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HomeFinancial CodeDiv. 5Ch. 4Art. 8§ 14760 Credit Union Director Misdemeanors

§ 14760 Credit Union Director Misdemeanors

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 14760 Credit Union Director Misdemeanors

This law makes credit union directors criminals if they help commit fraud or break the rules on purpose.

Key Takeaways

  • •Directors can be charged if they commit fraud or willfully break legal duties.
  • •Fraud includes any dishonest act that makes the credit union appear insolvent.
  • •The law presumes insolvency is fraudulent unless the director can prove proper administration.

Example

A credit union director knowingly hides the true financial losses so the institution looks healthy, but later the hidden problems cause the credit union to collapse.

Because the director participated in the fraud that led to the credit union's collapse, he can be charged with a misdemeanor under this statute.

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

Official Source
View on CA.gov

§ 14760 Credit Union Director Misdemeanors

(a) Every director of a credit union is guilty of a misdemeanor who: (1) In case of the fraudulent insolvency of that credit union, has participated in the fraud; or (2) Willfully does any act in his or her capacity as director which is expressly forbidden by law or willfully omits to perform any duty imposed upon him or her as such a director by law. (b) The insolvency of a credit union is deemed fraudulent for the purposes of this section, unless its affairs appear upon investigation to have been administered lawfully and with the same care and diligence that agents receiving a compensation for their services are bound to observe. (Added by Stats. 1986, Ch. 673, Sec. 9.)

Last verified: January 11, 2026

Key Terms

directorcredit unionfraudulent insolvencymisdemeanorwillfully

Related Statutes

  • § 14762 Credit Union Director Loan Violations
  • § 14750 Credit Union Loan Violations
  • § 14751 Credit Union Officer Liability
  • § 14753 Credit Union Bribery Prohibition
  • § 14754 Credit Union Overdraft Fraud

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 14760.
View Official Source