Section 13-03-05-01 - ProcedureAny state-chartered credit union planning to merge shall follow and comply with the following procedure:
1. The board of directors of each state-chartered credit union shall pass a resolution by a majority of the directors, in favor of the merger, stating specific terms, if any.2. The resolution shall be submitted to the entire membership of the affected credit unions at the time of and accompanying the notice of a regular or special meeting, and must be approved by a majority of the membership of each affected credit union present at the meeting. The state credit union board, in the exercise of the board's discretion, may suspend this subsection when such suspension is in the best interests of the affected credit unions and their members. Alternatively, the commissioner, in the exercise of the commissioner's discretion, may temporarily suspend this subsection until after approval is obtained from the state credit union board, if the merging credit union is federally chartered.3. An application to merge must be filed with the state credit union board to approve the merger by the proper officials of each of the credit unions.4. At least thirty days prior to the date of consideration of the application by the state credit union board, the secretary of the board shall notify all credit unions within a seventy-five-mile [120.7-kilometer] radius of the continuing credit union's home office and each county in which the merging credit union maintains its principal office or a branch. The notice must specify the names and locations of both the merging credit union and the continuing credit union, and the time and place of the board meeting at which the proposed merger will be considered. Interested credit unions will be given an opportunity to comment on the proposed merger in writing and at the meeting at which the proposal is considered. The board may, when it believes it to be in the public interest, request a hearing be held. Notice of hearing on an application will, if requested, be at least thirty days prior to the hearing. Notice of the proposed merger does not have to be given or a hearing held when the continuing credit union is to receive assistance from the national credit union administration.5. All laws and regulations of the national credit union share insurance fund applicable to merging insured credit unions must be complied with before the merger is consummated.6. Upon approval of the merger, the continuing credit union may elect to assume the field of membership of the merging credit union.N.D. Admin Code 13-03-05-01
Amended effective February 1, 1981; August 1, 1993.Amended by Administrative Rules Supplement 371, January 2019, effective 1/1/2019.Amended by Administrative Rules Supplement 2022-384, April 2022, effective 4/1/2022.General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-06-36, 6-06-37