1. A banking institution, credit union, or financial institution may be converted to a cooperative financial institution under this chapter through submission of an application, which must include: a. A statement of the results of the vote to approve the conversion, along with affidavits of the president or vice president and secretary; b. A completed form, prescribed by the commissioner, requesting an amendment to the organization certificate; c. A copy of the executed bylaws to establish the cooperative financial institution; d. An application fee, as established by the commissioner by rule; and e. An affirmation from the organization granting discretionary authority to the commissioner to conduct an examination before the conversion date.

2. The commissioner shall set fees for an examination at an hourly rate sufficient to cover all reasonable expenses of the department associated with the examination. Fees

must be collected by the commissioner, transferred to the state treasurer, and deposited in the financial institutions regulatory fund.

3. When the commissioner determines all requirements have been met, the commissioner shall notify the applicant and the state banking board. The board shall instruct the secretary of state to issue an amended organization certificate for the converted organization to operate as a cooperative financial institution. After issuance of the amended organization certificate, the organization becomes a cooperative financial institution and ceases to operate as originally organized. The cooperative financial institution is vested with all assets of the prior organization and is responsible for all of the obligations of the converted organization to the same extent as though the conversion had not taken place.