AGO 92-9.
Case Date | October 09, 1992 |
Court | Colorado |
Colorado Attorney General Opinions
1992.
AGO 92-9.
October 9, 1992Department of Law
Attorney General Opinion FORMAL OPINION
of GALE A. NORTON
Attorney General Opinion No. 92-9
AG Alpha No. RG BA AGATP
Steven V. Berson
Executive Director
Department of Regulatory Agencies
1560 Broadway, Suite 1550
Denver, Colorado 80202
RE: Scope of statutory
authority of the Commissioner of the Division of Financial Services to grant a
state credit union charter for communities with populations which exceed
twenty-five thousandDear Mr. Berson:
This responds to your September 18, 1992 letter requesting an
interpretation of section 11-30-103(2), C.R.S. (1992). Financial Services
Commissioner David Paul (hereinafter "Commissioner Paul") has conditionally
approved an application by Lowry Federal Credit Union (hereinafter "Lowry") to
convert from a federally-chartered to a state-chartered credit union with a
field of membership consisting of its current membership and the City of
Aurora, Colorado, with some exclusions.**BFN** The population of the City of
Aurora is 222,000, according to 1990 Census information. **EFN** You have
inquired whether section 11-30-103(2) permits such a state charter to be
issued. This opinion reflects an analysis of the statutory and other legal
questions you have raised. As we discuss below, setting aside public policy and
business concerns, this opinion relies on relevant statutory language, case law
and legislative history. Our opinion was not based on, nor does it take a
position concerning, the desirability of community based credit unions at issue
here.
QUESTIONS PRESENTED AND CONCLUSIONS
Your request for an Attorney General's opinion presents the
following questions:
Do the provisions of section 11-30-103(2), C.R.S. (1992) permit a
credit union to be granted a state charter if the field of membership is the
residents of the City of Aurora, Colorado, with the specific exclusions ordered
by Commissioner Paul?
No.
If section 11-30-103(2), C.R.S. (1992) permits a credit union
with the field of membership as approved by Commissioner Paul, does the Banking
Board have jurisdiction pursuant to state law to seek injunctive relief against
Lowry to prohibit it from operating as a bank without a charter?
This question is conditioned upon an affirmative answer to
Question No. 1. Since this opinion has answered Question No. 1 in the negative,
a response to this question is unnecessary.
ANALYSIS
Section 11-30-103(2), C.R.S. (1992), provides, in pertinent part:
(2) Credit union organization and membership, other than those of
a central credit union, shall be limited to groups having a common bond of
employment or association or groups which reside within a well-defined
neighborhood, community, or rural district having a population of no more than
twenty-five thousand or as otherwise authorized by the commissioner....
The language of section 11-30-103(2) describes two types of
groups which qualify for credit union membership: (1) groups having a common
bond of employment and association; or (2) groups which reside within a
well-defined neighborhood, community or rural district having a population of
no more than 25,000 or as otherwise authorized by the commissioner.
A well-established canon of statutory construction is that a
statute is passed as a whole, not in parts or sections, and is guided by a
general purpose and intent. Each part or section should be construed in
connection with every other part or section to produce a harmonious whole.
See Peoples Bank v. Banking Board, 436 P.2d 681 (Colo.
1968); Bynum v. Kautzky, 784 P.2d 735 (Colo. 1988).
The inquiry in this matter must focus on the meaning of the words
"... having a population of twenty-five thousand or as otherwise authorized by
the commissioner." It is clear that section 11-30-103(2) gives the Financial
Services Commissioner discretion to approve a field of membership for a
geographic community which exceeds 25,000 in population. The next question is
whether the commissioner's authority is unlimited.
If the phrase "or as otherwise authorized by the commissioner" is
interpreted to give the commissioner authority to approve neighborhoods,
communities and rural districts of any population size whatsoever for credit
union membership, then the preceding phrase, "having a population of no more
than twenty-five thousand," is superfluous and meaningless. A statute should be
construed so that effect is given to all its provisions...
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