§ 14656 Credit Union Note Purchases

Financial Code·California

AI SummaryVerified

This law lets one credit union buy member loans from a credit union that is being shut down, as long as both boards agree and the purchase follows state rules.

Key Takeaways

•A credit union can purchase member notes from a liquidating credit union.
•The purchase must follow rules set by the commissioner.
•Both boards must agree on price and terms.

Example

A credit union wants to acquire the outstanding loans of members from a credit union that is closing its doors.

The buying credit union negotiates a price and terms with the closing credit union's board or liquidating agent, then purchases the loans, following the commissioner's rules.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 14656 Credit Union Note Purchases

A credit union may, in accordance with rules and regulations prescribed by the commissioner, purchase from any liquidating credit union notes made by individual members of such liquidating credit union, at such prices and under such terms as may be agreed upon by the board of directors of the purchasing credit union and the board of directors, or liquidating agent, of the liquidating credit union. (Added by Stats. 1979, Ch. 112.)

Last verified: January 11, 2026

Key Terms

credit union liquidating credit union notes commissioner board of directors liquidating agent

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 14656.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References