17-2228. Merger with other credit union, procedure; certificate requirements; assets and liabilities; cancellation of terminated credit union charter.
17-2228
17-2228. Merger with other credit union, procedure;
certificate
requirements; assets and liabilities; cancellation of terminated credit
union charter.
Any credit union, with the approval of the administrator, may merge
with
another credit union under the charter of such other credit union, pursuant
to any plan agreed upon by the majority of the board of directors of each
credit union joining in the merger, and approved by the members of each
such credit union organized under the provisions of this act, either by the
affirmative vote of a majority of those
members present at
a meeting of its members duly called for such purpose or by the affirmative
vote in writing of a majority of its members who participate in the vote
on the merger plan without a meeting.
After such
agreement by the directors and approval of the members of each credit union
organized under the provisions of this act,
the president or chairperson of the board and secretary of each credit union
organized under the provisions of this act,
shall execute in
triplicate, a certificate of merger, which shall set forth all of the
following:
(a) The time and place of the meeting of the board of directors at which
the plan was agreed upon;
(b) the vote in favor of adoption of the plan;
(c) a copy of the resolution or other action by which the plan was
agreed upon;
(d) the time and place of the meeting of the members at which the plan
agreed upon was approved; and
(e) the vote by which the plan was approved by the members.
Such certificates, in triplicate, a copy of the plan of merger
agreed upon,
and any necessary approvals or consents for a merging credit union organized
under the provisions of any other jurisdiction
shall be forwarded to the administrator. Upon receipt of these
documents, the administrator shall determine whether
the merger meets the
statutory requirements for field of membership set forth in K.S.A. 17-2205, and
amendments
thereto. If the merger is approved, a copy of the
certificate, certified by the administrator, shall be returned
to the merging credit
unions within 30 days.
The date of certification of the merger by the administrator shall constitute
the date of approval.
Upon any such merger so effected, all
property, property rights and interest of the merged credit union shall
vest in the continuing credit union without deed, endorsement or other
instrument of transfer, and all debts, obligations and liabilities of the
merged credit union shall be deemed to have been assumed by the continuing
credit union under whose charter the merger was effected.
This section shall be construed, whenever possible, to permit a credit
union chartered under any other act to merge with one chartered under this
act or to permit one chartered under this act to merge with one chartered
under any other act. The charter of the terminating credit union shall upon
merger be canceled and voided by operation of law.
History: L. 1963, ch. 140, § 10; L. 1968, ch. 160,
§ 14; L. 1982, ch. 102, § 8; L. 1984, ch. 90, § 2;
L. 1992, ch. 225, § 12;
L. 2008, ch. 81, § 4; July 1.