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 state supervision. The bill amends existing laws to replace references to "savings and loan associations" with "cooperative financial institutions," and it outlines the application process, including a $5,000 fee for a certificate of authority. Additionally, it clarifies that certain organizational requirements, such as capital stock issuance and director elections, do not apply to these institutions, recognizing their unique operational structure.

The bill also addresses the consolidation and merger of banking institutions, allowing for cooperative financial institutions to merge with the approval of the state banking board and a two-thirds vote from members. It establishes governance structures, including membership voting rights and board composition, while emphasizing transparency and accountability through annual meetings and financial reviews. Furthermore, the bill outlines the liquidation process for credit unions and cooperative financial institutions, mandating member notifications and audits, and distinguishing the regulatory framework for cooperative financial institutions from traditional credit unions. Overall, the amendments aim to modernize and enhance the operational capabilities of cooperative 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