45-4-1902 - Conversion of state credit union into federal credit union.
45-4-1902. Conversion of state credit union into federal credit union.
A state credit union may be converted into a federal credit union by complying with the following requirements:
(1) A majority of the directors of the state credit union shall first approve the proposition for conversion and the date set for a vote by the members of the state credit union either at a regular meeting or by written ballot to be filed before the date set for the vote. Written notice of the proposition and of the date set for the vote shall then be delivered in person to each member, or mailed to each member at the address for the member appearing on the records of the credit union, not more than thirty (30) nor less than seven (7) days prior to the date. Approval of the proposition for conversion shall be by the affirmative vote of a majority of the members who vote on the proposal. The written notice of the proposition shall in boldfaced type state the issue that will be decided by a majority of the members who vote;
(2) A statement of the results of the vote, verified by the affidavits of the president or vice president and of the secretary, shall be filed with the commissioner of financial institutions within ten (10) days after the vote is taken;
(3) Promptly after the vote is taken and in no event later than ninety (90) days thereafter, if the proposition for conversion was approved by the vote, the credit union shall take action that may be necessary under the federal Credit Union Act to make it a federal credit union, and within ten (10) days after receipt of the federal credit union charter, there shall be filed with the commissioner a copy of the charter thus issued. Upon filing, the credit union shall cease to be a state credit union; and
(4) Upon ceasing to be a state credit union, the credit union shall no longer be subject to this chapter. The successor federal credit union shall be vested with all the assets and shall continue to be responsible for all the obligations of the state credit union to the same extent as though the conversion had not taken place.
[Acts 1963, ch. 31, § 1; 1973, ch. 294, § 6; 1978, ch. 633, § 1; 1979, ch. 86, § 10; T.C.A., §§ 45-1831, 45-4-1202; Acts 1993, ch. 56, § 2.]