Involuntary dissolution: Suspension of operations; corrective actions; declaration of insolvency; liquidation.
1. If the Division determines that any credit union organized pursuant to the provisions of this chapter is bankrupt or insolvent, has willfully violated the provisions of this chapter or is operating in an unsafe or unsound manner, the Division may, if emergency action is required to protect the assets of the members, issue an order temporarily suspending the credit union’s operations. Reasonable notice of the suspension of operations and of the impending hearing shall be given to the board. Operations of the credit union shall cease upon receipt of notice from the Division.
2. At the scheduled hearing, the board shall, if it desires to continue operations, submit a plan of corrective actions. If the board desires, it may, prior to the hearing, request the Commissioner to declare the credit union insolvent and appoint a liquidating agent.
3. If the credit union is not represented at the scheduled hearing or the Division rejects the credit union’s plan to continue operations, the Commissioner may appoint a liquidating agent and dissolve the credit union.
Last modified: February 26, 2006