(1) Any seven (7) persons who are residents of the State of Mississippi of full age and of good moral and sound business character eligible under this chapter to become members of a credit union may prepare in duplicate articles of association and incorporation, and sign the same and cause the same to be acknowledged by one (1) of the signers before an officer competent to take acknowledgments to the effect that the same has been signed and executed by all of the signers. Before any credit union may be organized and formed, the prospective incorporators shall give notice to the Department of Banking and Consumer Finance by petition to the Commissioner of Banking and Consumer Finance of their desire to engage in business as a credit union and shall at the time file with the commissioner two (2) copies of the proposed articles of incorporation, duly sworn to by one (1) of the prospective incorporators.

(2) Upon receipt of a petition for a certificate of incorporation to form a credit union and such additional information as may be required by the commissioner, the commissioner shall promptly give consideration to the petition and make an examination of the proposed articles of incorporation to determine if they meet all requirements of the law. The commissioner shall then make an investigation to determine that the prerequisites of this chapter have been complied with and that:

(a) The character, responsibility and general fitness of the persons named in the petition are such as to command confidence and warrant belief that the business of the proposed credit union will be honestly and efficiently conducted in accordance with the intent and purpose of this chapter and that the proposed credit union will have qualified management;

(b) There is need for the proposed credit union to serve the proposed field of membership, which shall be specific in detail; and

(c) The anticipated volume and type of business and field of membership of the proposed credit union is such as to indicate profitable operation within a reasonable time.

When the commissioner has completed the examination and made his investigation, he shall record his preliminary findings and recommendations in writing.

(3) The commissioner shall consider the findings and shall hear such oral testimony as he may wish, and may also receive information and hear testimony bearing upon the approval of the organization and operation of the new credit union. When the commissioner has completed the examination and investigation, the commissioner shall record the findings in writing and render a decision as to whether or not said credit union should be authorized to do business. If the decision is favorable, the incorporators shall then present one (1) of said copies of the articles of association and incorporation, with a recording fee of Ten Dollars ($10.00) to the Secretary of State of the State of Mississippi who shall receive and file the same, whereupon said persons entering into said articles shall be and become an incorporated credit union association under the laws of the State of Mississippi, without individual liability for debts, obligation or other liabilities of said association, in ex cess of such membership fees as remain due and unpaid by said members, respectively, and may sue and be sued in the name of said association. The Secretary of State shall record the said articles in his office and return the original so recorded to said association. The association shall file articles for record in the office of the clerk of the chancery court in the county where the principal place of business is located.

(4) If the commissioner shall deny the application for such charter, he shall notify the applicant in writing of such denial and shall include in such notification the reason or reasons for such denial. When any application for a charter is denied, the applicant shall have the right to a hearing thereon by and before the commissioner by filing, within thirty (30) days after the date of the receipt of the notification of denial, a written petition with the commissioner requesting such hearing. Upon the filing of any such request, the commissioner shall fix a date for the hearing, which date shall not be later than thirty (30) days from the date of the filing of the request, and notice shall be given to the public of the fact that such hearing will be held by the publication of a notice in some newspaper published in the county where the business is proposed to be conducted not less than ten (10) days before the date of the hearing, which notice shall specify the date, time, pl ace and purpose of the hearing, said hearing to be in the office of the commissioner in Jackson, Mississippi. If there is no newspaper published in the county where the business is proposed to be conducted, such notice shall be placed in a newspaper having general circulation in such county.

(5) All such hearings shall be held and conducted in the office of the commissioner, and the applicant and any and all other interested persons may appear and present such evidence as shall be relevant and material and the commissioner may cause the production and presentation of such evidence as deemed relevant and material. At all such hearings the applicant shall have the right to be represented by counsel and to examine and cross-examine any and all witnesses that may testify at such hearing. For the purpose of compelling the attendance of witnesses at such hearing the commissioner shall have the power to issue subpoenas therefor in the same manner as subpoenas are issued in circuit courts. All witnesses who shall testify at any such hearing shall be sworn in the same manner as witnesses are sworn in the circuit courts and shall be subject to penalties for perjury as is otherwise provided under the laws of this state.

(6) At all such hearings the commissioner shall cause the evidence presented to be taken down and a record made thereof and the commissioner shall make a written finding and decision with reference to the question presented and shall cause same to be included in the record. The original of said record shall be kept as a permanent record by the commissioner and a copy thereof shall be furnished to the applicant. If the application for the charter shall be denied as a result of such hearing, the applicant may obtain a review of such denial by filing a petition for the review of such denial within thirty (30) days from the date of such denial to the circuit court of the county in which it is sought to organize such credit union. The review by said court shall be on the record made before the commissioner and copies of all applications, bonds and other papers and documents of every kind filed with the commissioner in connection with the application and said hearing shall be included in said record along with the transcript of the evidence.

(7) The corporate existence of an association shall begin on the date the certificate of incorporation is issued to the credit union, and such existence shall be perpetual unless terminated in accordance with the provisions of this chapter.

(8) At any time the commissioner determines that a credit union ceases to offer normal credit union services to its members as a result of a merger, voluntary liquidation, involuntary liquidation or any other cause, the commissioner shall be authorized to pay the required fee to record the cancellation of the charter of the credit union in the county where originally recorded and in the Secretary of State’s office.