Development Credit Corporation Act

This act authorizes the chartering of development credit corporations — corporations formed to extend credit and financing in support of business development — and sets out how one is created, requiring the state financial-institutions regulator to review the applicants' character and general fitness before a certificate of incorporation issues and corporate existence begins. It governs the corporation's internal affairs, including amendment of the articles by stockholder and member vote, annual and special meetings, management by a board of directors, and the admission of financial institutions as members, with membership a precondition to acquiring the corporation's capital stock; such corporations otherwise carry the general powers of business corporations under state corporation law except where this act provides otherwise. It also imposes ongoing financial and supervisory controls, including a mandatory earned-surplus reserve funded from annual net earnings until it matches outstanding capital and paid-in surplus, board designation of depositaries for corporate funds, and continuing examination by the regulator at the corporation's expense.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.