This bill proposes the establishment of a new chapter in Title 6 of the North Dakota Century Code, focusing on cooperative financial institutions. It introduces the term "cooperative financial institution," defining it as an institution organized without capital stock for mutual purposes and subject to state supervision. The bill amends existing laws to replace references to "savings and loan associations" and "building and loan associations" with "cooperative financial institutions," thereby modernizing the regulatory framework. It outlines the application process, powers, and operational guidelines for these institutions, including the requirement for a two-thirds vote from members for mergers or consolidations and the establishment of application fees.

Additionally, the bill allows for the conversion of existing banking institutions and credit unions to cooperative financial institutions, detailing the necessary steps and voting requirements for such conversions. It streamlines the liquidation process for credit unions and cooperative financial institutions, ensuring members receive a pro rata distribution of claims. The bill also mandates reporting of unpaid claims and introduces specific provisions for the sale or purchase of banking institutions, exempting cooperative financial institutions from certain regulatory requirements. Overall, the legislation aims to enhance the regulatory structure for cooperative financial institutions in North Dakota, ensuring better protection for members and a more efficient operational framework.

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