comparative digest of credit union actscomparative digest of credit union acts: supervisory...

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2012

Comparative Digest of

Credit Union Acts:

Supervisory Authorities CUNA’s State Governmental Affairs

Credit Union National Association

Comparative Digest of Credit Union Acts: Supervisory Authorities

CUNA’s State Governmental Affairs - 2012

TABLE OF CONTENTS

CHAPTER 1: CREATION OF A CREDIT UNION COMMISSION OR DIVISION 1 CHAPTER 2: CREDIT UNION ADVISORY COUNCIL STRUCTURE 10 CHAPTER 3: CREDIT UNION ADVISORY COUNCIL AUTHORITY 21 CHAPTER 4: SUPSENSION OR REMOVAL OF OFFICIALS BY GOVERNMENT 32 CHAPTER 5: POWERS OF COMMISSIONER: RULES AND REGULATIONS 58 CHAPTER 6: INVOLUNTARY LIQUIDATION 71 CHAPTER 7: EXAMINATION BY GOVERNMENT 115 CHAPTER 8: ALTERNATIVES TO EXAMINING CREDIT UNIONS 130 CHAPTER 9: PRESERVATION OF RECORDS 140 CHAPTER 10: SUPERVISION FEES: ANNUAL ASSESSMENTS AND EXAMINATION FEES 153

1 Supervisory Authorities - Creation of a Credit Union Commission or Division


Provisions from State CU Acts*: Supervisory Authorities

Creation of a Credit Union Commission or Division

*There are 47 state credit union acts. Delaware, South Dakota, and Wyoming do not have a state credit union act.

2011 Model Credit Union Act:

CREATION OF A CREDIT UNION COMMISSION OR DIVISION

ALTERNATIVE #1

Section 10.05. Creation of Commission.

(1) A credit union commission is created as a separate division of state government charged with the supervision

and regulation of credit unions organized under the laws of this state.

(2) The commission shall be administered by the commissioner of credit unions who shall be appointed by the

governor. The commissioner shall have knowledge and experience in the operations or supervision of financial

institutions, preferably credit unions.

(3) The commissioner is the state‘s credit union regulatory authority whose purpose is to protect members‘

financial interests, the interests of the general public, and to ensure that credit unions remain viable and

competitive in this state.

ALTERNATIVE #2

Section 10.05. Creation of Division.

(1) The commissioner of the commission of financial institutions shall be responsible for the supervision and

regulation of credit unions incorporated under this Act. There is created within the commission a separate division

of credit unions, specifically charged with administering the supervisory and regulatory responsibilities set forth in

this Act.

(2) The division of credit unions shall be headed by a deputy commissioner appointed by, and serving at the

pleasure of the commissioner. The deputy commissioner shall have knowledge and experience in the operations or

supervision of financial institutions, preferably credit unions.

(3) The commissioner is the state‘s credit union regulatory authority whose purpose is to protect members‘

financial interests, the interests of the general public, and to ensure that credit unions remain viable and

competitive in this state.

Comparative Summary

Similar to Alternative 1 of the Model Credit Union Act:

Alabama Texas Kansas Wisconsin

Similar to Alternative 2 of the Model Credit Union Act: (Provides that credit unions are supervised by a credit union

division under a department responsible for regulating financial institutions)

California Missouri Washington Louisiana Tennessee

Act provides for credit unions to be supervised by a credit union division under the under the Department of

Commerce or State Securities Department:

Arkansas Hawaii Iowa North Carolina Ohio



State Supervisory Authority by State

There are 47 state credit union acts. Delaware, South Dakota, and Wyoming do not have a state credit union act.

Alabama Alabama Credit Union Administration Alaska Banks and Financial Institutions Arizona Department of Financial Institutions Arkansas State Securities Department - Credit Union Division California Department of Financial Institutions - Division of Credit Unions Colorado Division of Financial Services Connecticut Department of Banking and Finance Florida Financial Services Commission - Office of Financial Regulation Georgia Department of Banking and Finance Hawaii Department of Commerce and Consumer Affairs - Division of Financial Institutions Idaho Department of Finance Illinois Department of Financial Institutions Indiana Department of Financial Institutions Iowa Department of Commerce - Credit Union Division Kansas Department of Credit Unions Kentucky Department of Financial Institutions Louisiana Office of Financial Institutions Maine Bureau of Financial Institutions Maryland Department of Labor, Licensing, and Regulation - Commissioner of Financial Regulations Massachusetts Department of Banking Michigan Department of Labor and Economic Growth - Office of Financial and Insurance Services Minnesota Department of Commerce Mississippi Department of Banking and Consumer Finance Missouri Department of Insurance, Financial Institutions, and Professional Regulation - Division of Credit

Unions Montana Department of Administration - Division of Banking and Financial Institutions Nebraska Department of Banking and Finance - Financial Institution Division Nevada Department of Business and Industry - Division of Financial Institutions New Hampshire New Hampshire Banking Department - Banking Division New Jersey Department of Banking and Insurance, Division of Banking - Office of Consumer Finance New Mexico Regulations and Licensing Department - Financial Institutions Division New York Department of Financial Services North Carolina Department of Commerce - Division of Credit Unions North Dakota Department of Financial Institutions Ohio Department of Commerce - Credit Union Division Oklahoma Banking Department Oregon Department of Consumer and Business Services - Division of Finance and Corporate Securities Pennsylvania Department of Banking Rhode Island Department of Banking Regulation - Division of Banking South Carolina State Board of Financial Institutions Tennessee Department of Financial Institutions - Credit Union Division Texas Credit Union Commission and Department Utah Department of Financial Institutions Vermont Department of Financial Regulation Virginia State Corporation Commission - Bureau of Financial Institutions Washington Department of Financial Institutions - Division of Credit Unions West Virginia Department of Banking Wisconsin Office of Credit Unions




Creation of a Credit Union Commission or Division


Alabama § 5-17-40. Alabama Credit Union Administration created; functions; transfer of authority previously vested in state banking department. There shall be an Alabama Credit Union Administration which shall administer the laws of this state which regulate or otherwise relate to credit unions in the state. The authority of the Alabama Credit Union Administration to perform such functions shall be exclusive and all authority regarding credit unions which was previously vested in the state banking department is hereby vested in the Alabama Credit Union Administration.

Alaska Title 06. BANKS AND FINANCIAL INSTITUTIONS Chapter 06.40. PREMIUM FINANCING ACT Sec. 06.40.190. Definitions. In this chapter, unless the context otherwise requires, (1) "commissioner" means the commissioner of commerce, community, and economic development or a designee of the commissioner; (2) "department" means the Department of Commerce, Community, and Economic Development;

Arizona Title 6 Banks and Financial Institutions 6-110. Department of financial institutions The department of financial institutions is established. The department has charge of the execution of the laws of this state relating to financial institutions and enterprises.

Arkansas 23-35-201. Credit Union Division -- State Credit Union Supervisor -- Staff. There is created under the State Securities Department a Credit Union Division which shall be administered by the State Credit Union Supervisor. The Securities Commissioner of the state shall act as State Credit Union Supervisor. The supervisor shall appoint such assistants, secretaries, and examiners as may be necessary to assist in the performance of his duties under this chapter.

California FINANCIAL CODE 14200.1. There is in the Department of Financial Institutions, the Division of Credit Unions. The Division of Credit Unions has charge of the execution of the laws of this state relating to credit unions or to the credit union business.

Colorado ARTICLE 30 CREDIT UNIONS - GENERAL PROVISIONS 11-30-101. Definitions - organization - charter - investigation. (1) (b) As used in this article: (I.1) "Commissioner" means the state commissioner of financial services. (II) "Division" means the division of financial services created in section 11-44-101. 11-44-101. Division of financial services created. There is hereby created a division of financial services, within the department of regulatory agencies, which shall be administered by the state commissioner of financial services.



Connecticut TITLE 36a - THE BANKING LAW OF CONNECTICUT Sec. 36a-2. (Formerly Sec. 36-2). Definitions. As used in this title, unless the context otherwise requires: (10) “Commissioner” means the Banking Commissioner and, with respect to any function of the commissioner, includes any person authorized or designated by the commissioner to carry out that function;

Florida TITLE XXXVIII BANKS AND BANKING CHAPTER 655 FINANCIAL INSTITUTIONS GENERALLY 655.001 Purpose; application.—The purposes of the financial institutions codes are to: (1) Provide general regulatory powers to be exercised by the Financial Services Commission and the Office of Financial Regulation in relation to the regulation of financial institutions. The financial institutions codes apply to all state-authorized or state-chartered financial institutions and to the enforcement of all laws relating to state-authorized or state-chartered financial institutions.

Georgia PART 3 OPERATIONS OF DEPARTMENT OF BANKING AND FINANCE 7-1-60. General scope of supervision. Except where otherwise specifically provided, the department shall enforce and administer all laws of this state relating to financial institutions and shall exercise general supervision over financial institutions in accord with the underlying objectives of this chapter.

Hawaii ARTICLE 2. DIVISION OF FINANCIAL INSTITUTIONS PART I. ADMINISTRATION §412:2-100 Commissioner of financial institutions; division of financial institutions. (a) The director of commerce and consumer affairs, with the approval of the governor, shall appoint the commissioner of financial institutions. The commissioner shall be in charge of the division of financial institutions within the department of commerce and consumer affairs. The commissioner shall be the primary regulator of Hawaii financial institutions, and shall have the authority expressly conferred by or reasonably implied from the provisions of this chapter.

Idaho TITLE 26 BANKS AND BANKING CHAPTER 21 IDAHO CREDIT UNION ACT 26-2104.DEFINITION AND USE OF TERMS. As used in this chapter unless the context otherwise requires: (c) "Director" means the director of the department of finance of the state of Idaho. 26-2144.ADMINISTRATION, RULES AND REGULATIONS. The administration of the provisions of this chapter shall be under the general supervision and control of the director.

Illinois FINANCIAL REGULATION (205 ILCS 305/) Illinois Credit Union Act. Sec. 1.1. Definitions. Department The term "Department" means the Illinois Department of Financial Institutions.

Indiana IC 28-7 ARTICLE 7. SPECIALIZED FINANCIAL INSTITUTIONS IC 28-7-1-0.5



Definitions Sec. 0.5. The following definitions apply throughout this chapter: (4) "Department" refers to the department of financial institutions.

Iowa 533.103 Credit union division created. A credit union division of the department of commerce is created to administer this chapter.

Kansas 17-2234. Department of credit unions; supervision; employees; attorney; security background check. (a) There is hereby established the state department of credit unions, which shall be under the administrative supervision of the administrator as directed by law.

Kentucky 286.6-005 Definitions. (2) "Commissioner" means the commissioner of financial institutions. Formerly codified as KRS 290.005

Louisiana §646. Supervision by commissioner; suspension or revocation of charter; liquidation; reports; examination fees A.(1)(a) Credit unions are under the supervision of the commissioner. The commissioner may prescribe rules and regulations for the administration of this Chapter and for the administration of a state share insurance corporation, including but not by way of limitation the merger, consolidation, or dissolution of corporations organized under this Chapter.

Maine §121. Bureau of Financial Institutions There is created under this Title a Bureau of Financial Institutions, which has the responsibility of administering the provisions of this Title. In addition, in cases in which a financial institution is the creditor, the Bureau of Financial Institutions has the responsibility of administering the provisions of the Maine Consumer Credit Code pursuant to Title 9-A, section 1-301, subsection 2.

Maryland § 1-101. Definitions. (g) Commissioner.- "Commissioner" means the Commissioner of Financial Regulation in the Department of Labor, Licensing, and Regulation. § 6-202. Supervision by Commissioner. Credit unions are subject to the supervision of the Commissioner.

Massachusetts CHAPTER 171 CREDIT UNIONS Section 1. As used in this chapter the following words shall, unless the context otherwise requires, have the following meanings:— “Commissioner”, the commissioner of banks.

Michigan 490.102 Definitions As used in this act: (f) "Commissioner" means the commissioner of the office of financial and insurance services in the department of labor and economic growth.

Minnesota 52.06 SUPERVISION; REPORTS; AUDITS; FEES.



Subdivision 1.Report and audit schedule. Credit unions shall be under the supervision of the commissioner of commerce.

Mississippi SEC. 81-13-15. Supervision by Department of Banking and Consumer Finance; rules and regulations; reports by credit unions. Credit unions shall be subject to the supervision of the Department of Banking and Consumer Finance.

Missouri Supervisor--powers--qualifications--examiners and assistants. 370.100. 1. There is created within the state division of finance, a supervisor of credit unions who shall have exclusive supervision of all credit unions operating under the laws of this state and may make necessary rules and regulations to carry out the provisions of this chapter.

Montana 32-3-201. Department of administration. (1) The department of administration shall administer the laws of this state relating to credit unions.

Nebraska 21-1706. Department, defined. Department shall mean the Department of Banking and Finance.

Nevada NRS 678.061 “Commissioner” defined. “Commissioner” means the Commissioner of Financial Institutions. NRS 678.090 “Department” defined. “Department” means the Department of Business and Industry.

New Hampshire 394-B:3 Supervision. – Credit unions shall be under the control and supervision of the bank commissioner, who shall have the same authority and powers that are now vested in him in the supervision of banks.

New Jersey 17:13-80. Definitions For the purposes of this act: b. "Commissioner" means the Commissioner of Banking.

New Mexico

58-11-2. Definitions.

E. "director" means the director of the financial institutions division of the regulation and licensing department

New York *Available statute online reflects prior name of agency. Agency name changed in 2012 to Department of Financial Financial Services ARTICLE I. § 2. Definitions. 11. Banking organizations. The term, "banking organizations," when used in this chapter, means and includes all banks, trust companies, private bankers, savings banks, safe deposit companies, savings and loan associations, credit unions and investment companies. ARTICLE II § 10. Declaration of policy. It is hereby declared to be the policy of the state of New York that the business of all banking organizations shall be supervised and regulated through the banking department…

North Carolina § 54-109.10. Creation and supervision of Division. There shall be established in the North Carolina Department of Commerce a Credit Union Division which shall be under the supervision of the Administrator of Credit Unions appointed by the Secretary of Commerce. The Credit

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Union Division and the Administrator of Credit Unions shall be under the general direction and supervision of the Secretary of Commerce, and there shall be such assistants to the Administrator of Credit Unions as may be necessary and the salaries of the Administrator and assistants shall be fixed by the State Personnel Council.

North Dakota 6-01-01. Management and control - State department of financial institutions - Local ordinances preempted. The state department of financial institutions is under the supervision of the state banking board, state credit union board, and a chief officer designated as the commissioner of financial institutions. The state department of financial institutions has charge of the execution of all laws relating to state banks, trust companies, credit unions, building and loan associations, mutual investment corporations, mutual savings corporations, banking institutions, and other financial corporations, exclusive of the Bank of North Dakota. A local governing body may not adopt or enforce a resolution or an ordinance regulating a financial institution or credit union.

Ohio 1733.01 Credit union definitions. As used in this chapter, unless the context otherwise requires: (P) “Superintendent of credit unions” means the “division of financial institutions” or the “superintendent of the division of financial institutions of this state”; and whenever the context requires it, may be read as “director of commerce” or as “chief of the division of financial institutions.” Whenever the division or superintendent of credit unions is referred to or designated in any statute, rule, contract, or other document, the reference or designation shall be deemed to refer to the division or superintendent of financial institutions, as the case may be.

Oklahoma § 2001.2. Powers of Board - Administrator; powers and duties - Failure to comply with Bank Commissioner's orders or requirements B. The Commissioner may appoint an Administrator, who, in addition to such duties and authority as are conferred by section 2001 et seq. of this title, shall have such duties and authority as the Commissioner may assign the Administrator.

Oregon 723.001 Definitions. As used in this chapter, unless the context requires otherwise: (4) “Department” means the Department of Consumer and Business Services.

Pennsylvania CREDIT UNION CODE Title 17 503. Regulation by Department of Banking. (a) General rule.--Credit unions shall be under the supervision of the department. The department is hereby authorized and empowered to issue general rules and regulations and specific orders for the protection of members of credit unions, for insuring the conduct of the business of credit unions on a safe and sound basis and for the effective enforcement of this title.

Rhode Island § 19-1-1 Definitions. – Unless otherwise specified, the following terms shall have the following meanings throughout this title: (6) "Division of banking" means the division within the department of business regulation responsible for the supervision and examination of regulated institutions and/or licensees under chapter 14 of this title.

South Carolina SECTION 34-26-200. Responsibility of Board of Financial Institutions.

http://codes.ohio.gov/orc/1733.01



The Board of Financial Institutions shall be responsible for the supervision and regulation of credit unions

incorporated under this chapter.

Tennessee 45-4-1001. Supervision of credit unions — Financial report — Failure to file — Promulgation of rules and regulations.

(a) Credit unions shall be subject to the supervision of the commissioner and shall make a report of conditions to the commissioner at least semiannually, on blank forms to be supplied by the commissioner, on the dates of the second and fifth calls made to national banks, notice of which calls shall be sent out by the commissioner; returns shall be verified under oath of the president and treasurer, and additional reports may be required by the commissioner.

Texas Texas Finance Code, Title 2, Chapter 15: Credit Union Commission and Department Sec. 15.102. REGULATION OF CREDIT UNIONS. The department shall supervise and regulate credit unions as provided by this chapter and Subtitle D, Title 3.

Utah 7-1-201. Creation of department -- Organization. (1) There is created the Department of Financial Institutions that is responsible for the execution of the laws of this state relating to all financial institutions and other persons subject to this title, and relating to the businesses they conduct. (2) The department organization includes: (a) the commissioner of financial institutions, who shall be the chief executive officer of the department; (b) the Board of Financial Institutions; (c) the chief examiner; (d) the supervisor of banks; (e) the supervisor of savings and loan associations; (f) the supervisor of industrial banks; (g) the supervisor of credit unions; and (h) other supervisors, examiners, and personnel as may be required to carry out the duties, powers, and responsibilities of the department.

Vermont *Available statute online reflects prior name of agency. Agency name changed in 2012 to Department of Financial Regulation Title 8: Banking and Insurance Chapter 220: SUPERVISION AND REGULATION § 30201. Administration Any state-chartered credit union organized or operating in Vermont shall be under the supervision of the commissioner of banking, insurance, securities, and health care administration.

Virginia § 6.2-1308. (Effective October 1, 2010) Supervision and regulation by Commission. Credit unions organized under the provisions of this chapter shall be subject to the supervision and regulation of the Commission.

Washington RCW 31.12.005 Definitions. Unless the context clearly requires otherwise, as used in this chapter: (8) "Director" means the director of financial institutions.



RCW 31.12.516 Powers of director. (1) The powers of supervision and examination of credit unions and other persons subject to this chapter and chapter 31.3 RCW are vested in the director.

West Virginia §31C-1-2. Authority of commissioner and board of banking and financial institutions. The commissioner of the department of banking shall be responsible for the supervision and regulation of credit unions incorporated under this chapter or previously incorporated under this code.

Wisconsin 186.235(1) (1) Supervision. A credit union shall be under the control and supervision of the office of credit unions.

10 Supervisory Authorities – Credit Union Advisory Council Structure

CUNA’s State Governmental Affairs – 2012


Credit Union Advisory Council Structure (Council or board to advise or direct regulator)



CREDIT UNION COUNCIL Section 10.20. Credit Union Council. A credit union council is created which shall consult with, advise, and make recommendations to the governor and to the commissioner on matters pertaining to the chartering, operations, and supervision of credit unions.

ALTERNATIVE #1

(2) The council shall consist of five persons who shall be appointed by the governor. Each member of the council

shall have a minimum of three years experience as a credit union officer or director or as a government supervisor

of credit unions. An appointment to the council shall be for a term of five years, except that four of the initial

appointments shall be for terms of four, three, two, and one year, respectively so that in each subsequent year,

one member shall be appointed to a full term. The governor may remove any appointed council member

whenever the governor deems such removal is in the public‘s best interest.

ALTERNATIVE #2

(2) The council shall consist of seven individuals appointed by the governor. One council member shall be either

the commissioner or deputy commissioner of credit unions. The six remaining council members shall meet

qualification requirements established by the governor, and shall be limited to two consecutive three year terms.

An appointment to the council shall be for a term of three years with no more than two council members

appointed each year, except, however, the commissioner or deputy commissioner of credit unions shall continue

to serve on the council and will not be subject to term limits. The governor may remove any appointed council

member whenever the governor deems such removal is in the public‘s best interest.

(3) All members shall serve until their successors have been appointed and qualified. In the event a vacancy occurs,

the appointment to fill the vacancy for the unexpired term shall be made in the manner of the original

appointment.

(4) The chair of the council shall be elected annually by and from the members thereof at the first meeting of the

council each year.

(5) The initial meeting of the council shall be called by the commissioner. Thereafter regular meetings shall be held

at such times and places as shall be determined by the governor, the chair or the commissioner, but at least once

each six months. Special meetings may be called by the governor, the chair, the commissioner, or a majority of the

council members. The council may establish its own procedures and practices.

(6) The commission shall reimburse council members for their actual and necessary travel and subsistence

expenses, with such reimbursement drawn from the credit union supervision fund.

(7) The commission shall provide such clerical, technical, and legal assistance as the council may require.

(8) A majority of the members of the council shall constitute a quorum. The act of a majority of the council

members present at a meeting at which a quorum is present shall be the act of the council.



Comparison on Advisory Council Structure by State


Alabama Credit Union Board consists of the administrator and 7 other members. Four are nominated by the Alabama State Credit Union Legislative Forum and three are nominated by credit unions at large.

Alaska Silent Arizona Silent Arkansas Silent California Credit Union Advisory Committee shall be appointed by the Secretary of the Business, Transportation, and

Housing Agency. The 7 members shall serve a two year term. Colorado* The Financial Services Board consists 5 members, three credit union members, one savings and loans

member and one public member Connecticut Silent Florida Silent Georgia Silent Hawaii Credit Union Advisory Board consists of 5 credit union members with tested credit union experience, with

one member from each county. The members of the advisory board serve staggered four year terms. Idaho Silent Illinois Board of Credit Union Advisors consists of 7 members with credit union experience for a term of three

years. Indiana* 7 members. Only one member must have executive level experience at a state chartered credit union. The

remaining members are: (1) a state chartered bank, (2) state chartered savings bank or association, (1) specified lender representative, and (1) representative of consumer, agricultural, commercial, or industrial interests

Iowa Credit Union Review Board consists of 7 members. Five members must have credit union experience (state or federal); the remaining two members are members of the public without credit union experience. Members serve for three-year staggered terms.

Kansas Credit Union Council of 7 members. Five members must be credit union officers, one from each Congressional district. The remaining two members are from the state at large.

Kentucky Silent Louisiana Silent Maine Silent Maryland Silent Massachusetts Silent Michigan Silent Minnesota Repealed Mississippi Silent Missouri Credit Union Commission of 7 members. One member is a member of the Missouri Bar. Four members are

credit union representatives with five years’ experience as an officer, director, or supervisory committee member. The remaining two members are lay people and are not involved in the administration of a financial institution

Montana Silent Nebraska Silent Nevada Credit Union Advisory Council consists of 5 members with tested credit union experience. The list of

names is submitted to the Governor by the Nevada Credit Union League. Members of the Council serve four year terms

New Hampshire Silent New Jersey Credit Union Advisory Council consists of 5 credit union members. Three members must have experience

as an officer, director (or similar position) in a credit union. Members serve a five year term New Mexico Silent New York Silent North Carolina* Credit Union Commission consists of 7 members. Three members must experience as a director or in

management of state-chartered credit unions. Four members shall be members of the public interest or experience in financial institutions but maybe credit union members.

*Provision is not in state credit union act but is in another area of law such as a chapter directly outlining the responsibilities of the supervisory

department



North Dakota* Credit Union Board consists of four members appointed by Governor. Two members must have at least three years’ experience as an officer, director or committee member of ND state-chartered credit union, one member with at least three years experience as an officer, director or committee member of a federally chartered credit union. The remaining member must be a laymember from the public at large.

Ohio Credit Union Council consists of 7 members. The Deputy Superintendent of Credit Unions is the chairperson, 5 members must have credit union experience as CEO or director of a credit union. One of the 5 must be from a privately insured credit union, one must be from a state chartered federally insured credit union, one must have $35 million in assets or less, one must have more than $50 million in assets.

Oklahoma State Credit Union Board consists of 5 members. One of the members must be a credit union member, and three members must be an officer of the credit union or director (one of the three members may be from a federal credit union). The members are appointed by the Governor from a list submitted by the Oklahoma Credit Union League

Oregon Silent Pennsylvania Silent Rhode Island Silent South Carolina Silent South Dakota Silent Tennessee Silent Texas* Credit Union Commission consists of 9 members. Five commission members are public

representatives. Four commission members are credit union representatives. Officials and employees of state credit union trade associations and/or lobbyists are not eligible to serve on the Commission

Utah Board of Credit Union Advisors consists of 5 members. All members must be familiar with credit unions. Three members have 3 or more years of experience as a credit union officer and are selected by the Governor from a list submitted by the Utah League of Credit Unions.

Vermont Silent Virginia Silent Washington Silent West Virginia Silent Wisconsin Silent – Credit Union Review Board established but doesn’t provide details.


department.




Credit Union Advisory Council Structure (Council or board to advise or direct regulator)


Alabama § 5-17-55. Credit union board created; membership, terms of office; vacancies; appeals to board from actions of administrator. (a) There shall be a credit union board of the Alabama Credit Union Administration which shall consist of the administrator, who shall be an ex- officio member and chairman of the board, and seven other persons, appointed by the governor, by and with the consent of the senate, four of which shall be appointed from a list of nominees submitted by the Alabama state credit union legislative forum, which shall submit not less than three nominees for any vacancy. Should the governor determine that none of the first three nominees submitted by the forum for a vacancy on the credit union board are acceptable, the governor may reject the three nominees and the forum shall submit an alternative list of three nominees to the governor from which the Governor shall make the appointment. The remaining three appointments to the credit union board shall be made by the governor from a list of nominees submitted by credit unions at large. No person is eligible to be nominated or appointed to the Credit Union Board unless at the time of nomination or appointment, the person is an officer, director, or manager of a state-chartered credit union and has at least five years experience in the 10 years next preceding appointment as an officer, director, or manager of a credit union. The position of any member of the Credit Union Board shall be declared vacant by the Administrator of the Alabama Credit Union Administration if the member of the Credit Union Board ceases to serve as an officer, director, or manager of a credit union chartered under the laws of the state of Alabama.

Alaska Silent

Arizona

Silent

Arkansas Silent

California 14382. (a) The Credit Union Advisory Committee consists of seven members. (b) The members of the Credit Union Advisory Committee shall be appointed by the Secretary of the Business, Transportation and Housing Agency. (c) The term of a member of the Credit Union Advisory Committee is two years. However, a member may be reappointed. (d) Membership in the Credit Union Advisory Committee is voluntary. No person is required to accept an appointment to the Credit Union Advisory Committee, and any member may resign by filing a resignation with the commissioner. (e) No member of the Credit Union Advisory Committee shall receive any compensation, reimbursement for expenses, or other payment from the state in connection with service on the Credit Union Advisory Committee.

Colorado 11-44-101.6. Financial services board - creation. (1) There is hereby established in the division the financial services board which shall consist of five members.



(2) (a) There shall be three members who during their tenure are, and shall remain, executive officers of state credit unions and shall have not less than five years' practical experience as an active executive officer of a credit union. (b) There shall be one member who during such member's tenure is, and shall remain, the executive officer of a state savings and loan association and shall have not less than five years' practical experience as an active executive officer of a savings and loan association. (c) There shall also be one member to serve as a public member of the board who shall have expertise in finance through current experience in business, industry, agriculture, or education. (d) Not more than three members shall be of the same major political party. No member of the board shall have any interest, direct or indirect, in a financial institution in which another member of the board shall have any such interest.

Connecticut Silent Florida Silent

Georgia Silent

Hawaii §412:10-125 Credit union advisory board. (a) There shall be a credit union advisory board consisting of five members appointed pursuant to section 26-34 by the governor who shall also designate the chairperson of the board. There shall be at least one member from each of the counties who shall serve for four years. The terms of the members shall be staggered and shall expire as follows: one on December 31 after the year that this chapter becomes law and one at the end of each succeeding calendar year thereafter. The governor shall appoint persons of tested credit union experience and who are members of credit unions operating under this chapter. However, until such time that there are credit unions operating under this chapter, the governor may make appointments to the board of persons with tested credit union experience from any credit union operating in this State.

Idaho Silent

Illinois (205 ILCS 305/11) (from Ch. 17, par. 4412) Sec. 11. Board of Credit Union Advisors. (2) The Board of Credit Union Advisors shall consist of 7 persons with credit union experience who shall be appointed by the Governor. Appointments to the Board shall be for terms of 3 years each, except that initial appointments shall be: 3 members for 3 years each; 3 members for 2 years each and 1 member for 1 year.

Indiana IC 28-11-1-3 Members of department Sec. 3. (a) The ultimate authority for and the powers, duties, management, and control of the department are vested in the following seven (7) members: (1) The director of the department, who serves as an ex officio, voting member. (2) The following six (6) members appointed by the governor as follows: (A) Three (3) members must have practical experience at the executive level of a: (i) state chartered bank; (ii) state chartered savings association; or (iii) state chartered savings bank.



(B) One (1) member must have practical experience at the executive level as a lender licensed under IC 24-4.5. (C) One (1) member must have practical experience at the executive level of a state chartered credit union. (D) One (1) member must be appointed with due regard for the consumer, agricultural, industrial, and commercial interests of Indiana. (b) Not more than three (3) members appointed by the governor under subsection (a)(2) after June 30, 2006, may be affiliated with the same political party.

Iowa 533.107 Credit union review board. 1. A credit union review board is created. The review board shall consist of seven members, five of whom shall have been members in good standing for at least the previous five years of either an Iowa state chartered credit union, or a credit union chartered under the Federal Credit Union Act* and having its principal place of business in Iowa. Two of the members may be public members; however, at no time shall more than five of the members be directors or employees of a credit union. The members shall serve for three-year staggered terms beginning and ending as provided by section 69.19. 2. The members of the review board shall be appointed by the governor subject to confirmation by the senate. The governor may appoint the members of the review board from a list of nominees submitted to the governor by the credit unions located in this state.

Kansas 17-2232. Credit union council; membership, appointment, terms; meetings. (a) The governor shall appoint a seven-member credit union council. Each member shall be a resident of Kansas. Except as provided by subsection (b), appointments to the council shall be for terms of three years. Five of the persons appointed shall be members in good standing and officers of Kansas state chartered credit unions. Subject to the provisions of K.S.A. 1995 Supp. 75-4315c, and amendments thereto, of those five members, the governor shall appoint one from each congressional district and the remainder from the state at large. The council shall elect annually a chairperson, a vice-chairperson and a secretary for a term of one year or until their successors have been appointed and qualified. All members of the council shall serve until their successors have been appointed and qualified. Kansas state chartered credit unions regulated under the provisions of this act may submit annually to the governor, for consideration in making appointments to the credit union council, a list of persons having the prescribed qualifications for membership on the council. The council may adopt such rules and regulations governing the compilation of such list as may be necessary. Vacancies on the council shall be filled for the unexpired term by appointment by the governor. No person shall serve more than two consecutive terms as a member of the council. No more than four members of the council shall be from the same political party.

Kentucky Silent

Louisiana Silent

Maine Silent

Maryland Silent

Massachusetts Silent

Michigan

Silent



Minnesota Repealed

Mississippi Silent

Missouri Credit union commission, created, members, term, compensation--credit union representative defined. 370.061. 1. There is created in the division of credit unions a "Credit Union Commission" which shall have such powers and duties as are now or hereafter conferred upon it by law. 2. The commission shall consist of seven members who shall be appointed by the governor with the advice and consent of the senate. All members shall be residents of this state, and one of them shall be a member of the Missouri Bar in good standing. Four other members of the commission shall be credit union representatives. As used in this section, the term "credit union representative" shall mean a member of the commission who has at least five years' experience in this state as an officer, director or member of a supervisory committee of one or more credit unions and two members shall be lay members who are not involved in the administration of a financial institution. Not more than four members of the commission shall be members of the same political party. 3. Effective March 25, 2005, the first three commissioners appointed, two of whom shall be credit union representatives, shall have a term expiring January 1, 2007. The next two commissioners appointed, one of whom shall be a credit union representative, shall have a term expiring January 1, 2009. The final two commissioners appointed, one of whom shall be a credit union representative, and all subsequent commissioners shall serve a six-year term. Members shall serve until their successors are duly appointed and have qualified. Each member of the credit union commission shall serve for the remainder of the term for which the member was appointed to the commission. The commission shall select its own chairman and secretary. Vacancies in the commission shall be filled for the unexpired term in the same manner as in the case of an original appointment.

Montana

Silent

Nebraska Silent

Nevada NRS 678.290 Credit Union Advisory Council. 1. The Credit Union Advisory Council, consisting of five members appointed by the Governor, is hereby created to consult with, advise and make recommendations to the Commissioner in all matters pertaining to credit unions. 2. The Governor shall appoint members who have tested credit union experience from a list of recommended names submitted by the Nevada Credit Union League. 3. After the initial terms, members serve terms of 4 years, except when appointed to fill unexpired terms. 4. The Chair of the Advisory Council must be elected annually by and from the members thereof.

New Hampshire Silent

New Jersey 17:13-124. Credit union advisory council b. The council shall consist of five persons to be appointed by the Governor, with the advice and consent of the Senate, who are members of the State chartered credit unions within the State. Three members of the council shall have had a minimum of three years' experience as a credit union officer or director or a similar management position. Appointments to the council shall be for terms of five years except that four of the initial appointments shall be for terms of four, three, two, and one years respectively, so that in each subsequent year one member shall be appointed to a full term.



New Mexico Silent

New York Silent

North Carolina § 143B-439. Credit Union Commission. (a) There shall be created in the Department of Commerce a Credit Union Commission which shall consist of seven members. The members of the Credit Union Commission shall elect one of its members to serve as chairman of the Commission to serve for a term to be specified by the Commission. On the initial Commission three members shall be appointed by the Governor for terms of two years and three members shall be appointed by the Governor for terms of four years. Thereafter all members of the Commission shall be appointed by the Governor for terms of four years. The Governor shall appoint the seventh member for the same term and in the same manner as the other six members are appointed. In the event of a vacancy on the Commission the Governor shall appoint a successor to serve for the remainder of the term. Three members of the Commission shall be persons who have had three years' or more experience as a credit union director or in management of state-chartered credit unions. At least four members shall be appointed as representatives of the borrowing public and may be members of a credit union but shall not be employees of, or directors of any financial institution or have any interest in any financial institution other than as a result of being a depositor or borrower. No two persons on the Commission shall be residents of the same senatorial district. No person on the Commission shall be on a board of directors or employed by another type of financial institution. The Commission shall meet at least every six months, or more often upon the call of the chairman of the Credit Union Commission or any three members of the Commission. A majority of the members of the Commission shall constitute a quorum. The members of the Commission shall be reimbursed for expenses incurred in the performance of their duties under this Chapter as prescribed in G.S. 138-5. In the event that the composition of the Commission on April 30, 1979, does not conform to that prescribed in the preceding sentences, such composition shall be corrected thereafter by appropriate appointments as terms expire and as vacancies occur in the Commission; provided that no person shall serve on the Commission for more than two complete consecutive terms.

North Dakota 6-01-03. State banking board and state credit union board. 2. The state credit union board consists of the commissioner and four members to be appointed by the governor. Two of the members of the state credit union board must have at least three years' experience as an officer, director, or committee member of a North Dakota state-chartered credit union, one member of the board must have had at least three years' experience as an officer, director, or committee member of a federally chartered credit union, and one member of the board must be a laymember from the public at large. The term of office of appointed board members is five years. In case of a vacancy in the board, by death, resignation, or removal of an appointed member, the governor shall appoint an individual to fill the vacancy for the unexpired term. The commissioner chairs the board and the attorney general is, ex officio, the attorney for the board. The assistant commissioner shall serve as its secretary. The members of the state credit union board are entitled to receive the same remuneration as is provided for the members of the state banking board. The state credit union board shall hold meetings in March, June, September, and December of each year and special meetings at the call of the commissioner in such places as the commissioner may designate within the state.

Ohio 1733.329 Credit union council. (A) There is hereby created in the division of financial institutions the credit union council, which shall consist of seven members. The deputy superintendent for credit unions shall be a member of the council and its chairperson. The governor, with the advice and consent of the senate, shall appoint the remaining six members. (B)(1) At least five of the six members appointed to the council shall have had credit union experience.



(2) At least four of the six members appointed to the council shall be, at the time of appointment, individuals currently engaged in the exercise of duties, responsibilities, rights, and powers of a director or chief executive officer of a state-chartered credit union having its principal office in this state and doing business in this state pursuant to this chapter under the authority of the superintendent of financial institutions. (3) At least one of the six members appointed to the council shall be a director or chief executive officer of a state-chartered, federally insured credit union. (4) At least one of the six members appointed to the council shall be a director or chief executive officer of a state-chartered, privately insured credit union. (5) At least one of the six members appointed to the council shall be a director or chief executive officer of a state-chartered credit union with thirty-five million dollars or less in assets. (6) At least one of the six members appointed to the council shall be a director or chief executive officer of a state-chartered credit union with more than fifty million dollars in assets. (C)(1) Initial appointments to the council shall be made within sixty days after the effective date of this section. Of the initial appointments, two shall expire one year after the effective date of this section, two shall expire two years after the effective date of this section, and two shall expire three years after the effective date of this section. Thereafter, terms of office shall be for three years. (2) Each member shall hold office from the date of appointment until the end of the term for which the member was appointed. In the case of a vacancy in the office of any member, the governor shall appoint a successor, who shall hold office for the remainder of the term for which the successor’s predecessor was appointed. Any member shall continue in office subsequent to the expiration date of the member’s term until the member’s successor takes office, or until sixty days has elapsed, whichever occurs first. (3) If during a member’s term on the council, the member ceases to be a director or chief executive officer of a credit union as described in divisions (B)(2) to (6) of this section for a period exceeding ninety days, the member shall be ineligible to continue to serve as a member of the council, and the member’s position on the council shall be considered vacant. (D) No person appointed as a member of the credit union council may serve more than two consecutive full terms. However, a member may serve two consecutive full terms following the remainder of a term for which the member was appointed to fill a vacancy or following any term for which the member was appointed prior to the effective date of this section.

