Initial Subscribers; Contents and Filing of Articles; Other Required Filings; Fee for Investigation; Selection of Initial Directors

  1. Law
  2. Georgia Code
  3. Banking and Finance
  4. Financial Institutions
  5. Credit Unions
  6. General Provisions; Organization
  7. Initial Subscribers; Contents and Filing of Articles; Other Required Filings; Fee for Investigation; Selection of Initial Directors

Checkout our iOS App for a better way to browser and research.

  1. Any number of persons, not less than eight, having a common bond, as defined in subsection (b) of this Code section, may incorporate for the purpose of organizing a credit union in accordance with this article. The persons so desiring to become incorporated shall execute articles which shall set forth the following:
    1. The name of the proposed credit union;
    2. The territory in which it will operate;
    3. The location where its initial registered office will be located;
    4. The names and addresses of the subscribers, their occupation, length of service, and that each has subscribed to one share and paid for same;
    5. The names and addresses of the original directors;
    6. The proposed field of membership specified in detail and having the same common bond as the subscribers;
    7. That the purpose and nature of the business are to conduct a credit union with the rights and powers granted by this article; and
    8. The term of the existence of the credit union, which shall be perpetual unless otherwise limited.
  2. For purposes of this article, "common bond" is described as that specific relationship of occupation, association, or interest; residence or employment within a well-defined neighborhood, community, or rural district; employees of a common employer; or members of a bona fide cooperative, educational, fraternal, professional, religious, rural, or similar organization which tends to create a mutual interest between persons sharing the relationship. Persons related by blood, adoption, or marriage to or living in the same household with a person within such common bond and the surviving spouses of deceased members shall also be considered within the common bond.
  3. The subscribers shall file the articles with the department together with the fee specified in Code Section 7-1-862. The department shall certify a copy of the articles and return it to the subscribers.
  4. The subscriber shall file with the department a certificate from the Secretary of State attesting that the name of the proposed credit union has been reserved as authorized by Code Section 7-1-131.
  5. The subscriber shall file with the department a copy of the proposed bylaws setting forth the following:
    1. The date of the annual meeting, the manner of conducting the same, the number of members constituting a quorum and regulations as to voting, and the manner of notification of the meeting, which shall comply with Code Section 7-1-6;
    2. The number of directors, which must be not less than five nor more than 25, all of whom must be members, and their powers and duties, together with the duties of the officers elected by the board of directors;
    3. The qualifications for membership of those coming within the initial common bond as required by this article;
    4. The conditions under which deposits are received and withdrawn; and
    5. The charges which shall be made, if any, for failure to meet obligations punctually; whether or not the credit union shall have the power to borrow; and such other matters consistent with this article as may be requisite to the organization and operation of the proposed credit union.
  6. The subscriber shall pay such fee as shall be established by regulation of the department to defray the cost of the investigation required by Code Section 7-1-632, provided that the department shall not be required to set such fee if in its judgment the fee would discourage the organization of credit unions under this article.
  7. The subscriber shall select at least five qualified persons who agree to serve on the board of directors.A signed agreement to serve in these capacities until the first annual meeting or until the election of their successors, whichever is later, shall be executed by those who so agree and filed with the department along with the proposed bylaws.

(Ga. L. 1925, p. 165, § 1; Code 1933, § 25-101; Code 1933, § 41A-3001, enacted by Ga. L. 1974, p. 705, § 1; Ga. L. 1981, p. 1244, § 1; Ga. L. 1989, p. 1257, § 19; Ga. L. 2005, p. 826, § 11/SB 82; Ga. L. 2015, p. 344, § 16/HB 184; Ga. L. 2016, p. 390, § 3-1/HB 811; Ga. L. 2017, p. 193, § 16/HB 143; Ga. L. 2019, p. 828, § 18/HB 185.)

The 2019 amendment, effective July 1, 2019, substituted the present provisions of paragraph (e)(4) for the former provisions, which read: "The conditions under which shares may be issued, paid for, transferred, and withdrawn; deposits received and withdrawn; loans made and repaid; and funds otherwise invested; and"; and deleted "the method of receipting for money; the manner of accumulating a reserve; the manner of determining and paying interest and dividends;" following "power to borrow;" in the middle of paragraph (e)(5).

OPINIONS OF THE ATTORNEY GENERAL

Former Code 1933, §§ 25-101, 25-108, and 25-109 (see now O.C.G.A. §§ 7-1-630,7-1-651, and7-1-653) indicate that each credit union has complete control over membership, and that eight persons could form a credit union and limit membership to the original eight incorporators. 1948-49 Op. Att'y Gen. p. 434.

RESEARCH REFERENCES

Am. Jur. 2d.

- 10 Am. Jur. 2d, Banks and Financial Institutions, §§ 5 et seq., 189. 18A Am. Jur. 2d, Corporations, § 194 et seq.

C.J.S.

- 12 C.J.S., Building and Loan Associations, Savings and Loan Associations, and Credit Unions, §§ 14, 15, 34.


Download our app to see the most-to-date content.