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HomeFinancial CodeDiv. 5Ch. 6Art. 1§ 14850 Credit Union Securities Exemption

§ 14850 Credit Union Securities Exemption

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

§ 14850 Credit Union Securities Exemption

This law says credit unions don't have to follow the usual rules for selling shares or certificates to their members.

Key Takeaways

  • •Credit unions can sell shares or certificates to members without extra state approval.
  • •They still have to follow other credit union rules.
  • •This makes it easier for credit unions to raise money from their members.

Example

A credit union wants to sell shares to its members to raise money.

They don't need to get special permission or file extra papers with the state like other companies might have to.

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

Official Source
View on CA.gov

§ 14850 Credit Union Securities Exemption

The Corporate Securities Law relating to the necessity of qualification of the sale of securities does not apply to the sale and issue of membership shares, certificates for funds, and other securities, by credit unions organized under this division or lawfully doing business in this state. No credit union lawfully doing business in this state shall be required to file a certificate for determination of preference with the office of the Secretary of State in connection with any share offering so long as it complies with all applicable provisions of this division and the rules of the commissioner. (Amended by Stats. 1980, Ch. 321, Sec. 12.)

Last verified: January 11, 2026

Key Terms

Corporate Securities Lawmembership sharescertificates for fundscredit unionscertificate for determination of preference

Related Statutes

  • § 14855 Credit Union Loan Certificates
  • § 14867 Credit Union Withdrawal Rules
  • § 14851 Credit Union Share Issuance
  • § 14852 Credit Union Share Transfer Fees
  • § 14853 Minor Credit Union Accounts

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 14850.
View Official Source