23 CAR § 304-102 – Organization

(a) Persons desiring to organize a credit union under the provisions of the Arkansas credit union act, Acts 1971, No. 132, as amended, hereinafter referred to in this part as "Arkansas credit union act", shall submit two (2) copies of the proposed articles of incorporation and bylaws to the State Credit Union Supervisor, together with a charter fee of twenty-five dollars ($25.00).
(b) The supervisor may conduct an investigation to determine whether the proposed credit union meets the objectives of the Arkansas credit union act, and in that investigation may consider the following:
1. (1) The number of potential members contained within the field of membership;
2. (2) The stability of employment or membership in the association comprising the common bond of membership;
3. (3) The economic characteristics of the proposed common bond;
4. (4) Whether payroll deductions will be available;
5. (5) The geographic boundaries of the proposed field of membership;
6. (6) Whether the proposed credit union, in the opinion of the supervisor, can qualify for insurance of share accounts through the National Credit Union Administration;
7. (7) Whether the proposed credit union, in the opinion of the supervisor taking into consideration subdivisions (b)(1) - (6) of this section, can return a profit by the end of its third year of existence; and
8. (8) Applicants for a central credit union charter, whether an application for a new charter or an application to change an existing credit union charter to a central charter, have the additional burden of demonstrating to the supervisor that the persons sought to be served by the proposed central credit union charter have no access to existing central credit union services.
(c) If, at the conclusion of his or her investigation, the supervisor denies the charter, he or she must so inform the organizers of the proposed credit union, stating the reasons for his or her denial and granting the organizers leave to request a hearing within a reasonable length of time to show cause why their application should not be denied.
(d) The articles of incorporation, if approved, shall be the charter of the credit union.
(e) The supervisor shall prepare and maintain standard forms of articles of incorporation and bylaws, specimen copies of which may be obtained from the Credit Union Division.
(f) Approval of a proposed credit union may be conditioned upon that credit union being granted insurance of members' share accounts through the National Credit Union Administration.