§ 6.1-225.8. Powers of Commission in case of nonobservance of law, noncompliance with orders, insufficient reser...
If the Commission finds that (i) a credit union is in violation of some law or regulation applicable to it, (ii) a credit union is being operated in an unsafe or unsound manner, (iii) a credit union has failed to comply with a lawful order of the Commissioner, (iv) the reserve of the credit union fails to meet the requirements set forth in § 6.1-225.58, or (v) a credit union is, or is about to become, insolvent, it shall give immediate notice of its finding to the officers and directors of the credit union. If necessary to conserve the assets of the credit union or protect the interests of the members of the credit union, the Commission may, after reasonable notice to the credit union and an opportunity for it to be heard:
1. Close the credit union for a period not exceeding sixty days, which period may be extended for additional like periods as the Commission may deem necessary;
2. Require the officers and directors of the credit union to liquidate outstanding loans;
3. Require that all lawful orders of the Commission be complied with;
4. Require the credit union to make reports daily or otherwise as to the results achieved in carrying out its orders;
5. Temporarily suspend the right of such credit union to receive any further investment in its share accounts;
6. Grant the right to suspend or limit withdrawals against share accounts for such period as the Commission may deem necessary;
7. Appoint a conservator to take charge of the credit union and operate it pending further action by the Commission.
If the Commission determines that a credit union is insolvent and that a receiver should be appointed, the Commission may close the doors of the credit union, take charge of the books, assets and affairs of the credit union, and apply to any court in the Commonwealth having jurisdiction to appoint receivers for the appointment of a receiver to take charge of the credit union's business and assets. A credit union shall be deemed insolvent when the current value of its assets is less than the current value of the sum of its share accounts and liabilities.
(1975, c. 34, § 6.1-200.2; 1988, c. 309; 1990, c. 373.)
Sections: Previous 6.1-225.2 6.1-225.3 6.1-225.3:1 6.1-225.4 6.1-225.5 6.1-225.6 6.1-225.7 6.1-225.8 6.1-225.9 6.1-225.10 6.1-225.11 6.1-225.12 6.1-225.13 6.1-225.14 6.1-225.15 NextLast modified: April 16, 2009