CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 743Introduced by Assembly Member Michelle RodriguezFebruary 18, 2025 An act to amend Section 14950 of the Financial Code, relating to financial institutions. LEGISLATIVE COUNSEL'S DIGESTAB 743, as introduced, Michelle Rodriguez. Credit unions. The California Credit Union Law provides for the regulation of credit unions within the state by the Commissioner of Financial Protection and Innovation. Existing law authorizes a credit union to enter into obligations with its members upon the approval of the credit committee or the credit manager, subject to the terms and conditions established by the board of directors, but prohibits a credit union from accepting notes receivable from nonmembers as consideration for the sale of assets owned by the credit union, except as specified. This bill would make a nonsubstantive change to that provision.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 14950 of the Financial Code is amended to read:14950. (a) Every credit union may enter into obligations with its members upon the approval of the credit committee or, in the alternative, the credit manager, subject to the terms and conditions established by the board of directors pursuant to Section 15100.(b) (1) The board of directors of a credit union shall adopt a policy governing the acceptance by the credit union of notes receivable from nonmembers as consideration for the sale of assets owned by the credit union through bona fide transactions.(2) No credit union may A credit union shall not accept notes receivable from nonmembers as consideration for the sale of assets owned by the credit union except in accordance with a policy adopted by the board of directors pursuant to paragraph (1).(3) Transactions subject to this subdivision shall not be deemed to be loans to nonmembers for purposes of Section 14750.(c) Notwithstanding subdivision (a), a credit union may permit a nonmember to participate in an obligation or extension of credit to a member as a joint applicant, co-obligor, coborrower, surety, or guarantor. An obligation or extension of credit made pursuant to this subdivision shall not be deemed a violation of subdivision (b) of Section 14800. Except as otherwise permitted by statute or regulation, the credit union shall not extend any other benefit or service of the credit union to the nonmember solely as a result of participation as a joint applicant, co-obligor, coborrower, surety, or guarantor unless the nonmember is thereafter admitted to membership.
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 743Introduced by Assembly Member Michelle RodriguezFebruary 18, 2025 An act to amend Section 14950 of the Financial Code, relating to financial institutions. LEGISLATIVE COUNSEL'S DIGESTAB 743, as introduced, Michelle Rodriguez. Credit unions. The California Credit Union Law provides for the regulation of credit unions within the state by the Commissioner of Financial Protection and Innovation. Existing law authorizes a credit union to enter into obligations with its members upon the approval of the credit committee or the credit manager, subject to the terms and conditions established by the board of directors, but prohibits a credit union from accepting notes receivable from nonmembers as consideration for the sale of assets owned by the credit union, except as specified. This bill would make a nonsubstantive change to that provision.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Assembly Bill
No. 743
Introduced by Assembly Member Michelle RodriguezFebruary 18, 2025
Introduced by Assembly Member Michelle Rodriguez
February 18, 2025
An act to amend Section 14950 of the Financial Code, relating to financial institutions.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 743, as introduced, Michelle Rodriguez. Credit unions.
The California Credit Union Law provides for the regulation of credit unions within the state by the Commissioner of Financial Protection and Innovation. Existing law authorizes a credit union to enter into obligations with its members upon the approval of the credit committee or the credit manager, subject to the terms and conditions established by the board of directors, but prohibits a credit union from accepting notes receivable from nonmembers as consideration for the sale of assets owned by the credit union, except as specified. This bill would make a nonsubstantive change to that provision.
The California Credit Union Law provides for the regulation of credit unions within the state by the Commissioner of Financial Protection and Innovation. Existing law authorizes a credit union to enter into obligations with its members upon the approval of the credit committee or the credit manager, subject to the terms and conditions established by the board of directors, but prohibits a credit union from accepting notes receivable from nonmembers as consideration for the sale of assets owned by the credit union, except as specified.
This bill would make a nonsubstantive change to that provision.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 14950 of the Financial Code is amended to read:14950. (a) Every credit union may enter into obligations with its members upon the approval of the credit committee or, in the alternative, the credit manager, subject to the terms and conditions established by the board of directors pursuant to Section 15100.(b) (1) The board of directors of a credit union shall adopt a policy governing the acceptance by the credit union of notes receivable from nonmembers as consideration for the sale of assets owned by the credit union through bona fide transactions.(2) No credit union may A credit union shall not accept notes receivable from nonmembers as consideration for the sale of assets owned by the credit union except in accordance with a policy adopted by the board of directors pursuant to paragraph (1).(3) Transactions subject to this subdivision shall not be deemed to be loans to nonmembers for purposes of Section 14750.(c) Notwithstanding subdivision (a), a credit union may permit a nonmember to participate in an obligation or extension of credit to a member as a joint applicant, co-obligor, coborrower, surety, or guarantor. An obligation or extension of credit made pursuant to this subdivision shall not be deemed a violation of subdivision (b) of Section 14800. Except as otherwise permitted by statute or regulation, the credit union shall not extend any other benefit or service of the credit union to the nonmember solely as a result of participation as a joint applicant, co-obligor, coborrower, surety, or guarantor unless the nonmember is thereafter admitted to membership.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 14950 of the Financial Code is amended to read:14950. (a) Every credit union may enter into obligations with its members upon the approval of the credit committee or, in the alternative, the credit manager, subject to the terms and conditions established by the board of directors pursuant to Section 15100.(b) (1) The board of directors of a credit union shall adopt a policy governing the acceptance by the credit union of notes receivable from nonmembers as consideration for the sale of assets owned by the credit union through bona fide transactions.(2) No credit union may A credit union shall not accept notes receivable from nonmembers as consideration for the sale of assets owned by the credit union except in accordance with a policy adopted by the board of directors pursuant to paragraph (1).(3) Transactions subject to this subdivision shall not be deemed to be loans to nonmembers for purposes of Section 14750.(c) Notwithstanding subdivision (a), a credit union may permit a nonmember to participate in an obligation or extension of credit to a member as a joint applicant, co-obligor, coborrower, surety, or guarantor. An obligation or extension of credit made pursuant to this subdivision shall not be deemed a violation of subdivision (b) of Section 14800. Except as otherwise permitted by statute or regulation, the credit union shall not extend any other benefit or service of the credit union to the nonmember solely as a result of participation as a joint applicant, co-obligor, coborrower, surety, or guarantor unless the nonmember is thereafter admitted to membership.