Oklahoma § 2001.1. Oklahoma State Credit Union Board – Creation A. There is hereby created the Oklahoma State Credit Union Board, which shall consist of five (5) members appointed by the Governor. The State Bank Commissioner shall be one of the members, and he shall preside as Chairman of the State Credit Union Board. One of the other four members shall be a member of a credit union organized under the laws of this state, and each of the other three members shall be the officer in charge of operations or a director of a credit union organized under the laws of this state; provided, however, one of those three may be from a federal credit union. Said four members shall be selected by the Governor, with advice and consent of the Senate, from a list of not less than five (5) names for each member to be appointed submitted by the Oklahoma Credit Union League. The members appointed by the Governor shall serve for terms of four (4), three (3), two (2), and one (1) year, respectively. Upon the expiration of the terms of the four members previously appointed by the Governor pursuant to the provisions of this section, their successors shall be appointed for terms of four (4) years. If a member of the Oklahoma State Credit Union Board ceases to hold the qualifications required for the appointment of such member, then the remaining members shall immediately declare the office of such member vacant and such member shall cease to be a member of the Oklahoma State Credit Union Board. Any vacancy in the membership of the State Credit Union Board, caused by other than the expiration of a term, shall be filled only for the balance of the term of the member in whose position the vacancy occurs. Appointment made to fill a vacancy shall be made by the Governor, with advice and consent of the Senate, from a list of not less than five (5) names submitted by the Oklahoma Credit Union League. Except as otherwise provided in this section, members shall serve until their terms expire or until their successors are appointed and qualified.

Oregon Silent



Pennsylvania Silent

Rhode Island Silent

South Carolina Silent

Tennessee Silent

Texas Sec. 15.201. APPOINTMENT; TERMS. (a) The commission is composed of nine members appointed by the governor with the advice and consent of the senate. (b) Commission members serve staggered terms of six years, with the terms of one-third of the members expiring February 15 of each odd-numbered year. (c) An appointment to the commission must be made without regard to the race, color, creed, disability, sex, religion, age, or national origin of the appointee. Sec. 15.202. GENERAL QUALIFICATIONS OF COMMISSION MEMBERS. (a) No two commission members may be residents of the same state senatorial district. (b) A commission member may not be: (1) an officer, employee, or paid consultant of a trade association representing or affiliated with a financial institution group or an entity affiliated with financial institutions; (2) a spouse of an officer, manager, or paid consultant of a trade association representing or affiliated with a financial institution group or an entity affiliated with financial institutions; or (3) a person who is required to register as a lobbyist under Chapter 305, Government Code, because of the person’s activities for compensation on behalf of a profession related to the operation of the commission. 1 Texas Finance Code, Title 2, Chapter 15: Credit Union Commission and Department Sec. 15.203. QUALIFICATIONS OF INDUSTRY COMMISSION MEMBERS. (a) Four commission members must be individuals who: (1) have five years or more of active experience as a director, officer, or committee member of a credit union that: (A) is organized and doing business in this state under Subtitle D, Title 3, or the Federal Credit Union Act (12 U.S.C. Section 1751 et seq.); and (B) has its principal office in this state; and (2) are engaged in exercising the powers and duties of a director, officer, or committee member of such a credit union. (b) Experience as a commissioner, deputy commissioner, or examiner is equivalent to the experience required by Subsection (a). (c) Not more than one individual from a federal credit union may serve on the commission at any time. (d) An individual who ceases to be engaged in exercising the powers and duties prescribed by this section for a period exceeding 90 days becomes ineligible to serve as a commission member, and the individual's position on the commission becomes vacant. Sec. 15.204. QUALIFICATIONS OF PUBLIC COMMISSION MEMBERS. (a) Five commission members must be representatives of the public. A person is not eligible for appointment as a public member of the commission if the person or the person’s spouse: (1) is employed by or participates in managing or directing: (A) a financial institution; or



(B) an organization, other than a financial institution, regulated by or receiving money from a financial institution regulatory agency; (2) has, other than as a member or customer, a financial interest in: (A) a financial institution; or (B) an organization, other than a financial institution, regulated by or receiving money from a financial institution regulatory agency; or (3) uses or receives a substantial amount of tangible goods, services, or money from the department, other than compensation or reimbursement authorized by law for commission membership, attendance, or expenses. (b) The governor shall appoint public commission members on the basis of recognized business ability. (c) In this section, "financial institution" includes an institution such as a credit union, bank, or savings and loan association.

Utah 7-9-43. Board of Credit Union Advisors. There is created a Board of Credit Union Advisors of five members to be appointed by the governor. (1) Members of the board shall be individuals who are familiar with and associated in the field of credit unions. (2) At least three of the members shall be persons who have had three or more years of experience as a credit union officer and shall be selected from a list submitted to the governor by the Utah League of Credit Unions.

Vermont Silent

Virginia Silent

Washington Silent

West Virginia Silent

Wisconsin 186.015 Credit union review board. (1) CONFER WITH OFFICE. The office of credit unions shall confer with the credit union review board on matters affecting credit unions and the office. Detailed minutes of each review board meeting shall be kept, and the decision of the review board with reference to all orders issued, or policies established by the office of credit unions pursuant to this chapter is final, except for judicial review as provided in ch. 227.

21 Supervisory Authorities - Credit Union Council Authority



Credit Union Advisory Council Authority



CREDIT UNION COUNCIL Section 10.20. Credit Union Council. A credit union council is created which shall consult with, advise, and make recommendations to the governor and to the commissioner on matters pertaining to the chartering, operations, and supervision of credit unions.

ALTERNATIVE #1

(2) The council shall consist of five persons who shall be appointed by the governor. Each member of the council

shall have a minimum of three years experience as a credit union officer or director or as a government supervisor

of credit unions. An appointment to the council shall be for a term of five years, except that four of the initial

appointments shall be for terms of four, three, two, and one year, respectively so that in each subsequent year,

one member shall be appointed to a full term. The governor may remove any appointed council member

whenever the governor deems such removal is in the public‘s best interest.

ALTERNATIVE #2

(2) The council shall consist of seven individuals appointed by the governor. One council member shall be either

the commissioner or deputy commissioner of credit unions. The six remaining council members shall meet

qualification requirements established by the governor, and shall be limited to two consecutive three year terms.

An appointment to the council shall be for a term of three years with no more than two council members

appointed each year, except, however, the commissioner or deputy commissioner of credit unions shall continue

to serve on the council and will not be subject to term limits. The governor may remove any appointed council

member whenever the governor deems such removal is in the public‘s best interest.

(3) All members shall serve until their successors have been appointed and qualified. In the event a vacancy occurs,

the appointment to fill the vacancy for the unexpired term shall be made in the manner of the original

appointment.

(4) The chair of the council shall be elected annually by and from the members thereof at the first meeting of the

council each year.

(5) The initial meeting of the council shall be called by the commissioner. Thereafter regular meetings shall be held

at such times and places as shall be determined by the governor, the chair or the commissioner, but at least once

each six months. Special meetings may be called by the governor, the chair, the commissioner, or a majority of the

council members. The council may establish its own procedures and practices.

(6) The commission shall reimburse council members for their actual and necessary travel and subsistence

expenses, with such reimbursement drawn from the credit union supervision fund.

(7) The commission shall provide such clerical, technical, and legal assistance as the council may require.

(8) A majority of the members of the council shall constitute a quorum. The act of a majority of the council

members present at a meeting at which a quorum is present shall be the act of the council.



Comparison on Council Authority by State


Alabama Rulemaking and Appeals Authority

Alaska Silent Arizona Silent Arkansas Silent California Advisory Authority – Similar to Model Colorado* Rulemaking Authority Connecticut Silent Florida Silent Georgia Silent Hawaii Rulemaking Authority Idaho Silent Illinois Expanded Advisory Role to include appointments and employment of personnel in connection with the supervision

and regulation of credit unions Indiana* Rulemaking Authority Iowa Rulemaking Authority Kansas Advisory Authority – Similar to Model Kentucky Silent Louisiana Silent Maine Silent Maryland Silent Massachusetts Silent Michigan Silent Minnesota Repealed Mississippi Silent Missouri Rulemaking and Appeal Authority Montana Silent Nebraska Silent Nevada Advisory Authority – Similar to Model New Hampshire Silent New Jersey Advisory Authority – Similar to Model New Mexico Silent New York Silent North Carolina* Rulemaking and Appeal Authority North Dakota Rulemaking Authority Ohio Advisory Authority – Similar to Model and Confirms Supervisory Fees set by Regulator Oklahoma Rulemaking Authority Oregon Silent Pennsylvania Silent Rhode Island Silent South Carolina Silent Tennessee Silent Texas Rulemaking Authority – the Credit Union Commission also supervises the Commissioner Vermont Silent Utah Advisory Authority Vermont Silent Virginia Silent Washington Silent West Virginia Silent Wisconsin Rulemaking and Appeals Authority


department.




Credit Union Advisory Council Authority


Alabama § 5-17-55. Credit union board created; membership, terms of office; vacancies; appeals to board from actions of administrator. (e) An appeal may be taken to the credit union board from any finding, ruling, order, decision or the final action of the administrator by any credit union which feels aggrieved thereby. Notice of appeal shall be filed with the administrator within 30 days after the findings, ruling, order, decision or other action. The notice shall contain a brief statement of the pertinent facts upon which the appeal is grounded. The credit union board shall fix a date, time and place for hearing the appeal, within 60 days after it is filed, and shall notify the credit union or its attorney of record thereof at least 30 days prior to the date of the hearing. The finding of the credit union board shall be strictly advisory in nature. § 5-17-46. Rules and regulations; written interpretations of laws and regulations; reliance on regulations and interpretations. (a) The administrator may, with the concurrence of a majority of the members of the credit union board, promulgate such reasonable regulations, consistent with the laws of this state, as may be necessary to carry out the laws over which the Alabama Credit Union Administration has jurisdiction. The administrator shall, in addition, issue written interpretations of credit union laws and regulations. Any credit union and any officer or director thereof relying on any regulation or interpretation shall be fully protected even though the regulation or interpretation shall be thereafter ruled invalid for any reason by a court of competent jurisdiction. (b) Any policy or written interpretation of credit union laws and regulations shall be reviewed for ratification by the credit union board within 90 days after written request for an interpretation by any member of the credit union board. The policy or written interpretation shall be invalidated unless a majority of the members of the credit union board ratify the interpretation or policy. (c) The procedure for adopting, amending, or repealing regulations and for the review of ratification of any policy or interpretation shall be the procedure specified in Section 5-17-47. § 5-17-8. Reports to administrator of Alabama Credit Union Administration; examination of credit union; revocation of certificate of approval; cease and desist order; suspension from office; appeal and hearing. (e) The administrator of the Alabama Credit Union Administration, with the concurrence of a two-thirds majority of voting members of the Credit Union Board of the Alabama Credit Union Administration may, ex parte without notice, appoint the Alabama Credit Union Administration as conservator and immediately take possession and control of the business and assets of any state-chartered credit union in any case in which any one of the following occurs: (1) The Alabama Credit Union Administration determines that the action is necessary to conserve the assets of any state-chartered credit union or the interests of the members of the credit union. (2) A credit union, by resolution of its board of directors, consents to the action by the Alabama Credit Union Administration. (3) There is a willful violation of a cease-and-desist order which has become final. (4) There is concealment of books, papers, records, or assets of the credit union or refusal to submit books, papers, records, or affairs of the credit union for inspection to any examiner or to any lawful agent of the Alabama Credit Union Administration. § 5-17-7. Operating fees; fee filed with certificate of organization.



(c) On one occasion, the administrator may fix an annual operating fee which is not more than 10 percent greater than the above fee scale if the credit union board approves such fee, if said fee is not in effect for more than one year, and if the administrator establishes that such fee is necessary in order that the Alabama Credit Union Administration not be operated at a deficit and that the Alabama Credit Union Administration operated at a deficit during the preceding year.

Alaska Silent

Arizona Silent

Arkansas Silent

California 14381 The Credit Union Advisory Committee shall advise the commissioner and the Deputy Commissioner of Financial Institutions for the Division of Credit Unions on matters relating to credit unions or the credit union business.

Colorado 11-44-101.7. Powers of the financial services board. (1) The board is the policy-making and rule-making authority for the division and has the power to: (a) Regulate its own procedure and practice; and (b) Make, modify, reverse, and vacate rules for the proper enforcement and administration of articles 30 and 40 to 46 of this title and article 13 of title 12, C.R.S. (2) In addition to any other powers conferred on it by articles 30 and 40 to 46 of this title, the board has the power to: (a) Make all final decisions with respect to the organization, conversion, or merger of credit unions and savings and loan associations and administration of life care institutions or providers pursuant to article 13 of title 12, C.R.S.; (b) Make all final decisions with respect to the suspension or liquidation of credit unions and savings and loan associations under article 30 of this title and this article. (c) (Deleted by amendment, L. 95, p. 1092, § 3, effective May 31, 1995.) (3) The board has the power to: (a) Prohibit the taking of shares or deposits or to restrict the withdrawal of shares or deposits, or both, from any one or more state credit unions or savings and loan associations when the board finds that extraordinary circumstances make such a restriction necessary for the proper protection of depositors in the affected state credit union or savings and loan association; (b) Authorize state credit unions and savings and loan associations to engage in any activity in which such financial institutions could engage were they operating under a federal charter or certificate of approval at the time such authority is granted, so long as such activity is not prohibited by state law and to the extent permissible under the rules and regulations of the board; (c) Affirm, modify, reverse, vacate, or stay the enforcement of any order, ruling, or determination made by the commissioner acting pursuant to authority delegated by the board; (d) Issue a declaratory order with respect to the applicability of article 13 of title 12, C.R.S., articles 30 and 40 to 46 of this title, or any rule and regulation issued by the board to any person, property, or state of facts under said provisions; (e) Review and comment on the preliminary budget draft for the division prior to its submission to the department of regulatory agencies; (f) Annually establish such fees and assessments and the percentages thereof as are necessary to generate the moneys appropriated by the general assembly to the division;



(g) Comment to the executive director of the department of regulatory agencies on who shall be the commissioner and to recommend to said executive director the termination of the commissioner for cause; (h) Perform any acts and make any decisions incidental to or necessary for carrying out its functions as set forth in article 13 of title 12, C.R.S., and articles 30 and 40 to 46 of this title; (i) Issue subpoenas and require attendance of any and all officers, directors, and employees of any credit union, savings and loan association, small business development credit corporation, or life care institution or provider, and such other witnesses as the board may deem necessary in relation to its affairs, transactions, and conditions, and may require such witnesses to appear and answer such questions as may be put to them by the board, and may require such witnesses to produce such books, papers, or documents in their possession as may be required by the board. Upon application of the board and subject to any protective order which may be entered by a district court, any person served with a subpoena issued by the board may be required, by order of the district court of the county where the credit union, savings and loan association, small business development credit corporation, or life care institution or provider has its principal office, to appear and answer such questions as may be put to such person by the board and be required to produce such books, papers, or documents in such person's possession as may be required by the board. (4) The board may issue cease and desist orders, suspend a director, officer, or employee of a credit union or savings and loan association, or assess civil money penalties, in the same manner as provided in section 11-30-106 (7) and (8), concerning powers of the commissioner, and section 11-44-106.5, concerning suspension or removal of directors, officers, or employees, and as provided in sections 11-30-106.5 and 11-44-123, concerning assessment of civil money penalties by the commissioner. (5) Except with respect to the organization of community charter credit unions, the board may, in its discretion, delegate to the commissioner any of its powers, duties, and functions. (6) The board may, in its discretion, require the commissioner to report to the board periodically with respect to any powers delegated pursuant to subsection (5) of this section. (7) The board shall have the power to approve or deny merger agreements for credit unions as provided in section 11-30-122. Mergers involving a community charter shall be subject to a public hearing pursuant to section 11-30-101.7.

Connecticut Silent

Florida Silent

Georgia Silent

Hawaii §412:10-125 Credit union advisory board. (b) The powers and duties of the board shall include, but not be limited to: (1) Advising the commissioner and others in improving the operations and supervision of credit unions; (2) Making necessary recommendations as to procedural rules pursuant to chapter 91; (3) Proposing laws and rules to safeguard the interest of depositors and members; (4) Promoting the extension of credit at the lowest possible rates and cooperating with every group of people who may be or may become interested in the formation and development of a credit union under this article; (5) Keeping detailed minutes of each board meeting; and (6) Other duties designated by the commissioner or as provided by this article.

Idaho Silent



Illinois (205 ILCS 305/11) (from Ch. 17, par. 4412) Sec. 11. Board of Credit Union Advisors. (1) There shall be a Board of Credit Union Advisors who shall consult with, advise and make recommendations to the Governor and to the Director on matters pertaining to credit unions. The Board of Credit Union Advisors shall also advise the Governor and Director upon appointments and employment of personnel in connection with the supervision and regulation of credit unions.

Indiana IC 28-11-1-3 Members of department Sec. 3. (a) The ultimate authority for and the powers, duties, management, and control of the department are vested in the following seven (7) members: (1) The director of the department, who serves as an ex officio, voting member. (2) The following six (6) members appointed by the governor as follows: (A) Three (3) members must have practical experience at the executive level of a: (i) state chartered bank; (ii) state chartered savings association; or (iii) state chartered savings bank. (B) One (1) member must have practical experience at the executive level as a lender licensed under IC 24-4.5. (C) One (1) member must have practical experience at the executive level of a state chartered credit union. (D) One (1) member must be appointed with due regard for the consumer, agricultural, industrial, and commercial interests of Indiana. (b) Not more than three (3) members appointed by the governor under subsection (a)(2) after June 30, 2006, may be affiliated with the same political party.

Iowa 533.107 Credit union review board. 6. The review board may adopt rules pursuant to chapter 17A or take other action as it deems necessary or suitable, to administer this chapter.

Kansas 17-2232. Credit union council; membership, appointment, terms; meetings. (d) The council shall serve as an advisor to the administrator on issues and needs of credit unions.

Kentucky Silent

Louisiana Silent

Maine Silent

Maryland Silent




Michigan Silent

Minnesota (Repealed)

Mississippi Silent

Missouri 370.062. The credit union commission shall: (1) Approve or disapprove each regulation proposed by the director of the division of credit unions; (2) Hear and determine any appeal from an order or decision by the director of the division of credit unions pertaining to the chartering, relocation, branching or membership of credit unions; and (3) Consult with and advise the director on matters pertaining to the organization, operation, and supervision of credit unions.

Montana Silent

Nebraska Silent

Nevada NRS 678.290 Credit Union Advisory Council. 1. The Credit Union Advisory Council, consisting of five members appointed by the Governor, is hereby created to consult with, advise and make recommendations to the Commissioner in all matters pertaining to credit unions.


New Jersey 17:13-124. Credit union advisory council a. A Credit Union Advisory Council is created which shall consult with, advise, and make recommendations to the commissioner on matters pertaining to the chartering, operation and supervision of credit unions.

New Mexico Silent

New York Silent

North Carolina § 143B-439. Credit Union Commission. (c) The Credit Union Commission is hereby vested with full power and authority to review, approve, or modify any action taken by the Administrator of Credit Unions in the exercise of all powers, duties, and functions vested by law in or exercised by the Administrator of Credit Unions under the credit union laws of this State.

North Dakota 6-01-04. Powers and duties of the state banking board and state credit union board.



The board may adopt rules for the government of financial corporations mentioned in section 6-01-01 to the extent the rules do not conflict with any law of this state or of the United States. The board shall make and enforce such orders as are necessary or proper to protect the public and the depositors or creditors of those financial corporations and institutions. The same powers are given to the state credit union board with reference to credit unions as are granted to the state banking board with reference to financial corporations named in this chapter.

Ohio 1733.3210 Duties of council. (A) The credit union council shall do all of the following: (1) Consult with, advise, and make recommendations to the superintendent of financial institutions and the deputy superintendent for credit unions on matters relating to the business for credit unions, including field of membership, regulation, examination, safety and soundness, and applications of credit unions under this chapter; (2) Consider and make recommendations upon any matter addressed in Chapters 1733. and 1761. of the Revised Code that the superintendent or deputy superintendent submits to the council for that purpose; (3) Pass upon and determine any matter the superintendent or deputy superintendent submits to the council for determination; (4) Submit to the governor recommendations concerning amendments to the credit union laws of this state or rules adopted pursuant to those laws that the council considers appropriate; (5) Consider and determine whether to confirm the supervisory fees proposed by the superintendent of financial institutions in accordance with division (E) of section 1733.32 of the Revised Code. (6) With respect to the adoption, amendment, or recission of rules adopted pursuant to this chapter, be present at the public hearing required by section 119.03 of the Revised Code and provide recommendations, advice, or assistance at the public hearing. (B) Neither the deputy superintendent, nor any other member of the council, shall be liable, in any civil or criminal action or proceeding, for any mistake of judgment or discretion in any action taken, or in any omission made, in good faith by the deputy superintendent or other member.

Oklahoma § 2001.2. Powers of Board - Administrator; powers and duties - Failure to comply with Bank Commissioner's orders or requirements A. In addition to any other powers conferred by law, the State Credit Union Board shall have the power to: 1. Regulate its own procedures and practice, except as may be hereafter provided by law; 2. Define any term not defined in Oklahoma Laws relating to credit unions; 3. Adopt and promulgate reasonable and uniform rules and regulations to: a. govern the conduct, operation and management of credit unions, b. govern the examination, evaluation of assets and the statements and reports of credit unions, and the form on which credit unions shall report their assets, liabilities and reserves, charge off their bad debts and otherwise keep their records and accounts,and c. otherwise to govern the administration of the laws of this state relating to credit unions. Such rules or regulations shall serve to foster and maintain an effective level of credit union services and the security of member accounts. The provisions of the Administrative Procedures Act

1 of this state, as now or

hereafter amended, are hereby expressly adopted and incorporated herein as though a part of this provision, and shall apply to all rules or regulations, procedures and orders of the Board. Final orders of the Board may be appealed to the Supreme Court of Oklahoma by any party directly affected and showing aggrievement by the order; 4. Restrict the withdrawal of share or deposit accounts or both from any credit union after having determined that circumstances make such restriction necessary for the proper protection of shareholders or depositors; 5. Issue cease and desist orders after having determined from competent and substantial evidence that a credit union is engaged, or when the Board has reasonable cause to believe the credit union is about to engage, in an unsafe or unsound practice, or is violating or has violated or the Board has reasonable cause to believe is about to violate, a material provision of any law, rule, regulation or any condition imposed in writing by the Board or any written agreement made with the Board; 6. Suspend from office and prohibit from further participation in any manner in the conduct of the affairs of a credit union any director, officer or committee member who has committed any violation of a law, rule or



regulation or of a cease and desist order or who has engaged or participated in any unsafe or unsound practice in connection with the credit union or who has committed or who has committed or engaged in any act, omission or practice which constitutes a breach of that person's fiduciary duty as such director, officer or committee member, when the Board has determined that such action or actions have resulted or will result in substantial financial loss or other damage that seriously prejudices the interests of the members; 7. Affirm, modify, reverse, and stay the enforcement of any order or ruling of the State Banking Commissioner or Administrator appointed pursuant to the provisions of subsection B of this section relating to credit unions, their directors, officers, committee members or employees; 8. Subpoena witnesses, compel their attendance, require the production of evidence, administer oaths and examine any person under oath in connection with any subject relating to a duty imposed upon or a power vested in the Board; 9. Charge application fees for processing submissions by a credit union to the Board, Commissioner or Administrator. The Board may charge a fee for the items enumerated herein; provided, the Board's fee schedule shall not be limited solely to the following submissions: a. an application fee for merger or acquisition, b. an application to amend a credit union's bylaws, c. an application to be heard by the Board to add a special employee group, or d. an application to add a special employee group by using any simplified expansion process. The Board may adopt and promulgate, from time to time, a fee schedule for the processing of submissions by credit unions. Any payments received pursuant to the provisions of this paragraph shall be deposited to the revolving fund for the State Banking Department created in Section 211.1 of this title; 10. Charge and collect assessments from each credit union under its supervision on each One Thousand Dollars ($1,000.00) of assets, or major fraction thereof, at rates established by the Board. The assessments shall be paid annually to the State Banking Department no later than the fifth day of February in each year. All assessments and all fees shall be deposited in the revolving fund for the State Banking Department pursuant to the provisions of Section 211.1 of this title. Effective January 1, 2007, and each year thereafter, ten percent (10%) of all assessments collected pursuant to this paragraph shall be deposited to the General Revenue Fund of the State Treasury. The State Credit Union Board may charge and collect assessments on an annual basis and may, in addition to any annual assessment, charge and collect a special assessment from each credit union, at rates established by the Board; and 11. Charge and collect from each credit union under its supervision an annual fee of One Thousand Dollars ($1,000.00) which shall be deposited in the Oklahoma State Banking Department revolving fund created pursuant to Section 211.1 of this title. B. The Commissioner may appoint an Administrator, who, in addition to such duties and authority as are conferred by section 2001 et seq. of this title, shall have such duties and authority as the Commissioner may assign the Administrator. The bond of the Administrator shall be the same as that set for the State Deputy Banking Commissioner. In addition to other powers conferred by section 2001 et seq. of this title, the Commissioner shall have the power to: 1. Delegate the duties of the Office of the State Banking Commissioner under section 2001 et seq. of this title to the Administrator; 2. Exercise general supervision of credit unions organized under the laws of this state; 3. Require credit unions to cease and desist from engaging in any act or transaction, or doing any act in furtherance thereof, which would constitute a violation of the provisions of Section 2001 et seq. of this title, or a lawful regulation issued thereunder, or to cease and desist in engaging in any unsafe or unsound credit union practice; 4. Suspend any officer, director or employee or committee member who is found, after hearing, to be dishonest, reckless, unfit to participate in the conduct of the affairs of the credit union, or to have engaged or participated in the conduct of the affairs of the credit union, or to have engaged or participated in any unsafe or unsound practice in connection with the credit union, or to be practicing a continuing disregard or violations of laws, rules, regulations or orders which are likely to cause substantial loss to the credit union or likely to seriously weaken the condition of the credit union. However, any individual so suspended may within ten (10) days file a notice of protest for the suspension with the Administrator and as soon as possible thereafter, but in no event more than thirty (30) days, the Board will review the order of the Commissioner and make such findings as it deems proper,



and pending that, the officer, employee, director or committee member shall not perform any of the duties of such office; 5. Charge a fee not to exceed Fifty Dollars ($50.00) per hour and actual expenses for each examiner for actual time consumed by the State Banking Department in making special examinations of a credit union. A "special examination" shall be any examination conducted in connection with a charter conversion, or a limited scope examination conducted at a frequency more often than once each eighteen (18) months, when deemed necessary by the Administrator and the Commissioner. Payments received pursuant to this paragraph shall be deposited in the revolving fund for the State Banking Department pursuant to Section 211.1 of this title. C. Upon failure of a credit union to comply with the Commissioner's order or requirements, the Commissioner shall report such failure to the Board for action with respect to suspension of such credit union's certificate of authority to transact business. § 2003. Investigation and report by Bank Commissioner - Certificate of approval - Certificate of incorporation After receipt of an application such as referred to in Section 2002 of this title, the Bank Commissioner shall cause an appropriate investigation to be made for the purpose of determining whether the application, the certificate of incorporation and the bylaws conform to the provisions of the laws of the State of Oklahoma. If the application, the certificate of incorporation and the bylaws conform to the provisions of this act, and the Bank Commissioner is satisfied that: (1) the characteristics of the common bond of the field of membership are favorable to the economic viability of the proposed credit union and will not materially and substantially overlap the field of membership of existing credit unions in the territory in which it will operate; and (2) the reputation, character, financial responsibility and business experience of the initial board of directors and supervisory committee provide assurance that the credit union's affairs will be properly administered, the Bank Commissioner shall, within forty-five (45) days after receipt of the application, submit a report of his investigation to the State Credit Union Board, together with his recommendation to the State Credit Union Board that the application be approved or disapproved. The State Credit Union Board shall, within sixty (60) days after the receipt of the report and recommendation of the Bank Commissioner, cause a certificate of approval to be issued or cause written notice to applicants of disapproval. Thereafter, the certificate of incorporation with the certificate of approval of the State Credit Union Board attached shall be filed in the office of the Secretary of State and a copy thereof, duly certified to by the Secretary of State, shall be filed with the State Credit Union Board. A copy of the certificate of incorporation and bylaws as approved shall be returned to the incorporators. The Secretary of State shall issue a certificate in the form provided by law for other corporations, and the existence of said credit union as a corporation shall date from the issuance of the certificate of incorporation by the Secretary of State, from which time it shall and may exercise the powers conferred upon corporations generally, except as limited or modified by the laws of the State of Oklahoma.

Oregon Silent

Pennsylvania Silent

Rhode Island Silent

South Carolina Silent

Tennessee Silent

Texas Sec. 15.401. SUPERVISION OF COMMISSIONER. The commission shall supervise, consult with, and advise the commissioner.



Sec. 15.402. ADOPTION OF RULES. (a) The commission may adopt reasonable rules necessary to administer this chapter and to accomplish the purposes of Subtitle D, Title 3. (b) In adopting rules under this section, the commission may regulate and classify credit unions according to criteria that the commission determines are appropriate and necessary to accomplish the purposes of this chapter and Subtitle D, Title 3, including the: (1) character of field of membership; (2) amount of assets; (3) number of members; and (4) financial condition. (b-1) In adopting rules under this section, the commission shall consider the need to: 6 (1) promote a stable credit union environment; Texas Finance Code, Title 2, Chapter 15: Credit Union Commission and Department (2) provide credit union members with convenient, safe, and competitive services; (3) preserve and promote the competitive parity of credit unions with regard to other depository institutions consistent with the safety and soundness of credit unions; and (4) promote or encourage economic development in this state. (c) The commission by rule shall establish reasonable and necessary fees for the administration of this chapter and Subtitle D, Title 3. (d) The presence or absence in this chapter or Subtitle D, Title 3, of a specific reference to rules regarding a particular subject does not enlarge or diminish the rulemaking authority provided by this section.

Utah 7-9-43. Board of Credit Union Advisors. (10) The Board of Credit Union Advisors has the duty to advise the governor and commissioner on problems relating to credit unions and to foster the interest and cooperation of credit unions in the improvement of their services to the people of the state.

Vermont Silent

Virginia Silent

Washington Silent

West Virginia Silent

Wisconsin 186.015 Credit union review board. (2) DUTIES. The review board shall do all of the following: (a) Advise the office of credit unions and others in improving the condition and service of credit unions. (b) Review the acts and decisions of the office of credit unions and conduct reviews under sub. (5). (c) Respond promptly on credit union matters and to questions submitted to the review board by the office of credit unions or by a credit union. (d) Serve as an appeal board for credit unions. (e) Perform other credit union review functions as provided by law or rule. (f) Conduct hearings, take testimony, issue subpoenas and administer oaths to witnesses.

32 Supervisory Authorities – Suspension or Removal of Officials by Government



Suspension or Removal of Officials by Government



POWERS OF COMMISSIONER

Section 10.25. Powers of Commissioner. (1) The commissioner may prescribe regulations to implement any provision of this Act, and to define any term not defined in the Act. The provisions of the State Administrative Procedure Act, as now or hereafter amended, are hereby expressly adopted and incorporated herein as though a part of this Act, and shall apply to all regulations, procedures and orders of the commissioner under this Act. (2) The commissioner may restrict withdrawals from share or deposit accounts, or both, of any credit union if the commissioner determines that circumstances exist making such restriction necessary for the proper protection of shareholders or depositors. (3) The commissioner may issue cease and desist orders: (a) After having determined, from competent and substantial evidence: (i) That a credit union is engaged, or has engaged in an unsafe or unsound practice; or (ii) That a credit union is violating, or has violated, a material provision of any law, regulation or any condition imposed in writing by the commissioner or any written agreement made with the commissioner. (b) When the commissioner has reasonable cause to believe: (i) That the credit union is engaged, or is about to engage in an unsafe or unsound practice; or (ii) That a credit union is violating, or has violated, a material provision of any law, regulation or any condition imposed in writing by the commissioner or any written agreement made with the commissioner. (4) The commissioner may suspend from office, and prohibit from further participation in any manner in the conduct of the affairs of a credit union, federal credit union or foreign credit union operating within the state, any director, officer or committee member who has committed any violation of a law, regulation or a cease and desist order, or who has engaged or participated in any unsafe or unsound practice in connection with the credit union, or who has committed or engaged in any act, omission, or practice which constitutes a breach of that person‘s fiduciary duty as such director, officer or committee member, when the commissioner has determined that such action or actions have resulted, or will result in substantial financial loss or other damage that seriously prejudices the interests of the credit union‘s members. (5) The commissioner shall have the power to subpoena witnesses, compel their attendance, require the production of evidence, administer oaths, and examine any person under oath in connection with any hearing conducted by the commissioner. (6) The commissioner may suspend the operations of a credit union, may appoint a conservator to take possession or control of the business and assets of a credit union, and may involuntarily merge or involuntarily liquidate a credit union, in accordance with the further provision of this Act. (7) The commissioner may suspend the declaration of dividends and the payment of interest if the commissioner has reasonable cause to believe that the credit union is insolvent. (8) The commissioner shall not hold any credit union or other person liable under this Act for acts or omissions made in good faith reliance on any rule, interpretation or opinion issued by the commissioner. (9) The commissioner has the power to exercise all other rights, authorities and duties set forth in this Act.

The Uniform State Administrative Procedure Act (APA or a comparable law) has been enacted in many states. The APA provides safeguards to

credit unions and credit union officials, including the right to adequate notice, the opportunity to comment, as well as the right to an

administrative hearing and to judicial appeal. Each state’s Administrative Procedures Act should be carefully reviewed to assure that the Credit

Union Act is consistent with the APA. Additionally, each state should determine whether a simple reference to the state’s APA is sufficient, or

whether the opportunity for a notice and hearing must be explicitly stated in each pertinent section of the Credit Union Act.



Comparative Summary

Similar to the intent of the Model Act:

Alabama Illinois Minnesota Ohio Vermont Arizona Indiana Missouri Oregon Virginia Colorado Iowa Nebraska Rhode Island* Florida* Kansas New York* South Carolina Georgia Maine* North Carolina Tennessee Idaho Massachusetts North Dakota* Utah*

Similar to Model Act with Expanded Language:

Kentucky Pennsylvania Wisconsin Michigan Texas New Mexico Washington

Expanded Language:

Kentucky: Also for receiving financial gain. The violation, practice or breach must involve personal

dishonesty or demonstrate a willful or continuing disregard for the safety and soundness of the

institution.

Michigan: Also applies to employees of credit unions.

New Mexico: Also if the party has received financial gain or other benefit, and it involves personal dishonesty or

demonstrates unfitness.

Pennsylvania: Applies to any director, officer, committee member, employee, volunteer, or agent of a credit

union.

Texas: Also applies to employees of credit unions.

Washington: Also applies to employees of credit unions

Wisconsin: Also applies to employees of credit unions

Notable Provisions:

California Maryland Oklahoma

Hawaii Nevada

Notable:

California: The Commissioner can censure or suspend for up to 12 months or bar from employment any officer,

director or employee if the Commissioner finds that: (1) it is in the public interest; (2) the person willfully

violated any rules which will cause material damage to the credit union or its members; (3) that such person

has been convicted of or pleaded nolo contendere to a crime; or (4) has been held liable in the final action

of a civil judgment involving fraud, embezzlement, fraudulent conversion, or misappropriation of property.

Hawaii*: The Commissioner may order the removal of any institution-affiliated party from office or employment if

the Commissioner determines that the following three conditions exist: (1) has violated the governing

chapter or any rules, has violated a cease and desist order, has engaged in unsafe or unsound practice, or

has breached fiduciary duty; (2) by reason of such violation has suffered or probably will suffer financial loss

or damage, depositors’ interest have been prejudiced, or the party has received financial gain; (3) the

violation involves personal dishonesty or willful disregard for safety and soundness.


department.



Maryland: If the Commissioner finds that the unsafe or unsound practice continues after the warning and the officer,

official, agent, or employee was provided an opportunity to be heard, the Commissioner may remove the

officer, official, agent, or employee with the approval of the Secretary of Labor, Licensing, and Regulation

Nevada: If the Commissioner notifies the board in writing that the Commissioner has information that any director,

officer, or employee of the credit union is failing in the performance of duties, the board shall meet to

consider the matter. If the board finds the Commissioner’s objections to be well founded, such director,

officer, or employee shall be removed immediately.

Oklahoma: State Credit Union Board has the power to remove officials.

Comparison by State


Alabama Similar to Model

Alaska Silent

Arizona* Similar to Model

Arkansas Silent

California Notable

Colorado Similar to Model

Connecticut Silent

Florida* Similar to Model

Georgia Similar to Model

Hawaii Notable

Idaho Similar to Model

Illinois Similar to Model

Indiana Similar to Model

Iowa Similar to Model

Kansas Similar to Model

Kentucky Expanded Language

Louisiana Silent

Maine* Similar to Model

Maryland Notable

Massachusetts* Similar to Model

Michigan Expanded

Minnesota* Similar to Model

Mississippi Silent

Missouri Similar to Model

Montana Silent

Nebraska Similar to Model

Nevada Notable


New Jersey Silent

New Mexico Expanded Language

New York* Similar to Model

North Carolina Similar to Model

North Dakota* Similar to Model


department.



