Title 6 — Banks and Financial Institutions

Any existing association may, at an annual or special meeting, amend its present articles of incorporation or other instruments concerning organization by adopting articles of incorporation containing the provisions enumerated in section 6-413. The procedure to be followed in ado…

Any association operating under this chapter may become a federal association pursuant to the laws and regulations of the United States and in accordance with the following procedure: 1. The board of directors shall approve a plan of conversion by resolution adopted by majority v…

A. Any federal association may become an association operating under this chapter, pursuant to the laws and regulations of the United States and in accordance with the following procedure: 1. The board of directors shall by a majority vote of all the directors adopt by resolution…

When an association effects a conversion in accordance with either of the two preceding sections, the corporate functions of such association shall not be interrupted; but the identity of the association under a new name and new jurisdiction shall continue, together with all of t…

A. An association operating under this chapter may merge into or with one or more associations, whether operating under this chapter or otherwise, or into or with any other corporation, except a corporation or association operating an insurance business, other than title insuranc…

A. The continuing association or corporation shall be considered the same business and corporate entity as each merging association or corporation, with all of the property, rights, powers, duties, and obligations of each merging association or corporation, except as otherwise pr…

An association may liquidate voluntarily in accordance with a plan of voluntary liquidation which has been adopted in the manner provided in this article.

A. At any annual or special meeting of the members, the members may vote to liquidate the association, and may adopt a plan of liquidation that has been approved by the board of directors, or proposed by one or more shareholders, or submitted by the deputy director or may elect a…

A. On adoption of a plan of voluntary liquidation, the members shall proceed to elect, with cumulative voting allowed as in elections of directors, not more than three liquidators, who shall have full power to execute the plan. The procedure thereafter shall be as follows: 1. A r…

The liquidators are authorized to advance funds of the association and to take such other action as is advisable to preserve, protect, or purchase at any sale any real estate or other asset upon which the association may hold any lien or encumbrance or in which it may have an int…

A. The liquidators shall fix a time for all persons having claims against the association, other than as members thereof, to present such claims, and shall cause notice to be published, requiring all persons to present the claims on or before such date, and within five days after…

When all assets have been liquidated and all expenses, claims and holders of withdrawable capital have been paid, dissolution of the association shall be accomplished in the following manner: 1. The liquidators shall file with the deputy director the duly verified final report of…

A. Every association shall maintain in this state a detailed record of all transactions of the association at its home office, or at a branch office or at a central accounting or computer center servicing one or more associations, provided that general accounting records and thei…

A. A branch office is a legally established place of business of the association, other than the home office, authorized by the board of directors and approved by the deputy director, at which payments on, and withdrawal from, accounts and loan payments may be accepted and applic…

The deputy director shall make a report of each examination to the board of directors of the association examined, and if the affairs of the association are not being conducted in accordance with this chapter, the deputy director may require the directors, officers, or employees …

An audit of the affairs of the association shall be made annually as of the end of its fiscal year by or under the direction of the board of directors. The deputy director may prescribe certain minimum requirements of the audit and shall require the filing of a copy of the report…

A. Every association operating under this chapter shall file with the deputy director within sixty days following the close of each fiscal year of such association, a statement showing its financial condition at the close of the fiscal year and its operations for the year then en…

The deputy director may give copies of reports of the deputy director's examinations of an association, and copies of the association's reports to the deputy director, and any other information that the deputy director has concerning the association, to the federal home loan bank…

A. If the court grants a petition for receivership filed by the deputy director, the deputy director shall be appointed as receiver and may forthwith take possession of the property and business of the association and retain possession until the association resumes business or it…

A. The liquidation under this article of an association, and a receivership thereof, may, at the discretion of the receiver or receivers, be conducted and carried out in full or in part in the same manner as provided in this title for the liquidation of or receivership for an ins…

No person shall use the name "building and loan company", "building and loan association", "savings and loan company", or "savings and loan association" unless complying with the provisions of this title. A person using a name embodying any combination of the words "building and …

A. If the business, property and affairs of any association are in the possession of the deputy director for liquidation, or if an association is in an unsafe or unsound condition, the association may be rehabilitated, readjusted or reorganized in accordance with any plan propose…

A. A plan may be proposed by the deputy director or by an association subject to the approval of the deputy director. If proposed by an association, the proposal shall be through its board of directors, or by the holders of accounts equal in amount to not less than fifty percent …

A. At the time and place fixed for the hearing, or at the time and place to which the hearing may be continued by the court, the court shall hear the parties interested therein and, if it deems it necessary, may take testimony relative thereto and may accept proof in affidavit fo…

A. After completion of the hearing provided by section 6-488, the court shall approve, modify or disapprove the plan. The plan shall not become operative unless and until it has been approved in its original or modified form by the court, nor unless and until the plan has been co…

A. The consents required by section 6-489 may be given before the plan is presented to the court, or after the presentation and before the court has approved it, or after approval. If, at the time the plan is approved by the court, the required consents have not been given, the o…

