§ 28-7-1-27.1 — Dissolution

Indiana § 28-7-1-27.1

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

Text

1. A credit union may liquidate its affairs
and dissolve in the following manner:
(1) The board of directors of a credit union may vote to submit the
question of dissolution to the shareholders.
(2) Upon the decision of the board of directors under subdivision
(1), payments on shares, withdrawal of shares, and the granting of
loans shall be immediately suspended, pending a vote by the
shareholders on the question whether to dissolve.
(3) The chairperson of the credit union shall, within ten (10) days
after the decision of the board under subdivision (1), notify the
department in writing of the reasons for the proposed dissolution.
The notice must include a certified statement of condition of the
credit union.
(4) Upon receiving the notice of dissolution, the department shall
conduct an examination of the credit union.
(5) At either an annual meeting or a special meeting, the question
of dissolution shall be approved or disapproved by the
shareholders. If approved, such approval shall be evidenced by
the written consent of no fewer than two-thirds (2/3) of the
shareholders. Upon approval by the shareholders, payments on
shares, withdrawal of shares, and granting of loans shall cease. If
two-thirds (2/3) of the vote cannot be obtained, the director may
permit the voluntary dissolution of the credit union to become
effective without the affirmative vote of its membership if the
credit union field of membership has ceased or will cease to exist.
(6) If the department finds that the credit union is solvent or that
it has sufficient assets with which to pay its shareholders and all
liabilities, it may approve the dissolution of the credit union and
shall notify the credit union in writing.
(7) Upon receipt by the credit union of notice that the resolution
for dissolution has been approved by the department, each
member and creditor shall be notified by the credit union in
writing that such credit union is in the process of dissolution.
Notification to members shall include a request that such
members verify, by passbook or in writing, shareholdings in or
loan obligations to the credit union. Notification to creditors shall
include a request that such creditors present claims to the credit
union within ninety (90) days.
(8) The credit union shall be responsible for conserving the assets
of the credit union, expediting the liquidation, discharging all of
the debts and liabilities of the credit union, and equitably
distributing the assets to the shareholders at the completion of the
liquidation. The board shall ensure that all persons handling or
having access to the funds, books, or records of the credit union
are adequately covered by a surety bond to the satisfaction of the
department.
(9) The board of directors shall forward to the department a
certified statement of condition of the credit union within ten (10)
days after the close of each month.
(10) Within thirty (30) days after the date of final distribution of
the assets of the credit union to the shareholders, the board of
directors shall furnish to the department:
(A) a summary showing how the credit union debts and
liabilities were paid;
(B) an itemized list of all credit union assets and property
distributed to the shareholders, the name of each shareholder,
the number and amount of shares held by each at the time of
distribution of assets, the amount distributed to each, and the
date of distribution; and
(C) the name and address of the custodian appointed by the
board of directors, who shall preserve the records of the credit
union for five (5) years from the date of final distribution of the
assets.
(11) The department shall file with the secretary of state triplicate
copies of the resolution for dissolution bearing the approval of the
department as prescribed in IC 28-12-5. The secretary of state
shall endorse each copy of the resolution, file one (1) copy of the
resolution, and issue and return a certificate of dissolution to the
credit union together with two (2) copies of the resolution for
dissolution.
(12) The credit union shall file with the county recorder of the
county in which the articles of incorporation were recorded one
(1) copy of the resolution for dissolution bearing the endorsement
of the secretary of state. After this filing, the credit union shall be
dissolved and its existence shall cease.
(13) The credit union shall continue in its corporate capacity for
three (3) years from the date of the resolution adopted by the
board as provided in subdivision (1), for the purpose of:
(A) discharging its debts and obligations;
(B) collecting and distributing its assets; and
(C) doing all other acts required in order to terminate its
business;
but for no other purpose.
As added by Acts 1977, P.L.294, SEC.13. Amended by
P.L.14-1992, SEC.128; P.L.263-1995, SEC.24.