2007 California Financial Code Article 4. Conversion Of Federal Credit Union

CA Codes (fin:15350-15359)

15350.  Upon recommendation of its board of directors, any federal
credit union may convert into a credit union under the laws of this
state by complying with the requirements of the Federal Credit Union
Act (12 U.S.C. Sec. 1771) and on obtaining a certificate pursuant to
Chapter 2 (commencing with Section 14100) of this division.




15351.  The officers and directors of the federal credit union shall
be the officers and directors of the credit union after conversion
takes effect, to hold office until their successors are elected and
qualified.


15352.  The commissioner may conduct a joint audit of the federal
credit union with federal auditors.  Upon completion of such audit,
he shall issue a certificate to the National Credit Union
Administration showing the results of such audit.  The commissioner
may also certify that the transfer of the assets and liabilities from
the federal credit union to a credit union subject to the laws of
this state has been effected in compliance with the applicable laws
of this state.  The costs of the audit mentioned in this section
shall constitute a charge against the credit union.



15353.  Copies of the minutes of the proceedings of the meeting of
the members or the written ballot and the record of written vote of
the members in which they voted to convert into a state credit union,
verified by the board of directors of the credit union, shall be
filed within 10 days after the meeting or written vote with the
commissioner, and, in duplicate, with the National Credit Union
Administration.



15354.  The verified copies of the minutes of the meeting or the
record of written vote, when filed as required by Section 15353, are
presumptive evidence of the holding of, and the action taken at, the
meeting or the written vote.


15355.  After an affirmative vote as provided in Section 15350, the
federal credit union shall take or cause to be taken such action in
the manner prescribed and authorized by this division as shall make
it a credit union of this state.  The directors shall file the
documents and take such proceedings as are required by this division
in the case of the original incorporation of a credit union.



15356.  The directors of a credit union converted from a federal
credit union may insert in the articles of incorporation the
following statement:  "This credit union is incorporated by
conversion from a federal credit union."



15357.  Within 10 days after the filing of the articles of
incorporation with the Secretary of State, there shall be filed, with
the National Credit Union Administration, two copies of the articles
of incorporation, certified by the Secretary of State.




15358.  Upon the filing of the articles of incorporation with the
Secretary of State and the issuance of a certificate by the
commissioner authorizing the federal credit union to act as a credit
union under the laws of this state, the credit union ceases to be a
federal credit union and is a credit union under the laws of this
state.  All of the property of the credit union immediately, by
operation of law and without any further act, is vested in the credit
union under its new name and existence as a credit union under the
laws of this state.


15359.  The converted credit union shall have, hold, and enjoy the
property mentioned in Section 15358 in its own right as fully and to
the same extent as the property was possessed, held, and enjoyed by
it as a federal credit union and the converted credit union continues
responsible for all of the obligations of the federal credit union
to the same extent as though conversion had not taken place.  The
converted credit union is merely a continuation of the federal credit
union under a new name and new jurisdiction and such revision of its
corporate structure as is considered necessary for its proper
operation under the new jurisdiction.