A credit union is a member-owned financial institution organized to encourage savings and to provide loans with competitively low interest rates to members. In Pennsylvania, as elsewhere, credit unions have evolved into sophisticated financial institutions offering a variety of services to members. Pennsylvania law requires credit unions to incorporate according to specific rules, gives credit unions certain powers, and requires them to make annual reports to the Banking Department and to submit to examination every year (PA Stat. Tit. 15 Sec. 12301). State-chartered credit unions are exempt from sales taxes and hotel occupancy taxes.
Because of the complexity of the laws on credit unions, an organization seeking to set one up needs expert assistance. Serious consideration should be given to joining an existing credit union before deciding to start a new one.