§ 28-7-2.5-6 — Amounts available to members, depositors, and creditors; new shares, deposits, and assets; return of control to board

Indiana § 28-7-2.5-6

• Jurisdiction: Indiana
• Art. 7: SPECIALIZED FINANCIAL INSTITUTIONS
• Ch. 2.5: Conservatorship of Credit Unions

Text

(a) While a credit union is in conservatorship
under this chapter, the department may require the conservator to set
aside and make available for:
(1) withdrawal by members and depositors; or
(2) payment to other creditors;
on a pro rata basis, any amounts that, in the opinion of the department,
may be safely and prudently used for the purposes described in
subdivisions (1) through (2).
(b) The department may permit a conservator appointed under this
chapter to receive new shares and deposits after the credit union is
placed in conservatorship. Shares and deposits received by a
conservator while a credit union is in conservatorship are not subject
to any limitation with respect to payment or withdrawal. The
conservator shall segregate any:
(1) shares or deposits; or
(2) new assets acquired on account of shares and deposits;
received after the credit union is placed in conservatorship from the
shares, deposits, and assets held by the credit union at the time the
credit union is placed in conservatorship.
(c) A conservator shall not use any shares, deposits, or assets
received after the credit union is placed in conservatorship to:
(1) liquidate any indebtedness of the credit union existing at the
time the credit union is placed in conservatorship; or
(2) pay any subsequent indebtedness incurred to liquidate any
indebtedness of the credit union existing at the time the credit
union is placed in conservatorship.
(d) Any shares or deposits received after a credit union is placed in
conservatorship shall be:
(1) kept in cash;
(2) invested in direct obligations of the United States; or
(3) deposited in depository institutions designated by the
department.
(e) If a credit union placed in conservatorship under this chapter is
returned to the control of the credit union's board of directors, the
protections provided under subsections (b), (c), and (d) (with respect
to shares and deposits received while the credit union is in
conservatorship) do not apply after fifteen (15) days after the date
control of the credit union is returned to the board. Before returning
control of the credit union to the credit union's board, the conservator
shall publish a notice, in a form approved by the department, stating:
(1) the date on which the affairs of the credit union will be
returned to the control of the credit union's board; and
(2) that the protections provided under subsections (b), (c), and
(d) (with respect to shares and deposits received while the credit
union is in conservatorship) do not apply after fifteen (15) days
after the date identified under subdivision (1).
The conservator shall send, by United States mail, a copy of the notice
to every person that purchased shares or deposited money in the credit
union after the credit union is placed in conservatorship and before
control of the credit union is returned to the credit union's board.

Legislative History

As added by P.L.10-2006, SEC.37 and P.L.57-2006, SEC.37.