Ohio Similar to Model

Oklahoma Notable

Oregon Similar to Model

Pennsylvania Expanded Language

Rhode Island* Similar to Model

South Carolina Similar to Model

Tennessee* Similar to Model

Texas Expanded Language

Utah* Similar to Model

Vermont Similar to Model

Virginia Similar to Model

Washington Expanded Language

West Virginia Similar to Model

Wisconsin Expanded Language


department.



Provisions from State Credit Union Acts*: Supervisory Authorities

Suspension or Removal of Officials by Government


Alabama § 5-17-8. Reports to administrator of Alabama Credit Union Administration; examination of credit union; revocation of certificate of approval; cease and desist order; suspension from office; appeal and hearing. (d) The administrator of the Alabama Credit Union Administration may suspend from office and prohibit further participation in any manner in the conduct of the affairs of a credit union of any director, officer, committee member, or employee who has done any one of the following: (1) committed any violation of a law, rule or regulation. (2) engaged or participated in any unsafe or unsound practice in connection with the credit union business. (3) engaged in any act, omission or practice which constitutes a breach of fiduciary duty to the credit union. (4) committed any fraudulent or questionable practice in the conduct of the credit union's business which endangers the credit union's reputation or threatens insolvency. (5) violated any condition imposed in writing by the administrator or any written agreement made with the administrator. (6) concealed, destroyed, removed, falsified, or perjured any book, record, paper, report, statement, or account related to the business and affairs of the credit union.

Alaska Silent

Arizona 6-161. Suspension, removal or prohibition; hearing; notice A. The superintendent, subject to the requirements of this article, may remove or suspend from office or prohibit from participating in any of the affairs of a financial institution or enterprise any director, officer, employee, agent or other person participating in the conduct of the affairs of the financial institution or enterprise if he finds that the director, officer, employee, agent or other person participating in the conduct of the affairs of the financial institution or enterprise has engaged in any of the following: 1. Any act, omission or practice in any business transaction which demonstrates personal dishonesty or unfitness to continue in office or participate in the conduct of the affairs of the financial institution or enterprise. 2. A wilful violation of an order of the superintendent. 3. Refusal to testify or produce records in response to a subpoena issued by the superintendent. 4. A conviction of a crime, an essential element of which is fraud, misrepresentation or deceit. 5. Any activity described in 12 United States Code section 1818(e)(1). For the purposes of this paragraph, all references to the appropriate federal banking agency are to the superintendent. 6. Any violation of this title relative to the financial institution or enterprise. 7. Any act, practice or transaction which in any way would jeopardize the safety and soundness of the financial institution. B. The superintendent may issue and serve upon the person involved, named as respondent, a written notice of the superintendent's order of suspension or intention to remove him from office or to prohibit him from further participation in any manner in the conduct of the affairs of the financial institution or enterprise. A copy of the notice shall also be served on the financial institution or enterprise. The notice shall contain a statement of the alleged facts and fix a time and place at which a hearing shall be held. The hearing shall be fixed for a date not earlier than thirty days nor later than sixty days after the date of service of the notice, unless an earlier or a later date is set for good cause shown. If the respondent without excusable neglect fails to answer the charges, or if on the record made at the hearing the superintendent finds that any of the charges specified in the notice has been established and constitutes grounds for suspension or removal from office or prohibition from participation in the conduct of the affairs of the financial institution or enterprise, the superintendent may issue the appropriate



order. The order becomes effective at the time specified in the order after service on the respondent and remains effective unless stayed, modified, terminated or set aside by action of the superintendent or a reviewing court. C. The resignation, termination of employment or participation, or separation of the person involved does not affect the jurisdiction and authority of the superintendent to issue any notice and proceed under this section against that person. D. Notwithstanding section 6-129, an order issued pursuant to this section which has become final is open to public inspection, except that the superintendent may withhold from public inspection for such time as he considers necessary any information which in his judgment the public welfare or the welfare of the financial institution requires to be so withheld. E. If a removal order has become final, a financial institution or enterprise may not employ the person against whom it was issued without the prior written approval of the superintendent.

Arkansas Silent

California 14208. The commissioner may, after appropriate notice and opportunity for hearing, by order censure, or suspend for a period not exceeding 12 months, or bar from any position of employment or management of, any credit union, any officer, director, or employee of, or person performing similar functions for, a credit union, if the commissioner finds that: (1) The censure, suspension or bar is in the public interest, that the person has committed a violation of this division or rule of the commissioner, and that the violation was either willful or caused, or will probably cause, material damage to the credit union or any member thereof. (2) Any officer, director, employee of, or person performing similar functions for a credit union has been convicted of, or pleaded nolo contendere to, a crime, or has been held liable in a civil action by final judgment if the crime or civil action involved fraud, embezzlement, fraudulent conversion or misappropriation of property.

Colorado 11-30-106. Examinations - reports - powers of commissioner. (8) (a) (I) The commissioner may suspend or remove any director, officer, or employee of a credit union when the commissioner determines such person has: (A) Violated the provisions of this article or a lawful regulation or order issued thereunder; (B) Engaged or participated in any unsafe or unsound practice in the conduct of credit union business; (C) Committed or engaged in any act, omission, or practice which constitutes a breach of fiduciary duty to the credit union, and the credit union has suffered or will probably suffer financial loss or other damage, or the interests of members or account holders may be seriously prejudiced thereby; or (D) Received financial gain by reason of a violation, practice, or breach of fiduciary duty that involved personal dishonesty or demonstrated a willful or continuing disregard for the safety or soundness of the credit union. (II) The commissioner may suspend or remove any director, officer, or employee of a credit union who, under the laws of this state, the United States, or any other state or territory of the United States: (A) Has entered a plea of guilty or nolo contendere to or been convicted of a crime involving theft or fraud that is classified as a felony; or (B) Is subject to an order removing or suspending such individual from office, or prohibiting such individual's participation in the conduct of the affairs of any credit union, savings and loan association, bank, or other financial institution. (b) (I) A suspension or removal order shall specify the grounds for the suspension or removal. A copy of the order shall be sent to the credit union concerned and to each member of its board of directors. The commissioner shall send written notice by certified mail, return receipt requested, to any person affected by paragraph (a) of this subsection (8), at least ten days prior to a hearing held pursuant to section 24-4-105, C.R.S., at which the commissioner shall preside. (II) If the commissioner determines that extraordinary circumstances require immediate action, a person may be suspended or removed under paragraph (a) of this subsection (8) without notice or a hearing, but the



commissioner shall conduct a hearing under section 24-4-105, C.R.S., within thirty days after such suspension or removal. (III) In extraordinary circumstances, upon order of the commissioner, any hearing conducted pursuant to this section shall be exempt from any provision of law requiring that proceedings of the commissioner be conducted publicly. Such extraordinary circumstances occur when specific concern arises about prompt withdrawal of moneys from the institution. (IV) Any person who performs any duty or exercises any power of a credit union after receipt of a suspension or removal order under paragraph (a) of this subsection (8) commits a class 1 misdemeanor and shall be punished as provided in section 18-1.3-501, C.R.S.

Connecticut Silent

Florida 655.037 Removal of a financial institution-affiliated party by the office.— (1) The office may issue and serve upon any financial institution-affiliated party and upon the state financial institution, subsidiary, or service corporation involved, a complaint stating charges whenever the office has reason to believe that the financial institution-affiliated party is engaging or has engaged in conduct that is: (a) An unsafe or unsound practice; (b) A prohibited act or practice; (c) A willful violation of any law relating to financial institutions; (d) A violation of any other law involving fraud or moral turpitude which constitutes a felony; (e) A violation of s. 655.50, relating to the Florida Control of Money Laundering in Financial Institutions Act; chapter 896, relating to offenses related to financial transactions; or any similar state or federal law; (f) A willful violation of any rule of the commission; (g) A willful violation of any order of the office; (h) A willful breach of any written agreement with the office; or (i) An act of commission or omission or a practice which is a breach of trust or a breach of fiduciary duty. (2) The complaint must contain the statement of facts and notice of opportunity for a hearing pursuant to ss. 120.569 and 120.57. (3) If no hearing is requested within the time allowed by ss. 120.569 and 120.57, or if a hearing is held and the office finds that any of the charges in the complaint are true and that the state financial institution has suffered or will likely suffer loss or other damage or that the interests of the depositors, members, or shareholders could be seriously prejudiced by reason of such violation or practice or breach of fiduciary duty or that the financial institution-affiliated party has received financial gain by reason of such violation, practice, or breach of fiduciary duty, and that such violation, practice, or breach of fiduciary duty is one involving personal dishonesty on the part of such financial institution-affiliated party or a continuing disregard for the safety or soundness of the state financial institution, subsidiary, or service corporation, the office may enter an order removing the financial institution-affiliated party or restricting or prohibiting participation by such financial institution-affiliated party in the affairs of that particular state financial institution, subsidiary, or service corporation or any other state financial institution, subsidiary, or service corporation. (4) If the financial institution-affiliated party fails to respond to the complaint within the time allowed in ss. 120.569 and 120.57, such failure constitutes a default and justifies the entry of an order of removal. (5) A contested or default order of removal is effective when reduced to writing and served on the state financial institution, subsidiary, or service corporation and the financial institution-affiliated party. An uncontested order of removal is effective as agreed. (6)(a) The chief executive officer, or the person holding the equivalent office, of a state financial institution shall promptly notify the office if he or she has actual knowledge that any financial institution-affiliated party is charged with a felony in a state or federal court. (b) Whenever any financial institution-affiliated party is charged with a felony in a state or federal court, or in the courts of any foreign country with which the United States maintains diplomatic relations, and such charge alleges violation of any law involving fraud, currency transaction reporting, money laundering, theft, or moral turpitude and the charge under such foreign law is equivalent to a felony charge under state or federal law, the office may



enter an emergency order suspending such financial institution-affiliated party or restricting or prohibiting participation by such financial institution-affiliated party in the affairs of that particular state financial institution, subsidiary, or service corporation or any other financial institution, subsidiary, or service corporation, upon service of the order upon the state financial institution, subsidiary, or service corporation and the financial institution-affiliated party so charged. The order shall contain notice of opportunity for a hearing pursuant to ss. 120.569 and 120.57, where the financial institution-affiliated party may request a postsuspension hearing to show that continued service to or participation in the affairs of the state financial institution, subsidiary, or service corporation does not pose a threat to the interests of the state financial institution’s depositors, members, or stockholders, or threaten to impair public confidence in the state financial institution. In accordance with applicable commission rules, the office shall notify the financial institution-affiliated party whether the order suspending or prohibiting the financial institution-affiliated party from participation in the affairs of a state financial institution, subsidiary, or service corporation will be rescinded or otherwise modified. The emergency order will remain in effect, unless otherwise modified by the office, until the criminal charge is disposed of. The acquittal of the financial institution-affiliated party charged, or the final, unappealed dismissal of all charges against such person, will dissolve the emergency order, but will not prohibit the office from instituting proceedings under subsection (1). If the financial institution-affiliated party charged is convicted or pleads guilty or nolo contendere, whether or not an adjudication of guilt is entered by the court, the emergency order becomes final. (7) Any financial institution-affiliated party removed from office pursuant to this section is not eligible for reelection to such position or to any official position in any financial institution in this state except with the written consent of the office. Any financial institution-affiliated party who is removed, restricted, or prohibited from participation in the affairs of a state financial institution pursuant to this section may petition the office for modification or termination of any such removal, restriction, or prohibition. (8) The resignation, termination of employment or participation, or separation from a state financial institution, subsidiary, or service corporation of the financial institution-affiliated party does not affect the jurisdiction and authority of the office to issue any notice and proceed under this section against such financial institution-affiliated party, if such notice is served before the end of the 6-year period beginning on the date such person ceases to be such a financial institution-affiliated party with respect to such state financial institution, subsidiary, or service corporation.

Georgia 7-1-71. Removal of officers, directors, or employees. (a) The department, by order of the commissioner, shall have the right to require the immediate suspension from office of any director, officer, or employee of any financial institution and to prohibit any such person's participation in the affairs of any financial institution if the department finds such person: (1) To be dishonest, incompetent, or reckless in the management of the affairs of the financial institution; (2) To have persistently violated the laws of this state; (3) To have violated the lawful orders, regulations, or conditions of a written agreement of or with the department; (4) To have been indicted for any crime involving moral turpitude or breach of trust; (5) To have evidenced an inability to conduct his or her own financial affairs or the affairs of a company in which such individual owns a majority interest or has responsibility for financial matters, in a fiscally responsible, diligent, or lawful fashion; or (6) To have engaged in any unsafe or unsound practice in connection with any insured depository institution or to have demonstrated willful or continuing disregard for the safety and soundness of a financial institution.

Hawaii §412:2-306 Removal or prohibition of institution-affiliated party; grounds. (a) The commissioner may order the removal of any institution-affiliated party from office or employment with a Hawaii financial institution and the prohibition of the party's affiliation or participation in the affairs of the financial institution or any other Hawaii financial institution if the commissioner determines that all three of the following circumstances exist:



(1) The institution-affiliated party has violated this chapter or any rules adopted pursuant to this chapter, violated a cease and desist order that has become effective, engaged or participated in an unsafe or unsound practice in connection with the financial institution, or breached a fiduciary duty owed to the financial institution; (2) By reason of such violation, practice, or breach the financial institution has suffered or will probably suffer financial loss or other damage, the interests of the financial institution's depositors have been or may be prejudiced, or the institution-affiliated party has received financial gain or other benefit as a result of the violation, practice, or breach; and (3) The violation, practice, or breach involves the institution-affiliated party's personal dishonesty or demonstrates the party's wilful or continuing disregard for the safety or soundness of the financial institution. (b) The commissioner may also order the removal of any institution-affiliated party from office or employment with a Hawaii financial institution and the prohibition of the party's affiliation or participation in the affairs of the financial institution or any other Hawaii financial institution if the commissioner determines that: (1) The institution-affiliated party has been charged in any information, indictment, or complaint authorized by a United States attorney, state attorney general, or similar legal officer, with the commission of, or participation in, a crime involving dishonesty or breach of trust that is punishable by imprisonment for a term exceeding one year under state or federal law; and (2) The continued service by the institution-affiliated party may pose a threat to the interests of the financial institution's depositors or may threaten to impair public confidence in the institution.

Idaho 26-2140B.Removal of directors, officers, or employees. Any director, officer or employee of any credit union found by the director to be negligent, dishonest, reckless or incompetent in the performance of his official duties, shall be removed from office by the board of directors of such credit union on the written order of the director. If the directors neglect or refuse to remove such director, officer or employee, in the event any losses accrue to such credit union thereafter by reason of the negligence, dishonesty, recklessness or incompetency of such director, officer or employee, the written order of the director shall be deemed to be conclusive evidence of the negligence of the directors failing to act upon the same in any action brought against them, or any of them, for recovery of such losses. The director, officer or employee affected by order of the director may petition the district court in the judicial district in which the credit union is located to set aside the order of the director. Upon the filing of such petition the court shall have the jurisdiction to affirm, set aside, or modify the order of the director. If the directors fail or neglect to remove such director, officer or employee, and the director of the department of finance has reasonable cause to believe that the continued participation in the affairs of the credit union by the director, officer or employee will place the credit union in an unsafe or unsound condition, the director of the department of finance may apply to the district court for a temporary restraining order and injunction preventing the participation of the director, officer or employee in the affairs of the credit union. The findings of the director as to the facts, if supported by substantial evidence, shall be conclusive that the credit union director, officer or employee who is the subject of an order for removal by the director of the department of finance is or has been negligent, dishonest, reckless or incompetent in the performance of his duties.

Illinois (205 ILCS 305/8) (from Ch. 17, par. 4409) Sec. 8. Director's powers and duties. Credit unions are regulated by the Department. The Director, in executing the powers and discharging the duties vested by law in the Department has the following powers and duties: (5) To suspend from office and to prohibit from further participation in any manner in the conduct of the affairs of his credit union any director, officer or committee member who has committed any violation of a law, rule, regulation or of a cease and desist order or who has engaged or participated in any unsafe or unsound practice in connection with the credit union or who has committed or engaged in any act, omission, or practice which constitutes a breach of his fiduciary duty as such director, officer or committee member, when the Director has determined that such action or actions have resulted or will result in substantial financial loss or other damage that seriously prejudices the interests of the members.



Indiana IC 28-11-4-3 Violations by certain individuals; director's notice of intent to issue order; felonies; civil penalties Sec. 3. (a) If the director determines that a current or former director, officer, or employee of a financial institution has: (1) committed a violation of a statute, a rule, a final cease and desist order, any condition imposed in writing by the director in connection with the grant of any application or other request by the financial institution, or any written agreement between the financial institution and the director or the department; (2) engaged or participated in an unsafe or unsound practice in connection with the financial institution; (3) committed or engaged in an act, an omission, or a practice that constitutes a breach of fiduciary duty as director, officer, or employee; or (4) been convicted of, has pleaded guilty or nolo contendere to, or is under indictment for, a felony involving fraud, deceit, or misrepresentation under the laws of Indiana or any other jurisdiction; the director, subject to subsection (b), may issue and serve upon the officer, director, or employee a notice of the director's intent to issue an order removing the person from the person's office or employment, an order prohibiting any participation by the person in the conduct of the affairs of any financial institution, or an order both removing the person and prohibiting the person's participation. (b) A violation, practice, or breach specified in subdivision (a) is subject to the authority of the director under subsection (a) if the director finds any of the following: (1) By reason of the violation, practice, or breach, the financial institution has suffered or will probably suffer substantial financial loss or other damage. (2) The interests of the financial institution's depositors could be seriously prejudiced by reason of the violation, practice, or breach of fiduciary duty. (3) The violation, practice, or breach involves personal dishonesty on the part of the officer, director, or employee involved. (4) The violation, practice, or breach demonstrates a willful or continuing disregard by the officer, director, or employee for the safety and soundness of the financial institution. (c) A person who: (1) is under indictment for; (2) has been convicted of; or (3) has pleaded guilty or nolo contendere to; a felony involving fraud, deceit, or misrepresentation under the laws of Indiana or any other jurisdiction may not serve as a director, an officer, or an employee of a financial institution, or serve in any similar capacity, unless the person obtains the written consent of the director. (d) A financial institution that willfully permits a person to serve the financial institution in violation of subsection (b) or (c) is subject to a civil penalty of five hundred dollars ($500) for each day the violation continues. A civil penalty paid under this subsection must be deposited into the financial institutions fund established by IC 28-11-2-9.

Iowa 533.501 Supervisory action. 1. Cease and desist order. a. (1) If the superintendent has reason to believe that an officer, director, employee, or committee member of a state credit union has violated any law, rule, or cease and desist order relating to a state credit union, or has engaged in an unsafe or unsound practice in conducting the business of a state credit union, the superintendent may cause notice to be served upon the officer, director, employee, or committee member to appear before the superintendent to show cause why the person should not be removed from office or employment. A copy of such notice shall be sent by certified mail or restricted certified mail to each director of the state credit union affected. (2) If the superintendent finds that the accused has violated a law, rule, or cease and desist order relating to a state credit union, or has engaged in an unsafe or unsound practice in conducting the business of a state credit union, after granting the accused a hearing before an independent administrative law judge, the superintendent in the superintendent’s discretion may order that the accused be removed from office and from any position of employment with the state credit union. The superintendent may further order that the accused not accept



employment in any state credit union under the superintendent’s jurisdiction without the superintendent’s prior approval. (3) A copy of the order shall be served upon the accused and upon the state credit union affected, at which time the accused shall cease to be an officer, director, employee, or committee member of the state credit union. b. (1) If the superintendent determines that a state credit union has violated any of the provisions of this chapter, after notice and opportunity for hearing, the superintendent shall order the state credit union to correct the violation, except when the state credit union is insolvent. (2) The superintendent may specify the manner in which the violation is to be corrected and grant the state credit union not more than sixty days within which to comply with the order. (3) The superintendent may revoke a state credit union’s certificate of approval for failure to comply with the order. (4) If the certificate of approval has been revoked, the superintendent may apply to the district court of the county in which the state credit union is located for the appointment of a receiver for the state credit union. 2. Summary cease and desist order. a. (1) If it appears to the superintendent that a state credit union, or any director, officer, employee, or committee member of a state credit union, is engaging in or is about to engage in an unsafe or unsound practice or dishonest act in conducting the business of the state credit union that is likely to cause insolvency or substantial dissipation of assets or earnings of the state credit union, or is likely to seriously weaken the condition of the state credit union or otherwise seriously prejudice the interests of its members, the superintendent may issue an interim summary cease and desist order requiring the state credit union, or any director, officer, employee, or committee member, to cease and desist from any such practice or act, and may take affirmative action, including suspension of the director, officer, employee, or committee member to prevent such insolvency, dissipation, condition, or prejudice. (2) The interim order shall become effective upon personal service upon the state credit union, or upon the director, officer, employee, or committee member of the state credit union, and remain effective and enforceable pending the completion of administrative proceedings conducted pursuant to this section and issuance of a final order. b. (1) The interim order shall contain a concise statement of the facts constituting the alleged unsafe or unsound practice or alleged dishonest act, and shall fix a time and place at which a hearing will be held to determine whether a final order to cease and desist should issue against the state credit union, or any director, officer, employee, or committee member. (2) The hearing shall be fixed for a date not later than thirty days after service of the interim order unless a later date is set at the request of the party served. (3) If the state credit union, or the director, officer, employee, or committee member, fails to appear at the hearing, the state credit union, or the director, officer, employee, or committee member, is deemed to have consented to the issuance of a final cease and desist order. (4) In the event of such consent, or if upon the record made at the hearing the superintendent finds that any unsafe or unsound practice or dishonest act specified in the interim order has been established, the superintendent may issue and serve upon the state credit union, or the director, officer, employee, or committee member, a final order to cease and desist from any such practice or act. The order may require the state credit union, or the director, officer, employee, or committee member, to cease and desist from any such practice or act and direct affirmative action, including suspension of the director, officer, employee, or committee member. c. (1) A hearing provided for in this section shall be presided over by an administrative law judge appointed in accordance with section 17A.11. (2) The hearing shall be private, unless the superintendent determines after full consideration of the views of the party afforded the hearing, that a public hearing is necessary to protect the public interest. (3) After the hearing, and within thirty days after the case has been submitted for decision, the superintendent shall review the proposed order of the administrative law judge and render a final decision, including findings of fact upon which the decision is predicated, and issue and serve upon each party to the proceeding an order consistent with this section. (4) Records and information relating to the hearing shall be confidential and not subject to subpoena. Such records and information shall not constitute a public record subject to examination or copying under chapter 22.



d. Any final order issued by the superintendent shall become effective upon service upon the state credit union, director, officer, employee, or committee member. e. In the case of violation or threatened violation of, or failure to obey, an order, the superintendent may apply to the district court of the county in which the state credit union has its principal place of business for the enforcement of the order and such court shall have jurisdiction and power to order and require compliance with the order. f. (1) Within ten days after a state credit union or any director, officer, employee, or committee member is served with a summary cease and desist order, the state credit union or director, officer, employee, or committee member affected may apply to the district court in the county in which the state credit union has its principal place of business for an injunction setting aside, limiting, or suspending the enforcement, operation, or effectiveness of the interim order pending the completion of administrative proceedings. (2) If serious prejudice to the interests of the superintendent, the state credit union, or the officer, director, employee, or committee member would result from a court hearing, the court may order the judicial proceeding to be conducted in camera.

Kansas 17-2242. Administrator's jurisdiction. (a) If it appears to the administrator that the board of directors, supervisory or credit committees, of any credit union has been dishonest, reckless or incompetent in the performance of their duties, the administrator: (1) May recommend the removal of such persons; and (2) may submit any such findings, reports or recommendations to any regularly or specially called meeting of the board of directors, credit and supervisory committees or, if the administrator has done this, after due notice given at least 10 days in advance, may submit the administrator's findings and recommendations and reports to a general meeting of the shareholders. Due notice shall be construed as being such notice as is provided in the bylaws of the credit union for calling such meetings. The administrator may give such additional notice to the members as the administrator deems advisable. The administrator and employees shall not be personally liable for such reports, recommendations and findings made in good faith. At any such meeting of the shareholders it shall be in order to call for a vote to remove such officers, board members, committee members, or employees. Such action by the shareholders to remove or not remove such persons from their positions shall be absolute and need not be based on any finding, concurrence or nonagreement with the administrator that such persons are or have been dishonest, reckless or incompetent in the performance of their duties. At any such meeting of the shareholders the board of directors, supervisory or credit committees may concur or not concur with a recommendation of removal whether or not they agree with the findings of the administrator. (b) As an alternative to and notwithstanding subsection (a), the administrator may suspend from office and prohibit from further participation in any manner in the conduct of the affairs of a credit union any director, officer, committee member or employee who has committed any violation of a law, rules and regulations or of a cease and desist order or who has engaged or participated in any unsafe or unsound practice in connection with the credit union or who has committed or engaged in any act, omission or practice which constitutes a breach of that person's fiduciary duty as such director, officer, committee member or employee, when the administrator has determined that such action or actions have resulted or will result in substantial financial loss or other damage that seriously prejudices the interests of the members. The credit union board of directors or individuals named in the administrative action shall be given a hearing or an opportunity for a hearing in accordance with the provisions of the Kansas administrative procedures act.

Kentucky 286.6-296 Suspension and removal of officers -- Review of such actions -- Injunction. (4) If the commissioner shall determine that any officer or director of a credit union has committed any violation of law, administrative regulation, or of a cease and desist order which has become final, or has engaged in or participated in any unsafe or unsound practice in connection with the credit union, or has committed or engaged in any act, omission, or practice which constitutes a breach of his fiduciary duty as such officer or director, and the commissioner determines that the credit union has suffered or will probably suffer substantial financial loss or other damages or that the interests of its members could be seriously prejudiced by reason of such violation or practice or breach of fiduciary duty, or that the director or officer has received financial gain by reason of the



violation or practice or breach of fiduciary duty, the commissioner may serve upon such director or officer a written notice of intention to remove him or her from office. The violation, practice, or breach must be one involving personal dishonesty on the part of such director or officer, or one which demonstrates a willful or continuing disregard for the safety or soundness of the credit union. The written notice shall serve to suspend the officer or director from office. Such suspension shall become effective upon service of such notice and, unless stayed by a court in proceedings authorized by subsection (6) of this section, shall remain in effect pending the completion of the administrative proceedings under subsection (5) of this section and until such time as the commissioner shall dismiss the charges specified in such notice or, if an order of removal is issued against the officer or director, the effective date of any such order.

Louisiana Silent

Maine §232. Removal or prohibition of officer or director. The superintendent may remove any officer or director of a financial institution organized pursuant to this Title or any officer of a branch of an out-of-state financial institution authorized to do business in this State or any officer or director of a financial institution holding company, in accordance with the procedures and subject to the conditions and limitations set forth in this section. The superintendent may prohibit an officer or director of a financial institution, financial institution holding company or branch of an out-of-state financial institution from participating in any manner in the conduct of the affairs of a financial institution, financial institution holding company or branch of an out-of-state financial institution if the superintendent determines that such action is necessary for the protection of the public, the financial institution, financial institution holding company or out-of-state financial institution or the interests of the institution's depositors or creditors. 1. Grounds for removal. The superintendent may serve written notice of intent to remove an officer or director from office or to prohibit further participation by the officer or director in any manner in the conduct of the affairs of a financial institution or financial institution holding company if: A. In the opinion of the superintendent, that officer or director has directly or indirectly: (1) Violated a law, rule, regulation or cease and desist order that has become final; (2) Engaged in or participated in any unsafe or unsound practice; or (3) Committed or engaged in any act, omission, or practice that constitutes a breach of the fiduciary duty of the officer or director; B. By reason of the violation, practice or breach of fiduciary duty described in paragraph A: (1) The financial institution or financial institution holding company has suffered or will probably suffer financial loss or other damage; (2) The interests of the financial institution's depositors or creditors or the public have been or could be prejudiced; or (3) The officer or director has received financial gain or other benefit by reason of the violation, practice or breach of fiduciary duty; and C. The violation, practice or breach of fiduciary duty described in paragraph A involves personal dishonesty on the part of the officer or director or demonstrates willful or continuing disregard by the officer or director for the safety or soundness of the financial institution or financial institution holding company.

Maryland § 6-907. Unsafe or unsound practices (a) Warnings; reports. -- (1) If the Commissioner believes that an officer or official has engaged in an unsafe or unsound practice, the Commissioner shall send a warning to the officer or official. (2) If the Commissioner finds that the officer or official has continued to engage in the unsafe or unsound practice, the Commissioner may report the facts to the Secretary of Labor, Licensing, and Regulation and the Attorney General. (3) A copy of the report shall be sent by certified mail, return receipt requested, bearing a postmark from the United States Postal Service, to each director of the credit union.



(b) Removal of officers, directors, or committee members. -- (1) If the Commissioner finds that the unsafe or unsound practice continues after the warning and the officer, official, agent, or employee was provided an opportunity to be heard, the Commissioner may remove the officer, official, agent, or employee with the approval of the Secretary of Labor, Licensing, and Regulation. (2) Notice of the hearing shall be given and the hearing shall be held in accordance with Title 10 of the State Government Article. (c) Service of copies of removal orders. -- A copy of the removal order shall be served on the individual removed and the credit union. (d) Cease and desist order; hearing. -- If the Commissioner determines that the unsafe or unsound practice under subsection (a) of this section requires immediate action to protect depositors or members, the Commissioner: (1) May issue a cease and desist order that is effective on service; and (2) Shall give the officer or official an opportunity for a hearing to rescind the order.

Massachusetts Chapter 167 SUPERVISION OF BANKS Section 12 Misconduct by bank officers; suspension; removal If, after inquiry, the commissioner finds that any officer of any bank, including a director or trustee thereof, has violated any law related to such bank or has conducted the business of such bank in an unsafe or unsound manner or has used his official position in a manner contrary to the interests of such bank or its depositors or has been negligent in the performance of his duties, the commissioner may, by written notice to such officer detailing his reasons therefor, forthwith order his suspension. Any suspension so ordered shall become effective upon service of such notice upon the official involved and shall remain in effect until removed by the commissioner. The commissioner may also, in his discretion, send a statement of facts upon which his conclusion is based relative to the conduct of the official involved, to the executive officer and each director or trustee of the bank affected. Within such reasonable time as the commissioner may direct, a special meeting of the directors or trustees of the bank shall be held with respect to the statement of the commissioner. If, in the opinion of the commissioner, appropriate action is not taken to protect the interest of the bank or its depositors, or if such conduct is continued, the commissioner shall cause notice to be served on such officer, director or trustee, to appear and show cause why he should not be removed from office. If, after granting the officer, director or trustee so summonsed a reasonable opportunity to be heard, the commissioner finds that he has been guilty of any such delinquency, the commissioner, in his discretion, may order that such officer, director or trustee be removed from office and from participation in the management of such bank. In either of the foregoing instances, a copy of any such notice shall be sent by registered mail to each officer, director or trustee of the bank affected. A copy of any such notice shall be sent to a board composed of the state treasurer, the attorney general and the commissioner of revenue. The members of the board, or a duly authorized representative, shall be present at any appearance of such officer, director or trustee. Any decision by the commissioner to suspend or remove such officer, director or trustee may be reversed by a decision of a majority of the members of the board made within five business days after the commissioner’s decision; provided, however, that in the absence of any such reversal, any such decision of the commissioner shall be given full force and effect. Copies of such order shall be served upon the delinquent officer and upon such bank, whereupon such officer shall cease to be an officer of such bank and shall not participate in any way, in the management thereof; provided, however, that any such order, and the evidence and findings of fact upon which it is based, shall not be made public or disclosed to anyone except the delinquent officer and the other officers, directors or trustees of such bank, other than in the course of any judicial proceeding under this section. The commissioner shall thereupon transmit to the attorney general a transcript of the evidence and finding, and the attorney general shall institute such proceedings as he may deem necessary and proper. Any person suspended from office as herein provided who, during the term of his suspension, participates in any manner in the management of any bank in the commonwealth shall be punished by a fine of not more than one thousand dollars or one year in jail, or both. Any person removed from office as herein provided who thereafter participates in any manner in the management of any bank in the commonwealth shall be punished by imprisonment in the state prison for not more than five years or by a fine of not more than five thousand dollars, or both. Within twenty days after the service of an order of suspension or removal under this section upon the person removed thereby, such person may file a petition in the supreme judicial court for Suffolk county for a review of



such suspension or removal but, pending such review, the order shall remain in full force and effect. The court shall have jurisdiction in equity to annul, reverse or affirm any such order, shall review all questions in accordance with the standards for review provided in paragraph (8) of section fourteen of chapter thirty A and may make any appropriate order or decree. The decision of the court shall be final and conclusive.

Michigan 490.212 Notice of intention to remove person from office or to prohibit participation in conduct of affairs; conditions; hearing; order; issuance; basis; enforcement. (1) If in the opinion of the commissioner a director, officer, or employee of a domestic credit union, or any other person who participates in the conduct of the affairs of the domestic credit union, has committed any violation of law or rule or of a cease and desist order or other order of the commissioner that has become final, or has engaged or participated in any unsafe or unsound practice in connection with the domestic credit union, or has committed or engaged in any act, omission, or practice that constitutes a breach of fiduciary duty of that person, and the commissioner determines that the domestic credit union has suffered or will probably suffer substantial financial loss or other damage or that the interests of its members and depositors could be seriously prejudiced by reason of the violation or practice or breach of fiduciary duty, the commissioner may serve upon the person a written notice of intention to remove that person from office. (2) If in the opinion of the commissioner a director, officer, or employee of a domestic credit union, or another person who participates or has participated in the conduct of the affairs of the domestic credit union, has engaged in conduct or practice with respect to the domestic credit union or another business organization that resulted in substantial financial loss or other damage, or is otherwise unfit to participate in the conduct of the affairs of the domestic credit union, the commissioner may serve upon that person a written notice of intention to remove the person from office or to prohibit the person's further participation in any manner in the conduct of the affairs of any domestic credit union. (3) If the commissioner considers it necessary for the protection of a domestic credit union or the interests of its shareholders or depositors that a person served with a notice of intention under subsection (1) or (2) is suspended from office or prohibited from further participation in any manner in the conduct of the affairs of the domestic credit union, the commissioner may serve upon that person a written notice suspending him or her from office or prohibiting him or her from further participation in any manner in the conduct of affairs of the domestic credit union. A suspension or prohibition is effective upon service of the notice and unless stayed by a court in a proceeding under section 213 remains in effect until the administrative proceedings against the person are completed and the commissioner dismisses the charges specified in the notice, or until the effective date of the order if an order of suspension or prohibition is issued. The commissioner shall also serve a copy of the notice on the domestic credit union. (4) A notice of intention to remove a person from office or to prohibit participation in the conduct of the affairs of a domestic credit union shall contain a statement of the facts constituting grounds for the removal, and fix a time and place for a hearing. Except as otherwise approved by the commissioner, the hearing shall be held not earlier than 30 days nor later than 60 days after the date of service of the notice. The failure of a person to appear at the hearing in person or by a duly authorized representative is consent to the issuance of an order of removal or prohibition. If the person consents, or if after the hearing the commissioner finds that any grounds specified in the notice have been established, the commissioner may issue an order of suspension or removal from office, or prohibition from participation in the conduct of the affairs of the domestic credit union, as appropriate. An order based on the finding of the commissioner is effective on the thirty-first day after service on the domestic credit union and the person concerned. An order by consent is effective at the time specified in the order. An order is effective and enforceable unless it is stayed, modified, terminated, or set aside by the commissioner or a reviewing court.

Minnesota 46.26 VIOLATIONS BY DIRECTORS, TRUSTEES, OR OFFICERS. Subdivision 1.Notice of intent to remove from office. Whenever in the opinion of the commissioner any director, trustee or officer of an institution has committed any violation of law; has violated a cease and desist order which has become final; has engaged or participated in any unsafe or unsound practice in connection with the institution; or has committed or engaged in any act, omission,



or practice which constitutes a breach of a fiduciary duty as a director, trustee or officer of the institution, and the commissioner determines that the institution has suffered or will probably suffer substantial financial loss or other damage or that the interest of its depositors could be seriously prejudiced by reason of the violation, practice, or breach of fiduciary duty, the commissioner may serve a written notice of intent to remove from office upon the director, trustee or officer. Subd. 2.Notice of intent to remove from office or prohibit further participation. (a) Whenever in the opinion of the commissioner any director, trustee or officer of an institution, by conduct or practice with respect to another institution or business organization which has resulted in substantial financial loss or other damage to that institution or business organization, has evidenced a personal disability and unfitness to continue as a director, trustee or officer of the institution, and whenever in the opinion of the commissioner any other person participating in the conduct of the affairs of an institution, by conduct or practice with respect to such institution, another institution, or other business organization which has resulted in substantial financial loss or other damage to the institution or business organization, has evidenced a personal disability and unfitness to participate in the conduct of the affairs of such institution, the commissioner may serve a written notice upon the director, trustee, officer, or other person of the commissioner's intent to remove that person from office or to prohibit further participation in any manner in the conduct of the affairs of the institution. (b) Whenever any director, trustee or officer of an institution, or other person participating in the conduct of the affairs of an institution, is convicted in any state or federal court of a felony involving dishonesty or breach of trust the commissioner may serve upon the director, trustee, officer, or other person a written notice of the commissioner's intention to remove the person from office or to prohibit further participation in any manner in the conduct of the affairs of the institution. Subd. 4.Contents. A notice of intention to remove a director, trustee, officer, or other person from office or to prohibit participation in the conduct of the affairs of an institution shall contain a statement of the facts constituting grounds therefor, and shall fix a time and place at which a hearing will be held thereon. The hearing shall be held not earlier than 10 days nor later than 30 days after the date of service of the notice, unless an earlier or later date is set by the commissioner at the request of the director, trustee, officer, or other person and for good cause shown. Unless the director, trustee, officer, or other person appears at the hearing in person or by a duly authorized representative, that person shall be deemed to have consented to the issuance of an order of removal or prohibition. In the event of consent, or if upon the record made at the hearing the commissioner finds that any of the grounds specified in the notice has been established, the commissioner may issue such orders of suspension, removal from office, or prohibition from participation in the conduct of the affairs of the institution as the commissioner deems appropriate. The order shall become effective at the expiration of 30 days after service upon the institution and the director, trustee, officer, or other person concerned, except in the case of an order issued upon consent which shall become effective at the time specified therein. The order shall remain effective and enforceable until it is stayed, modified, terminated, or set aside by action of the commissioner or a reviewing court.

