Information and Procedure to Convert from a Federal Credit Union to a New York State Chartered Credit Union

Please refer to the Department's Application Fee Schedule to determine the proper fee for the application being filed.

Any federal credit union having its principal place of business in New York State may convert itself into a state credit union, pursuant to Section 486 of the New York Banking Law, which provides as follows:

A meeting of shareholders must be held upon not less than ten days’ written notice to each shareholder. This notice must be either served personally or mailed to the shareholder at his or her last known address and contain a statement of the time, place and purpose of such meeting. If the laws of the United States prescribe a different period of time or manner of communicating notice to each shareholder, then a meeting of the shareholders must be held in conformity with the U.S. law. Proof by affidavit of due service of such notice shall be filed in the office of the credit union before or at the time of such meeting.

At such meeting, a majority of the shareholders represented at the meeting may, by an affirmative vote, in person or by proxy, authorize the conversion to state-charter. If the laws of the United States require a different affirmative vote, such vote will apply in lieu of the state law requirement.

A copy of the minutes of such meeting, certified by the presiding officer and by the secretary/recording officer of the meeting, must be filed in the office of the Superintendent of Financial Services within thirty days after the date of such meeting.

The applicant must file an Organization Certificate as required by Section 450 of the Banking Law, executed by a majority of its directors, and proposed by-laws as required by Section 451 of the Banking Law.

Within sixty days after the application is filed with the Department, or such later date as the Superintendent may determine, the federal credit union must take the action prescribed or authorized by the laws of the United States to effect the conversion. A copy of any consents or authorizations required of such federal credit union pursuant to Federal law must be filed in the Office of the Superintendent.

Following review of the application and review of the latest National Credit Union Administration ("NCUA") examination report of the applicant, the Superintendent, if deemed necessary, may request an examination of the applicant by State bank examiners before action is taken upon the application.

Approval by the Superintendent will be conditioned upon the continued insurance of the applicant’s share accounts to the extent permitted by Federal law.

When the Superintendent is satisfied that all conditions have been met and approves and files the Organization Certificate and proposed By-laws and issues the Authorization Certificate, the credit union will cease to be a federal credit union and will be converted into a State-chartered credit union.

The applicant is to submit THREE copies of a letter application together with the following required documentation:

  • description of the credit union including total asset size, a detailed discussion of the credit union’s field of membership including number of members, common bond(s)/employer(s), geographic area, number of stations and locations, etc.
  • Organization Certificate for a State-chartered credit union.
  • proposed by-laws (must conform to current State law).
  • list of directors including home address and occupation.
  • list of officers, members of the Supervisory Committee and members of the Credit Committee, if any.
  • copy of notification of shareholders’ meeting and all information provided to shareholders.
  • copy of the latest Supervisory Committee audit report.
  • minutes of meeting of the shareholders as discussed above.
  • copies of all notices, consents and authorizations required by Federal law and regulations, if any, in connection with the conversion.
  • opinion of counsel for the applicant as to compliance with all requirements of Federal and State law in connection with the conversion.
  • Oath of Director, Oath of Officer and Oath of Committee Member

It is suggested that you contact the NCUA to obtain their requirements for conversion from federal to State charter.

You may wish to contact the Credit Union Association New York to assist you with the conversion process:

Credit Union Association of New York
1021 Watervliet-Shaker Road
Albany, New York 12205
Ph: (800) 342-9835

If you decide to proceed with the conversion to a State charter, please call the Department of Financial Services so that we may schedule a pre-application meeting with you and representatives of the credit union to discuss any questions that you may have and to give you a better understanding of the conversion process.