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Can you summarize IC 28-1-30?
DEPARTMENT OF FINANCIAL INSTITUTIONS > Charter Conversion of a Credit Union to a Mutual Savings Bank
Short Summary
This legal document governs the procedures for converting a credit union to a mutual savings bank in the state of Indiana. It states that a credit union may convert to a mutual bank with the approval of the Department of Financial Institutions and, if required, the appropriate federal agency. The document outlines the procedures that must be followed for the conversion, including the preparation and submission of a conversion plan to the department. The plan must comply with the department’s requirements, federal requirements for conversion, and include provisions for a two-year period after conversion where a director or employee of the credit union may not acquire stock in the resulting institution or a successor institution on terms other than those readily available to all members of the former credit union. The credit union must also provide evidence that it has applied for deposit insurance from the Federal Deposit Insurance Corporation and that the deposits in the resulting mutual bank will be insured by the same. The plan of mutual bank conversion is conditioned upon the approval of at least a majority of the total number of votes cast at a regular or special meeting of the membership. The document also specifies the requirements for the notice of the meeting, including the date, time, and location of the meeting, a description of the matters to be voted upon, and a ballot with voting options. The board of directors of the credit union must certify the results of the membership vote to the department, and upon approval, the plan of mutual bank conversion and a certified copy of the resolution must be submitted to the department and, if required, the appropriate federal agency for approval. The credit union is also required to provide the department with additional relevant information concerning the plan of mutual bank conversion as requested. This document was added to the Indiana Code by P.L.62-1999, SEC.2. This legal document, governed by the Indiana Code, specifically addresses the process of converting a credit union to a mutual savings bank. The document outlines the authority of the Department of Financial Institutions to approve or disapprove the plan of mutual bank conversion. The department can only approve the conversion if it finds that the resulting mutual bank will operate safely and prudently, with adequate capital, satisfactory management, and good earnings prospects. Additionally, the management or other principals of the credit union must be qualified to control and operate the mutual bank in a legal and proper manner. The document also emphasizes the importance of protecting the interests of members, creditors, depositors, and the general public during the conversion process. Overall, this document sets forth the criteria and considerations for the approval of a credit union’s conversion to a mutual savings bank in Indiana.
Whom does it apply to?
Credit unions seeking to convert to a mutual savings bank in the state of Indiana
What does it govern?
Procedures for converting a credit union to a mutual savings bank
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Indiana