Mississippi Silent

Missouri Director may remove officers, hold elections. 370.157. 1. The director may remove any or all the officers, committee members and directors and either appoint successors or call a meeting of the members to hold elections, notice of the meeting to be given as provided in this section for special meetings of the members for reorganization. 2. Unless removed by the director, the officers, committee members and directors shall continue in their respective offices until their successors are elected and qualify. Removal or suspension from office, grounds--written notice of intention, effective when--served on whom. 361.262. 1. Whenever it shall appear to the director, from any examination made by him or his examiners, that any director, officer, or any other person participating in the conduct of the affairs of a corporation subject to this chapter has committed any violation of law or regulation or of a cease and desist order, or has violated any condition imposed in writing by the director in connection with the grant of any application or other request by such corporation or



any written agreement between such corporation and the director, or has engaged or participated in any unsafe or unsound practice in connection with the corporation, or has committed or engaged in any act, omission, or practice which constitutes a breach of his fiduciary duty to the corporation, and the director determines that the corporation has suffered or will probably suffer financial loss or other damage or that the interests of its depositors could be prejudiced by reason of such violation or practice or breach of fiduciary duty, or that the director or officer or other person has received financial gain by reason of such violation or practice or breach of fiduciary duty, and such violation or practice or breach of fiduciary duty is one involving personal dishonesty on the part of such director, officer or other person, or one which demonstrates a willful or continuing disregard for the safety or soundness of the corporation, the director may serve upon such director, officer, or other person a written notice of his intention to remove him from office. 2. When it shall appear to the director from any examination made by him or his examiners that any director or officer of a corporation subject to this chapter, by conduct or practice with respect to another such corporation or any business institution which resulted in financial loss or other damage, has evidenced either his personal dishonesty or a willful or continuing disregard for its safety and soundness and, in addition, has evidenced his unfitness to continue as a director or officer and whenever it shall appear to the director that any other person participating in the conduct of the affairs of a corporation subject to this chapter, by conduct or practice with respect to such corporation or other corporation or other business institution which resulted in financial loss or other damage, has evidenced either his personal dishonesty or willful or continuing disregard for its safety and soundness and, in addition, has evidenced his unfitness to participate in the conduct of the affairs of such corporation, the director may serve upon such director, officer, or other person a written notice of intention to remove him from office or to prohibit his further participation in any manner in the conduct of the affairs of the corporation or from any other banking, savings, or trust institution supervised by the director. 3. Whenever it shall appear to the director to be necessary for the protection of any corporation or its depositors, he may, by written notice to such effect served upon any director, officer, or other person referred to in subsection 1 or 2 of this section, suspend him from office or prohibit him from further participation in any manner in the conduct of the affairs of the corporation. Such suspension or prohibition shall become effective upon service of such notice and shall remain in effect pending the completion of the administrative proceedings pursuant to the notice served under subsection 1 or 2 of this section and until such time as the director shall dismiss the charges specified in such notice or, if an order of removal or prohibition is issued against the director or officer or other person, until the effective date of any such order. Copies of any such notice shall also be served upon the corporation of which he is a director or officer or in the conduct of whose affairs he has participated. 4. Except as provided in subsection 5 of this section, any person who, pursuant to an order issued under this section, has been removed or suspended from office in a corporation or prohibited from participating in the conduct of the affairs of a corporation may not, while such order is in effect, continue or commence to hold any office in, or participate in any manner in, the conduct of the affairs of any other corporation subject to the provisions of this chapter. 5. If, on or after the date an order is issued under this section which removes or suspends from office any person or prohibits such person from participating in the conduct of the affairs of a corporation, such party receives the written consent of the director, subsection 4 of this section shall, to the extent of such consent, cease to apply to such person with respect to the corporation described in the written consent and the director shall publicly disclose such consent. Any violation of subsection 4 of this section by any person who is subject to an order described in such subsection shall be treated as a violation of the order.

Montana Silent

Nebraska 21-1732. Director; powers and duties. (4) The director may suspend from office and prohibit from further participation in any manner in the conduct of the affairs of a credit union any official who has committed any violation of a law, rule, regulation, or cease and desist order, who has engaged in or participated in any unsafe or unsound practice in connection with a credit union, or who has committed or engaged in any act, omission, or practice which constitutes a breach of that person's fiduciary duty as an official, when the director has determined that such action or actions have resulted or



will result in substantial financial loss or other damage that will seriously prejudice the interest of the credit union members.

Nevada NRS 678.410 Removal of director, officer or employee on objection of Commissioner. If the Commissioner notifies the board in writing that he or she has information that any director, officer or employee of a credit union is failing in the performance of his or her duties, the board shall meet and consider such matter forthwith. The Commissioner must have notice of the time and place of the meeting. If the board of directors finds the Commissioner’s objection to be well founded, such director, officer or employee shall be removed immediately.


New Jersey Silent

New Mexico 58-11-3. Supervision and regulation. G. The director may remove from office and prohibit from further participation in any manner in the conduct of the affairs of a credit union any board member, executive officer or committee member if the director determines that the board member, executive officer or committee member: (1) has violated any law, rule, regulation or final cease and desist order; (2) has engaged or participated in an unsafe or unsound practice in connection with the credit union; or (3) has committed or engaged in any act, omission or practice that constitutes a breach of such party's fiduciary responsibility, and: (a) the credit union has suffered or will probably suffer financial loss or other damage; (b) the interest of the credit union's members have been or could be prejudiced; or (c) such party has received financial gain or other benefit by reason of such violation, practice or breach, and: 1) involves personal dishonesty on the part of such party; or 2) demonstrates such party's unfitness to serve as a board member, executive officer or committee member or to otherwise participate in the conduct of the affairs of a credit union.

New York Article 2 § 41. Removal of director, trustee or officer. 1. Whenever the superintendent shall find that any director, trustee or officer of any corporate banking organization or bank holding company (as such term "bank holding company" is defined in article three-A of this chapter) has violated any law or duly enacted regulation of the banking board relating to such corporation, or has continued unauthorized or unsafe practices in conducting the business of such corporation after having been ordered or warned by the superintendent to discontinue such practices, the superintendent may, in his discretion, certify the facts to the board. The board shall cause notice to be served upon such director, trustee or officer either personally or, upon a finding that he cannot be served personally within the state, by registered mail, at his address last known to the superintendent, to appear before such board to show cause why he should not be removed from office. A copy of such notice shall be sent by registered mail to each director or trustee of the corporation affected. If, after granting the accused director, trustee or officer a reasonable opportunity to be heard, the board by a three-fifths vote of all its members finds that he has violated any law or duly enacted regulation of the board relating to such corporation, or has continued unauthorized or unsafe practices in conducting the business of such corporation after having been ordered or warned by the superintendent to discontinue such practices, the board, in its discretion, by a three-fifths vote of all its members, may order that such director, trustee or officer be removed from office.



2. Upon service either personally or by registered mail at his address last known to the superintendent upon such director, trustee, officer or person in charge of, or officer of, a branch of a foreign banking corporation and upon the corporation of which he is a director, trustee, officer or, in case he is a person in charge of, or officer of, a branch of a foreign banking corporation upon such foreign banking corporation, of a copy of such order, he shall cease to be a director, trustee or officer of such banking organization or person in charge of, or officer of, a branch of a foreign banking corporation. Such order and the findings of fact upon which it is based shall not be made public or disclosed to anyone except the director, trustee or officer or person in charge of, or officer of, a branch of a foreign banking corporation involved and the directors or trustees of the corporation involved, except in connection with proceedings for a violation of this section. Any director, trustee or officer or any person or persons in charge of, or any officer of, a branch of a foreign banking corporation so removed from office who thereafter without permission of the board participates in any manner in the management of such banking organization or of a branch of such foreign banking corporation shall be guilty of a misdemeanor.

North Carolina § 54 109.19. Removal of officers. (a) The Administrator of Credit Unions shall have the right and is hereby empowered to serve a written notice of his intention to remove from office any officer, director, committeeman or employee of any credit union doing business under Articles 14A through 15A of this Chapter who shall be found to be dishonest, incompetent, or reckless in the management of the affairs of the credit union, or who persistently violates the laws of this State or the lawful orders, instructions and regulations issued by the Administrator and/or the State Credit Union Commission. (b) A notice of intention to remove a director, officer, committee member or employee from office shall contain a statement of the alleged facts constituting the grounds therefor and shall fix a time and place at which a hearing before the Credit Union Commission will be held thereon. Such hearing shall be fixed for a date not earlier than 30 days nor later than 60 days after the date of service of such notice unless an earlier or a later date is set by the Commission at the request of such director, officer, committee member or employee and for good cause shown. Pending this hearing, the Administrator may remove the alleged violator if he finds that it is essential to the continued well being of the credit union or the public to do so. Unless, of course, such director, officer, committee member or employee shall appear at the hearing in person or by a duly authorized representative, he shall be deemed to have consented to the issuance of an order of such removal. In the event of such consent, or if upon the record made at any such hearing the Credit Union Commission shall find that any of the grounds specified in such notice has been determined by the greater weight of the evidence, the Commission may issue such orders of removal from office as it may deem appropriate. Any such order shall become effective at the expiration of 30 days after service upon such credit union and the director, officer, committee member or employee concerned (except in the case of an order issued upon consent, which shall become effective at the time specified therein). Such order shall remain effective and enforceable except to such extent as it is stayed, modified, terminated or set aside by action of the Credit Union Commission or a reviewing court.

North Dakota 6-01-04.1. Removal of officers, directors, and employees of financial corporations or institutions. 1. The department of financial institutions or the board may issue and serve, upon any current or former officer, director, or employee of a financial corporation or institution subject to its jurisdiction and upon a financial corporation or institution involved, a complaint stating the basis for the board's or the department's belief that the current or former officer, director, or employee is engaging, or has engaged, in any of the following conduct: a. Violating any law, regulation, board order, or written agreement with the board; b. Engaging or participating in any unsafe or unsound practice; or c. Performing any act of commission or omission or practice which is a breach of trust or a breach of fiduciary duty.



2. The complaint must contain a notice of opportunity for hearing pursuant to chapter 28-32. The date for the hearing must be set not less than thirty days after the date the complaint is served upon the current or former officer, director, or employee of a financial corporation or institution. The current or former officer, director, or employee may waive the thirty-day notice requirement. 3. If no hearing is requested within twenty days of the date the complaint is served upon the current or former officer, director, or employee, or if a hearing is held and the board finds that the record so warrants, and if the board finds that a financial corporation or institution has suffered or will probably suffer significant loss or other significant damage or that the interest of its depositors, shareholders, members, or creditors could be seriously prejudiced, it may enter an order suspending or removing the current or former officer, director, or employee. 4. A contested or default suspension or removal order is effective immediately upon service on the current or former officer, director, or employee and upon a financial corporation or institution. A consent order is effective as agreed. 5. Any current or former officer, director, or employee suspended or removed from any position pursuant to this section is not eligible, while under suspension or removal, to occupy any position within a financial corporation or institution in North Dakota until the suspension or removal is terminated by the department of financial institutions or board. 6. When any current or former officer, director, employee, or other person participating in the conduct of the affairs of a financial corporation or institution is charged with a felony in state or federal court, involving dishonesty or breach of trust, the commissioner may immediately suspend the person from office or prohibit the person from any further participation in a financial corporation's or institution's affairs. The order is effective immediately upon service of the order on a financial corporation or institution and the person charged, and remains in effect until the criminal charge is finally disposed of or until modified by the board. If a judgment of conviction, a federal pretrial diversion, or similar state order or judgment is entered, the board may order that the suspension or prohibition be made permanent. A finding of not guilty or other disposition of the charge does not preclude the commissioner or the board from pursuing administrative or civil remedies.

Ohio 1733.181 Removal from office. (A)(1) Whenever, in the opinion of the superintendent of credit unions, any director, officer, committee member, employee, agent, or other person participating in the conduct of the affairs of a credit union has committed any violation of law or rule, or of a cease-and-desist order, or has engaged or participated in any unsafe or unsound practice in connection with the credit union, or has committed or engaged in any act, omission, or practice which constitutes a breach of his fiduciary duty as director, officer, committee member, or other person, and the superintendent determines that the credit union has suffered or will probably suffer substantial financial loss or other damage or that the interests of its members could be seriously prejudiced by reason of such violation or practice or breach of fiduciary duty, the superintendent may serve upon such director, officer, committee member, or other person a written notice of his intention to remove him from office. (2) Whenever, in the opinion of the superintendent, any director, officer, or committee member of a credit union, by conduct or practice with respect to another credit union or other business institution which resulted in substantial financial loss or other damage, has evidenced his personal dishonesty or unfitness to continue as a director, officer, or committee member, and whenever, in the opinion of the superintendent, any other person participating in the conduct of the affairs of the credit union, by conduct or practice with respect to such credit union or another credit union or other business institution which resulted in substantial financial loss or other damage, has evidenced his personal dishonesty or unfitness to participate in the conduct of the affairs of such credit union, the superintendent may serve upon such director, officer, committee member, or other person a written notice of his intention to remove him from office or to prohibit his further participation in any manner in the conduct of the affairs of such credit union. (3) With respect to any director, committee member, or officer of a credit union or any other person, the superintendent may, if he considers it necessary for the protection of the credit union or the interests of its members, by written notice to such effect served upon such director, committee member, officer, or other person, suspend him from office or prohibit him from further participation in any manner in the conduct of the affairs of the credit union. Such suspension or prohibition shall become effective upon service of such notice and shall remain in effect pending the completion of the administrative proceedings and until such time as the



superintendent dismisses the charges specified in such notice, or, if an order of removal or prohibition is issued against the director, officer, or committee member or other person, until the effective date of any such order. Copies of any such notice shall also be served upon the credit union of which such person is a director, officer, or committee member or in the conduct of whose affairs he has participated. (B) A notice of intention to remove a director, officer, committee member, or other person or to prohibit his participation in the conduct of the affairs of a credit union, as served under division (A)(1) or (2) of this section, shall contain a statement of the facts constituting the grounds therefor, and shall inform the director, officer, committee member, or other person that he may request an adjudication hearing on the question of his removal or prohibition. Such a hearing shall be conducted in accordance with section 119.09 of the Revised Code. If the director, officer, committee member, or other person does not request a hearing, he shall be deemed to have consented to the issuance of an adjudication order of removal or prohibition. In the event of such consent, or if upon the record of such hearing the superintendent finds that any of the grounds specified in the notice have been established, he may issue an adjudication order removing the director, officer, committee member, or other person, or prohibiting his participation in the conduct of the affairs of the credit union. (C) Except as otherwise provided in this division, any person who is removed from the board of directors of a credit union under division (B) of this section, and who either does not appeal his removal or whose removal is upheld upon appeal, is forever disqualified from serving as a director of any credit union. If, however, the superintendent, upon written application of the person removed, and pursuant to an adjudication conducted in accordance with Chapter 119. of the Revised Code, finds a compelling reason for removing the disqualification of this division, he may issue an adjudication order removing the disqualification and declaring the person again eligible to serve as a director of a credit union.

Oklahoma § 2001.2. Powers of Board - Administrator; powers and duties - Failure to comply with Bank Commissioner's orders or requirements A. In addition to any other powers conferred by law, the State Credit Union Board shall have the power to: 6. Suspend from office and prohibit from further participation in any manner in the conduct of the affairs of a credit union any director, officer or committee member who has committed any violation of a law, rule or regulation or of a cease and desist order or who has engaged or participated in any unsafe or unsound practice in connection with the credit union or who has committed or who has committed or engaged in any act, omission or practice which constitutes a breach of that person's fiduciary duty as such director, officer or committee member, when the Board has determined that such action or actions have resulted or will result in substantial financial loss or other damage that seriously prejudices the interests of the members;

Oregon 723.822 Cease and desist orders; contents; effective date; removal or suspension. (5) If an individual named in an order under this section fails to comply with the order, the director may issue an order that removes or suspends the individual from the office or position the individual holds. The removal or suspension is in addition to any penalty provided by ORS 723.995 for failure to comply with an order issued under this section. 723.132 Order to remove officer, director or committee member. The Director of the Department of Consumer and Business Services by order may direct a credit union to remove any officer, director or committee member of the credit union for any reason stated in ORS 723.014.

Pennsylvania § 503. Regulation by department. (a.1) Fines, removals, prohibition, suspension. For any violation of this title or regulation issued pursuant to this title or any final order issued by the department under this title or any unsafe or unsound practice or breach of fiduciary duty involving a credit union, the department may take any one or more of the following actions: (2) The department may immediately suspend any director, officer, committee member, employee, volunteer or agent of a credit union from his or her position at a credit union and from any further participation in the conduct of the affairs of the credit union, if in the opinion of the department the credit union or its members have suffered



or may suffer any significant financial harm or other prejudice. To suspend a person pursuant to this paragraph, the department shall provide a notice containing a statement of the facts constituting grounds for removal and shall indicate a time and place for a hearing. The hearing shall be fixed for a date between 30 days and 60 days from the date of service of notice unless an earlier or later date is set by the department at the request of the person. (3) The department may remove any director, officer, committee member, employee, volunteer or agent of a credit union from his or her position at a credit union and prohibit him or her from participating in the conduct of the affairs of the credit union in any manner for such time as the department deems appropriate. (4) The department may prohibit any director, officer, committee member, employee, volunteer or agent of a credit union under the jurisdiction of the department from working in any capacity in any and all credit unions for such time as the department determines to be appropriate.

Rhode Island § 19-4-12 Order to cease unlawful or unsafe practices – Impairment of capital – Appeal. – (a) Whenever it appears to the director or the director's designee that a regulated institution has violated its agreement to form, or any law or regulation, or is conducting its business in an unauthorized or unsafe manner, or the regulated institution has been notified by its federal deposit insurer of its intent to terminate deposit insurance, the director or the director's designee may exercise any or all of the following powers: (4) Suspend or remove any director, committee member, officer, or employee who becomes ineligible to hold his or her position or who, after receipt of an order to cease under this chapter, violates the banking laws of this state or a rule, regulation, or order issued thereunder, or who is reckless or incompetent in the conduct of the financial institution's or credit union's business. Each suspension or removal order shall specify the grounds therefor, and a copy of the order shall be sent to the financial institution or credit union concerned.

South Carolina SECTION 34-26-210. Discretionary powers of board. (4) The board may suspend from office and prohibit from further participation in any manner in the conduct of the affairs of a credit union any director, officer, or committee member who has committed any violation of a law, regulation, or of a cease and desist order or who has engaged or participated in any unsafe or unsound practice in connection with the credit union or who has committed or engaged in any act, omission, or practice which constitutes a breach of that person's fiduciary duty as such director, officer, or committee member, when the board has determined that such action or actions have resulted or will result in substantial financial loss or other damage that seriously prejudices the interests of the members.

Tennessee 45-1-107. Powers and duties of commissioner. (b) The commissioner may remove a director, trustee, officer or employee of a state bank who becomes ineligible to hold the position or who, after receipt of an order to cease under subsection (a), violates this title or a lawful regulation or order issued under this title, or who is dishonest. It is a criminal offense against the state for any such persons, after receipt of a removal order, to perform any duty or exercise any power of any state bank for a period of three (3) years. A removal order shall specify the grounds of removal and a copy of the order shall be sent to the bank concerned.

Texas Sec. 122.255. DETERMINATION OF MISCONDUCT. The commissioner may determine that an officer, director, honorary director, advisory director, or employee of a credit union, or the credit union itself, acting by and through an officer, director, honorary director, advisory director, or employee, has: (1) violated this subtitle, a rule adopted under this subtitle, or another law applicable to a credit union; (2) violated or refused to comply with a final order of the commissioner or commission; (3) willfully neglected to perform an official or legal duty or willfully committed a breach of trust or fiduciary duty;



(4) committed a fraudulent or questionable practice in the conduct of the credit union's business that endangers the credit union's reputation or threatens its solvency; (5) refused to submit to examination under oath or to permit examination of the credit union's records and affairs by the commissioner or the commissioner's representative; (6) failed or refused to authorize and direct another person to permit the commissioner or the commissioner's representative to examine the credit union's records in the other person's custody after the commissioner has requested the authorization of and direction to the other person; (7) conducted the credit union's business in an unsafe, unauthorized, or unlawful manner; (8) concealed, destroyed, removed, or falsified a record related to the credit union's business and affairs; (9) transacted business while the credit union was in an unsafe or unsound condition; (10) violated a condition of the credit union's articles of incorporation or of a written agreement with the commissioner or the commission; or (11) committed a criminal act that is a substantial detriment to the reputation and conduct of the credit union's business. Sec. 122.256. DETERMINATION LETTER; BOARD MEETING. (a) If the commissioner determines from examination or other credible evidence that a credit union is in a condition that may warrant the issuance of an order under this chapter or Chapter 126, the commissioner may notify the credit union in writing of the commissioner’s determination, the requirements the credit union must satisfy to abate the determination, and the time by which the requirements must be satisfied to avert further administrative action. The determination letter must be delivered in person or sent by registered or certified mail, return receipt requested. (b) If considered necessary, the commissioner may call a meeting of the credit union's board. The directors shall attend the meeting. The commissioner shall present to the board the findings stated in the determination letter and shall demand the discontinuance of any violation or unsafe or unsound practice found. Sec. 122.257. CEASE AND DESIST ORDER. (a) If the commissioner makes a finding listed in Section 122.255 and determines that an order to cease and desist is necessary and in the best interest of the credit union involved and its depositors, creditors, and members, the commissioner may serve on the credit union, its board, and each offending person an order to cease and desist from a violation or practice specified in the order and to take affirmative action that the commissioner considers necessary to correct a condition resulting from a violation or unsafe or unsound practice found. (b) The order must: (1) be in writing; (2) be served: (A) at the meeting called under Section 122.256 or not later than the 30th day after the date of that meeting; and (B) by certified or registered mail, addressed to the credit union at the last address of its principal office as shown by department records, or by delivery to an officer or director of the credit union; and (3) unless the order is effective immediately on service as provided by Subsection (d), state the effective date of the order, which may not be before the 10th day after the date the order is served. (c) Service by mail is complete on deposit of the paper, enclosed in a postpaid, properly addressed wrapper, in a post office or official depository under the care and custody of the United States Postal Service. (d) A cease and desist order is effective immediately on service if the commissioner finds that: (1) the solvency of the credit union is endangered; (2) there is a continuing violation of this subtitle or a rule adopted under this subtitle; or (3) there is a threat of immediate and irreparable harm to the public or the credit union or its depositors, creditors, or members. 24 Texas Finance Code, Title 3, Subtitle D: Credit Unions (e) The order is final unless, not later than the 10th day after the date the order is served, the credit union files with the commissioner written notice of appeal that includes a certified copy of the board resolution. (f) A copy of the order shall be entered in the minutes of the board meeting. The directors shall certify to the commissioner in writing that each director has read the order. Sec. 122.258. REMOVAL ORDER.



(a) The commissioner by order may remove or prohibit a person who is a current or former officer, director, manager, or employee of a credit union from office, employment, or further participation in the affairs of a credit union if the commissioner by examination or other credible evidence: (1) finds that: (A) the person has continued a violation or practice previously charged and found by the commissioner after issuance of a determination letter under Section 122.256 or a cease and desist order under Section 122.257; and (B) removal or prohibition is necessary and in the best interest of the credit union and its depositors, creditors, and members; or (2) makes a finding listed in Section 122.255 and determines that removal or prohibition of the person is immediately necessary because the person has committed or is about to commit: (A) a fraudulent or criminal act involving the conduct of the business of the credit union; (B) an act that may cause the credit union to become insolvent or to be placed in imminent danger of insolvency; or (C) an act that otherwise threatens immediate and irreparable harm to the public or the credit union or its members, depositors, or creditors. (b) The removal order must: (1) state with reasonable certainty the grounds for removal; and (2) be promptly served on the person removed and on the credit union in the manner provided by Section 122.257 for service of a cease and desist order. (c) On issuance of the order, the person has no right, duty, or authority of office or employment in the credit union. After the order becomes final, the person removed or prohibited may not hold office in, be employed by, or participate in the affairs of any credit union without the prior written approval of the commissioner. The order is final as of the date of issuance unless the person removed or prohibited or the credit union, as evidenced by a certified copy of the board resolution, files written notice of appeal with the commissioner not later than the 10th day after the day the removal order is served. (d) A copy of the removal order shall be entered in the board minutes. An officer shall acknowledge receipt of the order and certify to the commissioner that each person named in the removal order has been removed from office or employment.

Utah 7-9-23. Supervisory committee -- Duties -- Suspension or removal of officer, director, or credit committee member. (2) (a) The commissioner may remove any member of the supervisory committee for: (i) any violation of this chapter or the bylaws of the credit union; (ii) failure to fulfill the duties of office; (iii) malfeasance; or (iv) maladministration in office. 7-1-308. Suspension or removal of director or officer -- Grounds -- Procedure for issuance of order. (1) (a) If the commissioner has determined that any officer or director of an institution or other person under the jurisdiction of the department has: (i) violated any law, rule, regulation, or a cease and desist order which has become final; (ii) engaged or participated in any unsafe or unsound practice in the conduct of the affairs of the institution or other person; (iii) committed or engaged in any act, omission, or practice which constitutes a breach of his fiduciary duty as an officer or director; (iv) been charged in any information, indictment, or complaint authorized by a county attorney, a district attorney, or the attorney general of the state relative to a violation of this title; or (v) been charged with the commission of or participation in a crime involving dishonesty or breach of trust; and (b) if the commissioner determines that: (i) the institution or other person under the jurisdiction of the department has suffered or will suffer substantial financial loss or other damage due to such actions and that such action may impair the safety and soundness of the institution or other person or prejudice in any manner the interests of the depositors, members, creditors, or shareholders; or



(ii) the director or officer has received financial gain by reason of any breach of fiduciary duty; the commissioner may, after notice and opportunity for hearing, serve upon such director or officer a written notice of suspension or removal of the individual from office or prohibition from further participation in the conduct of the affairs of the institution or other person. (2) If the commissioner deems it necessary for the protection of an institution or other person under the jurisdiction of the department or the interests of its depositors, members, creditors, or shareholders, he may, by written notice served upon the officer or director, suspend that officer or director from office or prohibit him from further participation in any manner in the conduct of the affairs of the institution or other person. The suspension or prohibition is effective upon service of the notice and, unless stayed by a court, shall remain in effect until the commissioner dismisses the charges specified in the notice, or, if an order of removal or prohibition is issued against the officer or director, until the effective date of that order.

Vermont § 30701. Enforcement powers of commissioner (a) The commissioner may: (5) Remove from a Vermont credit union or state credit union regulated under this title any director, officer, committee member, employee, agent of the credit union, or other person who: (A) knowingly violates this title or a lawful regulation or order issued under it; (B) is convicted of a crime involving dishonesty; (C) has knowingly engaged or participated in any materially unsafe or unsound practice in connection with the credit union; (D) has knowingly committed or engaged in any act, omission, or practice which constitutes a breach of fiduciary duty to the credit union; or (E) is not eligible for bond coverage or who loses his or her ability to be covered by a bond.

Virginia §6.2-1315. Removal of director or officer; penalty for acting after removal. A. Whenever any director or officer of a credit union doing business in the Commonwealth violates any lawful order of the Commission or knowingly continues to violate any law relating to credit unions or knowingly continues an unsafe or unsound practice in conducting the business of a credit union, after the director or officer, and the board of directors of the institution of which he is a director or officer, have been warned in writing by the Commissioner to discontinue such violation of law or such unsafe or unsound practice, the Commissioner shall certify the facts to the Commission. The Commission shall thereupon enter an order requiring such director or officer to appear before the Commission, within not less than 10 days, to show cause why he should not be removed from office and thereafter restrained from participating in any manner in the management of the credit union. The order shall contain a brief statement of the facts certified to the Commission by the Commissioner. A copy of the order shall be served upon the director or officer, and a copy thereof shall be sent by certified or registered mail to each director of the credit union affected. B. If, after granting the accused director or officer a reasonable opportunity to be heard, the Commission finds that he has knowingly continued to violate any law relating to the credit union, or has knowingly continued any unsafe or unsound practice in conducting the business of the credit union, after he and the board of directors of the credit union of which he is a director or officer have been warned in writing by the Commissioner to discontinue such violation of law or unsafe or unsound practice, the Commission shall enter an order removing the director or officer from office and restraining the director or officer from thereafter participating in any manner in the management of the credit union. A copy of such order shall be served upon the director or officer and upon the credit union of which he is a director or officer, whereupon the director or officer shall cease to be a director or officer of the credit union and shall thereafter cease to participate in any manner in the management of the credit union. C. Any director or officer removed and restrained under the provisions of this section who thereafter participates in any manner in the management of the credit union, except as a member thereof, is guilty of a Class 6 felony.

Washington RCW 31.12.575. Removal or prohibition orders — Director's authority — Notice.



The director may issue and serve a credit union director, supervisory committee member, officer, or employee with written notice of intent to remove the person from office or employment or to prohibit the person from participating in the conduct of the affairs of the credit union or any credit union doing business in Washington state in accordance with RCW 31.12.625 whenever, in the opinion of the director: (1)(a) The person has committed a material violation of law or an unsafe or unsound practice; or (b) The person has committed a violation or practice involving personal dishonesty, recklessness, or incompetence; and (2)(a) The credit union has suffered or is likely to suffer substantial financial loss or other damage; or (b) The interests of the credit union's share account holders and depositors could be seriously prejudiced by reason of the violation or practice.

West Virginia WEST VIRGINIA CODE §31C-1-3. Powers of commissioner. (d) The commissioner may suspend from office and prohibit from further participation in any manner in the conduct of the affairs of a credit union any director, officer or committee member who has committed any violation of a law, rule or of a cease and desist order or who has engaged or participated in any unsafe or unsound practice in connection with the credit union or who has committed or engaged in any act, omission or practice which constitutes a breach of that person's fiduciary duty as such director, officer or committee member, when the commissioner has determined that such action or actions have resulted or will result in substantial financial loss or other damage that seriously prejudices the interests of the members.

Wisconsin 186.235 Office of credit unions. (10) REMOVAL. (a) The office of credit unions may remove an officer, director, committee member or employee of a credit union if any of the following applies: 1. The policies or practices of the officer, director, committee member or employee are prejudicial to the best interest of the credit union, endanger or will endanger the safety or solvency of the credit union, or impair the interests of the members. 2. The officer, director, committee member or employee violates or permits the violation of this chapter, a rule promulgated under this chapter or an order of the office of credit unions.

58 Supervisory Authorities – Powers of Commissioner: Rules and Regulations



Powers of Commissioner: Rules and Regulations



POWERS OF COMMISSIONER

Section 10.25. Powers of Commissioner. (1) The commissioner may prescribe regulations to implement any provision of this Act, and to define any term not defined in the Act. The provisions of the State Administrative Procedure Act, as now or hereafter amended, are hereby expressly adopted and incorporated herein as though a part of this Act, and shall apply to all regulations, procedures and orders of the commissioner under this Act. (2) The commissioner may restrict withdrawals from share or deposit accounts, or both, of any credit union if the commissioner determines that circumstances exist making such restriction necessary for the proper protection of shareholders or depositors. (3) The commissioner may issue cease and desist orders: (a) After having determined, from competent and substantial evidence: (i) That a credit union is engaged, or has engaged in an unsafe or unsound practice; or (ii) That a credit union is violating, or has violated, a material provision of any law, regulation or any condition imposed in writing by the commissioner or any written agreement made with the commissioner. (b) When the commissioner has reasonable cause to believe: (i) That the credit union is engaged, or is about to engage in an unsafe or unsound practice; or (ii) That a credit union is violating, or has violated, a material provision of any law, regulation or any condition imposed in writing by the commissioner or any written agreement made with the commissioner. (4) The commissioner may suspend from office, and prohibit from further participation in any manner in the conduct of the affairs of a credit union, federal credit union or foreign credit union operating within the state, any director, officer or committee member who has committed any violation of a law, regulation or a cease and desist order, or who has engaged or participated in any unsafe or unsound practice in connection with the credit union, or who has committed or engaged in any act, omission, or practice which constitutes a breach of that person‘s fiduciary duty as such director, officer or committee member, when the commissioner has determined that such action or actions have resulted, or will result in substantial financial loss or other damage that seriously prejudices the interests of the credit union‘s members. (5) The commissioner shall have the power to subpoena witnesses, compel their attendance, require the production of evidence, administer oaths, and examine any person under oath in connection with any hearing conducted by the commissioner. (6) The commissioner may suspend the operations of a credit union, may appoint a conservator to take possession or control of the business and assets of a credit union, and may involuntarily merge or involuntarily liquidate a credit union, in accordance with the further provision of this Act. (7) The commissioner may suspend the declaration of dividends and the payment of interest if the commissioner has reasonable cause to believe that the credit union is insolvent. (8) The commissioner shall not hold any credit union or other person liable under this Act for acts or omissions made in good faith reliance on any rule, interpretation or opinion issued by the commissioner. (9) The commissioner has the power to exercise all other rights, authorities and duties set forth in this Act.

The Uniform State Administrative Procedure Act (APA or a comparable law) has been enacted in many states. The APA provides safeguards to

credit unions and credit union officials, including the right to adequate notice, the opportunity to comment, as well as the right to an

administrative hearing and to judicial appeal. Each state’s Administrative Procedures Act should be carefully reviewed to assure that the Credit

Union Act is consistent with the APA. Additionally, each state should determine whether a simple reference to the state’s APA is sufficient, or

whether the opportunity for a notice and hearing must be explicitly stated in each pertinent section of the Credit Union Act.



Comparative Summary

Similar to the Model Act: follows procedures established by the State Administrative Procedure Act

Arizona* Illinois New Hampshire Oregon Utah* Connecticut* Maine* Ohio South Carolina Washington Florida* Michigan Oklahoma Tennessee

Similar to the intent of the Model Act: Commissioner authorized to prescribe rules and regulations

Alaska Mississippi Nebraska New York* Rhode Island* Kansas Missouri New Jersey North Carolina Vermont Minnesota* Montana New Mexico Pennsylvania West Virginia

Similar to Model Act with Expanded Language:

Arkansas Georgia Kentucky Massachusetts* Virginia California Idaho Louisiana Texas

Expanded Language:

Arkansas: State Credit Union Supervisor is also responsible for the enforcement of the credit union bylaws.

California: Commissioner may also waive rules and regulations.

Georgia: Department solicits comments from credit unions at least annually for recommended changes.

Idaho: No rule, regulation or form may be made unless the director finds that it is necessary or

appropriated for the public interest or for protection of the credit union’s welfare.

Kentucky: Commissioner may make reasonable rules authorizing credit unions to exercise any of the powers

conferred upon federal credit unions.

Louisiana: Commissioner may also set rules for state share insurance corporation.

Massachusetts: Commissioner shall promulgate rules and regulations to establish minimum standards relative to

the security and protection of financial institutions. If in violation financial institution is subject to

$100 a day fine.

Texas: In adopting rules, the Commission may classify credit unions on field of membership, assets, total

members, and financial condition. The Commission shall consider, among other things, parity of

credit unions with other depository institutions, in adopting rules.

Virginia: Commission may adopt regulations to have powers at least comparable to federal credit unions.

Other: Authority to promulgate rules is the responsibility of state advisory group or in addition to Commissioner

Alabama Hawaii* Nevada Wisconsin Colorado Iowa North Dakota*

Other:

Alabama: Requires concurrence of a majority of the members of the state credit union board.

Colorado: The Financial Services Board issues rules and regulations.

Hawaii*: The Credit Union Advisory Board has the power to propose laws and rules.

Iowa: Prior approval of rules by review board required.

Nevada: Responsibility of the Commissioner, but is under supervision by the director and credit union

advisory council.

North Dakota*: State Department of Financial Institutions is under the supervision of the state credit union board

and is in charge of the execution of all laws. A local governing body may not adopt or enforce a

resolution or an ordinance regulating a financial institution or credit union.

Wisconsin: Approval of Credit Union Review Board is required for the Office of Credit Unions to promulgate

rules


department.



Comparison by State


Alabama Other Alaska Similar to Model – Rules and Regulations Arizona* Similar to Model - State Administrative Procedure Act Arkansas Expanded California Expanded Colorado Other Connecticut Similar to Model - State Administrative Procedure Act Florida* Similar to Model – State Administrative Procedure Act Georgia Expanded Hawaii Other Idaho Expanded Illinois Similar to Model – State Administrative Procedure Act Indiana Silent Iowa Other Kansas Similar to Model – Rules and Regulations Kentucky Expanded Language Louisiana Expanded Language Maine* Similar to Model – State Administrative Procedure Act Maryland Silent Massachusetts* Expanded Michigan Similar to Model – State Administrative Procedure Act Minnesota* Similar to Model – Rules and Regulations Mississippi Similar to Model – Rules and Regulations Missouri Similar to Model – Rules and Regulations Montana Similar to Model – Rules and Regulations Nebraska Similar to Model – Rules and Regulations Nevada Other New Hampshire Similar to Model – State Administrative Procedure Act New Jersey Similar to Model – Rules and Regulations New Mexico Similar to Model – Rules and Regulations New York* Similar to Model – Rules and Regulations North Carolina Similar to Model – Rules and Regulations North Dakota* Other Ohio Similar to Model – State Administrative Procedure Act Oklahoma Similar to Model – State Administrative Procedure Act Oregon Similar to Model – State Administrative Procedure Act Pennsylvania Similar to Model – Rules and Regulations Rhode Island* Similar to Model – Rules and Regulations South Carolina Similar to Model – State Administrative Procedure Act Tennessee* Similar to Model – State Administrative Procedure Act Texas Expanded Language Utah* Similar to Model – State Administrative Procedure Act Vermont Similar to Model – Rules and Regulations Virginia Expanded Language Washington Similar to Model – State Administrative Procedure Act West Virginia Similar to Model – Rules and Regulations Wisconsin Other


department.




