Ask Reggi Your Question Now
Can you summarize NDCC Chapter 6-06?
Banks and Banking > Credit Unions
Short Summary
The provided legal document content covers various aspects of credit unions in North Dakota. It outlines the process for establishing a credit union, including the execution of a certificate of organization and proposed bylaws, as well as the requirement to apply for and maintain national credit union administration insurance. The document also governs the amendment of the certificate of organization and bylaws, specifying the approval process and filing requirements. It prohibits the use of certain terms in credit union names or titles, with exemptions for the North Dakota credit union league and its affiliates. The document outlines the powers of credit unions, including receiving savings, making loans, depositing funds, investing in securities, and engaging in authorized activities. It also specifies the requirements for issuing certificates of deposit and the penalties for violations. The document governs credit union membership, including the eligibility criteria and procedures for expanding the field of membership through mergers. It outlines the reporting and examination requirements for credit unions, as well as the penalties for non-compliance. The document also addresses the supervision and regulation of failing credit unions, the prompt corrective action for credit unions, and the examination of computer servicers providing data processing services. It covers the duties and powers of directors, loan limitations, and the election of executive officers. The document provides immunity from civil liability for volunteers of credit unions and outlines the borrowing powers and loan administration requirements. It governs the duties and powers of the supervisory committee, the collection of entrance fees and capital, and the preservation of records. The document also covers the conversion and merger of credit unions, as well as the dissolution and liquidation process. It addresses the taxation of credit unions and provides guidelines for dividends, withdrawals, and changes in place of business. The document concludes with provisions regarding the borrowing of funds, loan endorsements, allowance for loan and lease loss account, and restrictive endorsements. Specific exemptions and penalties are mentioned for certain provisions.
Whom does it apply to?
Applicants wishing to establish a credit union, credit unions, their members, directors, committees, and officers, as well as the state credit union board and the commissioner of financial institutions
What does it govern?
Organization and operation of credit unions, including their establishment, governance, powers, membership, supervision, and dissolution
What are exemptions?
The North Dakota credit union league, its chapters, affiliates, subsidiaries, and political action committees formed by credit unions organized under this chapter or federal law, as well as political action committees formed by the North Dakota credit union league, are exempt from certain naming restrictions.
What are the Penalties?
Violators of the naming restrictions may be subject to a forfeiture of one hundred dollars for each day, or part thereof, during which the violation continues. The forfeited sums can be recovered by the commissioner through a civil action and will be deposited with the state treasurer. Any person violating the section regarding the issuance of certificates of deposit may be subject to a civil penalty not to exceed five thousand dollars.
Jurisdiction
North Dakota