Colorado § 11-30-101.7 - Hearing procedures for community field of membership credit unions.

§ 11-30-101.7. Hearing procedures for community field of membership credit unions.

(1) An application for a community field of membership shall be subject to approval by the board after the required notice and hearing requirements in this section are met.

(2) Upon submission by the commissioner, pursuant to section 11-30-101 (3), of a community field of membership application, the board shall hold a public hearing to consider the application. Such hearing shall be set by the board within six months after receipt of an application from a group that is subject to the requirements of this section; except that the board may postpone such hearing for valid reasons and good cause.

(3) (a) The board shall give notice of a hearing on a community field of membership application at least thirty days before the hearing date to the principal office of each credit union, savings and loan association, or bank within the neighborhood, community, or rural district sought to be served by the proposed community credit union and to other persons or credit unions, savings and loan associations, or banks that the board may designate.

(b) Such notice must be in the form prescribed by the board and must include the names of the incorporators, the name and location of the proposed community credit union, the date, time, and place of the hearing, and a statement that the application and proposed or amended articles of incorporation and proposed bylaws are available for inspection in the office of the board. The board shall also cause such notice to be published at least once, not less than twenty days prior to the hearing date, in a newspaper of general circulation within the neighborhood, community, or rural district in which the proposed credit union is to be located.

(c) Notwithstanding any other provisions in this section to the contrary, if the board has given the required notice of a hearing and as of the tenth day prior to the hearing has received no written protest against such application, the board may grant such community field of membership without a hearing if the applicants are known to the board.

(4) On hearing, the board may admit into evidence the application and any other relevant information in the files of the division. The applicant and all others who receive notice by registered or certified mail pursuant to subsection (3) of this section shall be entitled to be heard and to introduce testimony at such hearing. The board may entertain such evidence or testimony from others as the board determines, in its sole discretion, to be necessary.

(5) Within ninety days after a hearing, the board shall issue a written order granting a community field of membership if the board finds:

(a) That the application, articles of incorporation, and bylaws conform to the provisions of this article and any rules promulgated by the board;

(b) That the credit union would benefit its members or proposed members, consistent with the purposes of this article 30; that the general character and fitness of the incorporators is appropriate; and that it is advisable from an economic standpoint to establish the proposed credit union; and

(c) That the neighborhood, community, or rural district is politically, geographically, socially, or economically well defined.

(d) Repealed.

(6) A credit union seeking to establish a community field of membership as part of a conversion from a federal to a state charter is subject to the notice and hearing requirements of this section.

Source: L. 93: Entire section added, p. 1443, § 2, effective June 6. L. 2004: (1), (2), (3), IP(5), and (6) amended, p. 129, § 1, effective July 1. L. 2013: (3) amended, (SB 13-154), ch. 282, p. 1471, § 28, effective July 1. L. 2024: (3)(a), IP(5), (5)(b), and (5)(c) amended and (5)(d) repealed, (HB 24-1381), ch. 350, p. 2363, § 6, effective August 7.

ANNOTATION

Expert testimony provided substantial evidence to support the board's finding that the south metro Denver area constituted a well-defined community for the purposes of subsection (5)(c). Colonial Bank v. Colo. Fin. Servs. Bd., 961 P.2d 579 (Colo. App. 1998).