Powers of Commissioner: Rules and Regulations


Alabama § 5-17-46. Rules and regulations; written interpretations of laws and regulations; reliance on regulations and interpretations. (a) The administrator may, with the concurrence of a majority of the members of the credit union board, promulgate such reasonable regulations, consistent with the laws of this state, as may be necessary to carry out the laws over which the Alabama Credit Union Administration has jurisdiction. The administrator shall, in addition, issue written interpretations of credit union laws and regulations. Any credit union and any officer or director thereof relying on any regulation or interpretation shall be fully protected even though the regulation or interpretation shall be thereafter ruled invalid for any reason by a court of competent jurisdiction. (b) Any policy or written interpretation of credit union laws and regulations shall be reviewed for ratification by the credit union board within 90 days after written request for an interpretation by any member of the credit union board. The policy or written interpretation shall be invalidated unless a majority of the members of the credit union board ratify the interpretation or policy. (c) The procedure for adopting, amending, or repealing regulations and for the review of ratification of any policy or interpretation shall be the procedure specified in Section 5-17-47.

Alaska Sec. 06.45.010. Responsibility of commissioner. (b) The commissioner may by regulation define the powers of credit unions formed under this chapter and adopt regulations to carry out the purposes of credit unions consistent with this chapter and AS 06.01.020.

Arizona 6-123. Superintendent; powers In addition to the other powers, express or implied, the superintendent may: 2. In accordance with title 41, chapter 6, adopt rules that are necessary or appropriate to administer, enforce and accomplish the purposes of this title and adopt rules and issue orders that limit transactions between financial institutions or enterprises and the directors, officers or employees of the financial institutions or enterprises.

Arkansas 23-35-202. Authority of State Credit Union Supervisor – Rules and regulations. (a) All state-chartered credit unions shall be supervised and regulated by the State Credit Union Supervisor acting pursuant to the authority delegated by this chapter. The supervisor shall be responsible for the enforcement of this chapter and the credit union bylaws, and he shall have the authority to adopt rules and regulations governing credit unions in a manner consistent with this chapter and other statutes of Arkansas.

California 14201. The commissioner may establish or waive such rules and regulations as may be reasonable or necessary to carry out the purposes and provisions of this division.

Colorado 11-30-106. Examinations - reports - powers of commissioner. (3) The board may issue rules and regulations necessary for the administration and enforcement of this article and shall reference the same to the sections of this article to which they apply. Such rules and regulations shall be promulgated pursuant to the provisions of article 4 of title 24, C.R.S., and a copy of such rules and regulations and



of each order shall be mailed to each credit union in this state at least thirty days prior to the effective date thereof, except as to temporary or emergency rules.

Connecticut Sec. 36a-10. General regulation-making authority. The commissioner may adopt such regulations, in accordance with the provisions of chapter 54, as the commissioner deems necessary to administer any provision of the general statutes within the jurisdiction of the commissioner for which mandatory or discretionary authority to adopt regulations is not otherwise provided. For any regulation adopted under the authority of this section, the commissioner may assign a section number to the regulation that corresponds to the specific section of the general statutes upon which the regulation is based.

Florida 655.012 General supervisory powers; rulemaking; seal.— (1) In addition to other powers conferred by the financial institutions codes, the office shall have: (a) General supervision over all state financial institutions, their subsidiaries, and service corporations. (b) Access to all books and records of all persons over whom the office exercises general supervision as is necessary for the performance of the duties and functions of the office prescribed by the financial institutions codes. (c) Power to issue orders and declaratory statements, disseminate information, and otherwise exercise its discretion to effectuate the purposes, policies, and provisions of the financial institutions codes. (2) In addition to other powers conferred by the financial institutions codes, the commission shall have the power to adopt rules pursuant to ss. 120.536(1) and 120.54 to implement the provisions of such codes.

Georgia 7-1-663. Rules and regulations of department. Without limitation on the authority conferred by Article 1 of this chapter, the department is authorized to make such rules and regulations not inconsistent with this article and other applicable statutes governing the operation of credit unions as it may consider reasonable and proper for the protection of all funds invested. The department shall solicit comments from credit unions at least annually for recommended changes to the department's rules and regulations.

Hawaii §412:2-107 Rules. The commissioner may adopt, amend or repeal rules pursuant to chapter 91 to effectuate the purpose of all laws within the jurisdiction of the division. §412:10-125 Credit union advisory board. (b) The powers and duties of the board shall include, but not be limited to: (1) Advising the commissioner and others in improving the operations and supervision of credit unions; (2) Making necessary recommendations as to procedural rules pursuant to chapter 91; (3) Proposing laws and rules to safeguard the interest of depositors and members; (6) Other duties designated by the commissioner or as provided by this article.

Idaho 26-2144. Administration, rules and regulations. The administration of the provisions of this chapter shall be under the general supervision and control of the director. The director may from time to time make, amend and rescind such rules, regulations and forms necessary to carry out the provisions of this chapter. No rule, regulation or form may be made unless the director finds that the action is necessary or appropriate for the public interest or for the protection of the credit union’s welfare consistent with the purposes of this chapter.

Illinois (205 ILCS 305/8) (from Ch. 17, par. 4409)



Sec. 8. Director's powers and duties. Credit unions are regulated by the Department. The Director, in executing the powers and discharging the duties vested by law in the Department has the following powers and duties: (2) To prescribe rules and regulations for the administration of this Act. The provisions of the Illinois Administrative Procedure Act are hereby expressly adopted and incorporated herein as though a part of this Act, and shall apply to all administrative rules and procedures of the Department under this Act. Indiana Silent

Iowa 533.104 Superintendent. 5. The superintendent may adopt rules as necessary or appropriate to administer this chapter, subject to the prior approval of the rules by the review board.

Kansas 17-2260. Rules and regulations. The administrator may adopt rules and regulations to implement any of the provisions of this act.

Kentucky 286.6-095 Rules of commissioner. Notwithstanding any other provision of law, the commissioner may make reasonable rules authorizing credit unions to exercise any of the powers conferred upon federal credit unions, if the commissioner deems it reasonably necessary for the well-being of such credit unions.

Louisiana §646. Supervision by commissioner; suspension or revocation of charter; liquidation; reports; examination fees A.(1)(a) Credit unions are under the supervision of the commissioner. The commissioner may prescribe rules and regulations for the administration of this Chapter and for the administration of a state share insurance corporation, including but not by way of limitation the merger, consolidation, or dissolution of corporations organized under this Chapter.

Maine Title 9-B: FINANCIAL INSTITUTIONS Part 2: BUREAU OF FINANCIAL INSTITUTIONS Chapter 21: ADMINISTRATION §215. Rules The superintendent shall have the power to implement by rule any provision of law relating to the supervision of financial institutions or their subsidiaries or financial institution holding companies or their subsidiaries or to amend or repeal such rules, subject to section 251.

Maryland Silent

Massachusetts Chapter 167 SUPERVISION OF BANKS Section 1A Rules and regulations The commissioner shall promulgate rules and regulations establishing minimum standards relative to the security and protection of banks or credit unions under his supervision, both for the benefit of employees as well as the general public, including the requirement for the installation, maintenance and operation of security devices and procedures and to assist in the identification and apprehension of criminals. Said rules and regulations shall fix the time limit within which each such bank or credit union shall comply with the standards so established and may require the submission, in writing, of periodic reports and other information



necessary to ensure compliance with such rules and regulations. A bank or credit union which violates any rule or regulation promulgated pursuant to this section shall forfeit to the commonwealth one hundred dollars for each day during which such violation continues, to be recovered by an information in equity in the name of the attorney general at the request of the commissioner, commenced in the supreme judicial court for Suffolk county.

Michigan 490.206 Rules; orders; declaratory rulings. Sec. 206. The commissioner may promulgate rules or issue orders or declaratory rulings for the enforcement and administration of this act. The commissioner shall promulgate rules and issue orders and declaratory rulings pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

Minnesota 46.01 POWERS. Subd. 2.Rulemaking. The commissioner of commerce may promulgate rules as necessary to administer or execute the laws relating to financial institutions subject to the commissioner's supervision or examination.

Mississippi SEC. 81-13-15. Supervision by Department of Banking and Consumer Finance; rules and regulations; reports by credit unions. Credit unions shall be subject to the supervision of the Department of Banking and Consumer Finance. The Commissioner of Banking and Consumer Finance is empowered with authority to promulgate from time to time rules and regulations concerning the operation of credit unions; provided that such rules and regulations shall be consistent with and in conformity with the laws of the State of Mississippi. Credit unions shall make a report of condition thereto at least annually on blank forms to be supplied by said department. Credit unions shall transmit to the department such call reports within a time limitation established by the commissioner; however, such time limitation cannot exceed that set by the National Credit Union Administration. For any failure or delay in furnishing this report, the credit union shall be subject to an administrative fine, which may be imposed by the commissioner, of Fifty Dollars ($50.00) a day for each day while in such default. Reports shall be verified by both the chief elected official and the treasurer and additional reports may be required by the said department.

Missouri Supervisor--powers--qualifications--examiners and assistants. 370.100. 1. There is created within the state division of finance, a supervisor of credit unions who shall have exclusive supervision of all credit unions operating under the laws of this state and may make necessary rules and regulations to carry out the provisions of this chapter.

Montana 32-3-201. Department of administration. (1) The department of administration shall administer the laws of this state relating to credit unions. The department may appoint or employ special assistants, deputies, examiners, or other employees that are necessary for the purpose of administering or enforcing this chapter. (2) The department may adopt rules for the administration of this chapter and may establish chartering, supervisory, and examination fees. Fees collected must be deposited in the state special revenue fund for the use of the department in its supervision function.

Nebraska 21-1732. Director; powers and duties. (1) The director may adopt and promulgate rules and regulations to carry out the Credit Union Act.

Nevada NRS 678.250 Administration of chapter; regulations of Commissioner.



The Commissioner shall administer the provisions of this chapter, subject to administrative supervision by the Director and the Credit Union Advisory Council. He or she shall make the decisions and determinations and adopt regulations which are necessary or reasonably appropriate to accomplish the purposes of this chapter.

New Hampshire 394-B:3-a Rulemaking. – The bank commissioner shall adopt rules, pursuant to RSA 541-A, relative to: I. The supervision of credit unions under RSA 394-B:3. II. Credit union corporation agreements under RSA 394-B:4. III. The purchase of real estate by credit unions under RSA 394-B:27. IV. The provisions of RSA 394-B:38 relative to borrowing. V. The preliminary audit required by RSA 394-B:41. VI. The purposes of corporate credit unions under RSA 394-B:57. VII. The powers of corporate credit unions granted by RSA 394-B:62. VIII. The equity reserves of corporate credit unions required by RSA 394-B:67.

New Jersey 17:13-125. Rules and regulations The commissioner shall promulgate any rules and regulations which he deems necessary to effectuate the purposes of this act.

New Mexico 58-11-3. Supervision and regulation. C. The director may prescribe rules or regulations to implement any provision of the Credit Union Act and to define any term not defined in that act. Such rules or regulations shall serve to foster and maintain an effective level of credit union services and the security of member accounts. Prior to establishment of a rule or regulation, the director shall give written notice to all credit unions affected by the terms and general contents of a proposed rule or regulation. The director may hold a public hearing to consider whether to adopt a proposed rule or regulation. If within twenty days after the notice is given at least two credit unions request a public hearing, it shall be held to consider whether to adopt the proposed rule or regulation. The director shall conduct any hearing held to consider a proposed rule or regulation.

New York § 14. Additional powers of the superintendent. 1. For the purpose of effectuating the policy declared in section ten of this article, without limiting any other powers that the superintendent is permitted by law to exercise, the superintendent shall have the power to make, alter and amend orders, rules and regulations not inconsistent with law. Such orders, rules and regulations shall be brought to the attention of those affected thereby in a manner prescribed by law. Without limiting the foregoing power, orders or rules or regulations may be so adopted for the following specific purposes: (a) To approve organization certificates and articles of association, private bankers' certificates and applications of foreign corporations for licenses to do business in this state, as provided in this article. (b) To determine the purposes for which and the extent to which capital notes or debentures shall be considered and treated as capital stock of corporate banking organizations; but capital notes or debentures shall not be considered or treated as capital stock for the purposes of sections one hundred ten and one hundred eleven of this chapter. (c) To grant permission to a trust company, including a national bank, to establish one or more common trust funds upon application and after inquiry concerning the qualifications of such trust company to maintain and manage the same, and to regulate the conduct and management of any common trust fund and for such purpose, but not by way of limitation of the foregoing power, to prescribe (1) the records and accounts to be kept of such common trust funds; (2) the procedure to be followed in adding moneys to or withdrawing moneys or investments from any such common trust fund; (3) the methods and standards to be employed in



determining the value of such common trust funds and of the assets and investments thereof; (4) the maximum amount of moneys of any estate, trust or fund which may be invested in any common trust fund; and (5) the maximum proportionate share of any such common trust fund which may be apportioned to any estate, trust or fund; and in connection with such powers to classify the corporations maintaining such common trust funds according to the population of the city, town or village in which the principal offices of such corporations are respectively located and to prescribe the minimum total of any such common trust fund and the permissible limits of investment therein in accordance with such classification. (cc) To approve the incorporation by or on behalf of trust companies and national banks with trust powers of a mutual trust investment company to form a medium for the common investment of funds held by trust companies, including national banks, acting as executors, administrators, guardians, inter-vivos or testamentary trustees or committees or conservators either alone or with individual co-fiduciaries, and any amendments of the certificate of incorporation of such mutual trust investment company, and to regulate the conduct and management of such mutual trust investment company and for such purpose, but not by way of limitation of the foregoing power, to prescribe (1) the records and accounts to be kept by such mutual trust investment company; (2) the procedure to be followed in the sale or redemption of stocks or shares therein; (3) the methods and standards to be employed in determining the value of such shares in the mutual trust investment company and the assets and investments thereof; and (4) the maximum proportionate shares of any such mutual trust investment company which may be apportioned or sold to any one trust company or national bank. (d) To authorize a bank or a trust company to invest in the capital stock of, or any other equity interest in, any corporation, partnership, unincorporated association, limited liability company, or other entity not included among the corporations or other entities for which investment in the capital stock or other equity interest is expressly authorized by this chapter. (e) To authorize a savings bank to invest in the capital stock, capital notes and debentures of a trust company or other corporation, as provided in article six of this chapter. (f) To authorize a savings and loan association to invest in the capital stock, capital notes and debentures of a trust company or other corporation, as provided in article ten of this chapter. (g) To prescribe from time to time: (1) the rates of interest which may be paid on deposits with any banking organization and with any branch or agency of a foreign banking corporation; and (2) the rates of dividends which may be paid on shares of any savings and loan association or credit union, and to prohibit the payment of such interest or such dividends by any banking organization or by any branch of a foreign banking corporation. Interest or dividend rates so prescribed need not be uniform. (h) To limit and regulate withdrawals of deposits or shares from any banking organization, if the superintendent shall find that such limitation and regulation are necessary because of the existence of unusual and extraordinary circumstances. (i) To prescribe from time to time reserves against deposits to be maintained by banks and trust companies pursuant to article three of this chapter; provided that no reserve requirement imposed against either time or demand deposits shall require any bank or trust company to maintain total reserves in an amount greater than it would be required to maintain if it were at the time a member of the federal reserve system; and provided further, however, that a bank or trust company not a member of the federal reserve system may be authorized to maintain total reserves against deposits in an amount lower than the reserves required by article three of this chapter to be maintained, either in individual cases or by general regulations on such basis as the superintendent may deem reasonable or appropriate in view of the character of the business transacted by such bank or trust company. (j) To grant permission to officers, directors, clerks or employees of banks and trust companies to engage in the issue, flotation, underwriting, public sale or distribution at wholesale or retail, or through syndicate participation of stocks, bonds or other similar securities, and to revoke such permission, both as provided in this chapter. (k) To prescribe the methods and standards to be used (1) in making the examinations provided for in this chapter, and (2) in valuing the assets of banking organizations. (l) To prescribe the form and contents of periodical reports of condition to be rendered to the superintendent by banks, trust companies, private bankers and branches of foreign banking corporations, and the manner of publication of such reports.



(m) To postpone or omit the calling for and rendering of reports provided for by this chapter if the superintendent shall find that such postponement or omission is necessary because of the existence of unusual and extraordinary circumstances. (n) To define what is an unsafe manner of conducting the business of banking organizations. (o) To define what is a safe or unsafe condition of a banking organization. (p) To make variations from the requirements of this chapter, provided such variations are in harmony with the spirit of the law, if the superintendent shall find that such variations are necessary because of the existence of unusual and extraordinary circumstances. (q) To establish safe and sound methods of banking and safeguard the interests of depositors, creditors, shareholders and stockholders generally in times of emergency. (qq) To permit any banking organization, national banking association, federal mutual savings bank, federal savings and loan association and federal credit union to offer graduated payment mortgages which shall conform to the provisions of section two hundred seventy-nine of the real property law. (s) To permit authorized lenders, as defined by section two hundred eighty or two hundred eighty-a of the real property law, to offer reverse mortgage loans which shall conform to the provisions of section two hundred eighty or two hundred eighty-a of the real property law.

North Carolina § 54 109.12. Corporations organized hereunder subject to Administrator of Credit Unions; rules and regulations. In addition to any and all other powers, duties and functions vested in the Administrator of Credit Unions under the provisions of this Article, the Administrator of Credit Unions shall have general control, management and supervision over all corporations organized under the provisions of Article 14A. All corporations organized under the provisions of Article 14A shall be subject to the management, control and supervision of the Administrator of Credit Unions as to their conduct, organization, management, business practices and their financial and fiscal matters. The Administrator of Credit Unions may prescribe rules and regulations for the administration of this Article, as well as rules and regulations relating to financial records, business practices and the conduct and management of credit unions, and it shall be the duty of the board of directors and of the various officers of the credit union to put into effect and to carry out such regulations.

North Dakota 6-01-01. Management and control - State department of financial institutions – Local ordinances preempted. The state department of financial institutions is under the supervision of the state banking board, state credit union board, and a chief officer designated as the commissioner of financial institutions. The state department of financial institutions has charge of the execution of all laws relating to state banks, trust companies, credit unions, building and loan associations, mutual investment corporations, mutual savings corporations, banking institutions, and other financial corporations, exclusive of the Bank of North Dakota. A local governing body may not adopt or enforce a resolution or an ordinance regulating a financial institution or credit union. 6-01-04. Powers and duties of the state banking board and state credit union board. The board may adopt rules for the government of financial corporations mentioned in section 6-01-01 to the extent the rules do not conflict with any law of this state or of the United States. The board shall make and enforce such orders as are necessary or proper to protect the public and the depositors or creditors of those financial corporations and institutions. The same powers are given to the state credit union board with reference to credit unions as are granted to the state banking board with reference to financial corporations named in this chapter.

Ohio 1733.41 Additional rules and regulations In addition to the specific authority given the superintendent of credit unions by other sections of this chapter, the superintendent may from time to time make, issue, amend, and rescind such rules and orders as he may consider necessary or appropriate to further the purposes of this chapter or to protect the public interest, including rules defining accounting, technical, trade, and other terms, whether or not used in this chapter, insofar as such rules do not contradict this chapter. Without limiting his power under this chapter, the superintendent may specify terms



to be included in the articles or code of regulations of credit unions, requirements for notice of meetings of members, required and prohibited practices related to solicitation of proxies, limitations on credit unions’ borrowing and lending practices, including loans to credit union employees, the form of and practices used in accounting for credit unions, including the form of financial statements and other records kept, the character of investments credit unions may make, and the operation of a credit union in dissolving or liquidating or petitioning for reorganization. The superintendent shall not prescribe uniform rules or provisions in regulations without due regard for the differences among credit unions. For the purpose of his rules, the superintendent may classify credit unions, persons, and matters within his jurisdiction and prescribe different requirements for different classes of credit unions, persons, or matters. Rules promulgated pursuant to this section shall be made subject to sections 119.01 to 119.13 of the Revised Code.

Oklahoma § 2001.2. Powers of Board - Administrator; powers and duties - Failure to comply with Bank Commissioner's orders or requirements A. In addition to any other powers conferred by law, the State Credit Union Board shall have the power to: 3. Adopt and promulgate reasonable and uniform rules and regulations to: a. govern the conduct, operation and management of credit unions, b. govern the examination, evaluation of assets and the statements and reports of credit unions, and the form on which credit unions shall report their assets, liabilities and reserves, charge off their bad debts and otherwise keep their records and accounts,and c. otherwise to govern the administration of the laws of this state relating to credit unions. Such rules or regulations shall serve to foster and maintain an effective level of credit union services and the security of member accounts. The provisions of the Administrative Procedures Act1 of this state, as now or hereafter amended, are hereby expressly adopted and incorporated herein as though a part of this provision, and shall apply to all rules or regulations, procedures and orders of the Board. Final orders of the Board may be appealed to the Supreme Court of Oklahoma by any party directly affected and showing aggrievement by the order;

Oregon 723.102 Rulemaking authority. In accordance with ORS chapter 183, the Director of the Department of Consumer and Business Services may adopt rules for the purpose of carrying out this chapter.

Pennsylvania 17 § 503. Regulation by department. (a) General rule.--Credit unions shall be under the supervision of the department. The department is hereby authorized and empowered to issue general rules and regulations and specific orders for the protection of members of credit unions, for insuring the conduct of the business of credit unions on a safe and sound basis and for the effective enforcement of this title. Credit unions shall report to the department as often as may be required by it and at least annually on forms supplied by the department for that purpose. Supplementary reports may be required by the department from time to time. Credit unions shall be examined as often as may be required by the department and at least annually, and the department may use such other methods of assuring itself of the condition of the credit unions as it shall deem advisable. The cost of all such examinations and inspections shall be paid by the credit union. A credit union shall also pay annually its proportionate share of the overhead expense of the department determined by regulation of the department. The department shall give written notice to each credit union of the costs of examinations, investigations and the credit union's proportionate share of the overhead expenses of the department.The credit union shall pay the amount of such costs within 30 days of the notice. If payment is not made within 30 days of the notice, the department may assess a penalty fee of $150 for that 30-day period and each successive 30-day period of delinquency. For failure to file reports when due, unless excused for cause,a credit union shall pay to the department $100 for each day of its delinquency.



Rhode Island § 19-4-16 Rules and regulations. The director or the director's designee may adopt reasonable rules and regulations for the implementation and administration of this title.

South Carolina SECTION 34-26-210. Discretionary powers of board. (1) The board may establish procedures to implement any provision of this chapter and to define any term not defined in the chapter. Such procedures shall serve to foster and maintain an effective level of credit union services and the security of member accounts. The provisions of the State Administrative Procedures Act shall apply to all regulations of the board under this chapter. (2) The board may restrict the withdrawal of shares or deposit accounts or both from any credit union having determined circumstances exist which make such restriction necessary for the proper protection of shareholders or depositors. (3) The board may issue cease and desist orders having determined from competent and substantial evidence that a credit union is engaged or has engaged, or when the board has reasonable cause to believe the credit union is about to engage, in an unsafe or unsound practice, or is violating or has violated or the board has reasonable cause to believe is about to violate a material provision of any law, regulation, or any condition imposed in writing by the board or any written agreement made with the board. (4) The board may suspend from office and prohibit from further participation in any manner in the conduct of the affairs of a credit union any director, officer, or committee member who has committed any violation of a law, regulation, or of a cease and desist order or who has engaged or participated in any unsafe or unsound practice in connection with the credit union or who has committed or engaged in any act, omission, or practice which constitutes a breach of that person's fiduciary duty as such director, officer, or committee member, when the board has determined that such action or actions have resulted or will result in substantial financial loss or other damage that seriously prejudices the interests of the members. (5) By issuing operational instructions, the board may authorize state credit unions to engage in activities approved for federally-chartered credit unions.

Tennessee 45-4-1001. Supervision of credit unions — Financial report — Failure to file — Promulgation of rules and regulations. (b) The commissioner may promulgate rules for the implementation of the credit union laws of this state and the sound operation of state chartered credit unions pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.

Texas Sec. 15.402. ADOPTION OF RULES. (a) The commission may adopt reasonable rules necessary to administer this chapter and to accomplish the purposes of Subtitle D, Title 3. (b) In adopting rules under this section, the commission may regulate and classify credit unions according to criteria that the commission determines are appropriate and necessary to accomplish the purposes of this chapter and Subtitle D, Title 3, including the: (1) character of field of membership; (2) amount of assets; (3) number of members; and (4) financial condition. (b-1) In adopting rules under this section, the commission shall consider the need to: (1) promote a stable credit union environment; (2) provide credit union members with convenient, safe, and competitive services; (3) preserve and promote the competitive parity of credit unions with regard to other depository institutions consistent with the safety and soundness of credit unions; and



(4) promote or encourage economic development in this state. (c) The commission by rule shall establish reasonable and necessary fees for the administration of this chapter and Subtitle D, Title 3. (d) The presence or absence in this chapter or Subtitle D, Title 3, of a specific reference to rules regarding a particular subject does not enlarge or diminish the rulemaking authority provided by this section.

Utah 7-1-301. Powers and duties of commissioner – Rulemaking (15) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commissioner may adopt and issue rules consistent with the purposes and provisions of this title, and may revise, amend, or repeal the rules adopted.

Vermont 8 V.S.A. § 30203. Rules and regulations The commissioner may adopt rules and regulations as may be necessary for the proper conduct of credit unions organized or operating under chapters 220-226 of this title.

Virginia § 6.2-1303. Regulations. A. The Commission may adopt regulations to implement the provisions of this chapter. B. In addition to the powers specifically granted to state chartered credit unions by the provisions of this chapter, the Commission may adopt such regulations as may be necessary to permit state chartered credit unions to have powers at least comparable with those of federally chartered credit unions or to effect the purposes of this chapter, regardless of any then existing statute, regulation or court decision limiting or denying such powers to state chartered credit unions. The requirement of a public hearing shall not automatically apply to regulations adopted under this subsection, but the Commission may hold such hearings as it deems appropriate. C. Before adopting any regulation under this chapter, the Commission shall give reasonable notice of its content and shall afford interested parties an opportunity to present evidence and be heard, in accordance with the Commission's Rules.

Washington RCW 31.12.516 Powers of director. (2) The director may adopt such rules as are reasonable or necessary to carry out the purposes of this chapter and chapter 31.13 RCW. Chapter 34.05 RCW will, whenever applicable, govern the rights, remedies, and procedures respecting the administration of this chapter.

West Virginia §31C-1-3. Powers of commissioner. (a) The commissioner may prescribe rules to implement any provision of this chapter and to define any term not defined in the chapter. Such rules shall serve to foster and maintain an effective level of credit union services and the security of member accounts.

Wisconsin 186.235 Office of credit unions. (8) RULES. The office of credit unions shall, with the approval of the credit union review board, promulgate rules relating to the business of credit unions.

71 Supervisory Authorities - Involuntary Liquidation



Involuntary Liquidation



INVOLUNTARY LIQUIDATION Section 10.35. Involuntary Liquidation. (1) If the commissioner determines that any credit union is bankrupt or insolvent, the commissioner may issue a notice of involuntary liquidation, revoke the credit union‘s charter, and appoint a liquidating agent. The credit union may request the appropriate court to stay execution of such action. (2) In the event of liquidation, the assets of the credit union or the proceeds from any disposition of assets shall be applied and distributed in the following sequence: (a) Secured creditors up to the value of their collateral; (b) Costs and expenses of liquidation; (c) Wages due the employees of the credit union; (d) Taxes owed to any governmental unit; (e) Debts owed to the United States; (f) General creditors, and secured creditors to the extent their claims exceed the value of their collateral; (g) Costs and expenses incurred by creditors in successfully opposing the release of the credit union from certain debts as allowed by the commissioner; (h) Shareholders or depositors, to the extent of uninsured share or deposit accounts; and (i) Members, to the extent of members

This section in the Model Act has been reorganized and language regarding the power of the commissioner to suspend the operations of credit

unions has been removed. However, many state credit union acts still allow the state supervisory authority to suspend the operations of the

credit union and is reflected in the state-by-state comparison on the following page.

Comparison by State


Alabama Suspension and Involuntary Liquidation

Alaska Suspension and Involuntary Liquidation

Arizona Suspension and Involuntary Liquidation

Arkansas Suspension and Involuntary Liquidation

California Suspension and Involuntary Liquidation

Colorado Suspension and Involuntary Liquidation

Connecticut* Superior Court

Florida Involuntary Liquidation

Georgia* Suspension and Involuntary Liquidation

Hawaii* Suspension

Idaho Suspension and Involuntary Liquidation

Illinois Suspension and Involuntary Liquidation

Indiana* Involuntary Liquidation

Iowa Involuntary Liquidation


department.



Kansas Involuntary Liquidation

Kentucky Suspension and Involuntary Liquidation

Louisiana Suspension and Involuntary Liquidation

Maine Involuntary Liquidation

Maryland Suspension and Involuntary Liquidation

Massachusetts* Involuntary Liquidation

Michigan Involuntary Liquidation

Minnesota Suspension and Involuntary Liquidation

Mississippi Suspension and Involuntary Liquidation

Missouri Suspension and Involuntary Liquidation

Montana Suspension and Involuntary Liquidation

Nebraska Suspension and Involuntary Liquidation

Nevada Suspension and Involuntary Liquidation

New Hampshire* Superior Court

New Jersey* Superior Court

New Mexico Suspension and Involuntary Liquidation

New York* Suspension

North Carolina Suspension and Involuntary Liquidation

North Dakota Suspension and Involuntary Liquidation

Ohio Suspension and Involuntary Liquidation

Oklahoma Suspension and Involuntary Liquidation

Oregon Suspension and Involuntary Liquidation

Pennsylvania Involuntary Liquidation

Rhode Island Suspension and Involuntary Liquidation

South Carolina Suspension and Involuntary Liquidation

Tennessee Involuntary Liquidation

Texas Involuntary Liquidation

Utah* Suspension and Involuntary Liquidation

Vermont Suspension and Involuntary Liquidation

Virginia Involuntary Liquidation

Washington Suspension and Involuntary Liquidation

West Virginia Suspension and Involuntary Liquidation

Wisconsin Suspension and Involuntary Liquidation


department.




Involuntary Liquidation


Alabama

§ 5-17-8.

Reports to administrator of Alabama Credit Union Administration; examination of credit union; revocation of

certificate of approval; cease and desist order; suspension from office; appeal and hearing.

(b) If the administrator determines that the credit union is violating this chapter, or is insolvent, the administrator

may suspend operations of the credit union by issuing an order requiring that the credit union cease operations

pending a hearing on the revocation of the certificate of approval, or the administrator may set a date for a

hearing on the revocation of the certificate of approval without suspending operations of the credit union. If the

administrator suspends operations of the credit union, a hearing on the revocation of the certificate of authority

shall be held within 90 days from the date of the order requiring suspension of operations. If demanded by the

credit union, the hearing on revocation of the certificate of authority, whether or not the administrator has

suspended operations of the credit union pending the hearing, shall be conducted on the record by the

administrator who shall also make findings of fact and a written determination concerning revocation of the

certificate of authority. The determination may contain an order requiring that credit union to immediately

suspend operations or continue in effect a previous order requiring the suspension of operations. If the

determination is that the credit union is violating this chapter, or is insolvent, and that the certificate of authority

be revoked, and if, for a period of 15 days after the hearing, any violation continues, the administrator may revoke

the certificate and take possession of the business and property of the credit union and maintain possession until

the administrator shall permit it to continue business or its affairs are finally liquidated.

Alaska

Sec. 06.45.220. Suspension, conditional operation, and liquidation.

(a) The commissioner, upon a finding that the credit union is bankrupt, insolvent, or is operating in an unsafe or

unsound manner or that the credit union has violated the provisions of its articles of incorporation or bylaws, this

chapter, or regulations adopted by the commissioner, may exercise the powers granted under AS 06.01.030 and

temporarily suspend the operations of the credit union.

(b) The commissioner, under the regulations adopted by the commissioner, may permit operations to continue

under conditions and procedures established by the commissioner, or direct the credit union to cease operations

and appoint a liquidating agent to liquidate the credit union.

Arizona

6-585. Involuntary dissolution

A. The superintendent may forthwith take possession and control of the business and property of any credit union

to which this chapter is applicable whenever he finds upon examination or investigation that such credit union has

committed one or more of the following violations:

1. Is in violation of an order issued pursuant to section 6-137.

2. Is conducting its business in an unauthorized or unsafe manner or in violation of the bylaws of the credit union.

3. Is insolvent.



4. Has an impairment of its capital.

5. Cannot with safety and expediency continue business.

6. Has suspended payment of its obligations.

7. Is, through its officers, refusing to submit its books, papers and records of affairs for inspection to any examiner.

8. Is, through its officers, refusing to be examined regarding its affairs.

9. Has been examined by its own supervisory committee and the majority of the committee requested in writing

that the superintendent take possession and control.

10. In a proceeding for voluntary dissolution has, through its liquidating agent, failed to make reasonable progress

in the liquidation of its affairs and distribution of its assets.

Arkansas

23-35-704. Suspension of operations -- Involuntary liquidation.

(a) If it shall appear that any credit union is bankrupt or insolvent, that it has willfully violated any of the provisions

of this chapter, or that it is operating in an unsafe or unsound manner, the State Credit Union Supervisor shall issue

an order temporarily suspending the credit union's operations. The board of directors of the credit union shall be

given notice by registered mail of the suspension, which notice shall include a list of the reasons for the suspension

and a list of the specific violations of this chapter.

(b) Upon receipt of the suspension notice, the credit union shall immediately cease all operations.

(c) The directors of the credit union shall then file a reply to the suspension notice with the supervisor within

fifteen (15) days. They may request a hearing to present a plan of corrective actions proposed if they desire to

continue operations, or they may request that the credit union be declared insolvent and that a liquidating agent

be appointed.

(d) (1) If the credit union fails to answer the suspension notice or request a hearing, the supervisor may then

revoke the credit union's charter, appoint a liquidating agent, and liquidate the credit union in accordance with §

23-35-705.

(2) (A) If the supervisor, after issuing notice of suspension and providing opportunity for a hearing, rejects the

credit union's plan to continue operations, the supervisor may issue a notice of involuntary liquidation and appoint

a liquidating agent.

(B) The credit union may request a stay of execution of this action by appealing to the circuit court of the

jurisdiction in which the credit union is located.

(C) Involuntary liquidation may not be ordered prior to following the suspension procedures outlined in this

section.

California

§ 14313. Factors authorizing commissioner to take possession of property and business

If the commissioner finds that any of the factors set forth in subdivisions (a) to (g), inclusive, are true with respect

to a California credit union, the commissioner may by order, without any prior notice or hearing, take possession

of the property and business of the California credit union:

(a) That the California credit union has violated any provision of this division, of another applicable law, of any

order issued under this division, or of any written agreement with the commissioner, or has committed a material

violation of any regulation of the commissioner.

(b) That the California credit union is conducting its business in an unsafe or unsound manner.

(c) That the California credit union is in such condition that it is unsafe or unsound for it to transact credit union

business.



(d) That the California credit union has inadequate net worth or is insolvent. The net worth of the credit union shall

be considered inadequate if it is less than 2 percent of the credit union's total assets.

(e) That the California credit union failed to pay any of its obligations as they came due or is reasonably expected

to be unable to pay its obligations as they come due.

(f) That the California credit union has ceased to transact credit union business.

(g) That the California credit union has, with the approval of its board, requested the commissioner to take

possession of its property and business.

§ 14314. Application to enjoin further proceedings upon seizure of property and business

(a) If the commissioner takes possession of the property and business of a California credit union pursuant to

Section 14313, the California credit union may, within 10 days, apply to the superior court in the county where its

principal executive office is located to enjoin further proceedings. The court may, after citing the commissioner to

show cause why further proceedings should not be enjoined and after a hearing, dismiss the application or enjoin

the commissioner from further proceedings and order the commissioner to surrender the property and business of

the California credit union to the California credit union or make any further order as may be just. The judgment of

the court may be appealed by the commissioner or by the California credit union in the manner provided by law

for appeals from the judgment of a superior court.

(b) At any time after the commissioner takes possession of the property and business of a California credit union

pursuant to Section 14313, the California credit union may, with the approval of the commissioner, resume

business upon conditions as the commissioner may prescribe.

§ 14315. Liquidation of credit union; Appointment of conservator or receiver

(a) On taking possession of the business and assets of any credit union as provided in this chapter, the

commissioner may proceed to liquidate the credit union in the manner provided by Chapter 7 (commencing with

Section 600) of Division 1, and the provisions of that chapter, except Sections 700, 701, 702, and 710, shall apply as

if the California credit union were a California state commercial bank, or he or she may appoint a liquidating agent

or a liquidating committee of three members of the credit union to liquidate the business and assets of the credit

union in the manner provided in Article 2 (commencing with Section 15250) of Chapter 9, except that in lieu of the

certificate required under Section 15252 the commissioner shall prepare and file in the office of the Secretary of

State a certificate of commencement of liquidation proceedings upon taking possession of the business and assets,

and the commissioner or his or her authorized deputy shall countersign the certificate referred to in Sections

15257 and 15258 whenever liquidation is involuntary. The commissioner may, however, prepare and file a final

certificate whenever he or she retains possession of the assets of any credit union for the purpose of liquidation.

