This bill seeks to establish a regulatory framework for cooperative financial institutions in North Dakota by creating a new chapter in Title 6 of the North Dakota Century Code. It introduces the term "cooperative financial institution," defining it as a non-stock entity organized for mutual purposes and subject to regulatory oversight. The bill amends existing laws to replace references to "savings and loan associations" and "building and loan associations" with "cooperative financial institutions," ensuring consistency in terminology. It sets the application fee for organizing such institutions at $5,000 and outlines distinct operational powers and governance structures tailored to their mutual purpose. Additionally, the bill details the process for forming these institutions, including requirements for a minimum of fifteen founding members and the necessary documentation for establishment.

The legislation also addresses the conversion and liquidation processes for credit unions and cooperative financial institutions, ensuring that member rights and responsibilities are clearly defined. It mandates that the state banking board maintain confidentiality regarding financial statements and management qualifications, and it outlines the procedures for member voting and board composition. Key provisions include the requirement for member approval for voluntary liquidation and the establishment of a pro rata distribution of assets based on member deposits. Overall, the bill aims to modernize and streamline the regulatory framework governing cooperative financial institutions, enhancing transparency, accountability, and operational capabilities while distinguishing them from traditional banking associations.

Statutes affected:
INTRODUCED: 6-01-02, 6-01-15, 6-01-17.1, 6-02-02, 6-02-03, 6-03-02, 6-03-11, 6-03-13.1, 6-03-34, 6-05-01, 6-06-35, 6-07.2-09, 6-07.2-19, 6-08-08.1
Prepared by the Legislative Council staff for Representative Vollmer: 6-01-02, 6-01-15, 6-01-17.1, 6-02-02, 6-02-03, 6-03-02, 6-03-11, 6-03-13.1, 6-03-34, 6-05-01, 6-06-35, 6-07.2-09, 6-07.2-19, 6-08-08.1
FIRST ENGROSSMENT: 6-01-02, 6-01-15, 6-01-17.1, 6-02-02, 6-02-03, 6-03-02, 6-03-11, 6-03-13.1, 6-03-34, 6-05-01, 6-06-35, 6-07.2-09, 6-07.2-19, 6-08-08.1
Enrollment: 6-01-02, 6-01-15, 6-01-17.1, 6-02-02, 6-02-03, 6-03-02, 6-03-11, 6-03-13.1, 6-03-34, 6-05-01, 6-06-35, 6-07.2-09, 6-07.2-19, 6-08-08.1