A. When a plan has been approved by the court and the required consents given, the plan shall be binding on the deputy director, the association, the holders of accounts and shares of guaranty capital, and creditors of the association and all other persons affected thereby, and t…

A. An appeal from an order of the superior court approving a plan shall not be effectual for any purpose, unless within thirty days after the entry of the order the appellant files with the clerk of the court a bond with a surety company authorized by law to transact business in …

A. The term "securities", as used in this article in respect to any plan, includes not only shares of guaranty capital and evidences of accounts issuable by an association under the laws of this state, but also shares of stock of one or more classes issuable by corporations gener…

An executor, administrator, guardian, receiver, trustee of any kind or nature, and an insurance company may consent to any plan or exchange any shares of guaranty capital, accounts, creditors' claims or other rights or claims for securities issued pursuant to any plan and may con…

The legislature shall have power to amend, repeal, or modify this chapter, and such amendments or modifications shall be binding upon any and all associations operating under this chapter.

Whenever in any statute the terms "savings and loan", "building and loan", "mutual building and loan", or other similar names are used with reference to associations organized for the purpose of associations incorporated or operating under this chapter, such reference shall be ap…

With respect to any existing association: 1. The valid articles of incorporation, bylaws, shares, contracts and obligations of such association shall continue in full force and effect; but the association shall be operated and regulated in accordance with the provisions of this c…

A. In this chapter, unless the context otherwise requires: 1. "Branch office": (a) Means a place of business of a credit union, other than a principal office, at which deposits are received and checks are paid. (b) Does not include premises used for computer operations, recordkee…

A. The deputy director shall examine or cause to be examined each credit union at periodic intervals as provided by section 6-122. The deputy director shall forward a report of the examination to the board of directors of the credit union examined within thirty days after complet…

A. A credit union shall keep and use in its business those books, accounts and records that will enable the deputy director to readily ascertain the true financial condition of the credit union and whether the credit union is complying with this chapter. B. A credit union and any…

A credit union shall not make, advertise, display, distribute, broadcast or televise, or cause or permit to be made, advertised, displayed, distributed, broadcast or televised, in any manner whatever any false, misleading or deceptive statement or representation.

The purpose of this chapter, which governs judicial and administrative interpretation and application of this chapter, is to provide opportunity for credit unions to remain competitive with each other, with financial institutions existing under other laws of this state and with b…

A. Any seven or more residents of this state who are of legal age and who have a common bond of interest or association may apply to the deputy director for permission to organize a credit union under this chapter. B. The incorporators shall prepare, adopt and execute a certifica…

A. The deputy director shall act on the completed application within sixty days. The deputy director shall issue a certificate of approval if the certificate of organization and the bylaws are in conformity with this chapter and the deputy director is satisfied that all of the fo…

A. The deputy director shall prepare standard forms of the certificate of organization and bylaws, consistent with this chapter, which may be used by credit union incorporators. B. The board of directors may adopt proposed amendments to the certificate of organization at a duly h…

A. The name of every credit union organized under this chapter shall include the words "credit union". A credit union shall not adopt a name either identical to the name of any other credit union doing business in this state or so similar as to be misleading or cause confusion. B…

A. A credit union may change its principal place of business or branch within this state with the prior approval of the deputy director and the payment of the fee provided in section 6-126. B. A credit union may establish a branch office with the prior approval of the deputy dire…

A. A credit union organized under the laws of another state or territory of the United States may conduct business as a credit union in this state, subject to all laws and rules governing the operation of credit unions under this title, with the prior approval of the deputy direc…

A. In addition to the powers prescribed elsewhere in this chapter and except as prohibited by law, a credit union may: 1. Enter into contracts of any nature. 2. Sue or be sued. 3. Adopt, use and display a corporate seal. 4. Acquire, lease, hold, assign, pledge, hypothecate, sell,…

In addition to all other rights, powers and privileges, a credit union organized under the laws of this state whose accounts are insured by an insuring organization has all of the rights, powers and privileges and is entitled to the same exemptions and immunities as any credit un…

A. The membership of a credit union consists of the incorporators and other persons who are within the field of membership as prescribed in the bylaws, who have been duly accepted as members, who have paid any required one-time or periodic membership fee, or both, in accordance w…

A. The following may be included in the field of membership of a credit union: 1. An organization comprised primarily of individuals who are eligible for membership in the credit union. 2. An organization for which a majority of owners, by number, are individuals who are eligible…

A. The board of directors shall act on applications for membership or appoint one or more membership officers to approve applications for membership. A credit union may deny membership based on policies established by the board of directors. A person denied membership by a member…

A. A member may withdraw from a credit union at any time on giving notice of withdrawal as required in the bylaws. The credit union may require up to sixty days' notice of the intention to withdraw shares or deposits, but the notice does not entitle the member to any preferred or…