Senate File 506 - IntroducedA Bill ForAn Act 1relating to procedural requirements for the merger of
2state credit unions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 533.401, Code 2019, is amended by adding
2the following new subsection:
3   NEW SUBSECTION.  1A.  Prior to the sending of notice of
4balloting for the membership vote on a merger, a merging credit
5union shall submit to the superintendent all materials to
6be included in the notice at least fifteen days before the
7notice is sent to the members. The superintendent shall review
8and approve the materials to be included in the notice at
9least ten days before the notice is sent to the members. The
10superintendent may direct any materials to be included in the
11notice of balloting sent to members.
12   Sec. 2.  Section 533.401, subsection 3, Code 2019, is amended
13by adding the following new paragraph:
14   NEW PARAGRAPH.  0a.  All materials included in the notice of
15balloting for the membership vote on the merger were reviewed
16and approved by the superintendent pursuant to subsection 1A.
17EXPLANATION
18The inclusion of this explanation does not constitute agreement with
19the explanation’s substance by the members of the general assembly.
   20Current law provides that a state credit union may merge
21with another credit union if the merger is pursuant to a plan
22agreed upon by a majority of the board of directors of each
23credit union joining in the merger and the merger is approved
24by a majority vote of the members of the merging credit union.
25A merging credit union must provide notice of balloting for
26the vote to the members of the merging credit union entitled
27to vote on the merger at least 20 days prior to the scheduled
28vote.
   29This bill provides that prior to the sending of notice of
30balloting for the membership vote on a merger, a merging credit
31union shall submit to the superintendent of credit unions
32all materials included in the notice at least 15 days before
33the notice is sent to the members. The superintendent shall
34review and approve the materials to be included in the notice
35at least 10 days before the notice is sent to the members. The
-1-1superintendent may direct any materials to be included in the
2notice. The bill provides that the superintendent must review
3and approve all materials included in the notice as provided in
4the bill, along with other procedural requirements set forth in
5Code section 533.401(3), in order to approve a merger.
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