The liquidating agent need not be a member of the credit union to be liquidated, and may be a person, firm, or

corporation as determined by the commissioner.

(b) If the commissioner takes possession of the property and business of a California credit union pursuant to

Section 14313, the commissioner may tender to the National Credit Union Administration an appointment as

conservator or receiver of the California credit union. If the National Credit Union Administration accepts the

appointment, the National Credit Union Administration shall have, in addition to any powers conferred by federal

law, the powers conferred on the commissioner pursuant to subdivision (a).

Colorado 11-30-120. Suspension - liquidation - procedures. (1) (a) If it appears that any credit union is insolvent, or that it has willfully violated any provision of this article, or that it is operating in an unsafe or unsound manner, the commissioner may issue his order for such credit union to



show cause why its operations should not be suspended until such insolvency, violation, or manner of operation is rectified and afford the credit union an opportunity for a hearing not less than ten days nor more than twenty days after such order. Such order shall be in writing and delivered by registered or certified mail. If the credit union fails to answer such order or if any officer or director of or attorney for the credit union fails to appear at the time set for the hearing, the commissioner either may revoke the certificate of incorporation of the credit union or may order the immediate suspension of operations of the credit union, except the collection of payments on outstanding loans or other obligations due the credit union, or both, and may enforce any such order by an action, filed in the district court of the judicial district wherein the principal office of the credit union is located, seeking to enjoin further operations or to appoint a receiver for such credit union. (b) Any credit union to which an order to show cause has been issued pursuant to paragraph (a) of this subsection (1) may include with any answer or may present at any hearing resulting from such order its proposed plan to continue operations and rectify the insolvency, violation, or manner of operation specified in said order; or the credit union may request that it be dissolved and liquidated and a liquidating agent be appointed by the commissioner. Any credit union may request a stay of execution of any order of the commissioner revoking its certificate of incorporation or suspending its operations by filing an action in the district court for the judicial district in which the principal office of the credit union is located, within ten days after the issuance of such order. (c) If the commissioner revokes the charter of the credit union, he shall appoint a liquidating agent to liquidate the assets of the credit union pursuant to subsection (3) of this section. (d) If in the opinion of the board an emergency exists which may result in serious losses to the members, the board may revoke the charter of a credit union and immediately appoint a liquidating agent without notice or a hearing. Notice of the board's emergency determination shall be posted on the premises of the credit union that is the subject of the determination. Within ten days after an emergency determination by the board, the credit union or the directors of the credit union may file an application with the board to rescind such determination. The filing of an application to rescind a determination shall not act as a stay of the board's action pursuant to this subsection (1). The board shall grant the application if it finds that its action was unauthorized and upon granting an application shall rescind its action and restore the credit union to its board of directors. If no application is filed within ten days after the board's emergency determination, all action taken by the board shall be final. (1.5) (a) The commissioner may appoint himself or herself or a third party as conservator of any credit union and immediately take possession and control of the business and assets of the credit union if the commissioner determines that: (I) Such action is necessary to conserve the assets of the credit union or to protect the interests of its members from acts or omissions of the existing management; (II) The credit union, by a resolution of its board of directors, consents to such action; (III) There is a willful violation of a cease and desist order that results in the credit union being operated in an unsafe or unsound manner; or (IV) The credit union is significantly undercapitalized and has no reasonable prospect of becoming adequately capitalized. (b) The commissioner may appoint a conservator and take immediate possession of the credit union without prior notice or a hearing; except that, within ten days after the conservator is appointed, the credit union may file an appeal with the board requesting the board to rescind the commissioner's appointment of a conservator. Upon receipt of a timely appeal, the board shall set a date for a hearing and determine whether the commissioner's appointment should be rescinded; except that such appeal shall not act as a stay of the commissioner's action. If the board finds the commissioner's action was unauthorized, the board shall restore control of the credit union to its board of directors. If no appeal is filed within ten days after the commissioner's appointment of a conservator, any action taken by the commissioner shall be final. (c) In extraordinary circumstances, upon order of the board, any hearing conducted pursuant to this subsection (1.5) shall be exempt from any provision of law requiring that proceedings of the board be conducted publicly. Such extraordinary circumstances occur when specific concern arises about prompt withdrawal of moneys from the credit union. (d) The conservator shall have all the powers of the members, directors, officers, and committees of the credit union and shall be authorized to operate the credit union in its own name or to conserve its assets as directed by



the commissioner. The conservator shall conduct the business of the credit union and make regular reports to the commissioner until such time as the commissioner has determined that the purposes of conservatorship have been accomplished and the credit union should be returned to the control of its board of directors. All costs incident to the conservatorship shall be paid out of the assets of the credit union. If the commissioner determines that the purposes of the conservatorship will not be accomplished, the commissioner may proceed with the involuntary liquidation of the credit union in the manner described in subsection (1) of this section. (e) If a conservator is appointed, and is other than the national credit union administration, another approved insurer, or an employee of the division of financial services, the conservator and any assistants shall provide a bond, payable to the credit union and executed by a surety company authorized to do business in this state, which meets with the approval of the financial services board, for the faithful discharge of their duties in connection with such conservatorship and the accounting for all moneys coming into their hands. The cost of such bond shall be paid from the assets of the credit union. Suit may be maintained on such bond by any person injured by a breach of the conditions thereof. This requirement may be deemed met if the financial services board determines that the credit union's fidelity bond covers the conservator and any assistants.

Connecticut

Sec. 36a-470a. Termination.

e) The commissioner may seek the appointment of a conservator or receiver for any Connecticut credit union, in

accordance with section 36a-220, if the commissioner certifies, in writing, that no other reasonable alternatives

are available to protect the members and creditors of such Connecticut credit union, and it appears that:

(1) The Connecticut credit union, through insolvency, repeated gross mismanagement or repeated neglect in the

conduct of its operations, is no longer able to carry out the purposes for which it was formed;

(2) The Connecticut credit union has abandoned its activities and is no longer functioning as a Connecticut credit

union and termination cannot be accomplished by any other means; or

(3) Any reason specified in subsection (a) of section 36a-220 exists.

Conn. Gen. Stat.

§ 36a-220 (2012)

Sec. 36a-220. (Formerly Sec. 36-34). Application for injunction, receiver or conservator in case of forfeited charter

or certificate of authority, fraud, unsafe business practices, dissipation of assets, insolvency or termination of

insurance of insurable accounts or deposits.

(a) If it appears to the commissioner that (1) the charter of any Connecticut bank or out-of-state bank that

maintains in this state a branch, as defined in section 36a-410, or the certificate of authority of any Connecticut

credit union or out-of-state credit union that maintains in this state a branch, as defined in section 36a-435b, is

forfeited, (2) the public is in danger of being defrauded by such bank or credit union, it is unsafe or unsound for

such bank or credit union to continue business or its assets are being dissipated, (3) such bank or credit union is

insolvent, is in danger of imminent insolvency or that its capital is not adequate to support the level of risk, or (4)

the Federal Deposit Insurance Corporation, National Credit Union Administration or their successor agencies have

terminated insurance of the insurable accounts or deposits of such bank, unless such Connecticut bank has filed an

application with the commissioner to convert to an uninsured bank pursuant to section 36a-139b, or credit union,

the commissioner shall apply to the superior court for the judicial district of Hartford or the judicial district in

which the main office of such bank or credit union is located for an injunction restraining such bank or credit union

from conducting business or, in the case of a Connecticut bank or Connecticut credit union, for the appointment of

a conservator or for a receiver to wind up its affairs.

(b) The court may take one or more of the following actions: (1) Grant such injunction or appoint such receiver, or

both, (2) appoint such conservator, or (3) in the case of a Connecticut bank or Connecticut credit union, declare

the charter of such bank or certificate of authority of such credit union to be null and void after reasonable notice



to such bank or credit union. Nothing in this section shall be construed as affecting any provision of sections 36a-

218 and 36a-219.

Florida

657.063 Involuntary liquidation.—

(1) If the office finds that any credit union is insolvent or imminently insolvent; is transacting its business in an

unsound, unsafe, or unauthorized manner such that it is threatened with imminent insolvency, and liquidation is in

the best interest of the members; or is undercapitalized and has no reasonable prospect of becoming adequately

capitalized, the office may, in its discretion, order the credit union placed in involuntary liquidation and designate

and appoint a liquidator to take charge of the assets and affairs of the credit union. The order shall set forth the

specific findings and reasons for the action taken. The commission may define by rule criteria for determining if a

credit union is undercapitalized or adequately capitalized. In defining such criteria, the commission shall consider

the definitions contained in s. 216, the Federal Credit Union Act, codified at 12 U.S.C. s. 1790d.

(2) The liquidator must be appointed by the office. The National Credit Union Administration must be given the

right of first refusal. The office may appoint another entity if refused by the primary insurer.

(3) Upon appointment and in accordance with the directions of the office, the liquidator shall take possession

and charge of all of the assets, books, and records of the credit union and shall take charge of the affairs, business,

and operations of the credit union and shall have all of the powers of the board of directors, credit committee,

credit manager, and supervisory committee of the credit union. The liquidator shall continue the business

operation of the credit union for a period not to exceed 180 days, subject to the direction of the office. The

liquidator shall have full authority to make loans and investments and to permit deposits to or withdrawals from

accounts by members, except that during the period of such operation by the liquidator, no withdrawal from any

account or accounts which are not fully insured shall be permitted. Except when prohibited by federal or state law,

the liquidator may, without penalty or liability, prepay any deposit accounts; terminate any contracts or

agreements with employees, independent contractors, or consultants; terminate any contract or agreement with

any person to provide goods, products, or services if the performance of such contract would adversely affect the

safety or soundness of the credit union; and terminate or assign any lease for property. The liquidator shall

proceed with a liquidation of assets by sale or transfer of assets and conversion of assets into cash or liquid

investments in preparation for distribution to members on account of shares and deposits. The liquidator shall

have specific authority to sell loan assets. The liquidator may enter into agreements for the sale or transfer of

loans and other assets with the assumption of outstanding share and deposit accounts, which assumption

constitutes full and complete distribution to members on account of shares and deposits.

(4) On the completion of the liquidation and certification by the liquidator that the distribution of the assets of

the credit union has been completed, the office shall cancel the certificate of authorization of the credit union. The

office may designate a custodian to maintain the books and records of the liquidated credit union.

(5) When the liquidating agent of the credit union has been appointed, the office may waive or deem

inapplicable the fees required by this chapter and the examination required by s. 655.045(1)(a), provided the

liquidating agent submits periodic reports to the office on the status of the liquidation.

657.062 Conservatorship.—

(1) The office may appoint the National Credit Union Administration as conservator over a credit union to take

possession and control of the property, assets, and business of its member credit union and to operate it subject to

the directions of the office whenever:

(a) The office finds that the credit union:



1. Is engaging or has engaged in an unsafe or unsound practice;

2. Is violating or has violated any provision of this chapter; or

3. Is violating or has violated any commission rule, office order, or written agreement entered into with the

office,

in such a manner that the credit union is threatened with imminent insolvency.

(b) A majority of the members of the board of directors of the credit union have been removed by the office or

the National Credit Union Administration or have resigned.

(c) The credit union is significantly undercapitalized and has no reasonable prospect of becoming adequately

capitalized. The commission may define by rule criteria for determining if a credit union is undercapitalized or

adequately capitalized. In defining such criteria, the commission shall consider the definitions contained in s. 216,

the Federal Credit Union Act, codified at 12 U.S.C. s. 1790d.

(2) Except when prohibited by federal or state law, in the event of conservatorship, the conservator may appoint

the board of directors and the operating committees and may, without penalty or liability, prepay any deposit

accounts; terminate any contracts or agreements with employees, independent contractors, or consultants;

terminate any contract or agreement with any person to provide goods, products, or services if the performance of

such contract would adversely affect the safety or soundness of the credit unions; and terminate or assign any

lease for property. The authority of the conservator to continue operation of a credit union shall continue for a

period not to exceed 180 days, unless extended by the office for an additional period or periods, not to exceed 180

days each, at the request of the conservator, or unless involuntary liquidation proceedings have been initiated by

the office. In the event that the conservator does assume control pursuant to the direction of the office, a meeting

of the credit union shall be called within 180 days, or within the period of extension as approved by the office, for

the specific purpose of electing a new board of directors, who shall take office when the conservator surrenders

control, or considering such other recommendations as the conservator and the office make.

Georgia

§ 7-1-159. Suspension or continuation of business

The department is authorized, upon taking possession of the business and property of a financial institution as

receiver, to continue or to suspend the business for such period as it may deem necessary to enable it to

determine whether to surrender such possession to the financial institution, to authorize a merger or

consolidation, to liquidate the affairs of such financial institution, or to take such other action as is authorized by

law.

Hawaii

§412:2-311 Suspension or revocation of charter or license.

(a) The commissioner may revoke or suspend any charter or license issued hereunder if the commissioner finds

that:

(1) Any information or representations submitted by an applicant in connection with the issuance of the charter or

license were materially false when made;

(2) Grounds exist for the appointment of a conservator or receiver under this article;

(3) The Hawaii financial institution, for a period of six months or more, has ceased to engage in the business for

which its charter or license was granted; or

(4) The Hawaii financial institution has violated or is violating state or federal laws, rules, or regulations, or has

committed or is committing an unsafe or unsound practice.



(b) In issuing a suspension or revocation order, whether by consent or as a result of a chapter 91 hearing, the

commissioner may impose such terms and conditions as the commissioner deems appropriate to protect the

public interest. The order of suspension or revocation may require the Hawaii financial institution to cease

engaging in business altogether, to close one or more of its places of business, or to cease engaging in a particular

type of business, as the commissioner deems appropriate.

(c) No suspension or revocation of any charter or license shall impair or affect the obligation of any preexisting

lawful contract between a Hawaii financial institution and the other party or parties. Neither shall the suspension

or revocation of a charter or license affect the institution's administrative, regulatory, civil or criminal liability for

any act or condition existing prior to the suspension or revocation.

(d) The commissioner shall have discretion to reinstate any suspended charter or license, or issue a new charter or

license to a Hawaii financial institution whose charter or license has been revoked, if the grounds for ordering the

suspension or revocation are no longer present.

Idaho

26-2141.Suspension.

If it shall appear that any credit union is bankrupt or insolvent, or that it has wilfully violated any of the provisions

of this chapter, its bylaws, rules and regulations of the director, or is operating in an unsafe or unsound manner,

the director may issue an order temporarily suspending the credit union’s operations. The board shall be given

notice by registered or certified mail of such suspension, which notice shall include a list of the reasons for such

suspension, and a list of the specific violations of this chapter.

Upon receipt of such suspension notice, the credit union shall immediately cease all operations, except for receipt

of loan payments. The directors of the credit union shall then file with the director a reply to the suspension

notice, within twenty (20) days, request a hearing to present a plan of corrective actions proposed if they desire to

continue operations, or to request that the credit union be declared insolvent and a liquidating agent appointed. If

the credit union fails to answer the suspension notice or request a hearing with the director, said director may

then revoke the credit union’s charter, appoint a liquidating agent and liquidate the credit union in accordance

with this chapter.

26-2142.Voluntary and/or involuntary liquidation.

b) If the department of finance, after issuing notice of suspension and providing opportunity for a hearing, rejects

the credit union’s plan to continue operations, the department of finance may issue a notice of involuntary

liquidation and appoint a liquidating agent. The credit union may request a stay of execution of such action by

appealing to the appropriate court of the jurisdiction in which the credit union is located. Involuntary liquidation

may not be ordered prior to following the suspension procedures outlined in this chapter.

Illinois

(205 ILCS 305/61) (from Ch. 17, par. 4462)

Sec. 61. Suspension.

(1) If the Director determines that any credit union is bankrupt, insolvent, impaired or that it has willfully

violated this Act, or is operating in an unsafe or unsound manner, he shall issue an order temporarily suspending

the credit union's operations for not more than 60 days. The Board of Directors shall be given notice by registered

or certified mail of such suspension, which notice shall include the reasons for such suspension and a list of specific

violations of the Act. The Director shall also notify the members of the Credit Union Board of Advisors of any

suspension. The Director may assess to the credit union a penalty, not to exceed the regulatory fee as set forth in



this Act, to offset costs incurred in determining the condition of the credit union's books and records.

(2) Upon receipt of such suspension notice, the credit union shall cease all operations, except those authorized

by the Director, or the Director may appoint a Manager-Trustee to operate the credit union during the suspension

period. The Board of Directors shall, within 10 days of the receipt of the suspension notice, file with the Director a

reply to the suspension notice by submitting a corrective plan of action or a request for formal hearing on said

action pursuant to the Department's rules and regulations.

(3) Upon receipt from the suspended credit union of evidence that the conditions causing the order of

suspension have been corrected, and after determining that the proposed corrective plan of action submitted is

factual, the Director shall revoke the suspension notice, permit the credit union to resume normal operations, and

notify the Board of Credit Union Advisors of such action.

(4) If the Director determines that the proposed corrective plan of action will not correct such conditions, he

may take possession and control of the credit union. The Director may permit the credit union to operate under his

direction and control and may appoint a Manager-Trustee to manage its affairs until such time as the condition

requiring such action has been remedied, or in the case of insolvency or danger of insolvency where an emergency

requiring expeditious action exists, the Director may involuntarily merge the credit union without the vote of the

suspended credit union's Board of Directors or members (hereafter involuntary merger) subject to rules

promulgated by the Director. No credit union shall be required to serve as a surviving credit union in any

involuntary merger. Upon the request of the Director, a credit union by a vote of a majority of its Board of

Directors may elect to serve as a surviving credit union in an involuntary merger. If the Director determines that

the suspended credit union should be liquidated, he may appoint a Liquidating Agent and require of that person

such bond and security as he considers proper.

(5) Upon receipt of a request for a formal hearing, the Director shall conduct proceedings pursuant to rules and

regulations of the Department. The credit union may request the appropriate court to stay execution of such

action. Involuntary liquidation or involuntary merger may not be ordered prior to the conclusion of suspension

procedures outlined in this Section.

(6) If, within the suspension period, the credit union fails to answer the suspension notice or fails to request a

formal hearing, or both, the Director may then (i) involuntarily merge the credit union if the credit union is

insolvent or in danger of insolvency and an emergency requiring expeditious action exists or (ii) revoke the credit

union's charter, appoint a Liquidating Agent and liquidate the credit union.

Indiana

IC 28-1-3.1-2

Authority of department to take possession of business and property; conditions; duties of department

Sec. 2. (a) The department may take possession of the business and property of any financial institution except a

consumer finance institution licensed to make supervised or regulated loans under IC 24-4.5, whenever it appears

to the department that the financial institution:

(1) is insolvent or in imminent danger of insolvency;

(2) is in an unsafe or unsound condition;

(3) has refused to pay its deposits or obligations in accordance with the terms under which those deposits or

obligations were incurred;

(4) has refused to submit its records and affairs for inspection or examination by the department or federal

authorities;

(5) has violated any court order, statute, rule, or regulation of the department or its articles of incorporation

and that continued control of its own affairs threatens injury to the public, the financial community, its depositors,



or other creditors;

(6) requests through its board of directors that the department take possession for the benefit of depositors,

other creditors, shareholders, or other persons;

(7) has an impairment of its capital (the capital of a bank or trust company shall, for the purpose of this

subdivision, be

considered to be unimpaired so long as the sound value of its assets over and above its liabilities, exclusive of

liabilities for capital notes, debentures, and capital stock, as determined by the department, equals or exceeds the

minimum capital or capital stock required by the department for a bank or trust company);

(8) has neglected or refused, for a period of thirty (30) days, to comply with the terms of a duly issued order of

the department, essential to preserve the solvency of the financial institution;

(9) has failed to pay the fees charged by the department under IC 28-11-3-5 after due notice of the amount of

the fee has been given;

(10) has breached a fiduciary duty under IC 30-4-3-6; or

(11) has violated IC 30-4-3-7 in a way that has caused or may cause harm to fiduciary accounts.

(b) When the department makes a determination to take possession of the business and property of a financial

institution under subsection (a), the department shall:

(1) make a finding to that effect and enter that finding on the records of the proceedings of the department;

and

(2) cause a certified copy of the finding to be served on the president or other executive officer actively in

charge of the financial institution and demand possession of the business, property, and records of the financial

institution from the officer. The financial institution shall immediately surrender the possession to the department.

(c) The department or its receiver is not required to become the owner of any property to fulfill the liquidation

requirements of this chapter.

Iowa

533.404 Dissolution generally.

The following shall apply to dissolution of a state credit union under this chapter, whether voluntary or

involuntary:

1. Distribution of the assets of the state credit union shall be made in the following order:

a. The payment of costs and expense of the administrator of dissolution.

b. The payment of claims for public funds deposited pursuant to chapter 12C and the payment of claims which are

given priority by applicable statutes. If the assets are insufficient for payment of the claims in full, priority shall be

determined by the statutes or, in the absence of conflicting provisions, on a pro rata basis.

c. The payment of deposits, including accrued interest, up to the date of the special meeting of the members at

which voluntary dissolution was authorized, or in the case of involuntary dissolution, the date of appointment of a

receiver.

d. The pro rata apportionment of the balance among the members of record on the date of the special meeting of

the members at which voluntary dissolution was authorized, or in the case of involuntary dissolution, the members

of record on the date of appointment of a receiver.

2. All amounts due members who are unknown, or who are under a disability and no person is legally competent

to receive the amounts, or who cannot be found after the exercise of reasonable diligence, shall be transmitted to

the treasurer of state who shall hold the amounts in the manner prescribed by chapter 556. All amounts due

creditors as described in section 490.1440 shall be transmitted to the treasurer of state in accordance with that

section and shall be retained by the treasurer of state and subject to claim as provided for in that section.



3. The superintendent shall assume custody of the records of a state credit union dissolved pursuant to this

chapter and shall retain the records which, in the superintendent’s discretion, are deemed necessary, in

accordance with the provisions of section 533.322. The superintendent may cause film, photographic, photo static,

or other copies of the records to be made and the superintendent shall retain the copies in lieu of the original

records.

4. a. The dissolution of a state credit union shall not remove or impair any remedy available to or against such

state credit union, its directors, officers, or members for any right or claim existing or any liability incurred prior to

such dissolution if an action or other proceeding to enforce the right or claim is commenced within two years after

the

date of filing of a certificate or decree of dissolution with the county recorder in the county in which the state

credit union has its principal place of business.

b. Any such action or proceeding by or against the state credit union may be prosecuted or defended by the state

credit union in its corporate name.

c. The members, directors, and officers shall have power to take such corporate or other actions shall be

appropriate to protect such remedy, right, or claim.

Kansas

17-2230. Voluntary and involuntary dissolution; procedures; liquidation procedure.

(b) Involuntary. If it shall appear that any credit union is insolvent, or that it has violated any

of the provisions of this act, the administrator may order such credit union to correct such condition

and shall grant it a reasonable time under the circumstances of the case within which to comply, and

failure to do so shall afford grounds for revocation of the corporate charter or the appointment of a

conservator. When the administrator finds that a credit union is insolvent, the administrator, pursuant

to order, shall become the conservator and may appoint an agent and require the agent to give such

bond as the administrator deems proper. The administrator also shall fix reasonable compensation

for the agent but the same shall be subject to approval of the district court of the county wherein such

credit union is located upon application of any party in interest. The administrator may appoint as

agent any person, the Kansas credit union league, or the insurer or guarantee corporation required

under K.S.A. 17-2246, and amendments thereto, for the credit union involved. Upon an order of the

administrator to liquidate such credit union, such agent shall follow the liquidation procedure set out

herein. Any agent appointed shall make a complete report to the administrator covering the acts and

proceedings as such agent. The administrator may remove any agent, with or without cause, and

appoint a successor. The agent, under the direction of the administrator, shall take charge of any

insolvent credit union and all of its assets and property and liquidate the affairs and business for the

benefit of its creditors and shareholders as provided in this section. The agent may sell or compound

all bad and doubtful debts and sell all the property of any such credit union upon such terms as the

administrator shall approve. The administrator shall have the general supervision of all the acts of

the agent. All claims of creditors and shareholders must be filed with the agent within one year after

the date of the agent's appointment, and if any shareholder claim or creditor claim is not so filed then

it shall be barred from participation in the estate and assets of any such credit union. The agent of

any insolvent credit union may borrow money and pledge the assets of such insolvent credit union

but only upon prior written approval of the administrator. At least once each year the administrator

shall examine every credit union in the hands of an agent and copies of such examination reports

shall be available to any interested shareholder or creditor by written request made to the



administrator. Every agent shall submit the records and affairs of such credit union to an examination

by the administrator or the administrator's assistant and examiners whenever the agent is requested

to do so. The agent of any credit union shall make reports to the administrator in the same manner

as required of other credit unions.

(c) Liquidating procedure. The credit union shall continue in existence for the purpose of

discharging its debts, collecting and distributing its assets, and doing all acts required in order to

wind up its business and may sue and be sued for the purpose of enforcing such debts and obligations

until its affairs are fully adjusted.

The board of directors, or the liquidating agent shall use the assets of the credit union to pay

in the following order: (1) Expenses incidental to liquidation including any surety bond that may be

required; (2) remaining liabilities other than shareholdings; and (3) the assets then remaining, if any,

shall be distributed to the savings held by each member or other shareholder as of the date

dissolution was voted.

As soon as the board or the liquidating agent determines that all assets from which there is

a reasonable expectancy of realization have been liquidated and distributed as set forth in this

section, they shall execute a certificate of dissolution on a form prescribed by the administrator and

file same with the register of deeds of the county wherein the credit union had its registered office,

who shall, after recording and indexing same, forward it to the administrator, whereupon such credit

union shall be dissolved. The administrator shall furnish a copy of the certificate of dissolution to

the secretary of state.

Kentucky

286.6-700 Suspension of credit union operations.

(1) If it appears that any credit union is bankrupt or insolvent, or that it has willfully violated this subtitle, or is

operating in an unsafe or unsound manner, the commissioner may issue an order temporarily suspending the

credit union's operations for not less than thirty (30) nor more than sixty (60) days. The board of directors shall be

given notice by registered mail of such suspension, which notice shall include a list of the reasons for such

suspension, or a list of the specific violations of this subtitle, or both. The commissioner shall also notify any

government agency or other organization insuring the accounts of the credit union of any suspension.

(2) Upon receipt of such suspension notice, the credit union shall cease all operations, except those authorized by

the commissioner. The board of directors shall then file with the commissioner a reply to the suspension notice,

and may request a hearing to present a plan of corrective actions proposed if it desires to continue operations. The

board may request that the credit union be declared insolvent and a liquidating agent be appointed.

(3) Upon receipt from the suspended credit union of evidence that the conditions causing the order of suspension

have been corrected, the commissioner may revoke the suspension notice, permit the credit union to resume

normal operations, and notify any interested insuring agency of such action.

(4) If the commissioner, after issuing notice of suspension and providing an opportunity for a hearing, rejects the

credit union's plan to continue operations, the commissioner may issue a notice of involuntary liquidation and

appoint a liquidating agent. The credit union may request the appropriate court to stay execution of such action.

Involuntary liquidation may not be ordered prior to the conclusion of suspension procedures outlined in this

section.

(5) If, within the suspension period, the credit union fails to answer the suspension notice or request a hearing, the

commissioner may then revoke the credit union's charter, appoint a liquidating agent and liquidate the credit

union.



Louisiana

§646. Supervision by commissioner; suspension or revocation of charter; liquidation; reports; examination fees

B.(1) The commissioner may suspend or revoke the charter of any credit union under his supervision, or place the

same in involuntary liquidation and appoint a liquidating agent therefor, upon his finding that the organization is

bankrupt or insolvent or has violated any provisions of its charter, its bylaws, or of this Chapter, or of any

regulations issued thereunder.

Maine

Title 9-B: FINANCIAL INSTITUTIONS

Part 8: CREDIT UNIONS

Chapter 87: DISSOLUTION, MERGERS AND CONVERSIONS

§871-A. Dissolution

2. Involuntary dissolution. This subsection governs the involuntary dissolution of a credit union.

A. If, upon examination of a credit union, the superintendent determines that the credit union is insolvent or that

the credit union is operating in an unsafe or unsound manner, the superintendent may appoint a receiver who

shall proceed to close the credit union. The credit union shall remain in existence for the purpose of winding up its

affairs.

B. The person appointed by the superintendent as a receiver may be the superintendent, a deputy or any other

person, including the agency insuring the credit union's accounts pursuant to section 836, as the superintendent

may choose, and a certified copy of the order making such an appointment is evidence of the appointment. The

receiver need not post a bond. The receiver has the power and authority provided in this Title and any other

powers and authority as may be expressed in the order of the superintendent.

C. If the superintendent or a deputy is appointed receiver, no additional compensation need be paid, but any

reasonable and necessary expenses of the superintendent or deputy as receiver must be paid by the credit union.

If another person is appointed, then the compensation of the receiver must be paid from the assets of that credit

union.

D. In the event that the federal agency insuring the credit union's shares or accounts pursuant to section 836

accepts an appointment as receiver, the agency shall acquire both legal and equitable title to all assets, rights or

claims and to all real and personal property of the credit union to the extent necessary for the agency to perform

its duties as receiver under applicable federal law to effectuate the appointment. If the agency pays or makes

available for payment the insured shares of a credit union by reason of actions taken pursuant to this section, the

agency is subrogated to the rights of all the members of the credit union, whether or not it has become receiver of

the credit union, in the same manner and to the same extent as it would be subrogated in the receivership of a

credit union operating under a federal charter and insured by the agency.

E. Upon taking possession of the property and business of a credit union under this chapter, the receiver:

(1) May collect money due to the credit union and do all acts necessary to conserve its assets and business and

shall proceed to liquidate its affairs;

(2) Shall collect all debts due and claims belonging to the credit union and may sell or compound all bad or

doubtful debts;

(3) May sell, for cash or other consideration or as provided by law, all or any part of the real and personal property

of the credit union;

(4) May take, in the name of the credit union, a mortgage on the real property from a bona fide purchaser to

secure the whole or part of the purchase price;



(5) May borrow money and issue evidence of indebtedness for the money. To secure the repayment of the

indebtedness, the receiver may mortgage, pledge, transfer in trust or hypothecate any or all of the property of the

credit union, whether real, personal or mixed, superior to any charge for expenses of liquidation; and

(6) May represent the credit union in lawsuits under the receiver's own name as receiver of the credit union.

F. The receiver shall use the assets of the credit union to pay claims in the following order:

(1) Claimants whose claims are secured must receive their security. To the extent their respective claims exceed

the value of the security for those claims, as determined to the satisfaction of the receiver, they each have an

unsecured claim against the credit union having priority as provided in subparagraph (2); and

(2) Unsecured claims against the liquidation estate that are proved to the satisfaction of the receiver have priority

in the following order:

(a) Administrative costs and expenses of liquidation;

(b) Claims for wages and salaries, including vacation, severance and sick leave pay;

(c) Taxes legally due and owing to the United States, any state or any subdivision of the United States or any state;

(d) Debts due and owing to the State and the United States, including the National Credit Union Administration;

(e) General creditors, and secured creditors to the extent that the secured creditors' respective claims exceed the

value of the security for those claims;

(f) Pro rata distribution to members in proportion to the respective amount of their deposits and shares;

(g) In a case involving liquidation of a corporate credit union, membership capital of the corporate credit union;

(h) In a case involving liquidation of a designated community development credit union, any outstanding

secondary capital accounts issued pursuant to state law; and

(i) In a case involving liquidation of a corporate credit union, paid-in capital.

G. Priorities for payment of claims under paragraph F are based on the circumstances that exist on the date of the

liquidation.

H. If the repudiation or disaffirmance of any contract or lease gives rise to a claim for damages, the claim must be

considered a general creditor claim under paragraph F, subparagraph (2), division (e) and not a cost or expense of

liquidation under paragraph F, subparagraph (2), division (a).

I. All unsecured claims of any category or class or priority described in paragraph F, subparagraph (2), divisions (a)

to (i) must be paid in full, or provisions made for such payment, before any claims of lesser priority are paid. If

there are insufficient funds to pay all claims of a category or class, payment must be made pro rata.

Notwithstanding anything to the contrary in this section, the receiver may, at any time, and from time to time,

prior to the payment in full of all claims of a category or class with higher priority, make such distributions to

claimants in priority categories described in paragraph F, subparagraph (2), divisions (a) to (e) as the receiver

believes are reasonably necessary to conduct the liquidation, as long as the receiver determines that adequate

funds exist or will be recovered during the liquidation to pay in full all claims of any higher priority. If a surplus

remains after making distribution in full on all allowed claims described in paragraph F, subparagraph (2), divisions

(a) to (i), the surplus must be distributed pro rata to the credit union's members.

J. After all debts, liabilities and obligations of the credit union are paid or discharged or otherwise adequately

provided for, the receiver shall file articles of dissolution with the Secretary of State. Articles of dissolution must

set forth:

(1) The name and address of the credit union;

(2) The date dissolution was ordered;

(3) A statement of how dissolution was ordered;

(4) A report of liquidating activities; and

(5) Such other information as the superintendent may require.



Dissolution is effective upon the superintendent's acceptance of articles of dissolution for filing with the bureau. At

that time the credit union ceases to exist, except for the purposes of suits or other proceedings provided for by

law.

Maryland

§ 6-905. Same - Action by Commissioner.

(a) Order to correct practice.- The Commissioner may order a credit union, or enter into an agreement with a

credit union, to take corrective action if the Commissioner finds that the credit union:

(1) Has failed to file a report when due;

(2) Is insolvent;

(3) Has violated any provision of this title; or

(4) Is engaged in an unsafe or unauthorized practice.

(b) Hearing.-

(1) Before the order becomes effective, the Commissioner shall give the credit union an opportunity for a hearing.

(2) Notice of the hearing shall be given and the hearing shall be held in accordance with Title 10 of the State

Government Article.

(c) Cease and desist order; hearing.- If the Commissioner determines that the violation or practice under

subsection (a) of this section requires immediate action to protect depositors or members, the Commissioner:

(1) May issue a cease and desist order that is effective on service; and

(2) Shall give the credit union an opportunity for a hearing to rescind the order.

(d) Failure to comply.- If the credit union fails to comply with the order within 60 days after it becomes effective,

the Commissioner may:

(1) Take possession of the business and assets of the credit union and operate it until the Commissioner permits it

to resume business or until the Commissioner orders its liquidation under item (3) of this subsection;

(2) Order the credit union share guaranty corporation that insures the credit union to take possession of the

business and assets of the credit union and operate it in accordance with the Commissioner's instructions until the

Commissioner permits it to resume business or until the Commissioner orders its liquidation under item (3) of this

subsection; or

(3) Place the credit union in receivership for liquidation in the same manner as provided for a banking institution

under Title 5, Subtitle 6 of this article.

Massachusetts

Chapter 167 SUPERVISION OF BANKS

Section 22 Taking possession of property and business of bank by commissioner

Whenever it shall appear to the commissioner that any bank has violated its charter or any law of the

commonwealth, or is conducting its business in an unsafe or unauthorized manner, or that its capital is impaired,

or if it shall refuse to submit its books, papers and concerns to the inspection of the commissioner or his duly

authorized agents, or if any officer of such bank shall refuse to be examined on oath by the commissioner or his

duly authorized assistants touching its concerns, or if it shall suspend payment of its obligations, or if from an

examination or from a report provided for by law the commissioner shall have reason to conclude that such bank is

in an unsound or unsafe condition to transact the business for which it is organized, or that it is unsafe and

inexpedient for it to continue business, the commissioner may take possession forthwith of the property and

business of such bank and may retain possession thereof until the bank shall resume business or until its affairs

shall finally be liquidated as herein provided.



Michigan

490.231 Liquidation; appointment of federal agency as receiver.

(1) Except as provided in subsection (2), a domestic credit union shall only be liquidated as provided in this part. A

receiver or other liquidating agent shall only be appointed for a domestic credit union or its assets and property

under this part.

(2) If a federal agency is appointed as receiver of a domestic credit union, the receivership procedures of the

federal agency shall govern the receivership.

490.232 Appointment of receiver; conditions; proceeding; bond; reporting schedule; subrogation of federal agency

to rights of deposit owners.

(1) If a domestic credit union refuses to pay its shares, deposits, or obligations in accordance with the terms under

which the shares were received or the deposits or obligations were incurred, becomes insolvent, or refuses to

submit its books, papers, and records for inspection by the commissioner, or if it appears to the commissioner that

the domestic credit union is in an unsafe or unsound condition, the commissioner may either appoint a

conservator under section 241 or apply to the circuit court for Ingham county or for the county in which the

principal place of business of the domestic credit union is located for the appointment of a receiver for the

domestic credit union.

(2) In a proceeding for the appointment of a receiver, the court may act upon the application immediately and

without notice to any person. If at any time it appears to the court that the claimed reasons for receivership do not

exist, the court shall dissolve the receivership and terminate the proceedings.

(3) An insuring federal agency may act as receiver without bond. All other receivers, with the exception of an

employee of the office of financial and insurance services appointed as receiver in his or her official capacity, shall

post a bond in an amount determined by the court.

(4) A receiver shall report to the commissioner regarding all matters involving the receivership on a schedule

established by the commissioner.

(5) If a domestic credit union is closed and placed in receivership, and the insuring federal agency pays or makes

available for payment the insured shares and deposit liabilities of the closed domestic credit union, the agency,

whether or not it has become receiver of the domestic credit union, is subrogated to all of the rights of the owners

of the deposits against the closed domestic credit union in the same manner and to the same extent as

subrogation of the agency is provided for under federal law.

490.233 Receiver; duties; powers.

(1) Subject to court approval, a receiver appointed under this part shall do all of the following:

(a) Take possession of the books, records, and assets of the domestic credit union and collect all debts, dues, and

claims belonging to the domestic credit union.

(b) Sue and defend, compromise, and settle all claims involving the domestic credit union.

