§ 26–502.02. Certificate of charter.

(a) The following procedures shall apply upon the filing of a complete charter application pursuant to § 26-502.01:

(1) The Commissioner shall prepare a periodic bulletin listing all pending charter applications. The bulletin shall be published in the District of Columbia Register and be available from the Commissioner.

(2) The Commissioner shall accept public comment on the application prior to deciding whether to grant final approval of the application, according to procedures established by the Commissioner by rule. Public comments shall be accepted for 30 days from the date of publication of notice of the application by the Commissioner pursuant to paragraph (1) of this subsection. Any result from the public comment period held under this section may not extend the approval or disapproval time frame as required in paragraph (3) of this subsection.

(3)(A) The Commissioner shall, pursuant to subsection (b) of this section, approve or disapprove the charter application, and provide the reasons for approving or disapproving the application, within 90 days after receipt of the application. The Commissioner may extend this 90-day period for up to an additional 60 days.

(B) No application required by this section shall be complete unless it is accompanied by an application fee in an amount to be established by the Commissioner and made payable to the District Treasurer.

(C) No credit union shall commence operation until the organizers have submitted evidence that the required insurance has been acquired.

(b)(1) A charter application may be approved, and a certificate of charter may be issued, if the charter application, the charter statement, and bylaws conform to this subchapter and the Commissioner determines that:

(A) The characteristics of the field of membership set forth in the proposed bylaws are favorable to the economic viability of the proposed District credit union;

(B) The reputation and character of the initial board of directors and supervisory committee provide assurance that the District credit union's affairs will be properly administered;

(D) The District credit union has obtained share insurance.

(2) The Commissioner may disapprove the charter application and not issue a certificate of charter for a new District credit union if the Commissioner finds that:

(A) There are no grounds for the likelihood of economic success for the District credit union;

(B) The leadership of the proposed District credit union is not qualified; or

(c) If a certificate of charter is issued, the Commissioner shall return a copy of the bylaws and one of the duplicate originals of the certificate of charter of the District credit union to the organizers of the District credit union or their representatives. The original charter statement and bylaws shall be preserved in the permanent files of the District credit union.

(d) If a certificate of charter is denied, the Commissioner shall notify the organizers of the District credit union and set forth the reasons for the denial. The District credit union organizers may appeal the Commissioner's decision to the District of Columbia Court of Appeals in accordance with § 2-510.

(e) The filing of an appeal under this section shall not stay the effect of the denial or any other action of the Commissioner to the appealing party, unless the District of Columbia Court of Appeals determines, after giving the appealing party notice and an opportunity to be heard, that failure to grant a stay would be detrimental to the interests of policyholders, shareholders, creditors, or the public.

(f) The organizers may not transact any District credit union business until a certificate of charter has been issued and received.