§ 28-7-1-29 — Conversion from federal to state charter; conversion from state to federal charter; procedures and requirements

Indiana § 28-7-1-29

• Jurisdiction: Indiana
• Art. 7: SPECIALIZED FINANCIAL INSTITUTIONS
• Ch. 1: Credit Unions

Text

Any credit union organized or reorganized
under the laws of Indiana or the United States may convert from a state
charter to a federal charter or from a federal charter to a state charter
as follows:
(1) A federally chartered credit union may apply for a state
charter by observing the following procedures:
(A) The board of directors shall pass a resolution that the
federal charter be canceled when and if a state charter is
applied for and issued to the credit union by the department of
financial institutions.
(B) Written notice of the resolution shall be sent to each
member at least thirty (30) days prior to the meeting in which
the resolution is to be submitted to the members.
(C) An affirmative majority vote of the members present at the
meeting shall be required to effect the conversion from federal
to state charter, provided a quorum is present at the meeting.
(D) Certified copies of the minutes of the proceedings of the
meeting of the members shall be filed with both the National
Credit Union Administration and the department.
(E) Not later than seventy-five (75) days after receiving the
certified copies of the minutes, an examination of the financial
condition of the credit union shall be made by the department.
The cost of the examination shall be paid by the credit union.
(F) Within thirty (30) days after the completion of the
examination, the department shall report to the credit union the
results of its examination and supply the National Credit Union
Administration with a copy of the examination report.
(G) If it receives a satisfactory report of the examination, the
credit union must within thirty (30) days file its amended
articles of incorporation and amended bylaws pursuant to this
chapter with the secretary of state, and copies of the amended
articles and amended bylaws must be directed to the department
and the National Credit Union Administration.
(H) Officers, directors, and committee members shall retain
their respective offices for the unexpired terms existing prior to
the conversion, subject to the provisions of this chapter.
(I) The newly chartered credit union shall have all of the rights
and privileges in and to all of the assets of the prior existing
credit union and shall assume and be responsible for all of the
obligations imposed while operating under the federal charter.
(2) A state chartered credit union may be converted into a
federally chartered credit union by complying with the following
requirements:
(A) The board must adopt and approve by a majority of the
directors a resolution of conversion. The proposition for such
conversion shall first be approved by a majority of the directors
of the state credit union.
(B) The board must notify the membership either in person or
by mail of the membership meeting at which the resolution of
conversion will be acted upon. The notice must be mailed not
more than thirty (30) and not less than seven (7) days before the
meeting.
(C) The resolution must be approved by a majority of those
voting, either in person or by absentee ballot, at the
membership meeting called by the board.
(D) The results of the vote, verified by the affidavits of the
chairperson or vice chairperson and the secretary, shall be filed
with the department within ten (10) days after the vote is taken.
(E) If the proposition for conversion is approved, the credit
union shall within ninety (90) days take the action necessary to
make it a federal credit union. Within ten (10) days after receipt
of the federal charter, the credit union shall file with the
department a copy of the charter. Upon such filing, and after the
credit union has notified the office of the secretary of state that
the conversion is concluded, the credit union shall cease to be
a state credit union.
Formerly: Acts 1961, c.182, s.29. As amended by P.L.263-1985,
SEC.180; P.L.14-1992, SEC.129; P.L.263-1995, SEC.26;
P.L.186-2015, SEC.40.