§ 14754 Credit Union Overdraft Fraud

This law says that a director, officer, or employee of a credit union who knowingly spends more money than they have in their own credit union account can be charged with a serious crime, unless the overdraft was pre‑approved under other rules.

Key Takeaways

•Only people who run or work for the credit union are covered.
•They must know they are overdrawing the account.
•If the overdraft wasn’t approved in advance under the other sections, it’s a felony.

Example

A credit union manager writes a check for $5,000 even though his account only has $1,000 and he never got permission for the extra $4,000.

Because he knowingly let his account go negative without an approved agreement, the law says he could be charged with a felony.

Any director, officer, or employee of a credit union who knowingly overdraws his or her account with that credit union, except for any overdraft pursuant to an agreement which is approved in advance as provided in Section 14603 and which is in conformity with Section 15050, is guilty of a felony. (Added by Stats. 1986, Ch. 673, Sec. 3.)

Key Takeaways

•Only people who run or work for the credit union are covered.
•They must know they are overdrawing the account.
•If the overdraft wasn’t approved in advance under the other sections, it’s a felony.

Example

A credit union manager writes a check for $5,000 even though his account only has $1,000 and he never got permission for the extra $4,000.

Because he knowingly let his account go negative without an approved agreement, the law says he could be charged with a felony.

Key Takeaways

Example

Key Terms

References

§ 14754 Credit Union Overdraft Fraud

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References