(c) Sell all real and personal property of the domestic credit union.

(d) Exercise all fiduciary functions of the domestic credit union as of the date of the commencement of the

receivership.

(e) Pay all administrative expenses of the receivership. The administrative expenses are a first charge on the assets

of the domestic credit union and the receiver shall pay those expenses before any final distribution or payment of

dividends to creditors or members.



(f) Except as provided in this subdivision, pay ratably the debts of the domestic credit union. The receiver may pay

any debt that does not exceed $500.00 in full, but the holder of that debt is not entitled to payment of interest on

the debt.

(g) After paying or providing for payment of all the administrative expenses and debts under subdivisions (e) and

(f), pay ratably to the members of the domestic credit union the balance of the net assets of the domestic credit

union, in proportion to the number of shares held and owned by each.

(h) Have all the powers of the directors, officers, and members of the domestic credit union necessary to support

an action taken on behalf of the domestic credit union.

(i) Hold title to the domestic credit union's property, contracts, and rights of action, beginning on the date the

domestic credit union is ordered in receivership.

(2) Subject to court approval, a receiver may do any of the following:

(a) Borrow money as necessary or expedient to aid in the liquidation of the domestic credit union and secure the

borrowing by the pledge of or lien, security interest, or mortgage on the assets of the domestic credit union.

(b) Employ agents, legal counsel, accountants, appraisers, consultants, and other personnel the receiver considers

necessary to assist in the performance of the receiver's duties. With the prior written approval of the

commissioner, the receiver may employ personnel of the office of financial and insurance services if the receiver

considers the employment to be advantageous or desirable. The expense of employing personnel of the office of

financial and insurance services is an administrative expense of the liquidation that is payable to the office of

financial and insurance services.

(c) Exercise other powers and duties ordered by a circuit court under the laws of this state applicable to the

appointment of receivers by the circuit court.

490.234 Voidable transfer or lien; person knowingly implementing voidable transfer or lien; personal liability;

prohibitions to voiding otherwise voidable transfer; "preference" defined.

(1) Except as provided in subsection (3), a transfer of or lien on the property or assets of a domestic credit union is

voidable by a receiver appointed under this part if the transfer or lien is 1 or more of the following:

(a) Made or created within 1 year before the date the domestic credit union is ordered into receivership if the

receiving transferee or lien holder was at the time an official or employee of the domestic credit union or an

affiliate of the domestic credit union.

(b) Made or created on or within 90 days before the date the domestic credit union is ordered in receivership with

the intent of giving to a creditor or depositor, or enabling a creditor or depositor to obtain, a greater percentage of

the claimant's debt than is given or obtained by another claimant of the same class.

(c) Accepted after the domestic credit union is ordered in receivership by a creditor or depositor having reasonable

cause to believe that a preference will occur.

(d) Voidable by the domestic credit union and the domestic credit union may recover the property transferred or

its value from the person to whom it was transferred or from a person who has received it, unless the transferee

or recipient was a bona fide holder for value before the date the domestic credit union was ordered in

receivership.

(2) A person acting on behalf of the domestic credit union, who knowingly has participated in implementing a

voidable transfer or lien, and each person receiving property or the benefit of property of the domestic credit

union as a result of the voidable transfer or lien, is personally liable to the receiver for the property or benefit

received.

(3) A receiver appointed under this part shall not void an otherwise voidable transfer under this section if any of

the following apply:



(a) The transfer or lien does not exceed the value of $1,000.00.

(b) The transfer or lien was received in good faith by a person who gave value and who is not a person described in

subsection (1)(a).

(c) The transfer of lien was intended by the domestic credit union and the transferee or lien holder as, and in fact

substantially was, a contemporaneous exchange for new value given to the domestic credit union.

(4) As used in this section, "preference" means a transfer or grant of an interest in the property or assets of the

domestic credit union that is either of the following:

(a) Made or incurred with the intent to hinder, delay, or defraud an entity to which, on or after the date that the

transfer or grant of interest was made, the domestic credit union was or became indebted.

(b) Made or incurred for less than a reasonably equivalent value in exchange for the transfer or grant of interest if

the domestic credit union was insolvent on the date that the transfer or grant of interest was made or became

insolvent as a result of the transfer or grant of interest.

490.235 Disposal of obsolete and unnecessary records; maintenance methods; reservation, deposit, and use of

assets.

(1) If approved by the court, a receiver appointed under this part may dispose of records of a domestic credit union

in receivership that are obsolete and unnecessary to the continued administration of the receivership proceeding

and retain the remaining records of the domestic credit union and the receivership for a period of time as ordered

by the court.

(2) A receiver appointed under this part may devise a method for the effective, efficient, and economical

maintenance of the records of the domestic credit union and of the receiver's office, including maintaining those

records on any medium approved by the court.

(3) A receiver appointed under this part may reserve assets of a liquidated domestic credit union, deposit them in

an account, and use them to maintain the records of a liquidated domestic credit union after the closing of the

receivership proceeding.

Minnesota

52.062 CREDIT UNIONS; SUSPENSION OF OPERATION.

Subdivision 1.Reasons for commissioner's action.

Whenever the commissioner of commerce shall find that a credit union is engaged in unsafe or unsound practices

in conducting its business or that the shares of the members are impaired or are in immediate danger of becoming

impaired, or that such credit union has knowingly or negligently permitted any of its officers, directors, committee

members, or employees to violate any material provision of any law, bylaw, or rule to which the credit union is

subject, the commissioner of commerce may proceed in the manner provided by subdivision 2, 3, or 4.

Subd. 2.Suspension.

The commissioner of commerce may suspend the operation of the credit union by giving notice to its board of

directors by certified mail. Said notice shall include a list of reasons for said suspension and a list of any specific

violations of law, bylaw, or rule, and shall specify which operations of the credit union may be continued during

the period of suspension. The notice shall also fix a time and place for a hearing before the commissioner of

commerce or such person or persons as the commissioner of commerce may designate. The hearing shall be held

within 60 days of the notice of suspension. Evidence may be produced at said hearing by any party thereto, and

the commissioner of commerce shall base the decision as to the continued suspension of operation of the credit



union upon said evidence. If the commissioner of commerce decides to continue the suspension, the

commissioner shall give notice of the decision to the board of directors of the credit union.

Subd. 3. [Repealed, 2005 c 118 s 18]

Subd. 4.Consent cease and desist order.

In lieu of suspension of the operation of the credit union, the commissioner of commerce and the board of

directors of the credit union may agree to execute a consent cease and desist order in which the parties agree to

waive the right to a hearing and agree that the credit union shall cease and desist from unsafe or unsound

practices, or violations. The order must specify whether credit union operation may continue, and if operation may

continue, the conditions under which operation may continue.

52.063 PROCEEDINGS FOLLOWING SUSPENSION, CONTINUATION OF SUSPENSION, OR CONSENT CEASE AND

DESIST ORDER; APPOINTMENT OF NATIONAL CREDIT UNION ADMINISTRATION BOARD AS RECEIVER.

Subdivision 1.Proceedings following suspension or continuation of suspension.Upon receipt of the suspension

notice or the notice of the continuation of suspension under section 52.062, subdivision 2 or 3, the credit union

shall immediately cease or continue cessation of all operations except those operations specifically authorized by

the commissioner of commerce. If the notice is given pursuant to determination by the commissioner of

commerce after a hearing, the board of directors shall have 60 days from the receipt of said notice in which to file

with the commissioner of commerce a proposed plan of corrective actions or to request that a receiver be

appointed for the credit union. The commissioner of commerce shall have 30 days from the receipt of the

proposed plan of corrective actions to determine if the proposed corrective actions are sufficient to correct the

deficiencies which formed the basis for the suspension. If the commissioner of commerce determines that the

proposed corrective actions are sufficient, the suspension shall be lifted and the credit union returned to normal

operations under its board of directors. If the commissioner of commerce believes the proposed corrective actions

insufficient, or if the board has failed to answer the suspension notice, or has requested that a receiver be

appointed, then the commissioner of commerce shall apply to the district court for appointment of a receiver. The

credit union shall have the right, within six months of the receipt of any notice of suspension or continuation of

suspension pursuant to a determination by the commissioner of commerce after hearing, to appeal to the district

court for a ruling as to the validity of such notice.

Subd. 2.Proceedings following consent cease and desist order.If the commissioner of commerce and the board of

directors of the credit union execute a consent cease and desist order in lieu of a suspension under section 52.062,

subdivision 4, the board of directors of the credit union may request that the commissioner of commerce seek

court appointment of a receiver for the credit union. The consent cease and desist order must state that the credit

union has requested that the commissioner seek appointment of a receiver.

Subd. 3.Appointment of National Credit Union Administration Board as receiver.Upon a request by the

commissioner of commerce, the court may appoint the National Credit Union Administration Board, created by

section 3 of the Federal Credit Union Act, as amended, as receiver of a credit union, without bond, when the

deposits of the credit union are to any extent insured by the National Credit Union Administration Board, and the

credit union has had its operations suspended or has executed a consent cease and desist order with the

commissioner in lieu of a suspension under section 52.062. Notwithstanding any other provisions of law, the

commissioner of commerce may, in the event of the suspension or consent cease and desist order, tender to the

National Credit Union Administration Board the proposed appointment as receiver of the credit union. If the

National Credit Union Administration Board accepts the proposed appointment and the court appoints the

National Credit Union Administration Board as receiver upon a request by the commissioner, the National Credit

Union Administration Board shall have and possess all the powers and privileges provided by the laws of this state



and section 207 of the Federal Credit Union Act, as amended, with respect to a receiver of a credit union, the

board of directors of the credit union, and its members.

Mississippi

81-13-19.

(1) If it appears that any credit union is bankrupt or insolvent, or that it has violated any other provisions of law, or

is in danger of loss due to mismanagement or fraud, the commissioner shall issue an order temporarily suspending

the credit union's operations for not less than thirty (30) nor more than sixty (60) days. The board of directors shall

be given notice by registered mail of such suspension, which notice shall include a list of the reasons for such

suspension, or a list of the specific violations of law.

(2) Upon receipt of such suspension notice, the credit union shall cease all operations, except those operations

authorized by the commissioner. The board of directors shall file with the commissioner a reply to the suspension

notice, and may request a hearing to present a plan of corrective actions proposed if the credit union desires to

continue operations. The board of directors may request that the credit union be declared insolvent and a

liquidating agent be appointed.

(3) Upon receipt of evidence from the suspended credit union that the conditions causing the order of suspension

have been corrected, the commissioner, upon finding that such conditions have been corrected, may revoke the

suspension notice and permit the credit union to resume normal operations.

(4) If the commissioner, after issuing notice of suspension and providing an opportunity for a hearing, rejects the

credit union's plan to continue operations, he may issue a notice of involuntary liquidation and appoint a

liquidating agent. The commissioner shall continue his order suspending the credit union's operation until final

determination or liquidation. The credit union may request the chancery court of the county in which the home

office of the credit union is located to take such action as it may deem necessary under the law.

(5) If, within the suspension period, the credit union fails to answer the suspension notice or request a hearing,

the commissioner may then revoke the credit union's charter, appoint a liquidating agent and liquidate the credit

union.

Missouri

Director may order suspension, possession, reorganization, merger, consolidation, liquidation--when, procedure.

370.150. 1.

The director of the division of credit unions may, without notice, notwithstanding the provisions of section

370.140, suspend the charter or take possession and control of the assets, business, books and records and

property of every description of any credit union organized under section 370.010, whenever:

(1) He has revoked the certificate of approval of the credit union;

(2) An examination made by the director or one of his or her deputies or examiners reveals that such credit union

is insolvent, or that its continuance in business will seriously jeopardize the safety of the deposits of its members

or its creditors;

(3) It has failed to comply with any cease and desist order issued by the director under the provisions of section

370.140;

(4) It refuses to permit the director to examine its affairs;

(5) The credit union board of directors requests the director to take possession of the credit union. Thereafter, the

director of credit unions shall make a determination as to whether to return the credit union to the board of

directors, to merge, to consolidate or to liquidate the credit union as provided in this chapter;

(6) It is conducting its business in an unsafe or unsound manner;



(7) It becomes ineligible for share insurance with the National Credit Union Administration.

2. The director shall retain possession until such time as he may permit it to resume business or its affairs are

finally liquidated.

3. During the time the director is in possession, he shall have the power to operate the credit union through the

agency of a qualified person, natural or corporate, who shall act under his supervision, and all expenses of the

operation, including compensation of the agent and the employees of the agent, shall be paid from the credit

union's funds.

4. While in possession, the director may exercise all of the functions and powers given to credit unions by this

chapter or the general laws of this state, and may exercise them through the designated agent authorized in the

preceding paragraph, and shall bring and defend actions in the name of the credit union, and do any and all acts

and things as are reasonable and necessary to the conservation of the business, property and affairs of the credit

union, including calling special meetings of the board of directors, the committees, the members of the credit

union, all of which he may attend.

5. When the director takes possession, the credit union officers shall convey to him all books, records, and

property of every description of the credit union. Failure of the officers to do so shall be a misdemeanor and upon

conviction shall be punishable by a fine of five hundred dollars or by confinement in the county jail for a period of

thirty days, or by both the fine and confinement.

6. The director upon taking charge of a credit union shall as soon as practical ascertain the financial condition

thereof by an examination of its affairs, and in his discretion, an appraisal of its assets.

7. If it shall appear therefrom that the credit union is in a condition to safely resume business without

reorganization, consolidation or merger, and if any question of alleged violation or charges of unlawful action or

unauthorized conduct of business has been determined, he shall return the possession, assets and conduct of the

business thereof to the directors and officers.

8. If it appears that a reorganization, merger or consolidation will be necessary before the credit union can safely

resume business and that such reorganization, merger or consolidation is feasible, he shall propose a plan and

attempt to implement it.

9. If it shall appear that the credit union is not in a condition to safely resume business and that reorganization,

merger or consolidation is not feasible, he may issue a notice of involuntary liquidation and appoint a liquidating

agent to liquidate the credit union.

10. At any time within thirty days after the director has taken possession of the business and property of any credit

union under this section, such credit union, with the approval of a majority of its board of directors, may apply to

the circuit court in the judicial district in which the principal office of such credit union is located, for an order

requiring the director to show cause why the director should not be enjoined from continuing such possession. The

court may, upon good cause shown, direct the director to refrain from further proceedings and to surrender such

possession of the business and property of the credit union back to the directors and officers.

11. The powers and authority conferred on the director by this section, except in case of voluntary surrender, shall

be considered as discretionary and not as mandatory, and so long as the director acts in good faith in the matter,

neither he nor his employees or agents shall be held liable civilly or criminally or upon their official bonds in any

action taken hereunder or for any failure to act hereunder.

Montana

32-3-205. Cease and desist orders -- suspension -- involuntary liquidation.

(1) The department of administration may issue cease and desist orders after having determined, from competent

and substantial evidence, that a credit union:



(a) is engaged or is about to engage in an unsafe or unsound practice; or

(b) is violating or has violated a material provision of any law, rule, or condition imposed in writing by the

department or any written agreement made with the department.

(2) (a) The department may suspend from office and prohibit from further participation in any manner in the

conduct of the affairs of a credit union any director, officer, or committee member who has committed any

violation of a law, rule, or cease and desist order, who has engaged in or participated in any unsafe or unsound

practice in connection with the credit union, or who has committed or engaged in any act, omission, or practice

that constitutes a breach of that person's fiduciary duty as a director, officer, or committee member when the

department has determined that:

(i) the action of the director, officer, or committee member has resulted or will likely result in substantial

financial loss or other damage;

(ii) the interests of the credit union's members have been or may be prejudiced by the action of the director,

officer, or committee member;

(iii) the director, officer, or committee member has received financial gain or other benefit as a result of the

action; or

(iv) the action of the director, officer, or committee member involves personal dishonesty or demonstrates

unfitness to serve as a director, officer, or committee member.

(b) A director, officer, or committee member suspended from office pursuant to subsection (2)(a) may request a

hearing under the Montana Administrative Procedure Act.

(3) (a) If it appears that a credit union is bankrupt or insolvent or that it has willfully violated this chapter or is

operating in an unsafe or unsound manner, the department may issue an order temporarily suspending the credit

union's operations for not less than 30 or more than 60 days. The board of directors must be given notice by

certified mail of the suspension. The notice must include a list of the reasons for the suspension and a list of the

specific violations of this chapter.

(b) Upon receipt of a suspension notice, the credit union shall cease all operations, except those authorized by

the department, or the department may appoint a conservator to operate the credit union during the period of

suspension. The board of directors shall file with the department a reply to the suspension notice and present a

plan of proposed corrective actions if it desires to continue operations. The board may request that the credit

union be declared insolvent and a liquidating agent be appointed.

(c) Upon receipt from the suspended credit union of evidence that the conditions causing the order of

suspension have been corrected or upon acceptance of a plan of proposed corrective actions, the department may

revoke the suspension notice and permit the credit union to resume normal operations.

(d) If the department, after issuing a notice of suspension, rejects the credit union's plan to continue operations,

the board may request an administrative hearing.

(4) If, within the suspension period, the credit union fails to answer the suspension notice or request a hearing

or if after a hearing, the department continues to reject the credit union's plan to continue operations, the

department may:

(a) permit the credit union to operate under a conservator until conditions requiring suspension are remedied;

(b) involuntarily merge the credit union in accordance with the provisions of 32-3-212; or

(c) revoke the credit union's charter, appoint a liquidating agent, and liquidate the credit union.

(5) The department may not involuntarily merge or involuntarily liquidate a credit union prior to the suspension

procedures outlined in this section. A credit union may petition the appropriate court to stay the department's

suspension, involuntary merger, or involuntary liquidation order.

(6) In the event of liquidation of a credit union, the assets of the credit union or the proceeds from the



disposition of the credit union's assets must be applied and distributed in the following sequence:

(a) to secured creditors up to the value of their secured collateral;

(b) for the costs and expenses of liquidation;

(c) for wages due employees of the credit union;

(d) for taxes owed to any government unit;

(e) for any debts owed the United States;

(f) to general creditors and to secured creditors to the extent that their claims exceed the value of their

collateral; and

(g) to shareholders of the credit union to the extent of their uninsured shares.

Nebraska

21-1734. Corrective measures; receivership proceedings.

(1) If it appears that any credit union is bankrupt or insolvent, that it has willfully violated the Credit Union Act, or

that it is operating in an unsafe or unsound manner, the director may require such corrective measures in

accordance with sections 8-1,134 to 8-1,139 as he or she may deem necessary or take possession of the property

and business of such credit union and retain possession thereof until such time as he or she determines either to

permit the credit union to resume business or to order its dissolution. In the event the director orders its

dissolution, the credit union shall be liquidated in receivership proceedings in the same manner, as nearly as may

be possible, as provided by the laws governing the liquidation of state banks.

(2) Pursuant to section 21-1735, the director may appoint the National Credit Union Administration Board as

receiver or liquidator of the assets and liabilities of any credit union in the possession of the director. The

appointment shall be subject to the approval of the district court of the judicial district in which the credit union

has its principal place of business.

Nevada

NRS 678.830 Involuntary dissolution: Suspension of operations; corrective actions; declaration of insolvency;

liquidation.

1. If the Division determines that any credit union organized pursuant to the provisions of this chapter is

bankrupt or insolvent, has willfully violated the provisions of this chapter or is operating in an unsafe or unsound

manner, the Division may, if emergency action is required to protect the assets of the members, issue an order

temporarily suspending the credit union’s operations. Reasonable notice of the suspension of operations and of

the impending hearing shall be given to the board. Operations of the credit union shall cease upon receipt of

notice from the Division.

2. At the scheduled hearing, the board shall, if it desires to continue operations, submit a plan of corrective

actions. If the board desires, it may, prior to the hearing, request the Commissioner to declare the credit union

insolvent and appoint a liquidating agent.

3. If the credit union is not represented at the scheduled hearing or the Division rejects the credit union’s plan

to continue operations, the Commissioner may appoint a liquidating agent and dissolve the credit union.

NRS 678.835 Involuntary dissolution: Appointment of liquidating agent for credit union closed by bankruptcy or

insolvency.

If a credit union is closed because of bankruptcy or insolvency, the Commissioner may appoint a liquidating agent.



New Hampshire

395:1 Petition. [et seq.]

If any institution under the supervision of the bank commissioner shall refuse to permit an examination of its

affairs by the commissioner, or to furnish the necessary facilities therefor, or shall violate its charter or any law of

the state after having been notified in writing by the commissioner of such violation, or if at any time it appears to

the commissioner that its business is being conducted in an unsafe or unauthorized manner, or that it is necessary

for the public safety that it should not continue to transact business, the commissioner may represent the fact by

petition to some justice of the superior court.

New Jersey

17:13-115. Violation of law, unauthorized actions, or refusal to be examined; institution of court action for

possession

Whenever it appears to the commissioner:

a. That a credit union has violated its charter or any law of this State; or

b. That a credit union is conducting its business in an unsafe or unauthorized manner; or

c. That a credit union has refused to submit its books, papers, records, documents, securities, or anything else to

the inspection of the commissioner or his representative; or

d. That any officer or director of a credit union has refused to be examined under oath with respect to the

affairs of the credit union or has refused to answer questions under oath or to produce any books, papers, records,

documents, securities, or any other thing in his possession, custody or control requested by the commissioner; or

e. That a credit union has suspended payment of its obligations; or

f. That an examination or report provided for by this act discloses facts from which the commissioner shall have

reason to conclude that a credit union is in an unsound or unsafe condition to transact business or is insolvent or

that it is unsafe or that it is inexpedient for it to continue business; or

g. That a credit union has neglected or refused to observe an order of the commissioner issued pursuant to this

act;

He shall have the authority to institute an action in the Superior Court or to take possession of the property and

business of the credit union.

17:13-116. Injunctions; receivers; other relief or correction

In any action instituted in the Superior Court pursuant to section 37 of this act, the court may enjoin the credit

union from the transaction of any further business or the transfer or disposal of its property in any manner

whatsoever, and the court may appoint a receiver with the power to sue for, collect, receive and take into his

possession all of the goods and chattels, rights and credits, moneys and effects, lands and tenements, books,

papers, choses in action, bills, notes and property of every description belonging to the credit union and to sell,

convey and assign the same and hold and dispose of the proceeds thereof under the direction of the court, or the

court may enjoin excessive expenses of management, remove one or more of the officers, directors, employees or

agents of the credit union and grant other relief or correction as the facts demand. The court may proceed in a

summary manner or otherwise.

17:13-117. Possession by commissioner of property and business; dissolution of credit union; trustees in

dissolution

Whenever the commissioner shall take possession of the property and business of a credit union pursuant to

section 37 of this act, he shall retain possession until the property and business of the credit union may be



returned by him to the management of its board on terms satisfactory to him, except the commissioner shall

have the authority to institute an action in the Superior Court as provided by this act while in possession of the

property and business of the credit union, in which case he shall retain the possession of the property and

business of the credit union until otherwise ordered by the court. The commissioner may, if he deems it advisable

and in the best interest of the members, permit the voluntary dissolution of the credit union and surrender to its

officers and directors any powers which may be necessary to effect a dissolution as provided in this act, but in this

case the trustees in dissolution to be appointed by the members shall be persons satisfactory to the

commissioner and the bonds to be given by them shall be approved as to form, sufficiency and amount by the

commissioner.

17:13-118. Continuation of business by commissioner; authority and powers

Upon taking possession of the property and business of a credit union, the commissioner may, pending the

return of its property and business to the management of its board or the order or judgment of the Superior Court

in an action instituted under sections 37 and 38 of this act or its dissolution as herein provided, continue the

operation of the business of the credit union. For that purpose, the commissioner shall have and may exercise

every authority and power theretofore conferred by law, by the provisions of its certificate of incorporation and

by its bylaws upon its board and committees and upon all and any of its officers, directors and committee

members. However, this section shall not be construed to deprive any credit union at any time of title to its

property, and all transfers and conveyances of property to the credit union during the commissioner's possession

thereof shall be made in its name and all transfers and conveyances of property from the credit union shall be

made in the name of the credit union, under its seal or otherwise as the circumstances may require, by the

commissioner. Any act or thing done by the credit union, during the commissioner's possession as aforesaid, over

the signature of or by order of the commissioner shall be construed to be the act of the credit union and shall be

valid and effectual in law if the statutes of this State, the certificate of incorporation of the credit union or its

bylaws shall have authorized its board, committees, any director thereof, any committee member thereof or any

officer thereof to do or perform any act. The commissioner shall not be obligated to carry on the business of the

credit union in possession unless he deems it proper and expedient so to do but may, during his possession

thereof, conserve its assets until a time as he shall determine it expedient and proper to continue the business or

until otherwise directed by the Superior Court in an action instituted pursuant to sections 39 and 40 of this act or

until its dissolution.

17:13-119. Assistant deputy commissioners; employment of counsel and other expert assistance; powers on

receivership of commissioner and members

The commissioner may, under his hand and official seal, appoint one or more special assistant deputy

commissioners as agent or agents to assist him in the operation of the business or conservation of the assets of

any credit union in his possession; and the commissioner may, from time to time, delegate to any special

assistant deputy commissioner the powers conferred on him by this act with respect to the operation of the

business or conservation of the assets of the credit union in his possession as he may deem necessary. The

commissioner may employ counsel, other expert assistance, or any other persons as shall in his opinion be

needed for the continuation of the business or conservation of the assets of any credit union, and the

compensations and salaries of all special assistant deputy commissioners, attorneys, expert assistants and other

persons together with all other costs and expenses of a continuation of the business or conservation of the assets

of the credit union shall be fixed by the commissioner and paid by the credit union and shall, until paid, constitute

a prior claim against its assets. The commissioner shall require from special assistant deputy commissioners and



other employees any security for the faithful performance of their respective duties as he may deem proper. Upon

taking possession of any credit union the commissioner shall have power to terminate the employment of any

employee of a credit union and no officer or director shall thereafter and until notified by the commissioner

resume the exercise of any power in the management of the business or conduct of the affairs of the credit

union. The commissioner shall have authority to call meetings of members for any purpose. The members

present at any meeting may, by majority vote, and notwithstanding the provisions of the bylaws or certificate of

incorporation of the credit union, and without showing cause, declare vacant the office of any director or

committee member of the credit union and appoint a successor to fill the vacancy thus arising.

New Mexico

58-11-3. Supervision and regulation.

L. If it appears that any credit union has willfully violated the Credit Union Act or its bylaws or is operating in an

unsafe and unsound manner, the director may issue an order temporarily suspending the credit union's

operations. The following provisions shall then apply:

(1) the board of directors of the credit union shall be given notice by certified mail of such suspension, which

notice shall include a list of the reasons for such suspension and a list of the specific violation of the Credit Union

Act or the credit union's bylaws, if any. The director shall also notify the insuring organization of the credit union of

any such suspension;

(2) upon receipt of such suspension notice, the credit union shall cease all operations except those authorized by

the director. The board of directors shall then file with the director a reply to the suspension notice and may

request a hearing to present a plan of corrective actions proposed if the board desires to continue operations. The

board may request that the credit union be declared insolvent and a liquidating agent be appointed;

(3) upon receipt from the suspended credit union of evidence that the conditions causing the order of

suspension have been corrected, the director may revoke the suspension notice, permit the credit union to

resume normal operations and notify the insuring organization of such action;

(4) if the director, after issuing notice of suspension and providing for a hearing, rejects the credit union's plan to

continue operations, he may issue a notice of involuntary liquidation and appoint a liquidating agent. The credit

union, within thirty days of issuance of the notice, may apply to the court of appeals for an order to stay execution

of such action;

(5) if within the suspension period the credit union fails to answer the suspension notice or request a hearing,

the director may then revoke the credit union's charter, appoint a liquidating agent and liquidate the credit union;

and

(6) in the event of liquidation, the assets of the credit union or the proceeds from any disposition of the assets

shall be applied and distributed in the following sequence:

(a) costs and expenses of liquidation;

(b) secured creditors up to the value of their collateral;

(c) wages due the employees of the credit union;

(d) costs and expenses incurred by creditors in successfully opposing the release of the credit union from certain

debts as allowed by the director or liquidating agent;

(e) taxes owed to the United States or any other governmental units;

(f) debts owed to the United States or other governmental units;

(g) general creditors, secured creditors to the extent their claims exceed the value of their collateral and owners

of deposit accounts to the extent such accounts are uninsured; and



(h) members, to the extent of uninsured share accounts and the organization that insured the accounts of the

credit union.

New York

§ 40. Revocation of authorization certificate or license or suspension of activities in certain cases.

1. If the superintendent shall find that (i) any of the reasons for taking possession of the business and

property of a banking organization or of the business and property in this state of a foreign banking

corporation enumerated in section six hundred six of this chapter, shall exist with respect to a private

banker to which the superintendent has issued an authorization certificate or a foreign banking

corporation to which the superintendent has issued a license or (ii) any fact or condition exists which would be

grounds for denial of an application for such a license issued to a foreign banking corporation, as defined

by the banking board by regulation, he may, after notice and hearing thereon, revoke such license or

authorization certificate. Notice of such revocation, under the superintendent's hand and the official seal of the

department, shall be executed in triplicate and one copy shall be transmitted to such private banker or

foreign corporation, another shall be filed in the office of the department and the third shall be filed in the office

of the clerk of the county in which the authorization certificate or license of such private banker or foreign

corporation has been filed.

The superintendent may, in his discretion, publish a copy of such notice, with such other facts as he may

deem proper, in the state register.

2. If the superintendent finds that any of the grounds for revocation described in subdivision one of this

section are present with respect to a foreign banking corporation licensed pursuant to this chapter and in

addition the superintendent finds it necessary to protect the interest of depositors or the public, the

superintendent may issue, without notice and hearing, an order suspending or otherwise limiting the

activities of the foreign banking corporation, for a period not to exceed ninety days, pending investigation or

hearing.

North Carolina

§ 54-109.92. Suspension and conservation.

(a) The Administrator of Credit Unions may determine in the performance of his duties under this Subchapter

that a credit union is insolvent or in imminent danger of insolvency, or that an officer, director, or employee of a

credit union, or the credit union itself, acting by and through an officer, director, or employee, has:

(1) Affected or is likely to affect the safety or soundness of the credit union by a violation of:

a. This Subchapter,

b. A rule adopted under this Subchapter, or

c. Any federal law or regulation applicable to credit unions;

(2) Violated, neglected, or refused to comply with a duly issued final order of the Administrator of Credit

Unions or the Credit Union Commission;

(3) Refused to submit to examination under oath, or to permit examination of the credit union's books, papers,

records, accounts, and affairs by the Administrator of Credit Unions or his duly authorized representative;

(4) Failed or refused to authorize and direct any other person to permit the inspection and examination of the

credit union's books, papers, records, or accounts in the other person's care, possession, custody, or control by the

Administrator of Credit Unions or a duly authorized representative of the Administrator, after the Administrator

has requested the granting of that authority and direction to the other person; or



(5) Affected or is likely to affect the safety or soundness of the credit union by conducting the credit union's

business in an unauthorized or unlawful manner.

(b) If the Administrator of Credit Unions makes any of these findings, he may issue an order temporarily

suspending the credit union's operations for not more than 90 days or, if the Administrator determines that the

findings are of such severity that immediate affirmative action is needed to prevent further dissipation of the

assets of the credit union, the Administrator may immediately issue an order of conservation and appoint a

conservator to manage the affairs of the credit union. Service of the order of suspension or the order of

conservation must be by certified or registered mail, addressed to the credit union at the last known address of its

principal office, or by delivery to an officer or director of the credit union. Service by mail is complete upon the

deposit of the paper, enclosed in a postpaid, properly addressed wrapper, in a post office or official depository

under the care and custody of the United States Postal Service. The order must clearly state the grounds for

suspension or conservation.

(c) After a conservation order has been served on the credit union, the Administrator of Credit Unions shall

take possession and control of the books, records, property, assets, and business of the credit union. Upon the

service of the suspension order, the credit union shall cease all operations, except those authorized by the

Administrator and conducted under his supervision. Not later than 15 days after the date an order of suspension

or conservation is served, the board of directors shall file a written reply to the order. They may file a written

request for a hearing to present to the Administrator a plan to continue operations under the control of the board

of directors setting out proposed corrective actions. Under an order of suspension, the board of directors may

request that a conservator be appointed for the credit union or that the credit union be closed or merged or that a

liquidating agent be appointed, and may waive rights to further appeal. In that event, the Administrator may

immediately appoint a conservator, or order that the credit union be liquidated and appoint a liquidating

agent. Under an order of conservation, the board of directors may consent to the conservatorship and waive

rights to further appeals.

(d) If the board of directors files its reply and requests a hearing as provided by subsection (c), the

Administrator of Credit Unions shall set and hold the hearing not less than 10 nor more than 30 days after the date

of receipt of such a request. Not later than 10 days before the hearing, the Administrator shall give notice to the

credit union of the date, time, and place of the hearing. Not later than 10 days after the earlier of the date of

conclusion of the hearing or the date on which the suspension expires, the Administrator shall (i) adopt the plan to

continue operations under the control of the board of directors presented by the credit union, (ii) agree with the

credit union on an alternative plan to continue operations under the control of the board of directors or other

appropriate measures, (iii) reject the plan to continue operations under the control of the board of directors and

issue an order of conservation appointing a conservator, (iv) continue a previous order of conservation, or (v) issue

an order of liquidation ordering that the credit union be closed, ordering that its affairs and business be liquidated,

and appointing a liquidating agent.

(e) If the Administrator of Credit Unions rejects the credit union's plan to continue operations and determines

that it is in the public interest and in the best interest of the members, depositors, and creditors of the credit union

to rehabilitate the credit union, he may permit the credit union to operate under his direction and control, and

shall issue an order of conservation appointing a conservator to manage the affairs of the credit union. The

Administrator shall serve the order of conservation in the same manner as provided for service of an order of

suspension.

(f) The conservator, on behalf and under the supervision and direction of the Administrator of Credit Unions,

shall take charge of the books, records, property, assets, and business of the credit union and shall conduct the

business and affairs of the credit union under the direction and supervision of the Administrator. The conservator



shall take steps toward the removal of the causes and conditions that have necessitated the order that the

Administrator directs. During the conservatorship, the conservator shall make reports to the Administrator from

time to time as the Administrator requires. The conservator shall take all necessary measures to preserve, protect,

and recover the assets or property of the credit union, including claims or causes of action belonging to or that

may be asserted by the credit union. In addition, the conservator may deal with that property in his own name as

conservator and may file, prosecute, or defend against a suit by or against the credit union if the conservator

considers this action necessary to protect the interested parties or property affected by the suit.

(g) The Administrator of Credit Unions shall determine the cost incident to the conservatorship. The cost is a

charge against the assets and funds of the credit union, and shall be paid as the Administrator directs.

(h) A suit filed against a credit union or its conservator while a conservatorship order is in effect must be

brought in a court of proper jurisdiction in Wake County. The conservator may file suit in a court of proper

jurisdiction in Wake County against any person for the purpose of preserving, protecting, or recovering assets or

property of the credit union, including a claim or cause of action belonging to or that may be asserted by the credit

union.

(i) The conservator shall serve for the period necessary to accomplish the purposes of conservatorship

consistent with the intent of this section. If the credit union is rehabilitated, it shall be returned to the

management of the board of directors under the terms that are reasonable and necessary to prevent recurrence

of the conditions that occasioned the conservatorship.

(j) If the Administrator of Credit Unions determines that the credit union in conservatorship is not in a

condition to continue business and cannot be rehabilitated as provided by this section, he shall issue, as he deems

appropriate, either an order of merger or an order of liquidation, appointing a liquidating agent.

(k) If, after a hearing under this section, the board of directors of the credit union is dissatisfied with the

decision of the Administrator of Credit Unions, the board may appeal to the Credit Union Commission by filing with

the Administrator a written appeal, including a duly certified resolution of the board, not later than 10 days after

the day that the Administrator's order is served. If the appeal is duly filed, the Administrator shall set a date for a

hearing on the appeal not more than 30 days after the date on which the appeal is filed. The Administrator shall

promptly give notice of the date, time, and place of the hearing to the credit union and any other interested

party. The filing of an appeal does not suspend the effect of the order of the conservation and this order remains

in force pending final disposition of the appeal by the Commission. At the conclusion of the hearing, the

Commission may reverse the order of the Administrator and adopt and approve the credit union's plan to continue

operations, affirm the Administrator's order of conservation, or order that other appropriate action be taken.

(l) If the board of directors of the credit union does not file a reply to the order of suspension or an order of

conservation as required by this section or fails to request and appear at the hearing provided for by this section,

the Administrator of Credit Unions may dispose of the matter as he considers appropriate. The credit union is

presumed to have consented to the action and may not contest it.

(m) The period of suspension and the date and time of the hearings provided for by this section may be

extended by agreement of the parties and the Administrator of Credit Unions.

(n) The Administrator of Credit Unions shall notify the members of the Credit Union Commission of any

suspension.

North Dakota

6-06-08. State credit union board to supervise credit unions - Reports -

Examinations - Fees.



3. If it is determined through an examination or otherwise that the credit union is violating the provisions of this

chapter, or is insolvent, the state credit union board may serve notice on the credit union of its intention to revoke

the charter. If such violations continue for a period of fifteen days after such notice, the board may revoke the

charter and take possession of the business and property of such credit union and shall maintain possession then

until such time as it permits the reinstatement of the charter and the continuation of business by the credit union,

or until its affairs finally are liquidated. The board may take similar action if any required report remains in arrears

for more than fifteen days.

Ohio

1733.37 Liquidation.

(A) If it appears that any credit union is bankrupt or insolvent, that its shares are impaired, that it has violated this

chapter or rules adopted by the superintendent of credit unions, or that it is operating in an unsafe or unsound

manner, or if the credit union is experiencing a declining trend in its financial condition and a majority of its board

of directors, by resolution, requests the issuance of an order under this division, the superintendent may issue an

order revoking the credit union’s articles of incorporation and appointing a liquidating agent to liquidate the credit

union in accordance with this section.

