Director may order suspension, possession, reorganization, merger,consolidation, liquidation--when, procedure.
370.150. 1. The director of the division of credit unionsmay, without notice, notwithstanding the provisions of section370.140, suspend the charter or take possession and control ofthe assets, business, books and records and property of everydescription of any credit union organized under section 370.010,whenever:
(1) He has revoked the certificate of approval of thecredit union;
(2) An examination made by the director or one of his orher deputies or examiners reveals that such credit union isinsolvent, or that its continuance in business will seriouslyjeopardize the safety of the deposits of its members or itscreditors;
(3) It has failed to comply with any cease and desist orderissued by the director under the provisions of section 370.140;
(4) It refuses to permit the director to examine itsaffairs;
(5) The credit union board of directors requests thedirector to take possession of the credit union. Thereafter, thedirector of credit unions shall make a determination as towhether to return the credit union to the board of directors, tomerge, to consolidate or to liquidate the credit union asprovided in this chapter;
(6) It is conducting its business in an unsafe or unsoundmanner;
(7) It becomes ineligible for share insurance with theNational Credit Union Administration.
2. The director shall retain possession until such time ashe may permit it to resume business or its affairs are finallyliquidated.
3. During the time the director is in possession, he shallhave the power to operate the credit union through the agency ofa qualified person, natural or corporate, who shall act under hissupervision, and all expenses of the operation, includingcompensation of the agent and the employees of the agent, shallbe paid from the credit union's funds.
4. While in possession, the director may exercise all ofthe functions and powers given to credit unions by this chapteror the general laws of this state, and may exercise them throughthe designated agent authorized in the preceding paragraph, andshall bring and defend actions in the name of the credit union,and do any and all acts and things as are reasonable andnecessary to the conservation of the business, property andaffairs of the credit union, including calling special meetingsof the board of directors, the committees, the members of thecredit union, all of which he may attend.
5. When the director takes possession, the credit unionofficers shall convey to him all books, records, and property ofevery description of the credit union. Failure of the officersto do so shall be a misdemeanor and upon conviction shall bepunishable by a fine of five hundred dollars or by confinement inthe county jail for a period of thirty days, or by both the fineand confinement.
6. The director upon taking charge of a credit union shallas soon as practical ascertain the financial condition thereof byan examination of its affairs, and in his discretion, anappraisal of its assets.
7. If it shall appear therefrom that the credit union is ina condition to safely resume business without reorganization,consolidation or merger, and if any question of alleged violationor charges of unlawful action or unauthorized conduct of businesshas been determined, he shall return the possession, assets andconduct of the business thereof to the directors and officers.
8. If it appears that a reorganization, merger orconsolidation will be necessary before the credit union cansafely resume business and that such reorganization, merger orconsolidation is feasible, he shall propose a plan and attempt toimplement it.
9. If it shall appear that the credit union is not in acondition to safely resume business and that reorganization,merger or consolidation is not feasible, he may issue a notice ofinvoluntary liquidation and appoint a liquidating agent toliquidate the credit union.
10. At any time within thirty days after the director hastaken possession of the business and property of any credit unionunder this section, such credit union, with the approval of amajority of its board of directors, may apply to the circuitcourt in the judicial district in which the principal office ofsuch credit union is located, for an order requiring the directorto show cause why the director should not be enjoined fromcontinuing such possession. The court may, upon good causeshown, direct the director to refrain from further proceedingsand to surrender such possession of the business and property ofthe credit union back to the directors and officers.
11. The powers and authority conferred on the director bythis section, except in case of voluntary surrender, shall beconsidered as discretionary and not as mandatory, and so long asthe director acts in good faith in the matter, neither he nor hisemployees or agents shall be held liable civilly or criminally orupon their official bonds in any action taken hereunder or forany failure to act hereunder.
(RSMo 1939 § 5526, A.L. 1945 p. 689, A.L. 1945 p. 720, A. 1949 H.B. 2091, A.L. 1967 p. 509, A.L. 1985 H.B. 469, A.L. 1991 H.B. 180)
Director may order suspension, possession, reorganization, merger,consolidation, liquidation--when, procedure.
