Bill > HB1507

This bill creates a new legal framework for cooperative financial institutions in North Dakota, establishing comprehensive rules for their formation, governance, conversion, and operation. The legislation defines a cooperative financial institution as a nonprofit organization without capital stock, operated for mutual purposes and subject to supervision by state and federal authorities. The bill outlines detailed procedures for establishing new cooperative financial institutions, including requirements for originating members, organization certificates, and board approval processes. It also provides guidelines for membership, voting rights, board composition, and annual meetings, specifying that members are entitled to one vote and that boards must have between five and fifteen members, with staggered terms and specific qualifications. The bill allows for conversion between different types of financial institutions (such as credit unions, banks, and cooperative financial institutions) with specific procedural requirements, including member voting and regulatory approvals. Additionally, the legislation amends multiple existing sections of North Dakota law to integrate cooperative financial institutions into the state's financial regulatory framework, addressing areas like definitions, application fees, liquidation processes, and regulatory oversight. The bill aims to provide a flexible and member-focused alternative to traditional banking structures, with robust governance and member participation mechanisms.

Budget and Finance, Business and Industry

https://ndlegis.gov/assembly/69-2025/regular/bill-overview/bo1507.html