7.

Credit Unions and Small Loans

HEARINGS

BEFORE THE

COMMITTEE ON THE DISTRICT OF COLUMBIA

UNITED STATES SENATE

SEVENTY-FIRST CONGRESS

THIRD SESSION

ON

S. 4775

A BILL TO PROVIDE FOR THE
INCORPORATION OF CREDIT UNIONS IN THE
DISTRICT OF COLUMBIA, AND

S. 5629

A BILL TO PROVIDE FOR THE REGULATION
OF THE BUSINESS OF MAKING LOANS OF $300 OR
LESS IN THE DISTRICT OF COLUMBIA
AND FOR OTHER PURPOSES

JANUARY 23, 1931

Printed for the use of the Committee on the District of Columbia

THE LIBRARY OF THE
FEB 10 1931

UNIVERSITY OF LINQIS.

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1931

CREDIT UNIONS

FRIDAY, JANUARY 23, 1931

UNITED STATES SENATE,

COMMITTEE ON THE DISTRICT OF COLUMBIA,

Washington, D. C. The committee met, pursuant to call, at 2.30 o'clock p. m. in the committee room, Capitol Building, Senator Arthur Capper, chairman, presiding.

Present: Senators Capper (chairman), Kean, and Carey.

The committee had under consideration S. 4775, which is here printed in full as follows:

[S. 4775, Seventy-first Congress, second session]

A BILL To provide for the incorporation of credit unions within the District of Columbia

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SHORT TITLE

SECTION 1. This act may be cited as the "District of Columbia credit union

act."

DEFINITION

SEC. 2. A credit union is hereby defined to be a cooperative society organized for the purpose of promoting thrift among its members and creating a source of credit for them for provident purposes.

ORGANIZATION CERTIFICATE

SEC 3. Any seven or more persons, who are actual residents of, or do business or are employed within, the District of Columbia, and who desire to form a credit union, shall subscribe before some officer in the District competent to take the acknowledgment of deeds, an organization certificate which shall specifically state

First. The name of the corporation, which shall include the words "credit union and "District of Columbia."

Second. The names and addresses of the subscribers to the certificate and the number of shares subscribed by each.

Third. The par value of the shares of the credit union, which shall not exceed $10 each.

Fourth. The proposed field of membership, specified in such detail as the Commissioners of the District of Columbia may require.

Fifth. The term of the credit union's existence, which may be perpetual.

POWER OF COMMISSIONERS OF THE DISTRICT

SEC. 4. The organization certificate shall be presented to the Commissioners of the District of Columbia, who are hereby authorized to approve the certificate if in the opinion of the commissioners (1) the certificate conforms to