(1) A credit union organized under the laws of another state or territory of the United States may conduct business as a credit union in this State with the approval of the board, provided credit unions incorporated under this chapter are allowed to do business in the other state under conditions similar to these provisions. Before granting the approval, the board must find that the out-of-state credit union:
(a) is a credit union organized under laws similar to this chapter;
(b) is financially solvent;
(c) has account insurance comparable to that required for credit unions incorporated under this chapter;
(d) is examined and supervised by a regulatory agency of the state in which it is organized or the federal government; and
(e) needs to conduct business in this State to adequately serve its members in this State.
(2) No out-of-state credit union may conduct business in this State unless it:
(a) charges interest in compliance with the provisions of Section 34-26-810 when making loans in this State;
(b) complies with the consumer protection provided by law and provisions and regulations applicable to credit unions incorporated under this chapter;
(c) agrees to furnish the commissioner a copy of the report of examination of its regulatory agency and if necessary to submit to an examination by the commissioner; and
(d) designates and maintains an agent for the service of process in this State.
(3) The board may revoke the approval of a credit union to conduct business in this State if the board finds that:
(a) the credit union no longer meets the requirements of subsection (1);
(b) the credit union has violated the laws of this State or regulations or orders issued by the board;
(c) the credit union has engaged in a pattern of unsafe or unsound credit union practices; or
(d) continued operation by the credit union is likely to have a substantially adverse impact on the financial, economic, or other interests of residents of this State.
HISTORY: 1996 Act No. 371, Section 1, eff May 29, 1996.