The bill amends the Credit Union Act to outline the procedures for the merger of domestic credit unions, specifying the requirements that must be met for such mergers to occur. Key provisions include the necessity for a majority vote by the board of each constituent credit union to adopt a merger plan, which must detail the names of the credit unions involved, the terms of the merger, and any amendments to the surviving credit union's certificate of organization. Additionally, the bill stipulates that members of each constituent credit union must approve the merger plan at a special meeting or via mail ballot, with a notice period of not less than 45 days prior to the meeting.

The bill also introduces changes regarding the approval process by the director, who must grant final approval if all requirements are met. It allows for the possibility of waiving the membership vote in certain circumstances, such as when the merger is deemed to be in the best interests of the membership or if a credit union is facing insolvency. Furthermore, the bill clarifies that credit unions with different fields of membership may merge, thereby expanding the scope of potential mergers.

Statutes affected:
Senate Introduced Bill: 490.371