§ 6.1-225.10. (Repealed effective October 1, 2010) Supervisory merger ortransfer of assets.
A. If the Commission finds that a credit union incorporated pursuant to thischapter is insolvent, that an emergency exists, and that its merger intoanother credit union is desirable for the protection of its members, and ifthe board of directors of both credit unions approves a plan of merging suchinsolvent state credit union into another state credit union or a federalcredit union, compliance with § 13.1-895 shall be dispensed with as to bothcredit unions and the approval of the Commission of such plan of merger shallbe the equivalent of approval by more than two-thirds of the members of bothcredit unions for all purposes of Article 11 (§ 13.1-894 et seq.) and Article12 (§ 13.1-899 et seq.) of Chapter 10 of Title 13.1.
B. If the Commission finds that a state credit union is insolvent, that theacquisition of its assets by another state credit union or a federal creditunion is in the best interests of its members, and that an emergency exists,it may, with the consent of the board of directors of both credit unions asto the terms and conditions of such transfer, including the assumption of allor certain liabilities, enter an order transferring some or all of the assetsof such insolvent state credit union to such other state or federal creditunion and no compliance with the provisions of §§ 13.1-899 and 13.1-900 shallbe required.
C. In the case either of such a merger or of such a sale of assets, theCommission shall provide that prompt notice of its findings of insolvency andof the merger or sale of assets be sent to the members of record of theinsolvent state credit union for the purpose of providing such members anopportunity to challenge the finding that the state credit union isinsolvent. The relevant books and records of such insolvent credit unionshall be preserved and be made available to such members for a period ofthirty days after such notice is sent. The Commission's finding ofinsolvency shall become final if a hearing before the Commission is notrequested by any such member within such thirty-day period.
D. If, after such hearing provided in subsection C of this section, theCommission finds that such state credit union was solvent, it shall rescindits order entered pursuant to subsection A or subsection B of this sectionand the merger or transfer of assets shall be rescinded. After such hearing,however, if the Commission finds that such state credit union was insolvent,its order shall be final.
E. Notwithstanding the provisions of subsection B of § 6.1-225.23, or anyother provisions of this chapter, the Commission may order a merger pursuantto subsection A of this section or a sale of assets pursuant to subsection Bof this section. The continuing credit union, upon approval of theCommission, shall amend its bylaws to incorporate the specified common bondof interest of the insolvent credit union.
F. The Commission may authorize a financial institution whose deposits areinsured by a federal agency to purchase any of the assets of or assume any ofthe liabilities of a credit union which is insolvent or in danger ofinsolvency, provided that prior to exercising this authority the Commissionshall use every reasonable effort to effect a merger or consolidation with orpurchase and assumption by another credit union and shall have been advisedby the insuring organization that it cannot effect a merger, consolidation,or other disposition of the insolvent credit union acceptable to theCommission.
(1982, c. 571, § 6.1-200.4; 1985, c. 364; 1990, c. 373.)
§ 6.1-225.10. (Repealed effective October 1, 2010) Supervisory merger ortransfer of assets.
A. If the Commission finds that a credit union incorporated pursuant to thischapter is insolvent, that an emergency exists, and that its merger intoanother credit union is desirable for the protection of its members, and ifthe board of directors of both credit unions approves a plan of merging suchinsolvent state credit union into another state credit union or a federalcredit union, compliance with § 13.1-895 shall be dispensed with as to bothcredit unions and the approval of the Commission of such plan of merger shallbe the equivalent of approval by more than two-thirds of the members of bothcredit unions for all purposes of Article 11 (§ 13.1-894 et seq.) and Article12 (§ 13.1-899 et seq.) of Chapter 10 of Title 13.1.
B. If the Commission finds that a state credit union is insolvent, that theacquisition of its assets by another state credit union or a federal creditunion is in the best interests of its members, and that an emergency exists,it may, with the consent of the board of directors of both credit unions asto the terms and conditions of such transfer, including the assumption of allor certain liabilities, enter an order transferring some or all of the assetsof such insolvent state credit union to such other state or federal creditunion and no compliance with the provisions of §§ 13.1-899 and 13.1-900 shallbe required.
