(a) A credit union may, with the approval of the department and in accordance with such uniform rules and regulations as it shall make and promulgate, be merged with another credit union under the articles of such credit union. Such merger may occur regardless of whether the credit unions serve the same field of membership, so long as there is adopted a plan agreed upon by the majority of the board of each credit union joining the merger and approved by not less than a majority of the members of each credit union present and eligible to vote at meetings called for that purpose. The department may allow waiver of the member vote if, in its judgment, the merger is necessary to protect the safety and soundness of either or both credit unions. All property, property rights, and interests of the merging credit union shall, upon merger, be transferred to and vested in the continuing credit union without deed, endorsement, or other instrument of transfer; and the debts and obligations of the merging credit union shall be deemed to have been assumed by the continuing credit union; and thereafter the articles of the merging credit union shall be void.
(b) The provisions of Article 8 of Chapter 4 of Title 14, relating to merger and consolidation, shall no longer be applicable to credit unions.
(c) For purposes of this Code section, the term "credit union" shall include a federal credit union.
(d) When a credit union merges with another credit union, one shall be designated as the continuing credit union by the credit unions participating in the merger. The participating credit union that is not the continuing credit union shall be designated as the merging credit union.
(e) The department may disapprove of a merger if it finds the merger would not be consistent with safe and sound practices.
(f) The department shall, in its discretion, approve or disapprove a merger on the basis of its investigation and the criteria set forth in subsections (a) and (e) of this Code section. The department shall give written notice to:
(1) The Secretary of State of its approval of a merger along with a copy of the notice of merger; and
(2) The parties to the plan of its decision and, in the event of disapproval, a statement in general of the reasons for its decision.
(g) The rights and privileges of the members of each merging credit union shall remain intact, provided that, if any person is a member of more than one of the participating credit unions, such person shall only be entitled to one set of membership rights in the continuing credit union.
Section: Previous 7-1-657 7-1-658 7-1-659 7-1-660 7-1-661 7-1-662 7-1-663 7-1-664 7-1-665 7-1-666 7-1-667 7-1-668 7-1-669 7-1-670 NextLast modified: October 14, 2016