| Passed by the House February 11, 2014 Yeas 98 ________________________________________ Speaker of the House of Representatives Passed by the Senate February 26, 2014 Yeas 49 ________________________________________ President of the Senate | I, Barbara Baker, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 2140 as passed by the House of Representatives and the Senate on the dates hereon set forth. ________________________________________ Chief Clerk | |
| Approved ________________________________________ Governor of the State of Washington | Secretary of State State of Washington |
| State of Washington | 63rd Legislature | 2014 Regular Session |
Prefiled 01/03/14. Read first time 01/13/14. Referred to Committee on Business & Financial Services.
AN ACT Relating to credit unions' mergers; and amending RCW 31.12.461.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 31.12.461 and 2013 c 34 s 10 are each amended to read
as follows:
(1) For purposes of this section, the merging credit union is the
credit union whose charter ceases to exist upon merger with the
continuing credit union. The continuing credit union is the credit
union whose charter continues upon merger with the merging credit
union.
(2) A credit union may be merged with another credit union with the
approval of the director and in accordance with requirements the
director may prescribe. The merger must be approved by a majority vote
of the board of each credit union and a ((two-thirds)) majority vote of
those members of the merging credit union voting on the merger at a
membership meeting. The requirement of approval by the members of the
merging credit union may be waived by the director if the merging
credit union is in imminent danger of insolvency.
(3) The property, rights, and interests of the merging credit union
transfer to and vest in the continuing credit union without deed,
endorsement, or instrument of transfer, although instruments of
transfer may be used if their use is deemed appropriate. The debts and
obligations of the merging credit union that are known or reasonably
should be known are assumed by the continuing credit union. The
continuing credit union shall cause to be published notice of merger
once a week for three consecutive weeks in a newspaper of general
circulation in the county in which the principal place of business of
the merging credit union is located. The notice of merger must also
inform creditors of the merging credit union how to make a claim on the
continuing credit union, and that if a claim is not made upon the
continuing credit union within thirty days of the last date of
publication, creditors' claims that are not known by the continuing
credit union may be barred. Except for claims filed as requested by
the notice, or debts or obligations that are known or reasonably should
be known by the continuing credit union, the debts and obligations of
the merging credit union are discharged. Upon merger, the charter of
the merging credit union ceases to exist.
(4) Mergers are effective after the thirty-day notice period to
creditors and all regulatory waiting periods have expired, and upon
filing of the credit union's articles of merger by the secretary of
state, or a later date stated in the articles, which in no event may be
later than ninety days after the articles are filed.