California Financial Code

§ 14803

FIN § 14803 Effective Jan 1, 1999Div. 5 · Ch. 5

Statute text

(a)No credit union shall pay any commission or compensation to any person for securing a new member or for getting an existing member to make an additional deposit.

(b)Notwithstanding subdivision (a), a credit union may, pursuant to an incentive policy approved by the board of directors, offer and pay a reasonable incentive or inducement to (1) a nonmember for becoming a member of the credit union, (2) an existing member for depositing additional funds, and (3) an employee or member who assists in getting a nonmember to become a new member of the credit union or who assists in getting an existing member to make an additional deposit.

(c)Nothing in subdivision (a) limits a credit union from using growth in the number of members in the credit union as part of its compensation program for its employees.

Legislative history

Amended by Stats. 1998, Ch. 539, Sec. 31. Effective January 1, 1999.