6-506. Organization procedure

A. Any seven or more residents of this state who are of legal age and who have a common bond of interest or association may apply to the superintendent for permission to organize a credit union under this chapter.

B. The incorporators shall prepare, adopt and execute a certificate of organization and shall agree to comply with the requirements of the certificate and with all of the laws and rules applicable to credit unions. The certificate shall state:

1. The credit union's name and the location of the proposed principal place of business.

2. That the existence of the credit union is perpetual.

3. The names and addresses of the incorporators and the number of shares subscribed to by each.

4. The purpose for which the credit union is formed.

C. The incorporators shall prepare, adopt and execute bylaws consistent with this chapter for the general governance of the credit union. The bylaws, among other things, shall provide:

1. The proposed field of membership which shall be limited to groups having a common bond of interest, occupation or association or to groups within a well-defined neighborhood, community or rural district consistent with the purposes of the credit union.

2. The par value of shares.

3. The number of directors of the credit union, which shall not be fewer than five, all of whom shall be members, together with the titles of the officers and the number of members of the supervisory committee, which shall not be fewer than three.

4. The conditions under which shares may be issued, transferred or withdrawn, loans made and repaid and monies otherwise invested.

5. The number of members of the credit committee, which shall not be fewer than three, or the authorization of a credit manager.

D. The incorporators shall select at least five persons who are eligible for membership and who agree to become members and serve on the board of directors, and at least three persons who are eligible for membership and who agree to become members and serve on the supervisory committee. The persons selected to serve on the board of directors and the supervisory committee shall execute an agreement to serve in those capacities until the first annual meeting or until the election of their respective successors, whichever is later.

E. The incorporators shall forward to the superintendent such application as is required by the superintendent, along with the application fee provided for in section 6-126, the certificate of organization, the bylaws and the agreements to serve and any additional information which the superintendent may request.

F. The incorporators shall not transact any business in the name of the credit union until the certificate of incorporation has been issued by the corporation commission and the application and the bylaws have been approved by the superintendent.