Legislation

Search OpenLegislation Statutes
This entry was published on 2014-09-22
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
SECTION 486
Conversion of a federal credit union into a state credit union
Banking (BNK) CHAPTER 2, ARTICLE 11
§ 486. Conversion of a federal credit union into a state credit union.
Any federal credit union having its place of business in this state may
convert itself into a state credit union. A meeting of the shareholders
shall be held upon not less than ten days' written notice to each
shareholder, either served personally or mailed to him or her at his or
her last known address and containing a statement of the time, place and
purpose of such meeting, provided that if the laws of the United States
prescribe a different period of time or manner of communicating notice
to each shareholder, then a meeting of the shareholders shall be held in
conformity with such laws. Proof by affidavit of due service of such
notice shall be filed in the office of the credit union before or at the
time of such meeting.

At such meeting, a majority of the shareholders represented at the
meeting may, by an affirmative vote, in person or by proxy, authorize
the conversion of such federal credit union into a state-chartered
credit union, provided that in the event the laws of the United States
require a different affirmative vote, such vote shall apply in lieu of
the affirmative vote required hereby. A copy of the minutes of such
meeting, certified by the presiding officer and by the secretary of the
meeting, shall be filed in the office of the superintendent within
thirty days after the date of such meeting.

There shall be filed with such copy of the minutes the organization
certificate required by section four hundred fifty of this article,
executed by a majority of the directors, and proposed bylaws as required
by section four hundred fifty-one of this article. The federal credit
union shall also submit a written plan of conversion to the
superintendent, together with an investigation fee as described pursuant
to section eighteen-a of this chapter.

Within sixty days after such filing, or such later date as the
superintendent in his discretion may determine, the federal credit union
shall take the action prescribed or authorized by the laws of the United
States to effect such conversion and there shall thereupon be filed in
the office of the superintendent a copy of any consent or authorization
required of such federal credit union pursuant to the laws of the United
States and the state to effect such conversion.

When the superintendent shall have approved the organization
certificate and the proposed bylaws and shall have issued the
authorization certificate, as provided in article two of this chapter,
the credit union shall cease to be a federal credit union and shall
thereupon be converted into a state credit union, but such federal
credit union shall be deemed to be continued for the purpose of
prosecuting or defending suits and of enabling it to wind up its affairs
as a federal credit union and to dispose of and convey its property.

At the time when such conversion becomes effective, all the property
of the federal credit union shall immediately by act of law and without
any conveyance or transfer become the property of the state-chartered
credit union and the state-chartered credit union shall succeed to all
the rights, obligations and relations of the federal credit union.