C. In the case either of such a merger or of such a sale of assets, theCommission shall provide that prompt notice of its findings of insolvency andof the merger or sale of assets be sent to the members of record of theinsolvent state credit union for the purpose of providing such members anopportunity to challenge the finding that the state credit union isinsolvent. The relevant books and records of such insolvent credit unionshall be preserved and be made available to such members for a period ofthirty days after such notice is sent. The Commission's finding ofinsolvency shall become final if a hearing before the Commission is notrequested by any such member within such thirty-day period.
D. If, after such hearing provided in subsection C of this section, theCommission finds that such state credit union was solvent, it shall rescindits order entered pursuant to subsection A or subsection B of this sectionand the merger or transfer of assets shall be rescinded. After such hearing,however, if the Commission finds that such state credit union was insolvent,its order shall be final.
E. Notwithstanding the provisions of subsection B of § 6.1-225.23, or anyother provisions of this chapter, the Commission may order a merger pursuantto subsection A of this section or a sale of assets pursuant to subsection Bof this section. The continuing credit union, upon approval of theCommission, shall amend its bylaws to incorporate the specified common bondof interest of the insolvent credit union.
F. The Commission may authorize a financial institution whose deposits areinsured by a federal agency to purchase any of the assets of or assume any ofthe liabilities of a credit union which is insolvent or in danger ofinsolvency, provided that prior to exercising this authority the Commissionshall use every reasonable effort to effect a merger or consolidation with orpurchase and assumption by another credit union and shall have been advisedby the insuring organization that it cannot effect a merger, consolidation,or other disposition of the insolvent credit union acceptable to theCommission.
(1982, c. 571, § 6.1-200.4; 1985, c. 364; 1990, c. 373.)
§ 6.1-225.10. (Repealed effective October 1, 2010) Supervisory merger ortransfer of assets.
A. If the Commission finds that a credit union incorporated pursuant to thischapter is insolvent, that an emergency exists, and that its merger intoanother credit union is desirable for the protection of its members, and ifthe board of directors of both credit unions approves a plan of merging suchinsolvent state credit union into another state credit union or a federalcredit union, compliance with § 13.1-895 shall be dispensed with as to bothcredit unions and the approval of the Commission of such plan of merger shallbe the equivalent of approval by more than two-thirds of the members of bothcredit unions for all purposes of Article 11 (§ 13.1-894 et seq.) and Article12 (§ 13.1-899 et seq.) of Chapter 10 of Title 13.1.
B. If the Commission finds that a state credit union is insolvent, that theacquisition of its assets by another state credit union or a federal creditunion is in the best interests of its members, and that an emergency exists,it may, with the consent of the board of directors of both credit unions asto the terms and conditions of such transfer, including the assumption of allor certain liabilities, enter an order transferring some or all of the assetsof such insolvent state credit union to such other state or federal creditunion and no compliance with the provisions of §§ 13.1-899 and 13.1-900 shallbe required.
C. In the case either of such a merger or of such a sale of assets, theCommission shall provide that prompt notice of its findings of insolvency andof the merger or sale of assets be sent to the members of record of theinsolvent state credit union for the purpose of providing such members anopportunity to challenge the finding that the state credit union isinsolvent. The relevant books and records of such insolvent credit unionshall be preserved and be made available to such members for a period ofthirty days after such notice is sent. The Commission's finding ofinsolvency shall become final if a hearing before the Commission is notrequested by any such member within such thirty-day period.
D. If, after such hearing provided in subsection C of this section, theCommission finds that such state credit union was solvent, it shall rescindits order entered pursuant to subsection A or subsection B of this sectionand the merger or transfer of assets shall be rescinded. After such hearing,however, if the Commission finds that such state credit union was insolvent,its order shall be final.
E. Notwithstanding the provisions of subsection B of § 6.1-225.23, or anyother provisions of this chapter, the Commission may order a merger pursuantto subsection A of this section or a sale of assets pursuant to subsection Bof this section. The continuing credit union, upon approval of theCommission, shall amend its bylaws to incorporate the specified common bondof interest of the insolvent credit union.
F. The Commission may authorize a financial institution whose deposits areinsured by a federal agency to purchase any of the assets of or assume any ofthe liabilities of a credit union which is insolvent or in danger ofinsolvency, provided that prior to exercising this authority the Commissionshall use every reasonable effort to effect a merger or consolidation with orpurchase and assumption by another credit union and shall have been advisedby the insuring organization that it cannot effect a merger, consolidation,or other disposition of the insolvent credit union acceptable to theCommission.
(1982, c. 571, § 6.1-200.4; 1985, c. 364; 1990, c. 373.)
