§ 1771. — Conversion from Federal to State credit union and from State to Federal credit union.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1771]
TITLE 12--BANKS AND BANKING
CHAPTER 14--FEDERAL CREDIT UNIONS
SUBCHAPTER I--GENERAL PROVISIONS
Sec. 1771. Conversion from Federal to State credit union and
from State to Federal credit union
(a) A Federal credit union may be converted into a State credit
union under the laws of any State, the District of Columbia, the several
Territories and possessions of the United States, the Panama Canal Zone,
or the Commonwealth of Puerto Rico, by complying with the following
requirements:
(1) The proposition for such conversion shall first 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 Federal
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 member appearing on
the records of the credit union, not more than thirty nor 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
members of the credit union who vote on the proposal. The written
notice of the proposition shall in boldface type state that the
issue will be decided by a majority of the members who vote.
(2) 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 Administration within ten days after the
vote is taken.
(3) Promptly after the vote is taken and in no event later than
ninety days thereafter, if the proposition for conversion was
approved by such vote, the credit union shall take such action as
may be necessary under the applicable State law to make it a State
credit union, and within ten days after receipt of the State credit
union charter there shall be filed with the Administration a copy of
the charter thus issued. Upon such filing the credit union shall
cease to be a Federal credit union.
(4) Upon ceasing to be a Federal credit union, such credit union
shall no longer be subject to any of the provisions of this chapter.
The successor State credit union shall be vested with all of the
assets and shall continue responsible for all of the obligations of
the Federal credit union to the same extent as though the conversion
had not taken place.
(b)(1) A State credit union, organized under the laws of any State,
the District of Columbia, the several Territories and possessions of the
United States, the Panama Canal Zone, or the Commonwealth of Puerto
Rico, may be converted into a Federal credit union by (A) complying with
all State requirements requisite to enabling it to convert to a Federal
credit union or to cease being a State credit union, (B) filing with the
Administration proof of such compliance, satisfactory to the Board, and
(C) filing with the Administration and organization certificate as
required by this chapter.
(2) When the Board has been satisfied that all of such requirements,
and all other requirements of this chapter, have been complied with, the
Board shall approve the organization certificate. Upon such approval,
the State credit union shall become a Federal credit union as of the
date it ceases to be a State credit union. The Federal credit union
shall be vested with all of the assets and shall continue responsible
for all of the obligations of the State credit union to the same extent
as though the conversion had not taken place.
(June 26, 1934, ch. 750, title I, Sec. 125, formerly Sec. 26, as added
Pub. L. 86-354, Sec. 1, Sept. 22, 1959, 73 Stat. 638; amended Pub. L.
91-206, Sec. 2(1), (3), Mar. 10, 1970, 84 Stat. 49; renumbered title I,
Sec. 125, Pub. L. 91-468, Sec. 1(2), Oct. 19, 1970, 84 Stat. 994;
amended Pub. L. 95-630, title V, Sec. 502(b), Nov. 10, 1978, 92 Stat.
3681; Pub. L. 97-320, title V, Sec. 527, Oct. 15, 1982, 96 Stat. 1535.)
References in Text
For definition of Canal Zone, referred to in text, see section
3602(b) of Title 22, Foreign Relations and Intercourse.
Prior Provisions
A prior section 1771, act June 26, 1934, ch. 750, Sec. 21, as added
July 9, 1937, ch. 471, 50 Stat. 487, related to allotment of space in
Federal buildings, prior to the amendment of act June 26, 1934, by Pub.
L. 86-354. See section 1770 of this title.
Amendments
1982--Subsec. (a)(1). Pub. L. 97-320 substituted ``of the credit
union who vote on the proposal'' for ``, in person or in writing'', and
inserted provision that the written notice of the proposition shall in
boldface type state that the issue will be decided by a majority of the
members who vote.
1978--Subsec. (b). Pub. L. 95-630 substituted ``Board'' for
``Administrator'' in two places.
1970--Pub. L. 91-206 substituted ``Administration'' for ``Bureau''
and ``Administrator'' for ``Director'' wherever appearing.
Effective Date of 1978 Amendment
Amendment by Pub. L. 95-630 effective on expiration of 120 days
after Nov. 10, 1978, and transitional provisions, see section 509 of
Pub. L. 95-630, set out as a note under section 1752 of this title.
