Bill > HB5780

This bill allows domestic credit unions, which are financial institutions owned by their members, to convert into mutual savings banks or mutual savings associations under specific conditions, including providing members with detailed information about the conversion, obtaining a two-thirds vote of approval from the credit union board and members, and ensuring the converted institution is economically viable. A key change is that after conversion, deposits in the new mutual savings bank or association must be insured either by a federal agency authorized to insure share and deposit accounts or by a qualified private insurance organization, which is defined elsewhere in the law. The bill also replaces references to the "commissioner" with "director," likely referring to a state financial regulatory official, and clarifies that certain existing conversion plans submitted before the bill's effective date are exempt from these new requirements.