The bill amends the Code of West Virginia to impose new requirements on banking institutions and credit unions regarding the establishment of branches and mergers. It mandates that no bank or credit union can establish a branch or engage in a merger unless they are insured by the Federal Deposit Insurance Corporation (FDIC). This requirement is explicitly included in sections 31A-8-12, 31A-8A-5, and 31A-8D-4, which state that the board and commissioner shall not approve applications for branch banks or acquisitions without FDIC insurance. Additionally, the bill aims to ensure the safety and soundness of banking operations by preventing mergers or acquisitions that would significantly reduce competition or create monopolies, while maintaining existing procedures for hearings and approvals.

Furthermore, the bill introduces new provisions for the merger and consolidation of credit unions, particularly regarding membership voting and conditions for waiving such votes. It requires that merging credit unions conduct a membership vote after receiving preliminary approval from the commissioner, unless waived due to insolvency. The bill also outlines the final approval process for merger plans, including the commissioner’s notification responsibilities and the implications for property rights and member interests. It establishes criteria for mergers involving out-of-state credit unions, allowing such transactions only if permitted by the other state. The commissioner is granted authority to expedite mergers involving insolvent credit unions without prior hearings under certain conditions, and the bill ensures that the oversight of the FDIC governs all credit union mergers and acquisitions.

Statutes affected:
Introduced Version: 31A-8-12, 31A-8A-5, 31A-8D-4, 31C-10-2