ARTICLE 2. General [14050. - 14053.]

Cal. Financial Code - FIN 2.

in effect

Cal. Financial Code - FIN § 14050. Section 14050.

The use by any person, other than those authorized by this division, of any name or title which contains the phrase “credit union,” is a misdemeanor. Nonprofit associations, which are formed for the mutual benefit and protection of credit unions, by credit unions organized under this division, or under the provisions of the statutes of the United States applicable to credit unions or any nonprofit association formed for the mutual benefit and protection of credit union employees by bona fide employees of credit unions, may use the phrase “credit union” in the name or title designating any such association.

Cal. Financial Code - FIN § 14051. Section 14051.

Any person who willfully and knowingly makes, circulates, or transmits to another or others any statement or rumor, written, printed or by word of mouth, which is untrue in facts and is directly or by inference derogatory to the financial condition or affects the solvency or financial standing of any credit union doing business in this state, or who knowingly counsels, aids, procures, or induces another to start, transmit, or circulate any such statement or rumor, is guilty of a misdemeanor and shall be punished by a fine of not more than one thousand dollars ($1,000) or by imprisonment for not more than one year, or both.

Cal. Financial Code - FIN § 14052. Section 14052.

In addition to the powers enumerated in this division, every credit union has the general powers conferred upon corporations by the Nonprofit Mutual Benefit Corporation Law of this state unless restricted by this division.

Cal. Financial Code - FIN § 14053. Section 14053.

(a) For purposes of this section, the following definitions apply: (1) “Fee” means a nonsufficient funds fee or an overdraft fee. (2) “Nonsufficient funds fee” means a fee resulting from the initiation of a transaction that exceeds the member’s available account balance if the member’s credit union declines to make the payment. (3) “Overdraft fee” means a fee resulting from the processing of a transaction that exceeds a member’s available account balance. (b) (1) A credit union shall provide a notice to a member each time the credit union assesses a fee that meets all of the following requirements: (A) The notice shall be provided to the member using a communication method designated by the member for receiving this type of notice. (B) The notice shall be provided on the same business day the transaction that resulted in the fee occurred, unless it is not feasible to provide the notice that day, in which case the notice shall be provided on the next business day. (C) The notice shall contain all of the following: (i) The date of the transaction. (ii) The type of transaction. (iii) Whether the transaction was declined or processed. (iv) If applicable, the amount of the overdraft that results from the transaction. (v) If applicable, the amount necessary to return the account to a positive balance. (vi) If applicable, the consequences of not returning the account to a positive balance within a certain timeframe. (vii) If applicable, the amount of time the member has to return the account to a positive balance to avoid the consequences described in clause (vi). (2) If the account has more than one accountholder, provision of the notice described in paragraph (1) to any accountholder shall be sufficient. (c) Beginning January 1, 2026, a credit union shall not charge a fee exceeding fourteen dollars ($14) or the amount set by the federal Consumer Financial Protection Bureau for the fee, whichever is lower.

Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026