17-2229.   Sale or purchase of assets to or of another credit union;agreement; approval of administrator; approval of shareholders; effectivedate; dissolution of selling credit union; reserves.(a) A credit union may sell all or any part of its assets to anothercredit union or it may purchase all or any part of the assets of anothercredit union in accordance with this section.

      (b)   The purchasing credit union may assume, as part of the purchaseprice, any or all of the liabilities of the selling credit union and maypay the balance in cash or by the issue of shares to the selling creditunion of the members thereof whether or not such members are members of thepurchasing credit union.

      (c)   The selling credit union shall enter into an agreement with thepurchasing credit union containing the terms and conditions of the sale,and the selling credit union shall within one (1) month after the agreementis signed file a copy thereof with the administrator. The agreement shallbe approved or disapproved by the administrator within thirty (30) days,otherwise the same shall be deemed approved.

      (d)   If and when the agreement is approved by the administrator, each ofthe credit unions shall submit it to a meeting of its shareholders statingthe purpose for which the meetings are called.

      (e)   If the agreement is approved by the shareholders of each of thecredit unions by at least three-fourths (3/4) vote of the shareholderspresent at each meeting, the secretary of each credit union shall certifyon the agreement that it has been so approved and shall forward a copy ofthe agreement so certified to the administrator.

      (f)   Upon the approval of the shareholders of each of the credit unions,the agreement is binding on each of the credit unions and the sale shallthereafter be completed as of the effective date specified in the agreementwhich shall be a date subsequent to the approval by the shareholders ofeach of the credit unions.

      (g)   In the event the agreement does not specify an effective date, theadministrator may fix a date upon which it will become effective.

      (h)   If the selling credit union has disposed of all assets under theagreement, it shall cease to carry on business on the effective date ofagreement, except for the purpose of winding up its affairs, and it shalldissolve as soon as possible thereafter, and all reserves shall go to thepurchasing credit union under the terms and conditions of the agreement.

      History:   L. 1963, ch. 140, § 11; L. 1968, ch. 160,§ 15; March 26.