Minnesota Session Laws - 1983, Regular Session

  

                         Laws of Minnesota 1983 

                        CHAPTER 230--S.F.No. 597
           An act relating to financial institutions; credit 
          unions; requiring applicants to form a credit union to 
          submit certain information to the commissioner of 
          banks; expanding the class of persons who may become 
          members; allowing certain small groups to join an 
          existing credit union or form a separate credit union; 
          amending Minnesota Statutes 1982, sections 52.01; 
          52.05; and 168.67. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 52.01, is 
amended to read:  
    52.01 [ORGANIZATION.] 
    Any seven residents of the state may apply to the 
commissioner of banks for permission to organize a credit union. 
    A credit union is a cooperative society, incorporated for 
the two-fold purpose of promoting thrift among its members and 
creating a source of credit for them at legitimate rates of 
interest for provident purposes. 
    A credit union is organized in the following manner: 
    (1) The applicants execute, in duplicate, a certificate of 
organization by the terms of which they agree to be bound, which 
shall state: 
    (a) the name and location of the proposed credit union; 
    (b) the names and addresses of the subscribers to the 
certificate and the number of shares subscribed by each; 
    (c) the par value of the shares of the credit union, which 
shall not exceed $10 each; 
    (2) The applicants submit the following in the form 
prescribed by the commissioner of banks:  
    (a) a statement of the common bond of the proposed credit 
union;  
    (b) the number of potential members;  
    (c) the geographic dispersion of the potential members;  
    (d) evidence of interest, including willingness of 
potential members to assume responsibility for leadership and 
service;  
    (e) a two-year forecast of probable levels of assets, 
shares and deposits, and income and expense;  
    (f) the availability of other credit union services to the 
potential members;  
    (g) other information the commissioner requires;  
    (2) (3) They next prepare and adopt bylaws for the general 
governance of the credit union consistent with the provisions of 
this chapter, and execute the same them in duplicate; 
    (3) (4) The certificate and the bylaws, both executed in 
duplicate, are forwarded to the commissioner of banks; and there 
shall be paid to the commissioner an with a $100 application fee 
of $100; 
    (4) (5) The commissioner of banks shall, within 60 days of 
the receipt of the certificate, the information required by 
paragraph (2), the bylaws, and a commitment for insurance of 
accounts as required by section 52.24, subdivision 2, determine 
whether they comply with the provisions of this chapter, and 
whether or not the organization of the credit union in question 
would benefit the its members of it, be economically feasible, 
and be consistent with the purposes of this chapter; 
    (5) (6) Thereupon the commissioner of banks shall notify 
the applicants of his decision;.  If it is favorable, the 
commissioner shall issue a certificate of approval, attached to 
the duplicate certificate of organization, and return the same, 
together them with the duplicate bylaws, to the applicants;.  
If it is unfavorable, the applicants may, within 60 days after 
said the decision, have the right to appeal for a review in a 
court of competent jurisdiction; 
    (6) (7) The applicants shall thereupon file the duplicate 
of the certificate of organization, with the certificate of 
approval attached thereto, with the county recorder of the 
county within which the credit union is to do business secretary 
of state, who shall make a record of the certificate and return 
it, with a certificate of record attached thereto, to the 
commissioner of banks, for permanent records; and 
    (7) (8) Thereupon the applicants shall become and be a 
credit union, incorporated in accordance with the provisions of 
this chapter. 
    In order to simplify the organization of credit unions, the 
commissioner of banks shall cause to be prepared an prepare 
approved form forms of certificate of organization and a form of 
bylaws, consistent with this chapter, which may be used by 
credit union incorporators for their guidance, and on written 
application of seven residents of the state, shall supply them, 
without charge, with a blank certificate of organization and a 
copy of the form of suggested bylaws. 
    Sec. 2.  Minnesota Statutes 1982, section 52.05, is amended 
to read: 
    52.05 [MEMBERSHIP.] 
    Credit union membership shall consist consists of the 
incorporators and such other persons as may be elected to 
membership and subscribe to at least one share, pay the initial 
installment thereon and the entrance fee if any.  The spouse and 
