§ 26-502.10 — Foreign credit unions.

District of Columbia § 26-502.10

• Jurisdiction: District of Columbia
• Title 26: Banks and Other Financial Institutions.
• Ch. 5: Credit Unions.
• Subch. I: Credit Union Act of 2020.
• Part B: Credit Union Organization.

Text

(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.

(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.