17-2246.Share insurance required; conversion to federal insurance
required, when.
(a) (1) Every credit union which is organized and operating under the laws
of
the state of Kansas, except a corporate credit union, shall insure the
shares of each shareholder of such credit union.
(2) Every credit union shall insure the shares of each shareholder of such
credit union with the national credit union share insurance fund,
or its successor, or with an insurer approved
by the state commissioner of insurance or guarantee corporation approved
by the administrator, for such purpose as hereinafter
provided in an amount not less than that provided by the national credit
union administration, except that the administrator may
grant a reasonable extension of time for compliance therewith under such
rules and regulations as the administrator
may adopt.
(b) (1) Notwithstanding the provisions of paragraph (2) of subsection
(a), every credit union which is organized and operating under the
laws of the state of Kansas and not currently insured by the national credit
union share insurance fund (NCUSIF), except a corporate credit
union,
shall make
application for insurance with the NCUSIF within 120 days of the effective date
of this act.
(2) The application for NCUSIF insurance shall be filed with the Kansas
state department of credit unions, then forwarded to the national credit union
administration.
(3) Every credit union chartered after the effective date of this act
shall obtain NCUSIF coverage prior to commencing business.
(4) The administrator may suspend the charter, merge, liquidate, or take
possession of any credit union which fails to comply with the provisions of
this section or which loses or allows such coverage to lapse.
(c) (1) Notwithstanding the provisions of paragraph (2) of subsection
(a), every credit union shall obtain a certificate of insurance from
the NCUSIF within 18 months of the effective date of this act.
(2) The administrator may extend, for a period up to 18 months, the date
by which a credit union must obtain such certificate upon satisfactory evidence
that the credit union has made and is making good faith efforts to acquire the
coverage.
(3) Any credit union which is unable to comply with this subsection shall
be liquidated by the administrator, unless the administrator approves the
merger or consolidation of such credit union with a NCUSIF insured credit
union.
(4) Every credit union shall maintain their current share insurance during
the conversion process.
(d) Every credit union shall forward a copy of the NCUSIF certificate of
insurance to the administrator within 30 days after the credit union receives
the certificate.
(e) (1) Every credit union 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.
(2) The administrator shall order the merger, consolidation, or
liquidation of any credit union whose NCUSIF insurance is terminated.
(f) No bylaw amendment of any nonfederal insurer shall be binding upon any
Kansas credit union unless and until approved by the Kansas state department of
credit unions.
History: L. 1975, ch. 136, § 1; L. 1981, ch. 103, § 1;
L. 1991, ch. 78, § 1;
L. 1992, ch. 225, § 23; July 1.
17-2246.Share insurance required; conversion to federal insurance
required, when.
(a) (1) Every credit union which is organized and operating under the laws
of
the state of Kansas, except a corporate credit union, shall insure the
shares of each shareholder of such credit union.
(2) Every credit union shall insure the shares of each shareholder of such
credit union with the national credit union share insurance fund,
or its successor, or with an insurer approved
by the state commissioner of insurance or guarantee corporation approved
by the administrator, for such purpose as hereinafter
provided in an amount not less than that provided by the national credit
union administration, except that the administrator may
grant a reasonable extension of time for compliance therewith under such
rules and regulations as the administrator
may adopt.
(b) (1) Notwithstanding the provisions of paragraph (2) of subsection
(a), every credit union which is organized and operating under the
laws of the state of Kansas and not currently insured by the national credit
union share insurance fund (NCUSIF), except a corporate credit
union,
shall make
application for insurance with the NCUSIF within 120 days of the effective date
of this act.
(2) The application for NCUSIF insurance shall be filed with the Kansas
state department of credit unions, then forwarded to the national credit union
administration.
(3) Every credit union chartered after the effective date of this act
shall obtain NCUSIF coverage prior to commencing business.
(4) The administrator may suspend the charter, merge, liquidate, or take
possession of any credit union which fails to comply with the provisions of
this section or which loses or allows such coverage to lapse.
