Title 12 — Banks and Banking
Chapter 14 — Federal Credit Unions
§ 1771. Conversion from Federal to State credit union and from State to Federal credit union
Statutory text
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:
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.
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.
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.
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.
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 an organization certificate as required by this chapter.
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.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 86–354 § 1 · 73 Stat. 628
Enacted · 12 U.S.C. § 1771
June 26, 1934, ch. 750, title I, § 125, formerly § 26, as added Pub. L. 86–354, § 1, Sept. 22, 1959, 73 Stat. 638
Source evidence
Code source credit
June 26, 1934, ch. 750, title I, § 125, formerly § 26, as added Pub. L. 86–354, § 1, Sept. 22, 1959, 73 Stat. 638Pub. L. 91–206 § 2(1) · 84 Stat. 49
Substituted · 12 U.S.C. § 1771
Pub. L. 91–206 substituted “Administration” for “Bureau” wherever appearing
Substituted · 12 U.S.C. § 1771
Pub. L. 91–206 substituted “Administrator” for “Director” wherever appearing
Source evidence
Code amendment note
Pub. L. 91–206 substituted “Administration” for “Bureau” and “Administrator” for “Director” wherever appearing.Enacted provision · exact public law section
Sec. 2. The Federal Credit Union Act is further amended (1) by changing “Director” to read “Administrator” each place it appears therein; (2) by changing “Bureau of Federal Credit Unions” to read “National Credit Union Administration” each place it appears therein; and (3) by changing “Bureau”, each remaining place it appears, to read “Administration”.Financial Institutions Regulatory and Interest Rate Control Act of 1978
Pub. L. 95–630 title V § 502(b) · 92 Stat. 3641
Substituted · 12 U.S.C. § 1771(b)
Pub. L. 95–630 substituted “Board” for “Administrator” in two places
Source evidence
Code amendment note
Subsec. (b). Pub. L. 95–630 substituted “Board” for “Administrator” in two places.Enacted provision · exact public law section
(b) The Federal Credit Union Act is amended by striking out “Administrator” each place it appears and inserting in lieu thereof “Board”, and by striking out the personal pronouns “he”, “him”, and “his” when referring to the Administrator and inserting in lieu thereof “it”, “them”, and “its” as appropriate wherever such words appear therein.Effective date note
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.Garn-St Germain Depository Institutions Act of 1982
Pub. L. 97–320 title V § 527 · 96 Stat. 1469
Substituted · 12 U.S.C. § 1771(a)(1)
Pub. L. 97–320 substituted “of the credit union who vote on the proposal” for “, in person or in writing”
Inserted · 12 U.S.C. § 1771(a)(1)
Pub. L. 97–320 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
Source evidence
Code amendment note
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.Enacted provision · exact public law section
Sec. 527. charter conversion Section 125(a)(1) of the Federal Credit Union Act (12 U.S.C. 1771(a)(1)) is amended by striking out the last sentence and inserting in lieu thereof the following: “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.”.
5 of 6 references resolved to an enrolled provision · 1 partial
Editorial Notes
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, § 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 , by Pub. L. 86–354. See section 1770 of this title.
Amendments1970–1982 · 3 rounds
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.
Statutory Notes and Related Subsidiaries
Effective Date of 1978 Amendment
Amendment by Pub. L. 95–630 effective on expiration of 120 days after , and transitional provisions, see section 509 of Pub. L. 95–630, set out as a note under section 1752 of this title.
Credits
1934–1982 · 5 acts
- 1934June 26, 1934, ch. 750, title I, § 125, formerly § 26, as added Pub. L. 86–354, § 1, , 73 Stat. 638
- 1970amended Pub. L. 91–206, § 2(1), (3), , 84 Stat. 49
- 1970renumbered title I, § 125, Pub. L. 91–468, § 1(2), , 84 Stat. 994
- 1978amended Pub. L. 95–630, title V, § 502(b), , 92 Stat. 3681
- 1982Pub. L. 97–320, title V, § 527, , 96 Stat. 1535.
Show as published
(June 26, 1934, ch. 750, title I, § 125, formerly § 26, as added Pub. L. 86–354, § 1, , 73 Stat. 638; amended Pub. L. 91–206, § 2(1), (3), , 84 Stat. 49; renumbered title I, § 125, Pub. L. 91–468, § 1(2), , 84 Stat. 994; amended Pub. L. 95–630, title V, § 502(b), , 92 Stat. 3681; Pub. L. 97–320, title V, § 527, , 96 Stat. 1535.)