§ 26-504.03 — Service to low-income consumers.

District of Columbia § 26-504.03

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

Text

(a) A District credit union, including a District credit union in the process of incorporating under this subchapter , may submit an application to the Commissioner to be designated as a low-income credit union.

(1) The Commissioner may approve an application for designation as a low-income credit union if the Commissioner determined that 50% or more of the members to be served by the District credit union:

(A) Reside within a recognizable geographic area primarily located in a low-income area; or

(B) Are qualified to receive benefits from any program designed to revitalize the local economy or assist the economically disadvantaged.

(2) For purposes of this subsection, the following shall be deemed to satisfy the requirements of this subsection:

(A) Natural persons enrolled as full-time or part-time students in a college, university, high school, or vocational school; and

(B) Members of the United States military on active duty and stationed overseas.

(c) The Commissioner shall develop the application specified in subsection (a) of this section by rule.

(d) The Commissioner shall approve or disapprove an application to be designated as a low-income credit union within 60 days of receiving a complete application; except, that where the application is submitted as part of the charter application, as described in § 26-502.02 , the application to be designated as a low-income credit union shall be approved or disapproved in the same time period and manner prescribed in § 26-502.02(a)(3) and (b) .

(e) In addition to the powers granted under this part , a low-income credit union may receive funds from non-members and supplemental capital from members and non-members.

(1) The Commissioner shall regulate the offer and sale of supplemental capital. Regulations promulgated by the Commissioner shall address issues of safety and soundness, including the maturity of the supplemental capital, terms of sale, terms of capital, total amount of supplemental capital that may be outstanding at one time, redemption, and eligibility of the investors. In addition, supplemental capital:

(A) Shall be established as an uninsured supplemental capital or other form of non-share account;

(B) May not be insured by the National Credit Union Share Insurance Fund ("NCUSIF") or any other governmental or private entity; and

(C) May not be pledged or provided by the accountholder as a security on a loan or other obligation with the low-income credit union or any other party.

(2) A supplemental capital holder's claim against a low-income credit union shall be subordinate to all other claims against the low-income credit union, including those of shareholder's creditors, the NCUSIF, and an approved insurer.

(g) The supplemental capital authorized in this section shall not limit the authority of the Commissioner to approve other forms of equity capital.