6-586

6-586. Distribution of assets of liquidating
credit union

If there is either a voluntary or involuntary liquidation of a credit union the
assets of the credit union or the proceeds from any disposition of the assets shall be
applied and distributed in the following order:

1. Taxes owed to the United States, this state or any other governmental unit.

2. Secured creditors up to the fair market value of their collateral, not to exceed
the amount of their debt.

3. Costs and expenses of liquidation.

4. Wages due the employees of the credit union.

5. Costs and expenses incurred by creditors in successfully opposing the release of
the credit union from certain debts as allowed by the superintendent.

6. Debts owed to the United States or this state.

7. General creditors, secured creditors, to the extent their claims exceed the fair
market value of their collateral, and owners of deposit accounts, to the extent the
accounts are uninsured.

8. Members, to the extent of uninsured accounts, and the insuring organization that
insured the accounts of the credit union.