04 NCAC 06C .0207         CONVERSION OF CHARTER FROM NORTH CAROLINA CHARTER

(a)  A North Carolina credit union may be converted into another state or federal credit union if permitted by the other state or the Federal Credit Union Act.  The proposition for such conversion shall be approved, and a date set for a vote thereon by the members (either at a meeting to be held on such date or by written ballot to be filed on or before such date), by a majority of the Directors of the North Carolina Credit Union.  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 such person appearing on the records of the Credit Union, not more than 30 days or less than seven days prior to such date. Approval of the proposition for conversion shall be by the affirmative vote of a majority of the membership of the members voting in person or in writing.

(b)  A statement of the results of the vote, verified by the affidavits of the president or vice‑president and the secretary, shall be filed with the North Carolina Credit Union Division within 10 days after the vote is taken.

(c)  Promptly after the vote is taken and in no event later than 90 days thereafter, if the proposition for conversion was approved by such vote, such credit union shall take such action as may be necessary under the other state or the Federal Credit Union Act to make it a credit union of another state or a federal credit union; and within 10 days after receipt of the new credit union charter there shall be filed with the North Carolina Credit Union Division a copy of the charter thus issued.  Upon such filing, the Credit Union shall cease to be a North Carolina chartered credit union.

(d)  Upon ceasing to be a North Carolina credit union, such credit union shall no longer be subject to any of the provisions of the North Carolina Credit Union laws.  The successor credit union shall be vested with all of the assets and shall continue responsibility for all of the obligations of the North Carolina Credit Union to the extent as though the conversion had not taken place.

History Note:        Authority G.S. 54‑109.95;

Eff. February 1, 1976;

Readopted Eff. April 4, 1978;

Amended Eff. April 1, 1981;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 6, 2016.