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Colorado DFS to hold public hearings on changes to merger regulations

DENVER - The Colorado State Financial Services Board plans to hold a public hearing July 13 to consider the final adoption of regulations of the Colorado Division of Financial Services pertaining to credit union mergers. If the proposed rule is adopted, it will require credit unions interested in merging to...

By Staff Writer | Updated on June 26, 2001

DENVER – The Colorado State Financial Services Board plans to hold a public hearing July 13 to consider the final adoption of regulations of the Colorado Division of Financial Services pertaining to credit union mergers. If the proposed rule is adopted, it will require credit unions interested in merging to provide certain documentation to the Division of Financial Services so that the commissioner can determine that a merger would benefit the credit unions’ members and be consistent with the purpose of the laws governing credit unions in Colorado. Specifically, the rule would require: * Prior approval by the commissioner of proposed notices of the meeting to members to consider and vote on the merger. This would ensure complete and accurate disclosure to the members of all material terms of the merger. * Submission of documentation acceptable to the commissioner that the boards of directors of the merging credit unions satisfied their fiduciary responsibilities to the members regarding the fairness of the terms of the merger, including any proposed financial payments or obligations to officers, directors, committee members and employees. * Submission of documentation acceptable to the commissioner that the merger would not result in the continuing credit union being in an unsafe and unsound condition after the merger. The rule also would allow the commissioner to apply the same requirements when credit unions request approval of a buy/sell agreement. Finally, the rule would allow the commissioner the authority to waive any of the requirements in the case of supervisory merger initiated by the commissioner or NCUA. -

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