N.D. Cent. Code § 6-06.2-09

6-06.2-09. Conversion to or from a cooperative financial institution

1. Any banking institution, credit union, or financial institution authorized by the

commissioner to engage in the business of banking under the laws of this state, laws

of the United States, or laws of another state may be converted into a cooperative

financial institution.

2. A cooperative financial institution may convert to a federal savings association by

complying with the following requirements:

a. The proposition for conversion must be approved by a majority of the directors of

the organization that seeks conversion. If approved by a majority of the directors,

the directors shall set a date for a vote by the members either at a meeting or by

written ballot to be filed on or before the date. Written notice of the proposition

and the date set for the vote must be delivered in person to each member or

mailed to each member at the address for the member appearing on the records

of the organization, between seven and thirty days before the date. Conversion

must be approved by two-thirds of the members participating in the vote.

b. Each member of the credit union is entitled to one vote during regular or special

meetings of the membership.

c. The voting rights for a banking institution or financial institution are determined by

applicable law.

d. Forty-five days before consideration of a conversion, the membership or board

acting on the proposed change must be notified of the bylaw change under

consideration and of the date and time of the meeting the change will be acted

on.

e. Promptly after the vote is taken, but no more than ninety days after, if the

proposition for conversion was approved, the organization seeking conversion

shall provide the state banking board with the results of the vote, verified by the

affidavits of the president or vice president and secretary.

f. A cooperative financial institution converting to a federal savings association shall

provide notice of completion of subdivisions a, b, c, d and e, and may not be

subject to any other provision of this chapter. The converted cooperative financial

institution shall provide notice to the state banking board upon commencement of

operations as a federal savings association, at which time the state charter must

be terminated.

3. If a cooperative financial institution converts to a state-chartered credit union, the

institution shall:

a. Obtain federal deposit insurance.

b. File with the commissioner an organization certificate as required in section

6-06-02 and all other documentation necessary as determined by the

commissioner.

c. Obtain approval from the state credit union board.