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Conversion from Federal credit union - 17 Pa. Cons. Stat. § 1102

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     § 1102.  Conversion from Federal credit union.
        (a)  General rule.--A Federal credit union may be converted
     into a credit union subject to the provisions of this title by:
            (1)  Complying with all Federal requirements requisite to
        enabling it to convert to a credit union or to cease being a
        Federal credit union.
            (2)  Filing with the department proof of compliance with
        such Federal requirements in form satisfactory to the
        department.
            (3)  Filing with the department, together with such
        reasonable fees as shall be established by the department,
        including an application fee and fees for such examination
        and such investigation as it may deem necessary, articles of
        conversion which shall set forth:
                (i)  The proposed name of the converted credit union.
                (ii)  The exact location of the principal place of
            business of the credit union into which the Federal
            credit union plans to become converted.
                (iii)  The number, names and addresses of the persons
            to be the first directors of the converted credit union.
                (iv)  All other statements required by this title to
            be set forth in original articles of incorporation in the
            case of the formation of a credit union in so far as such
            information is applicable to a Federal credit union
            proposing to become converted into a credit union.
        (b)  Department review.--Immediately upon the receipt of the
     articles of conversion, the department shall conduct such
     examination as may be deemed necessary to ascertain from the
     best sources of information at its command:
            (1)  Whether the name of the proposed credit union
        conforms with the requirements of law for the name of a
        credit union and whether it is the same as one already
        adopted or reserved by another person or is so similar
        thereto that it is likely to mislead the public.
            (2)  Whether the conversion is made for legitimate
        purposes.
            (3)  Whether the interests of members and creditors are
        adequately protected.
            (4)  Whether the proposed credit union meets all of the
        requirements of this title and violates none of its
        prohibitions applicable to a credit union incorporated under
        this title.
            (5)  Whether the Federal credit union has complied with
        the requirements of the laws of the United States as they
        relate to the conversion of a Federal credit union into a
        credit union.
     Within 60 days after receipt of the articles of conversion, the
     department shall, upon the basis of the facts disclosed by its
     investigation, either approve or disapprove such articles.
        (c)  Approval action.--If the department approves the
     articles, it shall register its approval thereon and shall
     forward them to the Department of State for filing. Immediately
     upon receipt of the approved articles of conversion, the
     Department of State shall file the articles. The conversion
     shall become effective immediately upon such filing and the
     converted credit union shall have all the rights, privileges,
     immunities and franchises of the Federal credit union, except
     that it shall not thereafter acquire authority to engage in any
     business or exercise any right which is forbidden to a credit
     union when originally incorporated under this title.
        (d)  Disapproval action.--If the department disapproves the
     articles of conversion, it shall return them to the Federal
     credit union desiring to become converted into a credit union
     stating in detail its reasons for so doing.
        (e)  Cross reference.--See 15 Pa.C.S. § 134 (relating to
     docketing statement).
     (Dec. 9, 2002, P.L.1572, No.207, eff. 60 days)

        2002 Amendment.  Act 207 amended subsecs. (a), (b) and (d).

Last modified: November 27, 2007