N.M. Code R. § 12.17.3.8 - MERGERS OF CREDIT UNIONS: RESULTING STATE CREDIT UNION
A. The board of directors of each merging
credit union shall, by a majority of the entire board, approve a merger plan
which shall include:
(1) a statement or
recital that the agreement is subject to approval by the director of the
financial institutions division and has been approved by a majority vote of the
members of each merging credit union;
(2) the name of each merging credit union and
location of each branch office;
(3)
individual financial reports for each merging credit union;
(4) consolidated financial reports;
(5) proposed share adjustments;
(6) provisions with respect to notification
and payment of creditors of each merging credit union;
(7) explanation of any changes relating to
insurance of members' shares and deposits resulting from the merger;
(8) with respect to the resulting credit
union:
(a) the name and location of the
principal and other offices;
(b)
the name and residence of each director to serve until the next annual meeting
of the members; and
(c) the
amendment to its charter and bylaws;
(9) such other provisions as the director of
financial institutions division may require to enable him to discharge his
duties with respect to the merger.
B. After approval by the board of directors
of each merging state credit union, the merger plan shall be submitted to the
director of financial institutions division for approval. In addition, each
merging credit union shall submit the time and place of meeting of the board of
directors at which the plan was agreed upon; the vote of the majority of the
board of directors in favor of the plan; a copy of the resolution or other
action by which the plan was agreed upon; and, if applicable, documents
required by Section
58-11-10
NMSA 1978 to form a new credit union.
C. After receipt of the documents specified
in paragraphs 8.1 and 8.2 [now Subsections A and B of 12.17.3.8 NMAC], and if
they contain the requisite information, the director of the financial
institutions division shall preliminarily approve the merger plan.
D. After preliminary approval has been
granted, each merging credit union shall conduct the membership vote on its
participation in the plan required by Section 58-11-59(D) NMSA 1978, unless the
director has waived such vote under Section 58-11-59(E) NMSA 1978.
E. The director shall grant final approval
once he determines, based on the record submitted by each merging credit union
pursuant to of Section 58-11-59(D) NMSA 1978, that the requirements for the
membership vote have been met, and if he approves the formation of any new
credit union resulting from the merger under Section
58-11-10
NMSA 1978.
F. If the director of
the financial institutions division disapproves any plan, the objections shall
be stated in writing and the merging credit unions shall be given an
opportunity to amend the merger plan to address such objections.
G. Upon the completion of the merger, the
board of directors of the surviving credit union shall submit:
(1) certification of the completion of the
merger to the director of the financial institutions division and the regional
director of the national credit union administration;
(2) financial reports of the surviving credit
union;
(3) the charters of the
merging credit union; and
(4) the
insurance certificates for the merging credit unions.
H. If the director of the financial
institutions division is satisfied that the merger has been accomplished in
accordance with the merger plan, cancellation of the charters of the credit
unions which have lost their identities in the merger shall be
effected.
Notes
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