Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.200 - Conversion of Charter

Current through Register Vol. 48, No. 28, July 12, 2024
a) Conversion
				from a State of Illinois chartered credit union to a credit union chartered by
				NCUA or by a state regulatory authority of credit unions of another state shall
				be authorized subject to the following requirements:
1) The proposal for the conversion of charter
				is approved by resolution of the board of directors.
2) Written notification is given of the
				intent to convert to the Secretary at least 30 days prior to the mailing to the
				members of the Notice of Meeting at which the question of conversion is to be
				voted.
3) Evidence is furnished to
				the Secretary that NCUA or the state regulatory authority for credit unions in
				the other state is agreeable to the conversion proposal.
4) The conversion proposal is approved by 2/3
				of the members present or voting. Notice of the meeting must be given in
				accordance with Section 19(1) of the Act and include:
A) the time, place and purpose of the
				meeting;
B) a brief and accurate
				statement of the reasons for or against the proposed conversion, including any
				effects it could have on the shareholdings of members and the policies and
				practices of the credit union;
C) a
				ballot and details of how the ballot may be voted.
5) Proxy voting is not permitted. Ballots
				will be distributed or mailed to the members and the returned ballots shall be
				counted with those ballots of members present at the meeting. Ballots must be
				distributed or mailed at least 7 days before the date of the meeting. All
				ballots postmarked on or before the date of the meeting shall be included in
				the final vote computation.
6) A
				notarized report attesting to the accuracy of the voting shall be forwarded to
				the Secretary within 10 days after the meeting and shall contain the following
				information:
A) date of mailing and/or
				posting notice of the meeting;
B)
				date of members' meeting or any adjourned meetings;
C) number of members;
D) number of members present at
				meeting;
E) number of members
				voting for the proposal in person at the meeting and the number of members not
				at the meeting voting for the proposal by ballot.
7) If 2/3 of the voting members approve the
				proposal, and the appropriate federal or other state regulatory agency approves
				the conversion, a request to convert the charter shall be sent to the Secretary
				within 10 days after the members' meeting. If the credit union is not subject
				to any formal supervisory restraints or other supervisory proceedings and if
				the conversion is in the best interests of the members, the Secretary shall
				issue a Certificate of Conversion approving the change of chartering
				authority.
8) The credit union
				shall return its Illinois charter and Articles of Incorporation to the
				Secretary and shall record the Certificate of Conversion in the County
				Recorder's Office in the Illinois county where the credit union's office is
				located and forward the recorded information to the Secretary. The converted
				credit union shall be merely a continuation of the State of Illinois credit
				union under a new name and new jurisdiction and with revision of its corporate
				structure necessary for its proper operation under the new jurisdiction. The
				effective date of the charter conversion will be the date that the Certificate
				of Conversion is recorded at the County Recorder's Office.