or any derivation thereof;

(2) Represent itself as a credit union; or

(3) Conduct business as a credit union.


(May 6, 2020, D.C. Law 23-86, § 205, 67 DCR 3476.)


§ 26–502.06. Service facilities.

(a) A District credit union may change its principal office upon written notice to the Commissioner and the members of the District credit union.

(b) A District credit union may, upon written notification to the Commissioner, maintain service facilities, including automated teller machines, at locations other than its principal office.

(c) A District credit union may join with one or more other credit unions or financial organizations in the operation of automated teller machines or other service facilities.


(May 6, 2020, D.C. Law 23-86, § 206, 67 DCR 3476.)


§ 26–502.07. Fiscal year.

The fiscal year of each District credit union chartered under this subchapter shall end on December 31.


(May 6, 2020, D.C. Law 23-86, § 207, 67 DCR 3476.)


§ 26–502.08. Application for share and deposit insurance.

(a) Each District credit union shall apply for insurance on its shares and deposits, as provided by NCUA or comparable insurance approved by the Commissioner. Any District credit union insured by NCUA shall comply with all federal requirements that apply to credit unions insured by NCUA, notwithstanding any contrary provisions of this subchapter.

(b)(1) A District credit union that has lost its commitment for share and deposit insurance shall, within 30 days of having lost that commitment, begin to liquidate, merge with an insured credit union, or apply in writing to the Commissioner for additional time to obtain another insurance commitment.

(2) The Commissioner may grant extensions of time to obtain a new insurance commitment upon satisfactory evidence that the District credit union is not operating in an unsafe or unsound manner and that the District credit union has made, or is making, a substantial effort to obtain a new insurance commitment, including substantial effort to achieve conditions necessary to obtain such a commitment.

(c) No person shall be granted a certificate of charter by the Commissioner to form a District credit union unless the person has obtained a commitment for insurance for its share and deposit accounts.

(d) The Commissioner may make reports of condition and examination findings available to, and may accept any report of examination made on behalf of, the appropriate insuring organization.

(e) A District credit union shall not be subject to this section if that District credit union's debt and equity capital consist primarily of funds from other credit unions and membership shares issued by another District credit union.


(May 6, 2020, D.C. Law 23-86, § 208, 67 DCR 3476.)


§ 26–502.09. Conducting business outside the District of Columbia.

(a) A District credit union may conduct business outside of the District upon approval from the Commissioner. The Commissioner shall approve a District credit union's request to conduct business outside of the District if:

(1) The non-District jurisdiction permits the District credit union to conduct business in that jurisdiction; and

(2) The Commissioner does not identify any safety or soundness implications with the expanding operations.

(b)(1) If the laws or regulations governing credit unions in a non-District jurisdiction permit a District credit union operating in that jurisdiction to exercise additional powers not expressly permitted under this subchapter, a District credit union conducting business in that non-District jurisdiction may request permission from the Commissioner to exercise those additional powers in the District. The Commissioner shall approve the exercise of additional power unless there are demonstrable safety and soundness implications.

(2) The District credit union may exercise the additional power referenced in this subsection in the District if the Commissioner approves the District credit union's request to exercise additional power within 60 days after receiving a completed request. The request shall be deemed disapproved if the Commissioner does not act within 60 days after receiving a completed request.

(c) The Commissioner may enter into supervisory agreements or other agreements with credit union regulators in other states or jurisdictions to prescribe the applicable rules governing the powers and authorities of foreign branches and other facilities of District credit unions.


(May 6, 2020, D.C. Law 23-86, § 209, 67 DCR 3476.)


§ 26–502.10. Foreign credit unions.

(a) The Commissioner shall allow a foreign credit union to conduct business as a credit union in the District if the following conditions are met:

(1) The jurisdiction in which the foreign credit union is organized authorizes it to do business in the District;

(2) District credit unions are permitted to do business in the jurisdiction in which the foreign credit union is organized;

(3) The foreign credit union has substantially the same characteristics, and operates in a similar manner, as a District credit union; and

(4) The foreign credit union submits any applicable fee.

(b) The Commissioner may, at any time, revoke a foreign credit union's authority to do business in the District if the Commissioner determines that a foreign credit union:

(1) Is not established under laws similar to this subchapter;

(2) Is not financially solvent;

(3) Does not insure its accounts to the same extent as District credit unions established under this subchapter;

(4) Is not examined and supervised by a regulatory agency of the jurisdiction in which it is organized;

(5) Is in violation of its charter as determined by its chartering jurisdiction;

(6) Does not charge interest in compliance with the provisions of § 26-507.02 when making loans in the District;

(7) Does not comply with the consumer protection laws, regulations, and rules applicable to District credit unions established pursuant to this subchapter;

(8) Fails to provide the Commissioner with a copy of the report of examination of its regulatory agency or submit to an annual examination by the Commissioner;

(9) Fails to designate or maintain an agent for the service of process in the District;

(10) Fails to comply with District laws, regulations, and orders;

(11) Engages in, or is likely to engage in, a pattern of unsafe or unsound practices;

(12) Will likely have a substantially adverse impact on the financial, economic, or other interests of residents of the District; or

(13) Is prohibited from operating in the jurisdiction in which it is organized.

(c) The Commissioner may cooperate with credit union regulators in other states or jurisdictions to implement this section and may share information received in administering this subchapter with those regulators.

(d) The Commissioner may enter into supervisory agreements or other agreements with foreign credit unions and their regulators to prescribe the applicable rules governing the powers of District branches and service facilities of foreign credit unions. An agreement made pursuant to this subsection may address items such as corporate governance, operations, and conflict of law and may prescribe the procedures to coordinate, among applicable regulators, the application, supervision, and examination processes with respect to foreign credit unions.

(e) The Commissioner may adopt rules for the periodic examination and investigation of the operations of a foreign credit union operating in the District. The cost of examination and supervision shall be assessed to the foreign credit union.

(f)(1) A foreign credit union from a jurisdiction that allows credit unions to exercise additional powers not allowed in the District may request permission from the Commissioner to exercise those additional powers in the District. The Commissioner may approve the exercise of those additional powers in the District if there are no demonstrable safety and soundness implications and the exercise of the additional power by the foreign credit union is in the best interest of the District.

(2) Upon approval by the Commissioner, District credit unions established under this subchapter may exercise any additional powers approved for a foreign credit union to exercise pursuant to this section.


(May 6, 2020, D.C. Law 23-86, § 210, 67 DCR 3476.)