(c) (1) Notwithstanding the provisions of paragraph (2) of subsection
(a), every credit union shall obtain a certificate of insurance from
the NCUSIF within 18 months of the effective date of this act.
(2) The administrator may extend, for a period up to 18 months, the date
by which a credit union must obtain such certificate upon satisfactory evidence
that the credit union has made and is making good faith efforts to acquire the
coverage.
(3) Any credit union which is unable to comply with this subsection shall
be liquidated by the administrator, unless the administrator approves the
merger or consolidation of such credit union with a NCUSIF insured credit
union.
(4) Every credit union shall maintain their current share insurance during
the conversion process.
(d) Every credit union shall forward a copy of the NCUSIF certificate of
insurance to the administrator within 30 days after the credit union receives
the certificate.
(e) (1) Every credit union 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.
(2) The administrator shall order the merger, consolidation, or
liquidation of any credit union whose NCUSIF insurance is terminated.
(f) No bylaw amendment of any nonfederal insurer shall be binding upon any
Kansas credit union unless and until approved by the Kansas state department of
credit unions.
History: L. 1975, ch. 136, § 1; L. 1981, ch. 103, § 1;
L. 1991, ch. 78, § 1;
L. 1992, ch. 225, § 23; July 1.
17-2246.Share insurance required; conversion to federal insurance
required, when.
(a) (1) Every credit union which is organized and operating under the laws
of
the state of Kansas, except a corporate credit union, shall insure the
shares of each shareholder of such credit union.
(2) Every credit union shall insure the shares of each shareholder of such
credit union with the national credit union share insurance fund,
or its successor, or with an insurer approved
by the state commissioner of insurance or guarantee corporation approved
by the administrator, for such purpose as hereinafter
provided in an amount not less than that provided by the national credit
union administration, except that the administrator may
grant a reasonable extension of time for compliance therewith under such
rules and regulations as the administrator
may adopt.
(b) (1) Notwithstanding the provisions of paragraph (2) of subsection
(a), every credit union which is organized and operating under the
laws of the state of Kansas and not currently insured by the national credit
union share insurance fund (NCUSIF), except a corporate credit
union,
shall make
application for insurance with the NCUSIF within 120 days of the effective date
of this act.
(2) The application for NCUSIF insurance shall be filed with the Kansas
state department of credit unions, then forwarded to the national credit union
administration.
(3) Every credit union chartered after the effective date of this act
shall obtain NCUSIF coverage prior to commencing business.
(4) The administrator may suspend the charter, merge, liquidate, or take
possession of any credit union which fails to comply with the provisions of
this section or which loses or allows such coverage to lapse.
(c) (1) Notwithstanding the provisions of paragraph (2) of subsection
(a), every credit union shall obtain a certificate of insurance from
the NCUSIF within 18 months of the effective date of this act.
(2) The administrator may extend, for a period up to 18 months, the date
by which a credit union must obtain such certificate upon satisfactory evidence
that the credit union has made and is making good faith efforts to acquire the
coverage.
(3) Any credit union which is unable to comply with this subsection shall
be liquidated by the administrator, unless the administrator approves the
merger or consolidation of such credit union with a NCUSIF insured credit
union.
(4) Every credit union shall maintain their current share insurance during
the conversion process.
(d) Every credit union shall forward a copy of the NCUSIF certificate of
insurance to the administrator within 30 days after the credit union receives
the certificate.
(e) (1) Every credit union 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.
(2) The administrator shall order the merger, consolidation, or
liquidation of any credit union whose NCUSIF insurance is terminated.
(f) No bylaw amendment of any nonfederal insurer shall be binding upon any
Kansas credit union unless and until approved by the Kansas state department of
credit unions.
History: L. 1975, ch. 136, § 1; L. 1981, ch. 103, § 1;
L. 1991, ch. 78, § 1;
L. 1992, ch. 225, § 23; July 1.
