This bill seeks to establish and regulate 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 state supervision. The legislation modifies existing references, replacing "savings and loan associations" with "cooperative financial institutions," and sets the application fee for organizing such institutions at $5,000. Additionally, it outlines distinct powers and operational guidelines for these institutions, differentiating them from traditional banking associations, and clarifies that certain banking association provisions do not apply to cooperative financial institutions.

The bill also addresses the consolidation and merger processes for banking institutions, allowing for such actions with board and shareholder approval, and specifies the formation requirements for cooperative financial institutions, including a minimum of fifteen members. It mandates confidentiality for financial statements and management qualifications, establishes voting rights and annual meetings for members, and outlines the conversion process for existing banking institutions. Furthermore, the bill details the liquidation process for credit unions and cooperative financial institutions, including notification requirements and the order of claims payment, ensuring a clear and efficient regulatory framework for financial institutions in North Dakota.

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