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ND HB1131
Bill
AI Summary
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Increases experience requirements for state credit union board members from three to five years for those serving as officers, directors, or committee members of North Dakota or federally chartered credit unions.
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Expands the Department of Financial Institutions' authority to issue cease and desist orders and assess civil money penalties against credit unions and their officers for unsafe practices, regulatory violations, and specific violations including improper loans and inaccurate reporting.
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Allows credit unions to conduct member meetings and voting by electronic communication and permits credit committees to be appointed by the board or elected by members using methods specified in bylaws.
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Establishes net worth categories for credit unions (well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized) with specific ratios and allows the board to require net worth restoration plans and take corrective actions.
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Clarifies that merged credit unions' former main offices become branches of the continuing credit union without requiring separate branch applications, and allows the commissioner to examine federal credit unions proposing to merge into state-chartered credit unions at an hourly fee.
Legislative Description
State credit union board member experience, clarification of regulated entities, civil money penalties, credit union board powers, prompt corrective actions relating to credit unions, use of electronic communications for credit union meetings, election or appointment of credit union committees, credit union supervision of loans, and credit union mergers; and to provide a penalty.
Last Action
Filed with Secretary Of State 03/28
4/14/2011