370.150. 1. The director of the division of credit unionsmay, without notice, notwithstanding the provisions of section370.140, suspend the charter or take possession and control ofthe assets, business, books and records and property of everydescription of any credit union organized under section 370.010,whenever:
(1) He has revoked the certificate of approval of thecredit union;
(2) An examination made by the director or one of his orher deputies or examiners reveals that such credit union isinsolvent, or that its continuance in business will seriouslyjeopardize the safety of the deposits of its members or itscreditors;
(3) It has failed to comply with any cease and desist orderissued by the director under the provisions of section 370.140;
(4) It refuses to permit the director to examine itsaffairs;
(5) The credit union board of directors requests thedirector to take possession of the credit union. Thereafter, thedirector of credit unions shall make a determination as towhether to return the credit union to the board of directors, tomerge, to consolidate or to liquidate the credit union asprovided in this chapter;
(6) It is conducting its business in an unsafe or unsoundmanner;
(7) It becomes ineligible for share insurance with theNational Credit Union Administration.
2. The director shall retain possession until such time ashe may permit it to resume business or its affairs are finallyliquidated.
3. During the time the director is in possession, he shallhave the power to operate the credit union through the agency ofa qualified person, natural or corporate, who shall act under hissupervision, and all expenses of the operation, includingcompensation of the agent and the employees of the agent, shallbe paid from the credit union's funds.
4. While in possession, the director may exercise all ofthe functions and powers given to credit unions by this chapteror the general laws of this state, and may exercise them throughthe designated agent authorized in the preceding paragraph, andshall bring and defend actions in the name of the credit union,and do any and all acts and things as are reasonable andnecessary to the conservation of the business, property andaffairs of the credit union, including calling special meetingsof the board of directors, the committees, the members of thecredit union, all of which he may attend.
5. When the director takes possession, the credit unionofficers shall convey to him all books, records, and property ofevery description of the credit union. Failure of the officersto do so shall be a misdemeanor and upon conviction shall bepunishable by a fine of five hundred dollars or by confinement inthe county jail for a period of thirty days, or by both the fineand confinement.
6. The director upon taking charge of a credit union shallas soon as practical ascertain the financial condition thereof byan examination of its affairs, and in his discretion, anappraisal of its assets.
7. If it shall appear therefrom that the credit union is ina condition to safely resume business without reorganization,consolidation or merger, and if any question of alleged violationor charges of unlawful action or unauthorized conduct of businesshas been determined, he shall return the possession, assets andconduct of the business thereof to the directors and officers.
8. If it appears that a reorganization, merger orconsolidation will be necessary before the credit union cansafely resume business and that such reorganization, merger orconsolidation is feasible, he shall propose a plan and attempt toimplement it.
9. If it shall appear that the credit union is not in acondition to safely resume business and that reorganization,merger or consolidation is not feasible, he may issue a notice ofinvoluntary liquidation and appoint a liquidating agent toliquidate the credit union.
10. At any time within thirty days after the director hastaken possession of the business and property of any credit unionunder this section, such credit union, with the approval of amajority of its board of directors, may apply to the circuitcourt in the judicial district in which the principal office ofsuch credit union is located, for an order requiring the directorto show cause why the director should not be enjoined fromcontinuing such possession. The court may, upon good causeshown, direct the director to refrain from further proceedingsand to surrender such possession of the business and property ofthe credit union back to the directors and officers.
11. The powers and authority conferred on the director bythis section, except in case of voluntary surrender, shall beconsidered as discretionary and not as mandatory, and so long asthe director acts in good faith in the matter, neither he nor hisemployees or agents shall be held liable civilly or criminally orupon their official bonds in any action taken hereunder or forany failure to act hereunder.
(RSMo 1939 § 5526, A.L. 1945 p. 689, A.L. 1945 p. 720, A. 1949 H.B. 2091, A.L. 1967 p. 509, A.L. 1985 H.B. 469, A.L. 1991 H.B. 180)
Director may order suspension, possession, reorganization, merger,consolidation, liquidation--when, procedure.
