§ 28-7-1-19.1 — Classification as adequately capitalized or lower; net worth requirements; exception

Indiana § 28-7-1-19.1

• Jurisdiction: Indiana
• Art. 7: SPECIALIZED FINANCIAL INSTITUTIONS
• Ch. 1: Credit Unions

Text

1. (a) Beginning on the effective date of a
credit union's classification as adequately capitalized or lower, the
credit union must increase the dollar amount of the credit union's net
worth on a quarterly basis, either:
(1) in the current quarter; or
(2) on average over the current quarter and the preceding three (3)
quarters;
by an amount equal to at least one-tenth of one percent (0.1%) of the
credit union's total assets (or by a greater amount at the election of the
credit union) until the credit union is classified as well capitalized.
(b) Upon written application:
(1) made by a credit union described in subsection (a); and
(2) received by the director and the credit union's share insurer
not later than fourteen (14) days before the end of the applicable
quarter;
the director and the credit union's share insurer may permit the credit
union to increase the dollar amount of the credit union's net worth by
an amount that is less than the amount set forth in subsection (a), to the
extent the director and the credit union's share insurer determine that
the lesser amount is necessary to avoid a significant redemption of the
credit union's shares, and would further the purposes of section 19(b)
of this chapter.
(c) A decision under subsection (b) is subject to quarterly review
and revocation unless the credit union is operating under an approved
net worth restoration plan that is in accordance with the decision under
subsection (b).

Legislative History

As added by P.L.197-2023, SEC.15.