N.J. Admin. Code § 3:21-2.1

Current through Register Vol. 56, No. 23, December 2, 2024

Section 3:21-2.1 - Credit union parity with Federally chartered credit unions

(a) In addition to other authority granted by law and unless contrary to State law, a credit union may exercise any power, right, benefit, or privilege that is now, or hereafter, authorized for Federal credit unions to the same extent as Federal credit unions pursuant to Federal law or rules and regulations of the National Credit Union Administration. A credit union, in exercising those powers, rights, benefits, or privileges shall do so in accordance with the terms, conditions, and requirements established for Federal credit unions. Such powers, rights, benefits, or privileges shall be automatically exercisable upon the expiration of 30 days from the date of adoption of the enabling regulation by the Federal regulatory agency, except if the Commissioner of Banking and Insurance, within that time, provides notice that the power, right, benefit, or privilege shall not be granted to New Jersey credit unions. Such notice shall be posted on the Department's website at www.njdobi.org. The pertinent information included in such a notice shall also be provided to each credit union, and to the CrossState Credit Union Association. The Commissioner of Banking and Insurance may permit credit unions to begin the exercise of a power, right, benefit, or privilege prior to the expiration of the 30-day period by providing notice of permission through posting the notice on the Department's website at www.njdobi.org. The pertinent information included in such a notice shall also be provided to each credit union, and the CrossState Credit Union Association.

(b) "Power, right, benefit or privilege" shall not mean any activity that would fail to comply with or would violate:

1. The New Jersey Code of Criminal Justice, 2C:1-1 et seq., including, but not limited to, the criminal usury limits established at 2C:21-19 as applied to loan products;

2. New Jersey statutes and rules providing for the structure and corporate governance of credit unions, including, but not limited to, statutes and rules governing amendments of certificates of incorporation, adoptions of bylaws, rights of members, membership of boards of directors, applications where there is a supervisory concern, and requests for approvals or no objection opinions where there is a supervisory concern;

3. New Jersey statutes and rules providing the Department with supervisory powers over credit unions with regard to safety and soundness and other matters, including, but not limited to, the power to issue orders and apply for relief from a court of competent jurisdiction established at 17:13-115 et seq., and the power to require reports and examination by the Department pursuant to 17:13-112 et seq. and similar law;

4. The provisions of 17:16N-1 et seq. and any rules regarding Consumer Checking Accounts; and

5. The New Jersey Home Ownership Security Act of 2002, 46:10B-22 et seq.

N.J. Admin. Code § 3:21-2.1

Amended by R.1997 d.83, effective 2/18/1997.
See: 28 N.J.R. 5123(a), 29 N.J.R. 548(a).
Amended by R.2002 d.209, effective 7/1/2002.
See: 34 N.J.R. 816(a), 34 N.J.R. 2311(a).
Substituted "Credit Union Affiliates of New Jersey" for "New Jersey Credit Union League" in the 4th and 5th sentences.
Amended by R.2005 d.417, effective 12/5/2005.
See: 37 N.J.R. 2742(a), 37 N.J.R. 4531(a).
Added designation "(a)" and rewrote section; added (b).
Amended by R.2007 d.299, effective 10/1/2007.
See: 39 N.J.R. 1549(a), 39 N.J.R. 4112(a).
Section was "Credit union parity with Federally chartered credit unions". In (b)5, substituted "Home Ownership" for "Homeownership".

Amended by 54 N.J.R. 137(b), effective 1/18/2022