§ 58-12-8 — Corporation; termination of membership; penalty

A. Whenever it shall appear to the board and the commissioner or supervisory agency that a member has conducted its business in an unsafe or unsound manner or has knowingly or negligently permitted any of its officers or agents to violate any provision of any law or regulation to which the member is subject, or has failed to pay any required assessment, the board and the commissioner or the supervisory agency shall give notice of their intention to terminate its insurance after a hearing before the commissioner or the supervisory agency, which hearing shall be held within thirty days of such notice. The board and the commissioner or the supervisory agency shall by order make such disposition of the matter as may be necessary to protect the stability and solvency of the corporation. B. In the event the order provides for termination of insurance, the commissioner or the supervisory agency shall order the member to give notice of such termination to its shareholders and depositors within such time and in such manner as he or it may require. In the event of failure to give the notice required to insured members as herein provided, the commissioner or supervisory agency is authorized to give such notice in such manner as he or it may determine, and for such purpose the member shall provide a list of its depositors and shareholders to the commissioner or supervisory agency. The termination of insurance shall be effective six months after the date the required notice is given. C. If any member shall fail to pay any assessment required under the Credit Union Share Insurance Corporation Act, the treasurer of the corporation shall notify the commissioner and the supervisory agency of such failure and the commissioner or the supervisory agency shall forthwith notify the member in writing.

Legislative History

1953 Comp., § 48-19A-8, enacted by Laws 1973, ch. 114, § 8; 1979, ch. 95, §