Senate
Study
Bill
1177
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
DEPARTMENT
OF
COMMERCE/CREDIT
UNION
DIVISION
BILL)
A
BILL
FOR
An
Act
relating
to
procedural
requirements
for
the
merger
of
1
state
credit
unions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
1200DP
(5)
88
gh/rn
S.F.
_____
H.F.
_____
Section
1.
Section
533.401,
Code
2019,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
1A.
Prior
to
the
sending
of
notice
of
3
balloting
for
the
membership
vote
on
a
merger,
a
merging
credit
4
union
shall
submit
to
the
superintendent
all
materials
to
5
be
included
in
the
notice
at
least
fifteen
days
before
the
6
notice
is
sent
to
the
members.
The
superintendent
shall
review
7
and
approve
the
materials
to
be
included
in
the
notice
at
8
least
ten
days
before
the
notice
is
sent
to
the
members.
The
9
superintendent
may
direct
any
materials
to
be
included
in
the
10
notice
of
balloting
sent
to
members.
11
Sec.
2.
Section
533.401,
subsection
3,
Code
2019,
is
amended
12
by
adding
the
following
new
paragraph:
13
NEW
PARAGRAPH
.
0a.
All
materials
included
in
the
notice
of
14
balloting
for
the
membership
vote
on
the
merger
were
reviewed
15
and
approved
by
the
superintendent
pursuant
to
subsection
1A.
16
EXPLANATION
17
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
18
the
explanation’s
substance
by
the
members
of
the
general
assembly.
19
Current
law
provides
that
a
state
credit
union
may
merge
20
with
another
credit
union
if
the
merger
is
pursuant
to
a
plan
21
agreed
upon
by
a
majority
of
the
board
of
directors
of
each
22
credit
union
joining
in
the
merger
and
the
merger
is
approved
23
by
a
majority
vote
of
the
members
of
the
merging
credit
union.
24
A
merging
credit
union
must
provide
notice
of
balloting
for
25
the
vote
to
the
members
of
the
merging
credit
union
entitled
26
to
vote
on
the
merger
at
least
20
days
prior
to
the
scheduled
27
vote.
28
This
bill
provides
that
prior
to
the
sending
of
notice
of
29
balloting
for
the
membership
vote
on
a
merger,
a
merging
credit
30
union
shall
submit
to
the
superintendent
of
credit
unions
31
all
materials
included
in
the
notice
at
least
15
days
before
32
the
notice
is
sent
to
the
members.
The
superintendent
shall
33
review
and
approve
the
materials
to
be
included
in
the
notice
34
at
least
10
days
before
the
notice
is
sent
to
the
members.
The
35
-1-
LSB
1200DP
(5)
88
gh/rn
1/
2
S.F.
_____
H.F.
_____
superintendent
may
direct
any
materials
to
be
included
in
the
1
notice.
The
bill
provides
that
the
superintendent
must
review
2
and
approve
all
materials
included
in
the
notice
as
provided
in
3
the
bill,
along
with
other
procedural
requirements
set
forth
in
4
Code
section
533.401(3),
in
order
to
approve
a
merger.
5
-2-
LSB
1200DP
(5)
88
gh/rn
2/
2