(a) The department may, in its discretion, appoint itself or a third party as conservator for a credit union when the credit union:
(1) Is insolvent or in an unsafe and unsound condition;
(2) Has suspended payment of obligations without authority of law;
(3) Has violated its articles or an order, statute, rule, or regulation and the department determines that its continued control of its own affairs threatens injury to the public, the financial community, members, or creditors; or
(4) Requests the department, by its board of directors, to appoint a conservator for the benefit of members or creditors.
(b) The right of the department to act as conservator of a credit union shall be in addition to all other rights, remedies, and powers of the department.
(c) The department may, in its discretion, before or after taking conservatorship, petition the principal court of a credit union for the appointment of a conservator pursuant to Code Section 7-1-643.
(d) The conservator shall conduct the business of the credit union and take steps toward the removal of the causes and conditions that have necessitated the appointment of a conservator. The conservator shall be immediately authorized to:
(1) Assume all powers of the members, directors, officers, and committees of the credit union;
(2) Take charge of the credit union and all of its property, books, records, and effects;
(3) Take any and all actions to operate the credit union in its own name or to conserve its assets as directed by the department, including, but not limited to, terminating or adopting any executory contracts to which the credit union may be a party;
(4) Take all necessary measures to preserve, protect, and recover any assets or property of the credit union, including any claim or cause of action belonging to or which may be asserted by the credit union, and administer the same in its own name as conservator;
(5) File, prosecute, and defend any suit that has been filed or may be filed by or against the credit union that is deemed by the conservator to be necessary to protect all interested parties or any property affected thereby;
(6) Exercise all rights, powers, and duties conferred on the credit union by this chapter; and
(7) Take any other actions that are necessary or incidental to carrying out the role of conservator.
(e) The conservator shall make reports to the department from time to time as may be required by the department.
Section: 7-1-640 7-1-641 7-1-642 7-1-643 7-1-644 7-1-645 NextLast modified: October 14, 2016