Current as of: 2010
(a) Any credit union organized under the laws of any other state or of the United States may convert to a State credit union as provided in this section.
(b) A credit union proposing to convert shall meet:
(1) All of the requirements of this title for the incorporation of a credit union in this State; and
(2) All of the requirements of the Commissioner, including any specific conditions that a credit union must meet in order to convert.
(c) A majority of the board of a credit union proposing to convert shall:
(1) Adopt a resolution that declares that the conversion is advisable; and
(2) Set a date for a vote on the proposed conversion by the members at an annual or special meeting of the members or by mail ballot to be filed on or before that date.
(d) The Commissioner, at the request of the board, may:
(1) Waive the vote of the members; and
(2) Substitute any reasonable method of determining the approval by the members.
(e) Unless the Commissioner takes action under subsection (d) of this section, written notice of the proposed conversion and of the date set for the vote shall be delivered in person to each member or mailed to each member at the member’s address as recorded by the credit union, not more than 30 days nor less than 7 days before the date set for the vote.
(f) (1) Unless the Commissioner takes action under subsection (d) of this section, the proposed conversion shall be approved by the affirmative vote of a majority of the members who vote on the proposal.
(2) Within 10 days after the vote, a statement of the results of the vote shall be filed with the Commissioner. The statement shall be verified by the chairman or vice chairman of the board and the secretary of the credit union.
(g) (1) A credit union may convert to a State credit union if:
(i) The converted credit union:
1. Meets the common bond requirements of the proposed field of membership type; and
2. Files with the Commissioner an application and any other documents that the Commissioner deems necessary to make a determination; and
(ii) The Commissioner determines that the conversion:
1. Is in the best interest of the existing and proposed membership;
2. Will likely result in better service to the existing membership;
3. Is in accordance with sound credit union practices; and
4. Does not expose the funds of the existing members to unnecessary risk.
(2) Unless the Commissioner notifies the credit union that a different time period is necessary, within 120 days after the application is filed, the Commissioner shall notify the credit union of the determination on the application.
(h) When the conversion is complete, the successor credit union owns all of the assets and is responsible for all the obligations of the credit union as though the conversion had not taken place.Prev
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Federal Regulations: Financial Services