ND HB1507

Creates a new category of "cooperative financial institution" in North Dakota law—defined as a member-owned, nonprofit banking institution without capital stock that operates for mutual purposes and is subject to state and federal supervision

Allows 15 or more originating members to form a cooperative financial institution with state banking board approval, requiring FDIC deposit insurance, adequate capital structure as determined by the board, and a board of directors with 5-15 members (at least two-thirds must be U.S. citizens and North Dakota residents)

Permits existing banking institutions, credit unions, and other financial institutions to convert to or from a cooperative financial institution through a member vote requiring two-thirds approval, with 45 days advance notice to membership

Establishes governance requirements including one vote per member, annual membership meetings, staggered director terms of 1-3 years, and bylaw changes requiring majority member vote or two-thirds board vote with state banking board approval

Sets application fees at $5,000 for organizing a cooperative financial institution and $5,000 for converting to one, with examination fees collected at hourly rates to cover department expenses