blood or adoptive relatives of In addition to a regularly 
qualified member, the spouse of a member, the blood or adoptive 
relatives of either of them and their spouses may be members.  
When an individual member of a credit union leaves the field of 
membership, the member, and the spouse and blood or adoptive 
relatives of a member all persons who became members by virtue 
of his or her membership may continue as members.  The surviving 
spouse of a regularly qualified member, and the blood or 
adoptive relatives of either of them and their spouses may 
become a member members.  Organizations, incorporated or 
otherwise, composed for the most part of the same general group 
as the credit union membership may be members.  Credit unions 
chartered by this or any other state, or any federal credit 
union may be members.  Credit union organizations shall be 
limited to groups, of both large and small membership, having a 
common bond of occupation, or association, or to residents 
within a well-defined neighborhood, community, or rural district.
    Any 25 residents of the state representing a group may 
apply to the commissioner, advising him of the common bond of 
the group and its number of potential members, for a 
determination whether it is feasible for the group to form a 
credit union.  Upon a determination that it is not feasible to 
organize because the number of potential members is too small, 
the applicants will be certified by the commissioner as eligible 
to petition for membership in an existing credit union 
geographically situated to adequately service the group.  If the 
credit union so petitioned resolves to accept the group into 
membership, it shall follow the bylaw amendment and approval 
procedure set forth in section 52.02.  
    Sec. 3.  Minnesota Statutes 1982, section 168.67, is 
amended to read:  
    168.67 [SALES FINANCE COMPANIES; LICENSES, FEES, REFUNDS.] 
    (a) No person shall engage in the business of a sales 
finance company in this state without a license therefor as 
provided in sections 168.66 to 168.77 provided, however, that no 
bank, trust company, savings bank, or savings and loan 
association, or credit union, whether state or federally 
chartered, industrial loan and thrift company, or small loan 
company authorized to do business in this state shall be 
required to obtain a license under sections 168.66 to 168.77. 
    (b) The application for a license shall be in writing, 
under oath and in the form prescribed by the administrator.  The 
application shall contain the name of the applicant; date of 
incorporation, if incorporated; the address where the business 
is or is to be conducted and similar information as to any 
branch office of the applicant; the name and resident address of 
the owner or partners, or, if a corporation or association, of 
the directors, trustees and principal officers, and other 
pertinent information the administrator requires. 
    (c) The licensee fee for the fiscal year beginning July 1 
and ending June 30 of the following year, or any part thereof 
shall be the sum of $150 for the principal place of business of 
the licensee, and the sum of $75 for each branch of the 
licensee, maintained in this state.  Any licensee who proves to 
the satisfaction of the administrator, by affidavit or other 
proof satisfactory to the administrator, that during the twelve 
12 calendar months of the immediately preceding fiscal year, for 
which his license has been paid that he has not held retail 
installment contracts exceeding $15,000 in amount, shall be 
entitled to a refund of that portion of each license fee paid in 
excess of $25.  The administrator shall certify to the 
commissioner of finance that the licensee is entitled to a 
refund, and payment thereof shall be made by the state 
treasurer.  The amount necessary to pay for the refundment of 
the license fee is appropriated out of the general fund.  All 
license fees received by the administrator under sections 168.66 
to 168.77 shall be deposited with the state treasurer. 
    (d) Each license shall specify the location of the office 
or branch and must be conspicuously displayed there.  In case 
the location be changed, the administrator shall endorse the 
change of location on the license. 
    (e) Upon the filing of such application, and the payment of 
the fee, the administrator shall issue a license to the 
applicant to engage in the business of a sales finance company 
under and in accordance with the provisions of sections 168.66 
to 168.77 for a period which shall expire the last day of June 
next following the date of its issuance.  The license shall not 
be transferable or assignable.  No licensee shall transact any 
business provided for by sections 168.66 to 168.77 under any 
other name.  
    Sec. 4.  [EFFECTIVE DATE.] 
    This act is effective the day after final enactment. 
    Approved June 1, 1983