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," defined as an institution organized without capital stock for mutual purposes, and clarifies that certain provisions regarding banking associations do not apply to these institutions. The bill modifies existing language to replace references to "savings and loan associations" with "cooperative financial institutions," aligning terminology with the new framework. It also establishes specific application fees for various activities, including the conversion of existing institutions, and outlines the powers and operational guidelines for cooperative financial institutions, ensuring they adhere to regulatory standards while remaining distinct from traditional banking associations.

Additionally, the bill amends regulations regarding the organization, operation, and liquidation of cooperative financial institutions and credit unions. It requires the state banking board to maintain confidentiality regarding financial statements and management qualifications, and outlines the process for converting existing banking institutions into cooperative financial institutions. The bill also details the governance structure, membership rights, and voting procedures for these institutions, ensuring transparency and accountability. Furthermore, it introduces provisions for the liquidation process, including notification requirements and the responsibilities of the board of directors, while establishing a clear order for the payment of claims against the institution's estate. Overall, the legislation aims to enhance the regulatory framework for cooperative financial institutions in North Dakota, promoting consumer protection and compliance with state banking regulations.

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