189—3.2(533) Authority to convert.

1. 3.2(1)  An Iowa-chartered credit union, with the approval of its members, may convert to a federal credit union, subject to applicable law, regulation and procedures of the governing recipient chartering authority, the National Credit Union Administration, and the requirements of this chapter.
2. 3.2(2)  An Iowa-chartered credit union shall remain responsible for the entire annual fee pursuant to Iowa Code section 533.112 during the year in which the credit union converts.

3. 3.2(3)  Disclosure to members.

   1. a. No credit union shall convert to a federal credit union without full disclosure to its members of the intents and purposes of conversion.
   2. b. If the intent to undertake a second conversion to a mutual savings bank or a savings association is among the purposes for conversion to a federal credit union, those facts and all related information shall be fully disclosed to members.
   3. c. If a further conversion to a stock institution is among the possible outcomes from the conversion, the converting Iowa-chartered credit union shall fully and accurately disclose this possibility to its members.

[ARC 0938C, IAB 8/7/13, effective 9/15/13]