§ 6-06-35 — Conversion from state to federal credit union and from federal to state credit union and from state credit union to a cooperative financial institution

North Dakota § 6-06-35

• Jurisdiction: North Dakota
• Title 6: Banks and Banking
• Ch. 6-06: Credit Unions

Text

union and from state credit union to a cooperative financial institution.
1. A state credit union may be converted into a federal credit union under the laws of the
United States by complying with the following requirements:
a. The proposition for such conversion must first be approved, and a date set for a
vote thereon by the members either at a meeting to be held on such date or by
written ballot to be filed on or before such date, by a majority of the directors of
the state credit union. Written notice of the proposition and of the date set for the
vote must then be delivered in person to each member or mailed to each member
at the address for such member appearing on the records of the credit union, not
more than thirty nor less than seven days prior to such date. Approval of the

proposition for conversion must be by the affirmative vote of two-thirds of the
members present at the meeting.
b. A statement of the results of the vote, verified by the affidavits of the president or
vice president and the secretary, must be filed with the state credit union board
within ten days after the vote is taken.
c. Promptly after the vote is taken and in no event later than ninety days thereafter,
if the proposition for conversion was approved by such vote, the credit union shall
take such action as may be necessary under the applicable federal law to make it
a federal credit union, and within ten days after receipt of the federal credit union
charter there must be filed with the state credit union board a copy of the charter
thus issued. Upon such filing, the credit union must cease to be a state credit
union.
d. Upon ceasing to be a state credit union, such credit union is no longer subject to
any of the provisions of the North Dakota credit union law. The successor federal
credit union is vested with all of the assets and shall continue to be responsible
for all of the obligations of the state credit union to the same extent as though the
conversion had not taken place.
2. a. A federal credit union, organized under the laws of the United States may be
converted into a state credit union by:
(1) Complying with all federal requirements requisite to enabling it to convert to
a state credit union or to cease being a federal credit union;
(2) Filing with the state credit union board proof of such compliance,
satisfactory to the commissioner;
(3) Filing with the commissioner an organization certificate and bylaws, both in
triplicate, as required by section 6-06-02; and
(4) Granting discretionary authority to the commissioner to conduct an
examination prior to the conversion date.
The commissioner shall set fees for such examination at an hourly rate sufficient
to cover all reasonable expenses of the department of financial institutions
associated with the examination. Fees must be collected by the commissioner,
transferred to the state treasurer, and deposited in the financial institutions
regulatory fund.
b. When the commissioner has been satisfied that all of such requirements and all
other requirements of the North Dakota law have been complied with, the
commissioner shall notify the applicants and the state credit union board of that
fact, and the board shall instruct the secretary of state to issue a charter in
accordance with section 6-06-02. Upon issuance of the charter, the federal credit
union shall become a state credit union and ceases to be a federal credit union.
The state credit union is vested with all of the assets and shall continue to be
responsible for all of the obligations of the federal credit union to the same extent
as though the conversion had not taken place.
3. A credit union may convert to a cooperative financial institution following the
procedures outlined in chapter 6-06.2.