IMPORTANT NOTICE TO MEMBERS OF
__________________________ CREDIT UNION
California Financial Code § 15201(b) provides that the board of directors may apply to the
Commissioner of Financial Institutions for approval of a merger in accordance with a plan of
merger approved by a majority of the board of directors of each credit union that is a party to the
merger, even though less than a majority of the outstanding members of a disappearing credit union
has voted to approve the merger. In order to approve a merger in such a case, the Commissioner
must find, upon the written and verified application filed by the board of directors, that: (1) notice
of the meeting called to consider the merger, or the ballot for written vote on the merger, was
mailed to each member entitled to vote on the merger; (2) the notice or ballot disclosed the purpose
of the meeting or the written vote; (3) the notice or ballot informed the membership that approval of
the merger might be sought pursuant to Financial Code § 15201(b); and (4) a majority of the votes
cast were in favor of the merger.
This notice is to advise you that the purpose of the membership meeting scheduled for
___________________________ (date) is to vote on the question of whether this credit union
should merge with and into ____________________________ Credit Union. Further, this is to
advise you that the board of directors will make an application under Financial Code § 15201(b) for
approval of the merger in the event that a majority of all members of this credit union do not vote to
approve the merger, in person or by proxy at the meeting, or by ballot.
This sample form of notice required by Financial Code § 15201(b). This sample is provided only as
an illustration. Refer to the requirements of Financial Code Sections 15200, et seq. and
Corporations Code Sections 8010, et seq.