H*3792 Session 103 (1979-1980)
H*3792(Rat #0491, Act #0421 of 1980) General Bill, By
House Labor, Commerce and Industry
A Bill to amend Sections 34-27-40 and 34-27-270, Code of Laws of South
Carolina, 1976, relating to the incorporation of State Chartered Credit Unions
and the conversion of Federal Credit Unions to State Chartered Credit Unions
so as to provide that Federal Credit Unions which convert to State Chartered
Credit Unions may retain their membership existing at the time of conversion
but shall thereafter be limited by state requirements of a common bond of
employment or association; and to provide additional procedures by the Board
of Financial Institutions to assure the proper financial condition of any
Federal Credit Union seeking a State Charter.
04/09/80 House Introduced, read first time, placed on calendar
without reference HJ-1937
04/15/80 House Read second time HJ-2071
04/16/80 House Read third time and sent to Senate HJ-2105
04/16/80 Senate Introduced and read first time SJ-35
04/16/80 Senate Referred to Committee on Banking and Insurance SJ-35
04/24/80 Senate Committee report: Favorable Banking and Insurance SJ-12
05/01/80 Senate Read second time SJ-31
05/07/80 Senate Read third time and enrolled SJ-12
05/14/80 House Ratified R 491 HJ-2838
05/19/80 Signed By Governor
05/19/80 Effective date 05/19/80
05/19/80 Act No. 421
06/03/80 Copies available
(A421, R491, H3792)
AN ACT TO AMEND SECTIONS 34-27-40 AND 34-27-270, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO THE INCORPORATION OF STATE CHARTERED CREDIT UNIONS
AND THE CONVERSION OF FEDERAL CREDIT UNIONS TO STATE CHARTERED CREDIT UNIONS,
SO AS TO PROVIDE THAT FEDERAL CREDIT UNIONS WHICH CONVERT TO STATE CHARTERED
CREDIT UNIONS MAY RETAIN THEIR MEMBERSHIP EXISTING AT THE TIME OF CONVERSION
BUT SHALL THEREAFTER BE LIMITED BY STATE REQUIREMENTS OF A COMMON BOND OF
EMPLOYMENT OR ASSOCIATION; AND TO PROVIDE ADDITIONAL PROCEDURES BY THE BOARD
OF FINANCIAL INSTITUTIONS TO ASSURE THE PROPER FINANCIAL CONDITION OF ANY
FEDERAL CREDIT UNION SEEKING A STATE CHARTER.
Be it enacted by the General Assembly of the State of South Carolina:
Incorporation of state chartered credit unions
Section 1. Section 34-27-40 of the 1976 Code is amended to read:
"Section 34-27-40. Ten or more citizens of this State, all who have a
common bond of employment (includes employees of organizations owned in the
majority by the sponsoring employer), association, churches or church related
organizations, who have associated themselves by an agreement in writing for
the purpose of forming a cooperative credit union under the provisions of this
chapter, may apply to the State Board of Financial Institutions for a
certificate certifying that it is satisfied that the proposed field of
operation is favorable to the success of such cooperative credit union, and
that the standing of the proposed members is such as to give reasonable
assurance that its affairs will be administered in accordance with the spirit
of this chapter and upon the Board being so satisfied it shall issue such
certificate. Upon the filing of such certificate in the office of the
Secretary of State and the payment to him of a charter fee of ten dollars, the
Secretary of State shall thereupon issue to such cooperative credit union a
certificate of incorporation.
Provided, however, that when any federally chartered credit union converts
to a state chartered credit union pursuant to Section 3-27-270 and obtains a
state charter under this section, it shall be authorized to maintain its
membership existing at the time of conversion but thereafter shall be limited
in any expansion of membership by the common bond requirements of this
section."
Conversion of state chartered credit unions
Section 2. Section 34-27-270 of the 1976 Code is amended to read:
"Section 34-27-270. Any state-chartered credit union operating in the
State may convert into a federal-chartered credit union and any federal
chartered credit union may convert into a state chartered credit union upon
approval of the authority under whose supervision the converted credit union
will operate and upon compliance with applicable federal laws as to a
converted federal credit union and upon compliance with applicable state laws
as to a converted state credit union. The procedure for obtaining approval and
effecting the conversion shall be as follows:
(1) A meeting of the board of directors, either regular or special, shall be
called for the purpose of voting on converting from a federal credit union to
a state credit union or from a state credit union to a federal credit union. A
majority of the board of directors shall adopt a resolution approving the
contemplated conversion.
(2) A meeting, either regular or special, of the shareholders shall then be
called for voting on the proposed conversion. Notice of the meeting shall be
given in the manner prescribed in the bylaws, and it shall be given not more
than thirty days nor less than ten days prior to the date of the meeting.
Proof of giving of the notice shall be by the affidavit of the president of
the credit union. A majority of the members present at this meeting shall then
approve the proposed conversion.
(3) Within ten days after the approval of the conversion by the majority of
the shareholders, the president, vice-president or treasurer shall file a
verified copy of the resolution adopted by the board of directors with the
state or federal authority under whose supervision the converting credit union
is to operate.
(4) Prior to the issuance of the articles of incorporation to a federal
credit union converting to a state chartered credit union the State Board of
Financial Institutions shall examine the records of the credit union seeking
conversion along with its bylaws and proposed articles of incorporation to
determine its financial condition and ability and intention to comply with
state law. Unless the Board approves the issuance of the proposed articles of
incorporation they shall not be issued.
(5) Upon the filing of the articles of incorporation with the proper state
or federal authorities and with the written approval of the state authorities
for credit unions applying for conversion to state credit unions or with the
written approval of the federal authorities for credit unions applying for
conversion to federal credit unions, the converting credit union shall, upon
compliance with all other applicable state or federal laws, become a credit
union under the laws of this State or the United States, as the case may be;
and thereupon, all assets shall become the property of the new state or
federal credit union, as the case may be, subject to all existing liabilities
against the credit union, and every person who was a shareholder or member of
the converting credit union shall be a shareholder in the new state or federal
chartered credit union in like amount.
(6) In consummation of the conversion, the old credit union may execute,
acknowledge and deliver to the newly chartered credit union instruments of
transfer necessary to accomplish the transfer of any property and all right,
title and interest therein."
Time effective
Section 3. This act shall take effect upon approval by the Governor. |