SECTION 1. Section 14950 of the Financial Code is amended to read:
### SECTION 1.
14950. (a) Every credit union may enter into obligations with its members upon the approval of the credit committee or, in the alternative, the credit manager, subject to the terms and conditions established by the board of directors pursuant to Section 15100.(b) (1) The board of directors of a credit union shall adopt a policy governing the acceptance by the credit union of notes receivable from nonmembers as consideration for the sale of assets owned by the credit union through bona fide transactions.(2) No credit union may A credit union shall not accept notes receivable from nonmembers as consideration for the sale of assets owned by the credit union except in accordance with a policy adopted by the board of directors pursuant to paragraph (1).(3) Transactions subject to this subdivision shall not be deemed to be loans to nonmembers for purposes of Section 14750.(c) Notwithstanding subdivision (a), a credit union may permit a nonmember to participate in an obligation or extension of credit to a member as a joint applicant, co-obligor, coborrower, surety, or guarantor. An obligation or extension of credit made pursuant to this subdivision shall not be deemed a violation of subdivision (b) of Section 14800. Except as otherwise permitted by statute or regulation, the credit union shall not extend any other benefit or service of the credit union to the nonmember solely as a result of participation as a joint applicant, co-obligor, coborrower, surety, or guarantor unless the nonmember is thereafter admitted to membership.
14950. (a) Every credit union may enter into obligations with its members upon the approval of the credit committee or, in the alternative, the credit manager, subject to the terms and conditions established by the board of directors pursuant to Section 15100.(b) (1) The board of directors of a credit union shall adopt a policy governing the acceptance by the credit union of notes receivable from nonmembers as consideration for the sale of assets owned by the credit union through bona fide transactions.(2) No credit union may A credit union shall not accept notes receivable from nonmembers as consideration for the sale of assets owned by the credit union except in accordance with a policy adopted by the board of directors pursuant to paragraph (1).(3) Transactions subject to this subdivision shall not be deemed to be loans to nonmembers for purposes of Section 14750.(c) Notwithstanding subdivision (a), a credit union may permit a nonmember to participate in an obligation or extension of credit to a member as a joint applicant, co-obligor, coborrower, surety, or guarantor. An obligation or extension of credit made pursuant to this subdivision shall not be deemed a violation of subdivision (b) of Section 14800. Except as otherwise permitted by statute or regulation, the credit union shall not extend any other benefit or service of the credit union to the nonmember solely as a result of participation as a joint applicant, co-obligor, coborrower, surety, or guarantor unless the nonmember is thereafter admitted to membership.
14950. (a) Every credit union may enter into obligations with its members upon the approval of the credit committee or, in the alternative, the credit manager, subject to the terms and conditions established by the board of directors pursuant to Section 15100.(b) (1) The board of directors of a credit union shall adopt a policy governing the acceptance by the credit union of notes receivable from nonmembers as consideration for the sale of assets owned by the credit union through bona fide transactions.(2) No credit union may A credit union shall not accept notes receivable from nonmembers as consideration for the sale of assets owned by the credit union except in accordance with a policy adopted by the board of directors pursuant to paragraph (1).(3) Transactions subject to this subdivision shall not be deemed to be loans to nonmembers for purposes of Section 14750.(c) Notwithstanding subdivision (a), a credit union may permit a nonmember to participate in an obligation or extension of credit to a member as a joint applicant, co-obligor, coborrower, surety, or guarantor. An obligation or extension of credit made pursuant to this subdivision shall not be deemed a violation of subdivision (b) of Section 14800. Except as otherwise permitted by statute or regulation, the credit union shall not extend any other benefit or service of the credit union to the nonmember solely as a result of participation as a joint applicant, co-obligor, coborrower, surety, or guarantor unless the nonmember is thereafter admitted to membership.
14950. (a) Every credit union may enter into obligations with its members upon the approval of the credit committee or, in the alternative, the credit manager, subject to the terms and conditions established by the board of directors pursuant to Section 15100.
(b) (1) The board of directors of a credit union shall adopt a policy governing the acceptance by the credit union of notes receivable from nonmembers as consideration for the sale of assets owned by the credit union through bona fide transactions.
(2) No credit union may A credit union shall not accept notes receivable from nonmembers as consideration for the sale of assets owned by the credit union except in accordance with a policy adopted by the board of directors pursuant to paragraph (1).
(3) Transactions subject to this subdivision shall not be deemed to be loans to nonmembers for purposes of Section 14750.
(c) Notwithstanding subdivision (a), a credit union may permit a nonmember to participate in an obligation or extension of credit to a member as a joint applicant, co-obligor, coborrower, surety, or guarantor. An obligation or extension of credit made pursuant to this subdivision shall not be deemed a violation of subdivision (b) of Section 14800. Except as otherwise permitted by statute or regulation, the credit union shall not extend any other benefit or service of the credit union to the nonmember solely as a result of participation as a joint applicant, co-obligor, coborrower, surety, or guarantor unless the nonmember is thereafter admitted to membership.