§ 370.362 — Insurance required, contents — failure to obtain or maintain, effect — exceptions — limitations of insurers.

Missouri § 370.362

• Jurisdiction: Missouri
• Title XXIV: BUSINESS AND FINANCIAL INSTITUTIONS
• Ch. 370: Credit Unions

Text

1.  Every credit union incorporated under this chapter and not currently insured by the National Credit Union Share Insurance Fund (NCUSIF) shall, within ninety days of March 7, 1991, make application for insurance with the NCUSIF.  Such application for NCUSIF insurance shall be filed with the division of credit unions and forwarded to the National Credit Union Administration.  The director may suspend the charter, merge, liquidate, or take possession of any credit union which fails to comply with this section or which loses or allows such coverage to lapse.  All newly chartered credit unions shall obtain NCUSIF coverage prior to commencing business.  All credit unions chartered and existing under this chapter shall maintain their current share insurance during the conversion process, but if a nonfederal insurer which is providing share insurance for a credit union in this state discontinues providing such insurance for the credit union during the period allowed in subsection 2 of this section for the conversion from nonfederal share insurance to NCUSIF insurance, the credit union cannot be forced to discontinue doing business in this state during the time period allowed for such conversion if the credit union is complying with all other provisions of chapter 370 and rules and regulations promulgated by the director of the division of credit unions and such credit union provides satisfactory evidence to the director of the division of credit unions that the credit union is making and has made good faith efforts to acquire NCUSIF share insurance.

2.  Every credit union incorporated under this chapter shall obtain a certificate of insurance from the NCUSIF within twenty-four months of March 7, 1991.  The director may extend, for a period not to exceed twelve months, the date by which a credit union must secure such certificate upon satisfactory evidence that the credit union has made and is making good faith efforts to acquire the coverage.  Any credit union that fails to comply with this subsection shall be liquidated by the director, unless the director approves the merger or consolidation of a credit union with an NCUSIF insured credit union.

3.  A credit union shall forward a copy of the certificate of insurance to the director promptly and in no event later than thirty days after receipt.

4.  Every credit union organized under this chapter shall take every action legally required to maintain NCUSIF insurance coverage in full force and effect, and shall refrain or desist from taking any action that is likely to cause termination of NCUSIF insurance coverage.  The director shall order the merger, consolidation or liquidation of any credit union whose NCUSIF insurance is terminated.

5.  This act * shall not apply to any credit union organized pursuant to section 370.365 .

6.  When a credit union that has been insured by a nonfederal insurer converts its share insurance to the National Credit Union Share Insurance Fund the nonfederal insurer shall immediately return to such credit union the amount of unearned premiums, paid-in capital contribution and special assessments that the credit union has paid to such nonfederal insurer, unless the credit unions, which are members of such nonfederal insurer subsequent to March 7, 1991, agree otherwise.

7.  No bylaw amendment of any nonfederal insurer shall be binding upon any Missouri credit union unless and until approved by the Missouri division of credit unions.

8.  No special assessment or fee may be imposed upon any Missouri credit union by any nonfederal insurer unless and until approved by the Missouri division of credit unions.

9.  Nothing in this chapter shall preclude a nonfederal insurer from issuing private share insurance in this state in amounts in excess of the basic share insurance required by NCUSIF if the credit union desiring such insurance is insured and continues to be insured for the basic share insurance required by NCUSIF.

Legislative History

(L. 1991 H.B. 180) Effective 3-07-91 *"This act" (H.B. 180, 1991) contained numerous sections.  Consult Disposition of Sections table for a definitive listing. (1993) Where statute may impair contractual obligations of parties and is retrospective in operation, statute does not violate state or federal constitution's contract clause because it has significant and legitimate public purpose to remedy broad general, social or economic problem and enactment of section was proper exercise of inherent police power of state.  Educational Employees Credit Union v. Mutual Guaranty Corporation, 821 F.Supp. 1294 (E.D. Mo.). (1995)  Where statute requires nonfederal insurers of Missouri credit unions to return capital contributions and special assessments upon credit union's withdrawal from membership, statute may violate Contract Clause, U. S. Const. Art. I, Sec.  10, if other similarly situated credit union members will be deprived of pro rata protection of basic share insurance fund.  Educational Employees Credit Union v. Mutual Guaranty Corp., 50 F.3d 1432 (8th Cir.).