The bill amends the Credit Union Act to establish a clearer process for domestic credit unions wishing to convert into mutual savings banks or mutual savings associations. Key provisions include requirements for the credit union board to provide written notice to members at least 30 days prior to voting on the conversion plan, detailing the reasons for the conversion, its potential effects, and soliciting member feedback. The board must also approve the conversion plan with a two-thirds majority and ensure that the plan includes disclosures about the advantages and disadvantages of the conversion, as well as assurances that no officials will receive remuneration related to the conversion.

Additionally, the bill mandates that the credit union board must call a special meeting for members to vote on the conversion plan, providing detailed notices and information about the meeting and the conversion process. The director, rather than the commissioner, is designated as the regulatory authority overseeing the conversion process. The bill also stipulates that if the conversion plan is amended, members must be notified at least 30 days before the vote. The conversion becomes effective only if the director confirms that the voting process was fair and that the notices provided to members were accurate and timely.

Statutes affected:
House Introduced Bill: 490.373