370.150. 1. The director of the division of credit unionsmay, without notice, notwithstanding the provisions of section370.140, suspend the charter or take possession and control ofthe assets, business, books and records and property of everydescription of any credit union organized under section 370.010,whenever:
(1) He has revoked the certificate of approval of thecredit union;
(2) An examination made by the director or one of his orher deputies or examiners reveals that such credit union isinsolvent, or that its continuance in business will seriouslyjeopardize the safety of the deposits of its members or itscreditors;
(3) It has failed to comply with any cease and desist orderissued by the director under the provisions of section 370.140;
(4) It refuses to permit the director to examine itsaffairs;
(5) The credit union board of directors requests thedirector to take possession of the credit union. Thereafter, thedirector of credit unions shall make a determination as towhether to return the credit union to the board of directors, tomerge, to consolidate or to liquidate the credit union asprovided in this chapter;
(6) It is conducting its business in an unsafe or unsoundmanner;
(7) It becomes ineligible for share insurance with theNational Credit Union Administration.
2. The director shall retain possession until such time ashe may permit it to resume business or its affairs are finallyliquidated.
3. During the time the director is in possession, he shallhave the power to operate the credit union through the agency ofa qualified person, natural or corporate, who shall act under hissupervision, and all expenses of the operation, includingcompensation of the agent and the employees of the agent, shallbe paid from the credit union's funds.
4. While in possession, the director may exercise all ofthe functions and powers given to credit unions by this chapteror the general laws of this state, and may exercise them throughthe designated agent authorized in the preceding paragraph, andshall bring and defend actions in the name of the credit union,and do any and all acts and things as are reasonable andnecessary to the conservation of the business, property andaffairs of the credit union, including calling special meetingsof the board of directors, the committees, the members of thecredit union, all of which he may attend.
5. When the director takes possession, the credit unionofficers shall convey to him all books, records, and property ofevery description of the credit union. Failure of the officersto do so shall be a misdemeanor and upon conviction shall bepunishable by a fine of five hundred dollars or by confinement inthe county jail for a period of thirty days, or by both the fineand confinement.
6. The director upon taking charge of a credit union shallas soon as practical ascertain the financial condition thereof byan examination of its affairs, and in his discretion, anappraisal of its assets.
7. If it shall appear therefrom that the credit union is ina condition to safely resume business without reorganization,consolidation or merger, and if any question of alleged violationor charges of unlawful action or unauthorized conduct of businesshas been determined, he shall return the possession, assets andconduct of the business thereof to the directors and officers.
8. If it appears that a reorganization, merger orconsolidation will be necessary before the credit union cansafely resume business and that such reorganization, merger orconsolidation is feasible, he shall propose a plan and attempt toimplement it.
9. If it shall appear that the credit union is not in acondition to safely resume business and that reorganization,merger or consolidation is not feasible, he may issue a notice ofinvoluntary liquidation and appoint a liquidating agent toliquidate the credit union.
10. At any time within thirty days after the director hastaken possession of the business and property of any credit unionunder this section, such credit union, with the approval of amajority of its board of directors, may apply to the circuitcourt in the judicial district in which the principal office ofsuch credit union is located, for an order requiring the directorto show cause why the director should not be enjoined fromcontinuing such possession. The court may, upon good causeshown, direct the director to refrain from further proceedingsand to surrender such possession of the business and property ofthe credit union back to the directors and officers.
11. The powers and authority conferred on the director bythis section, except in case of voluntary surrender, shall beconsidered as discretionary and not as mandatory, and so long asthe director acts in good faith in the matter, neither he nor hisemployees or agents shall be held liable civilly or criminally orupon their official bonds in any action taken hereunder or forany failure to act hereunder.
(RSMo 1939 § 5526, A.L. 1945 p. 689, A.L. 1945 p. 720, A. 1949 H.B. 2091, A.L. 1967 p. 509, A.L. 1985 H.B. 469, A.L. 1991 H.B. 180)
