Conversion to or from a cooperative financial institution
N.D. Cent. Code § 6-06.2-09
in effect6-06.2-09. 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.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t06c06-2.pdf#nameddest=6-06p2-09Fetched: 10/16/2026