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Can you summarize 230 RICR 40-05-3?
Financial Institutions and Credit Unions > Credit Union Conversions (230-RICR-40-05-3)
Short Summary
This legal document governs the process of converting a Credit Union into a mutual form of Financial Institution or financial services entity. It applies to Credit Unions chartered under the Rhode Island General Laws. The document outlines the conditions that must be satisfied for the conversion to take place, including the approval of a conversion plan by the board of directors, compliance with relevant laws, and obtaining necessary regulatory approvals. It also specifies the contents of the plan of conversion, the interests of members in the resulting financial institution, and the fairness considerations to be evaluated by the Director. The document emphasizes the importance of providing disclosure materials to eligible members and ensuring that communications regarding the conversion are written in plain language. Additionally, it mentions that if a Credit Union converts to a stock form of financial institution or creates a mutual holding company, it must comply with additional regulations promulgated by the Department. No specific exemptions or penalties are mentioned in this document.
Whom does it apply to?
Credit Unions chartered under the Rhode Island General Laws
What does it govern?
Conversion of Credit Unions into other forms of Financial Institutions
What are exemptions?
No specific exemptions are mentioned in this document.
What are the Penalties?
No specific penalties are mentioned in this document.
Jurisdiction
Rhode Island