Court Opinions

State Laws

US Code

US Constitution

Approval of voluntary dissolution - 17 Pa. Cons. Stat. § 1302

Legal Research Home > Pennsylvania Statutes

     § 1302.  Approval of voluntary dissolution.
        (a)  General rule.--The procedure for voluntary dissolution
     shall be as follows:
            (1)  A plan of dissolution, setting forth in detail the
        number of liquidating trustees, which shall be one, three or
        five, to be elected by the members, the amount of the bond
        which shall be supplied by each of the liquidating trustees
        and the powers, duties and compensation of such trustees,
        shall be adopted by a vote of at least two-thirds of all
        directors of the credit union.
            (2)  A meeting of the membership shall be called for the
        purpose of acting on the plan of dissolution. Written notice
        setting forth the date and purpose of such meeting shall be
        furnished each member at least ten days prior to the date of
        the meeting. The plan of dissolution shall be adopted upon
        the affirmative vote of a majority of the entire membership
        of the credit union in person or by written ballot.
            (3)  Upon approval of the plan, the members shall
        forthwith proceed to elect the number of liquidating trustees
        provided for in the plan of dissolution. If more than one
        liquidating trustee is to be elected, each member shall have
        the right to multiply his vote by the number of trustees to
        be elected and cast the whole number of such votes for one
        candidate or distribute them among two or more candidates.
        The candidates receiving the highest number of votes up to
        the number of liquidating trustees to be chosen shall be
        elected.
            (4)  A certificate of election to dissolve signed by a
        duly authorized officer of the credit union shall be executed
        and delivered to the department. The certificate shall set
        forth:
                (i)  The name of the credit union.
                (ii)  The exact location of its place of business.
                (iii)  The names and addresses of its officers and
            directors.
                (iv)  The number of directors voting for, and the
            number voting against, the proposed plan of voluntary
            dissolution.
                (v)  The total number of members and the number of
            members voting for, and the number voting against, the
            proposed plan of voluntary dissolution.
                (vi)  The names and addresses of the proposed
            liquidating trustees and the number of votes received by
            every candidate for the position of liquidating trustee.
                (vii)  The amount of the bond required to be supplied
            by each trustee.
                (viii)  A verified statement by each of the proposed
            liquidating trustees stating that he is willing to serve
            as liquidating trustee, subject to the provisions of this
            chapter and to the terms of the proposed plan of
            voluntary dissolution, that he will, so far as the duty
            devolves upon him, diligently and honestly liquidate the
            affairs of the credit union, and will not knowingly
            violate or permit to be violated any of the provisions of
            this chapter or of the proposed plan of voluntary
            liquidation.
                (ix)  The proposed plan of voluntary dissolution.
        (b)  Department review.--Upon receipt of the certificate of
     election to dissolve, the department shall conduct an
     examination or an investigation, or take such other action as it
     deems necessary, to determine whether to approve the plan of
     voluntary dissolution. If the department determines that the
     plan of voluntary dissolution does not prejudice the interests
     of members or creditors, it shall endorse its approval on the
     certificate of election to dissolve and send it to the
     Department of State for filing. If the department disapproves
     the plan, it shall return the certificate to the credit union
     stating in detail its reasons for doing so.
        (c)  Effect of filing certificate.--Upon the filing by the
     Department of State of the certificate of election to dissolve,
     the Department of State shall furnish a copy thereof to the
     department and the credit union. Upon such filing, the credit
     union shall cease to transact its business, and the liquidating
     trustee or trustees shall commence the liquidation of the credit
     union. The liquidating trustee or trustees shall thereafter be
     authorized to carry out, in his own name or in their own names
     as liquidating trustee or trustees of the credit union, the
     powers granted to him or them by the plan of voluntary
     dissolution and may sue and be sued for the purpose of
     determining and enforcing the debts due the credit union and its
     obligations.
        (d)  Cross reference.--See 15 Pa.C.S. § 134 (relating to
     docketing statement).
     (Dec. 9, 2002, P.L.1572, No.207, eff. 60 days)

        2002 Amendment.  Act 207 amended subsecs. (a)(4), (b) and
     (c).

Last modified: November 27, 2007