(B) A credit union under order to liquidate or in the course of liquidation, shall continue in existence for the

purpose of discharging its debts, collecting and distributing its assets, and doing all acts required in order to wind

up its business, and may sue and be sued for the purpose of enforcing such debts and obligations until its affairs

are fully adjusted. The board of directors, or in the case of involuntary dissolution, the liquidating agent, shall use

the assets of the credit union to pay: first, expenses incidental to liquidation, including any surety bond that may

be required; second, any liability due nonmembers; third, redemption of shares and share accounts. Assets then

remaining shall be distributed to the members proportionately to the purchase price of shares held by each

member as of the date dissolving was voted.

(C) As soon as the board or the liquidating agent determines that all assets from which there is a reasonable

expectancy of realization have been liquidated and distributed as set forth in this section, it shall execute a

certificate of dissolution on a form prescribed by the superintendent of credit unions and submit the certificate to

the secretary of state who shall, after filing or recording and indexing, forward evidence of the filing to the

superintendent, whereupon the credit union shall be dissolved.

(D) If the articles of a credit union have been canceled for cause, or if a credit union has filed a certificate of

dissolution or has indicated an intention to file such certificate, and the directors and officers of the credit union,

in the opinion of the superintendent, are not conducting the liquidation proceedings in an expeditious, orderly,

and efficient manner or in the best interest of its members, the superintendent may terminate the liquidation

proceedings and issue an order appointing a liquidating agent to liquidate the credit union in accordance with this

section. Such liquidating agent shall furnish bond for the faithful discharge of the liquidating agent’s duties in an

amount to be approved by the superintendent.

(E) The liquidating agent may, under such rules as the superintendent prescribes:

(1) Receive and take possession of the books, records, assets, and property of every description of the credit union

in liquidation; sell, enforce collection of, and liquidate all such assets and property; compound all bad or doubtful

debts, sue in the name of the credit union in liquidation, and defend such actions as are brought against the

liquidating agent in the capacity as liquidating agent or against the credit union;

(2) Receive, examine, and pass upon all claims against the credit union in liquidation, including claims of members;

(3) Make distribution and payment to creditors and members as their interests appear;



(4) Execute such documents and papers and do other acts that the liquidating agent deems necessary or desirable

to discharge official duties.

(F) The expenses incurred by the liquidating agent in the liquidation of the credit union include the compensation

of the liquidating agent and any other necessary or proper expenses connected therewith, all of which shall be

paid in order of priority out of the property of the credit union in the hands of the liquidating agent. Expenses of

liquidation, including the compensation of the liquidating agent, are subject to approval by the superintendent

unless such agent is appointed by the court. In no event shall the total of the expenses exceed ten per cent of the

assets of the credit union existing at the date of the appointment of the liquidating agent, nor shall the

compensation of such agent exceed five per cent of assets upon that date or five thousand dollars, whichever is

the lesser amount.

(G) Subject to the prior approval of the superintendent, a credit union may enter into a purchase and assumption

agreement to purchase any of the assets or assume any of the liabilities of a credit union for which a liquidating

agent has been appointed by order of the superintendent in accordance with this section. All persons, associations,

and select groups eligible for membership in the credit unions that are parties to the purchase and assumption

agreement shall be deemed to have a common bond of association. The assumption of the field of membership

may be restricted, as specified in the purchase and assumption agreement.

Oklahoma

§ 2018.1 Suspension of operation of credit union - Revocation of certificate - Liquidation - Disposition of assets

(A) If it appears that any credit union organized under the laws of this state is bankrupt or insolvent, or that it has

willfully violated the laws of this state relating to credit unions, or is operating in an unsafe or unsound manner,

the Bank Commissioner, upon approval of the State Credit Union Board, may issue an order temporarily

suspending all or part of a credit union's operations for not more than sixty (60) days. The board of directors shall

be given notice by registered mail of such suspension, which notice shall include a list of the reasons for such

suspension, and shall include a list of the specific violations of law, if any, and the operations suspended. The Bank

Commissioner shall also notify the insuring organization of any suspension.

Oregon

723.672 Suspension; revocation of charter.

(1) If it appears that any credit union is bankrupt or insolvent, or that it has willfully violated any provision of this

chapter, or is operating in an unsafe or unsound manner, the Director of the Department of Consumer and

Business Services shall issue an order temporarily suspending the credit union’s operations for not less than 30 nor

more than 60 days. The board of directors shall be given notice by registered mail or by certified mail with return

receipt of such suspension, and a list of the specific violations of this chapter.

(2) Upon receipt of the suspension notice, the credit union shall cease all operations, except those authorized

by the director. The board of directors shall then file with the director a reply to the suspension notice, and may

request a hearing to present a plan of corrective actions proposed if it desires to continue operations. The board

may request that the credit union be declared insolvent and a liquidating agent be appointed.

(3) Upon receipt from the suspended credit union of evidence that the conditions causing the order of

suspension have been corrected, the director may revoke the suspension notice and permit the credit union to

resume normal operations.

(4) If the director, after issuing notice of suspension and providing an opportunity for a hearing, rejects the

credit union’s plan to continue operations, the director may then revoke the credit union’s charter, appoint a

liquidating agent and liquidate the credit union. The credit union may request the appropriate court to stay



execution of such action. Involuntary liquidation may not be ordered prior to the conclusion of suspension

procedures outlined in this section.

(5) If, within the suspension period, the credit union fails to answer the suspension notice or request a hearing,

the director may then revoke the credit union’s charter, appoint a liquidating agent and liquidate the credit union.

Pennsylvania

§ 503. Regulation by department.

(c) Seizure of credit union.—

(1) If the department determines that a credit union is:

(i) violating any of the provisions of this title or any rule or regulation of the department issued under the

authority of this title or any order issued by the department under the authority of this title that has become final;

(ii) conducting its business in an unsafe manner;

(iii) in an unsafe or unsound condition to transact its business;

(iv) significantly undercapitalized or critically undercapitalized according to the prompt corrective action standards

of the National Credit Union Administration consistent with the Federal Credit Union Act (48 Stat. 1216, 12 U.S.C. §

1751 et seq.) and related regulations; or

(v) insolvent; the department may, in its discretion, at such time set by the department, take possession of the

business and property of the credit union and retain possession until such time as the condition predicating such

action is remedied or until the affairs of the credit union are finally liquidated.

(2) The department shall take possession of a credit union by serving a written notice of seizure on the credit

union's board of directors that contains a statement of the facts constituting grounds for seizure of the credit

union and that contains notice of a hearing and an opportunity to be heard. Upon taking possession of a credit

union, the department may liquidate the credit union, appoint the National Credit Union Administration to

liquidate the credit union pursuant to Federal law or appoint such other agent or employee of the department to

liquidate the credit union or take any other action the department deems appropriate regarding the credit union.

(3) The department may take similar action if any report is not filed within a period of 15 days after it is due.

(4) Any person aggrieved by the action of the department in taking possession of a credit union may appeal within

ten days of commencement of the receivership, whereupon the matter shall be set down for hearing de novo.

Rhode Island

§ 19-4-12 Order to cease unlawful or unsafe practices – Impairment of capital – Appeal. –

(c) Whenever the regulated institution fails to comply with an order of the director or the director's designee, or

file required reports, or fails to pay any final judgment recovered against it in any court of this state within sixty

(60) days after the rendition of the order, or pay fees or forfeitures, or do any other act required under this title,

the superintendent may give notice to the board of bank incorporation and the regulated institution of those

failures and may request that the regulated institution's right to do business be suspended. The board of bank

incorporation shall hold a hearing within a reasonable time after issuance of the notice, at which time the

superintendent and the regulated institution shall have the opportunity to present evidence as to whether the

regulated institution's right to do business should or should not be suspended. After the hearing, if it appears to

the board of bank incorporation that the regulated institution is in an insolvent condition, or is violating its

agreement to form or any law or regulation under this title, or that it is conducting its business in an unsafe,

unauthorized, deceptive, or dishonest manner, the board of bank incorporation may give notice to the regulated

institution that it is no longer authorized to do business. Any of these regulated institutions not in an insolvent

condition may be reauthorized by the board of bank incorporation to resume its business upon complying with the



terms and conditions set forth by the board of bank incorporation pursuant to the laws or regulations under this

title. Any regulated institution aggrieved by an order of the board of bank incorporation may appeal that order to

the superior court pursuant to chapter 35 of title 42.

South Carolina

SECTION 34-26-220. Suspension of operations of bankrupt or insolvent credit union; liquidation of assets.

(1) If it appears that any credit union is bankrupt or insolvent, or that it has wilfully violated this chapter, or is

operating in an unsafe or unsound manner, the board may issue an order temporarily suspending the credit

union's operations for not more than sixty days. The board of directors shall be given notice by registered mail of

such suspension, which notice shall include a list of the reasons for such suspension, and a list of the specific

violations of this chapter, if any. The board shall also notify the insuring organization of any suspension.

(2) Upon receipt of such suspension notice, the credit union shall cease all operations, except those authorized by

the board. The board of directors shall then file with the board a reply to the suspension notice, and may request a

hearing to present a plan of corrective actions proposed if the board desires to continue operations. The board of

directors may request that the credit union be declared insolvent and a liquidating agent be appointed.

(3) Upon receipt of evidence from the suspended credit union that the conditions causing the order of suspension

have been corrected, the board may revoke the suspension notice, permit the credit union to resume normal

operations, and notify the insuring organization.

(4) If the board, after issuing notice of suspension and providing an opportunity for a hearing, rejects the credit

union's plan to continue operations, the board may issue a notice of involuntary liquidation and appoint a

liquidating agent. However, before issuing the notice of involuntary liquidation the board shall make an effort to

merge the troubled credit union with another credit union. Involuntary liquidation may not be ordered prior to the

conclusion of suspension procedures outlined in this section.

(5) If, within the suspension period, the credit union fails to answer the suspension notice or request a hearing, the

board may then revoke the credit union's charter, appoint a liquidating agent, and liquidate the credit union.

(6) In the event of liquidation, the assets of the credit union or the proceeds from any disposition of the assets

shall be applied and distributed in the following sequence:

(a) secured creditors up to the value of their collateral;

(b) costs and expenses of liquidation;

(c) wages due the employees of the credit union;

(d) costs and expenses incurred by creditors in successfully opposing the release of the credit union from certain

debts as allowed by the board;

(e) taxes owed to the United States or any other governmental unit;

(f) debts owed to the United States;

(g) general creditors, secured creditors to the extent their claims exceed the value of their collateral, and owners

of deposit accounts to the extent such accounts are uninsured;

(h) members, to the extent of uninsured share accounts and the organization that insured the accounts of the

credit union.

Tennessee

45-4-206. Restriction on withdrawal of shares or accounts — Stop orders — Removal of officers or employees —

Taking possession — Hearing.

(a) In addition to other powers conferred by this chapter, the commissioner may:

(5) (A) Take possession of the business and property of a credit union if the commissioner finds that:



(i) The credit union is insolvent or it is otherwise in an unsound condition;

(ii) Its business is being conducted in an unlawful or unsound manner;

(iii) It is unable to continue normal operations;

(iv) Its examination has been obstructed or impeded; or

(v) The credit union has failed to comply with a lawful order of the commissioner within a reasonable time.

(B) The commissioner may retain possession until such time as the commissioner permits the credit union to

resume business, order the merger of the credit union with another credit union without the approval of the

members of the credit union to be merged as required under § 45-4-903, or order the liquidation of the credit

union.

(b) Notice and opportunity for hearing shall be provided in advance of any of the foregoing actions in this section

taken by the commissioner. In cases involving extraordinary circumstances requiring immediate action, the

commissioner may take the action without advance notice but shall promptly afford a subsequent hearing upon

application to rescind the action taken.

Texas

Sec. 126.001. APPOINTMENT OF CONSERVATOR OR LIQUIDATING AGENT.

The commissioner may appoint any person, including the share and deposit guaranty corporation or credit union

provided for by Section 15.410, as a conservator or a liquidating agent under this chapter.

Sec. 126.201. LIQUIDATION ORDER; APPOINTMENT OF LIQUIDATING AGENT.

After the commissioner has issued a conservatorship order and provided an opportunity for hearing, the

commissioner by liquidation order may appoint a liquidating agent and direct that the credit union be liquidated if:

(1) the board requests issuance of a liquidation order and liquidation of the credit union;

(2) the credit union otherwise consents to the liquidation; or

(3) the commissioner:

(A) finds that the closing of the credit union and the liquidation of the credit union's assets are in the public

interest and the best interest of the credit union's members, depositors, and creditors; and

(B) determines that the credit union is not in a condition to continue business and cannot be rehabilitated as

provided by this chapter.

Utah

7-2-1. Supervisory actions by commissioner -- Grounds -- Mergers or acquisitions authorized by commissioner --

Possession of business and property taken by commissioner.

(1) An institution under the jurisdiction of the department is subject to supervisory actions by the commissioner

under this chapter or Chapter 19 if the commissioner, with or without an administrative hearing, finds that:

(a) the institution is not in a safe and sound condition to transact its business;

(b) an officer of the institution or other person has refused to be examined or has made false statements under

oath regarding its affairs;

(c) the institution or other person has violated its articles of incorporation or any law, rule, or regulation

governing the institution or other person;

(d) the institution or other person is conducting its business in an unauthorized or unsafe manner, or is

practicing deception upon its depositors, members, or the public, or is engaging in conduct injurious to its

depositors, members, or the public;

(e) the institution or other person has been notified by its primary account insurer of the insurer's intention to

initiate proceedings to terminate insurance;



(f) the institution or other person has failed to maintain a minimum amount of capital as required by the

department, any state, or the relevant federal regulatory agency;

(g) the institution or other person is a depository institution that has failed or refused to pay its depositors in

accordance with the terms under which the deposits were received, or has or is about to become insolvent;

(h) the institution or other person or its officers or directors have failed or refused to comply with the terms of a

legally authorized order issued by the commissioner or by any federal authority or authority of another state

having jurisdiction over the institution or other person;

(i) the institution or other person or its officers or directors have failed or refused, upon proper demand, to

submit its records, books, papers, and affairs for inspection to the commissioner or to a supervisor or an examiner

of the department;

(j) the institution or other person or its officers or directors, after 30 days written notice, have failed to comply

with or have continued to violate this title or any rule or regulation of the department issued under it;

(k) any person who controls the institution or other person subject to the jurisdiction of the department has

used the control to cause the institution or other person to be or about to be in an unsafe or unsound condition, to

conduct its business in an unauthorized or unsafe manner, or to violate this title or any rule or regulation of the

department issued under it; or

(l) the remedies provided in Section 7-1-307, 7-1-308, or 7-1-313 are ineffective or impracticable to protect the

interest of depositors, creditors, or members of the institution or other person, or to protect the interests of the

public.

(2) The commissioner may take any action described in Subsection (3) if:

(a) he finds that:

(i) any of the conditions set forth in Subsection (1) exist with respect to an institution under the jurisdiction of

the department; and

(ii) an order issued pursuant to Section 7-1-307, 7-1-308, or 7-1-313 would not adequately protect the interests

of the institution's depositors, creditors, members, or other interested persons from all dangers presented by the

conditions found to exist; or

(b) two-thirds of the voting shares of an institution under the jurisdiction of the department that are eligible to

be voted at any regular or special meeting of the shareholders of

the institution are voted at the meeting in favor of a resolution consenting to the commissioner taking or causing

to be taken any of the actions described below.

(3) After making the requisite findings or receiving the consenting vote of shareholders under Subsection (2),

the commissioner may:

(a) without taking possession of the institution, authorize, or by order require or give effect to the acquisition of

control of, the merger with, the acquisition of all or a portion of the assets of, or the assumption of all or a portion

of the liabilities of the institution or other person by any other institution or entity approved or designated by the

commissioner in accordance with Chapter 19; or

(b) take possession of the institution or other person subject to the jurisdiction of the department with or

without a court order if an acquisition of control of, a merger with, an acquisition of all or a portion of the assets

of, or an assumption of all or a portion of the liabilities of the institution or other person without taking possession

does not appear to the commissioner to be practicable.

(4) Upon taking possession of an institution or the person, the commissioner is vested by operation of law with

the title to and the right to possession of all assets, the business, and property of the institution or other person

subject to court order made under Section 7-2-3. While in possession of an institution or other person, the

commissioner or any receiver or liquidator appointed by him may exercise any or all of the rights, powers, and



authorities granted to the commissioner under this chapter, or may give effect to the acquisition of control of, the

merger with, the acquisition of all or a portion of the assets of, or the assumption of all or a portion of the liabilities

of an institution or other person subject to the jurisdiction of the department, under the provisions of Chapter 19.

(5) An action of the commissioner under this section may only be enjoined or set aside upon a finding, after

notice and hearing, that the action is arbitrary, capricious, an abuse of discretion, or otherwise contrary to law.

Vermont

§ 36101. Suspension, voluntary liquidation, and involuntary liquidation

(c) Involuntary liquidation. If the commissioner, after issuing notice of suspension and providing an opportunity for

a hearing, rejects the credit union's plan to continue operations, the commissioner may issue a notice of

involuntary liquidation and appoint a liquidating agent. The credit union may request a stay of execution of that

action by appealing to the superior court of Washington County. Involuntary liquidation may not be ordered

before the suspension procedures outlined in subsection (a) of this section are completed.

Virginia

§ 6.2-1319. Involuntary dissolution.

If the Commission determines that a credit union is violating any provisions of this chapter, it may, after a hearing

or an opportunity for a hearing has been given to the credit union, direct that it discontinue the illegal methods or

practices described in the order. If any credit union is insolvent, or has failed or refused to comply with the

provisions of this chapter, the Commission may take possession of the business and property of the credit union

and retain such possession until such time as it may permit such credit union to resume business, or until its affairs

are finally liquidated under order of the Commission. Alternatively, the Commission may apply to any court in the

Commonwealth having jurisdiction to appoint receivers for the appointment of a receiver to take charge of the

business and assets and to wind up the affairs and business of any such credit union. The receiver when appointed

shall become and be assignee of the assets of such credit union.

Washington

RCW 31.12.637

Intervention by director — Conditions.

The director may place a credit union under supervisory direction in accordance with RCW 31.12.641 through

31.12.647, appoint a conservator for a credit union in accordance with RCW 31.12.651 through 31.12.661 , appoint

a liquidating agent for a credit union in accordance with RCW 31.12.664 and 31.12.667 , or appoint a receiver for a

credit union in accordance with RCW 31.12.671 through 31.12.724 if the credit union:

(1) Consents to the action;

(2) Has failed to comply with the requirements of the director while the credit union is under supervisory

direction;

(3) Has committed or is about to commit a material violation of law or an unsafe or unsound practice, and such

violation or practice has caused or is likely to cause an unsafe or unsound condition at the credit union; or

(4) Is in an unsafe or unsound condition.

RCW 31.12.664

Liquidation — Suspension or revocation of articles — Placement in involuntary liquidation — Appointment of

liquidating agent — Notice — Procedure — Effect.

(1) As authorized by RCW 31.12.637, the director may appoint a liquidating agent for a credit union. Before

appointing a liquidating agent, the director shall issue and serve notice on the credit union an order directing the



credit union to show cause why its articles of incorporation should not be suspended or revoked, in accordance

with chapter 34.05 RCW.

(2) If the credit union fails to adequately show cause, the director shall serve the credit union with an order

directing the suspension or revocation of the articles of incorporation, placing the credit union in involuntary

liquidation, appointing a liquidating agent under this section and RCW 31.12.667, and providing a statement of the

findings on which the order is based.

(3) The suspension or revocation must be immediate and complete. Once the articles of incorporation are

suspended or revoked, the credit union shall cease conducting business. The credit union may not accept any

payment to share or deposit accounts, may not grant or pay out any new or previously approved loans, may not

invest any of its assets, and may not declare or pay out any previously declared dividends. The liquidating agent of

a credit union whose articles have been suspended or revoked may accept payments on loans previously paid out

and may accept income from investments already made.

West Virginia

§31C-1-4. Suspension; involuntary liquidation.

(a) If it appears that any credit union is bankrupt, insolvent, about to be insolvent or that it has willfully violated

this chapter, or is operating in an unsafe or unsound manner, the commissioner may, without prior hearing, issue

an order temporarily suspending the credit union's operations. The credit union's board of directors shall be given

notice by registered mail of such suspension, which notice shall include a list of the reasons for such suspension,

and a list of the specific violations of this chapter, if any. The commissioner shall also notify the insuring

organization and the board of banking and financial institutions of any suspension.

(b) Upon receipt of such suspension notice, the credit union shall cease all operations, except those authorized by

the commissioner. The credit union's board of directors shall then file with the commissioner a reply to the

suspension notice within five business days of its receipt, and must therein request a hearing to be held within

sixty days to present a plan of corrective actions proposed if they desire to continue operations. Alternatively, the

credit union's board of directors may request that the credit union be declared insolvent and a liquidating agent be

appointed.

(c) Upon receipt from the suspended credit union of evidence that the conditions causing the order of suspension

have been corrected, the commissioner may revoke the suspension notice, permit the credit union to resume

normal operations, and notify the insuring organization and the board of banking and financial institutions of such

action.

(d) If the commissioner, after issuing notice of suspension and providing an opportunity for a hearing, rejects the

credit union's plan to continue operations, or if the commissioner after accepting or directing a plan for continued

operations finds that the credit union has failed to comply with the plan's substantive corrective provisions, then

the commissioner may issue a notice of involuntary liquidation and appoint a liquidating agent. The credit union

shall be given at least sixty days in which to take corrective action upon acceptance or issuance of any corrective

plan by the commissioner. The credit union may request the appropriate court to stay execution of an involuntary

liquidation sought under this subsection. However, nothing in this section prevents the commissioner from

appointing a conservator pursuant to section three, article seven, chapter thirty-one-a of this code, including a

temporary appointment of a conservator pending the correction of the conditions causing the suspension, or

appointing a receiver and seeking to liquidate the credit union pursuant to section four, article seven, chapter

thirty-one-a of this code when necessary in order to protect the interest of the credit union's members and

depositors.



(e) If, within the suspension period, the credit union fails to answer the suspension notice or request a hearing, the

commissioner may then revoke the credit union's charter, appoint a liquidating agent and liquidate the credit

union.

(f) In the event of liquidation, the assets of the credit union or the proceeds from any disposition of the assets shall

be applied and distributed in the following sequence:

(1) Secured creditors up to the value of their collateral;

(2) Costs and expenses of liquidation;

(3) Wages due the employees of the credit union;

(4) Costs and expenses incurred by creditors in successfully opposing the release of the credit union from certain

debts as allowed by the commissioner;

(5) Taxes owed to the United States or any other governmental unit;

(6) Debts owed to the United States;

(7) General creditors, secured creditors to the extent their claims exceed the value of their collateral and owners of

deposit accounts to the extent such accounts are uninsured;

(8) Members, to the extent of uninsured share accounts and the organization that insured the accounts of the

credit union; and

(9) Members of a corporate credit union, to the extent of membership shares.

As soon as the appointed liquidating agent determines that all assets from which there is a reasonable expectancy

of realization have been liquidated and distributed as set forth in this section, a certificate of dissolution shall be

executed on a form prescribed by the commissioner and filed with the secretary of state, which shall after filing

and indexing same, be forwarded to the commissioner, whereupon the credit union shall be dissolved. The

liquidating agent shall return all pertinent books and records of the liquidating credit union to the commissioner.

Wisconsin

(11) POSSESSION BY OFFICE. (a) Conditions for taking possession.

The office of credit unions may take possession and control of the business and property of any credit union if the

credit union violates this chapter or if the credit union does any of the following:

1. Conducts its business contrary to law.

2. Violates its charter, or any law.

3. Conducts its business in an unauthorized or unsafe manner.

4. Has an impairment of its capital.

5. Suspends payment of its obligations.

6. Neglects or refuses to comply with the terms of an order of

the office of credit unions.

7. Refuses to submit its books, papers, records, accounts or

affairs for inspection to a credit union examiner.

8. Refuses to be examined upon oath regarding its affairs.

9. Receives notice of intent to terminate insured status by the

national board.

(b) Suspension. 1. The office of credit unions may suspend, for a period of up to 120 days, an officer, director,

committee member or employee of a credit union from engaging in credit union business if the office of credit

unions finds the existence of any condition under par. (a) 1. to 9. The office of credit unions may renew a

suspension under this subdivision any number of times and for periods of up to 120 days if the office of credit

unions finds that the condition or conditions continue to exist.



2. The office of credit unions shall suspend the business of a credit union, other than a corporate central credit

union, if the credit union does not comply with s. 186.34.

(c) Possession by office of credit unions. 1. The office of credit unions may take possession of the business and

property of accredit union if the office finds the existence of any condition under par. (a) 1. to 9.

2. The office of credit unions shall take possession of the business and property of a credit union that violates s.

186.34, unless the office approves a merger under s. 186.31.

(d) Procedure on taking possession. Upon taking possession of the business and property of a credit union, the

office of credit unions shall:

1. Serve a notice in writing upon the president and secretary of the credit union stating that the office of credit

unions has taken possession and control of the business and property of the credit union. The notice shall be

executed in duplicate, and immediately after service, one of the notices shall be filed with the clerk of the

circuit court of the county in which the credit union is located together with proof of service.

2. Give notice to all individuals, partnerships, corporations, limited liability companies and associations known to

the office of credit unions to be holding or in possession of any assets of the credit union.

(dg) Special deputies. The office of credit unions may appoint one or more special deputies as agent to assist in the

duty of liquidation and distribution of the assets of one or more credit unions whose business and property the

office of credit unions holds. A certificate of appointment shall be filed in the office of credit unions and a certified

copy in the office of the clerk of the circuit court for the county in which the credit union is located. The office

of credit unions may employ counsel and procure expert assistance and advice as necessary in the liquidation and

distribution of the assets of the credit union, and may retain any officers or employees of the credit union that the

office of credit unions considers to be necessary. The special deputies and assistants shall furnish security for the

faithful discharge of their duties in an amount that the office of credit unions considers to be necessary.

The special deputies may execute, acknowledge and deliver any deeds, assignments, releases or other instruments

necessary to effect any sale and transfer or encumbrance of real estate or personal property and may borrow

money for use in the liquidation after the liquidation has been approved by the office of credit unions and an order

obtained from the circuit court of the county in which the credit union is located.

(dr) Special deputy duties. Upon taking possession of the property and business of the credit union, a special

deputy is authorized to collect all moneys due to the credit union, and to do other acts necessary to conserve its

assets and business, and shall proceed to liquidate the affairs of the credit union. The special deputy shall collect

all debts due and claims belonging to the credit union, and upon a petition approved by the office of credit unions

and upon order of the circuit court of the county in which the credit union is located, may sell or compound all bad

or doubtful debts, or do any act or execute any other necessary instruments and upon petition and order may sell

all the real and personal property of the credit union on such terms as the court shall approve.

(e) Notice, allowance and payment of claims. The special deputy shall publish a class 3 notice, under ch. 985, calling

on all persons who may have a claim against the credit union to present the claim to the special deputy and make

legal proof of the claim at a place and within a time, not earlier than the last day of publication, to be specified in

the notice. The special deputy shall mail a similar notice to all persons, at their last−known address, whose

names appear as creditors upon the books of the credit union. Proof of service of the notice shall be filed with the

clerk of court. The special deputy may reject any claim. Any party interested may also file written objections to any

claim with the special deputy and, after notice by registered mail of the rejection, the claimant shall be barred

unless the claimant commences an action on the claim within 3 months. Claims presented after the expiration of

the time fixed in the notice shall be entitled to an equitable share from the distribution of any assets remaining in

the hands of the special deputy after properly filed claims have been paid.



(f) Inventory of assets and statement of liabilities. Upon taking possession of the property and assets of the credit

union, the special deputy shall make an inventory of the assets of the credit union, in duplicate, one to be filed in

the office of credit unions and one in the office of the clerk of circuit court for the county in which the credit union

is located. Upon the expiration of the time fixed for the presentation of claims, the special deputy shall make in

duplicate a full and complete list of the claims presented, including and specifying the claims rejected by the

special deputy, one to be filed in the office of credit unions, and one in the office of the clerk of circuit court for the

county in which the credit union is located. The inventory and list of claims shall be open at all reasonable times to

inspection.

(g) Adjustment of loans and withdrawal value of shares. The value of shares pledged upon a loan to the credit

union shall be applied and credited to the loan and the borrower shall be liable only for the balance. The rate of

interest charged upon the balance shall be the legal rate. Upon the approval of the value by the office of credit

unions and the circuit court of the county in which the credit union is located, the book value of each member may

be

reduced proportionately. At least 5 days’ written notice of the determination of value shall be given to all

shareholders of the time and place the value shall be submitted to the circuit court for approval. Approval of the

circuit court shall be by an order entered under s. 807.11 (2). Any stockholder or creditor of the

credit union aggrieved by the determination of value may appeal to the court of appeals.

(h) Compensation and expenses in connection with liquidation.

The compensation of the special deputies, counsel and other employees and assistants, and all expenses of

supervision and liquidation shall be fixed by the office of credit unions, subject to the approval of the circuit court

for the county in which the credit union is located, and shall upon the certificate of the office of credit unions be

paid out of the funds of the credit union. Expenses of supervision and liquidation include the cost of the services

rendered by the office of credit unions to the credit union being liquidated. The cost of these services shall be

determined by the office of credit unions and paid to the office from the assets of the credit union as other

expenses of liquidation are paid. The moneys collected by the special deputy shall be deposited in a corporate

central credit union, and, in case of the suspension or insolvency of a depository, such deposits shall be preferred

before all other deposits.

(i) Liquidating dividends. At any time after the expiration of the date fixed for the presentation of claims, the

special deputy in charge of the liquidation of the credit union may, upon a petition approved by the office of credit

unions and an order of the circuit court of the county in which the credit union is located, out of the funds

remaining, after the payment of expenses and debts, declare one or more dividends, and may declare a final

dividend to be paid

to such persons, and in such amounts as may be directed by the circuit court.

(j) Title passes to office of credit unions. Immediately upon filing the notice under par. (d), the possession of all

assets and property of the credit union shall be considered to be transferred from the credit union to and assumed

by the office of credit unions. The filing of the notice shall of itself, and without the execution or delivery of any

instruments of conveyance, assignment, transferor endorsement, vest the title to all such assets and property in

the office of credit unions. The filing shall also operate as a bar to any attachment, garnishment, execution or other

legal proceedings against the credit union, or its assets and property, or its liabilities.

(k) Effect of possession. No credit union shall have a lien, or charge for any payment, advance or clearance made,

or liability thereafter incurred, against any of the assets of the credit union of whose property and business the

office of credit unions shall have taken possession.



(L) Appeal. If a credit union whose property and business the office of credit unions has taken possession of

considers itself aggrieved by the office’s action, it may, at any time within 30 days after the date of the taking,

appeal to the credit union review board for relief from the possession by the office of credit unions. If the

credit union review board sustains the office of credit unions, the credit union may, at any time within 30 days

after the decision of the credit union review board, apply to the circuit court of the county in which the credit

union is located to enjoin further proceedings.

The court, after citing the office of credit unions to show cause why further proceedings should not be enjoined

and after hearing all allegations and proofs of the parties and determining the facts, may upon the merits dismiss

the application or enjoin the office of credit unions from further proceedings, and may direct the office to

surrender the business and property to the credit union.

(m) Reinstatement. After the office of credit unions takes over the possession and control of the business and

property of a credit union, the credit union may resume business if all of the following apply:

1. The owners of at least two−thirds of the credit union dollar value of outstanding shares execute a petition to

resume business, the form of which petition shall be prescribed by the office of credit unions.2. There is submitted

to the office of credit unions by the shareholders, or a committee selected by them, a plan for the reorganization

and reinstatement of the credit union.

3. A request for continuation of federal share insurance has been submitted and accepted.

4. The office of credit unions recommends that control of the business and property of the credit union be

returned to the shareholders.

5. The court in which the liquidation is pending, upon application of the office of credit unions, makes an order

approving the office’s recommendations, which order shall contain a finding that the credit union will be in a safe

and sound condition when control is resumed by the shareholders.

(n) Reinstatement upon restricted basis. In addition to the procedure under par. (m), a credit union may resume

business upon restricted basis, and upon such limitations and conditions as maybe prescribed by the office of

credit unions when approved by the circuit court for the county in which the credit union is located, upon

application of the office of credit unions. The restrictions and conditions may include a prohibition against the

selling of new shares, reasonable restrictions upon withdrawals and the payment of other liabilities. On approval,

the credit union shall be relieved from the control and supervision of the office of credit unions, but the approval

does not prohibit the office from again proceeding against the credit union if conditions warrant the

office’s action.

(p) Liquidating dividends and unclaimed funds. 1. The special deputy shall deposit unclaimed liquidating dividends

and unclaimed funds remaining unpaid in the hands of the special deputy for 6 months after the order for final

distribution in a corporate central credit union in the office of credit unions’ name in trust for the shareholders and

creditors of the liquidated credit union. The office of credit unions shall annually report to the governor and the

chief clerk of each house of the legislature for distribution to the legislature under s. 13.172 (2) the names of credit

unions of which the office has taken possession and liquidated, and the sums of unclaimed and unpaid liquidating

dividends and unclaimed funds with respect to each of the credit unions and include a statement

of interest earned upon those funds.

2. The office of credit unions may pay over the funds held by the office of credit unions under subd. 1. to the

persons entitled to the funds, upon being furnished satisfactory evidence of their right to the funds. In case of

doubt or conflicting claims, the office of credit unions may require an order of the circuit court authorizing

payment. The office of credit unions may apply the interest earned by the funds toward defraying the expenses in

the payment and distribution of unclaimed liquidating dividends and unclaimed funds to the stockholders and

creditors entitled to receive the dividends and funds.



3. One year after the date of the order for final distribution, the office of credit unions shall report and deliver to

the state treasurer all unclaimed funds as provided in ch. 177. All claims subsequently arising shall be presented to

the office of credit unions. If the office of credit unions determines that any claim should be

allowed, the office shall certify to the department of administration the name and address of the person entitled

to payment and the amount of the payment and shall attach the claim to the certificate. The department of

administration shall certify the claim to the state treasurer for payment.

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Supervisory Authorities – Examinations by Government



Examinations by Government



EXAMINATIONS Section 10.45. Examinations. (1) The commissioner shall examine or cause to be examined each credit union on a regular basis. A credit union and any of its officers and agents shall be required to give the commissioner or the commissioner‘s representatives full access to all books, papers, securities, records, and other sources of information under their control unless such information is otherwise protected by law. (2) A report of such examination shall be forwarded to the credit union‘s chair of the board within thirty days after completion. The report shall contain comments relative to the management of the affairs of the credit union and the general condition of its assets. Within thirty days after the receipt of such report, the directors shall meet to consider and respond to matters contained in the report. (3) All information contained in or related to the examination report prepared by, or on behalf of, the commission will be deemed the property of the commission and any dissemination of the contents of the examination report by any officers, employees, or agents of the commission or the credit union, for any reason other than the business of the commission or the credit union, will be subject to liability. Furthermore, the contents of the examination report shall not be subject to subpoena. (4) In lieu of making an examination of a credit union, the commissioner may accept an examination of the credit

union made by the National Credit Union Administration. The cost of any such examination shall be borne by the

credit union, except that the costs of any regular or special examination initiated by the National Credit Union

Administration will be assessed no more than once annually.

Comparative Summary

Act provides that credit unions shall be examined by the supervisory authority; frequency to be determined by

supervisor:

Alaska Louisiana Nebraska Ohio Utah* Indiana Montana New Jersey Texas

Act provides that credit unions shall be examined by the supervisory authority at least annually:

Alabama Connecticut Kentucky Missouri North Carolina Arkansas Georgia* Mississippi New Mexico Pennsylvania

Act provides that credit unions shall be examined by the supervisory authority at least once every 12 months, or

every 18 months under certain conditions:

Maryland Massachusetts* New York* Rhode Island* Tennessee


department

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Act provides that credit unions shall be examined by the supervisory authority at least every 18 months:

Colorado Kansas New Hampshire* West Virginia Florida* Michigan Oklahoma Wisconsin Idaho Nevada Washington


Arizona* Hawaii* Iowa North Dakota South Carolina California Illinois Minnesota Oregon


Maine* Vermont

Act provides that credit unions shall be examined by the supervisory authority at least twice in every three-year

period:

Virginia

Comparison by State


Alabama Annually Alaska Determined by Regulator Arizona* Every 24 months Arkansas Annually California Every 24 months Colorado Every 18 months Connecticut Annually Florida* Every 18 months Georgia* Annually Hawaii* Every 24 months Idaho Every 18 months Illinois Every 24 months Indiana Determined by Regulator Iowa Every 24 months Kansas Every 18 months Kentucky Annually Louisiana Determined by Regulator Maine* Every 36 months Maryland Annually or every 18 months Massachusetts* Annually or every 18 months Michigan Every 18 months Minnesota Every 24 months Mississippi Annually Missouri Annually Montana Determined by the Regulator Nebraska Determined by the Regulator Nevada Every 18 months


department.

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New Hampshire* Every 18 months New Jersey Determined by the Regulator New Mexico Annually New York* Annually or every 18 months North Carolina Annually North Dakota Every 24 months Ohio Determined by Regulator/Rules Oklahoma Every 18 months Oregon Every 24 months Pennsylvania Annually Rhode Island* Annually or every 18 months South Carolina Every 24 months Tennessee Annually or every 18 months Texas Determined by Regulator Utah* Determined by Regulator Vermont Every 36 months Virginia Twice in a 36 month period Washington Every 18 months West Virginia Every 18 months Wisconsin Every 18 months


department.

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Examinations by Government


Alabama: § 5-17-8. Reports to administrator of Alabama Credit Union Administration; examination of credit union; revocation of

certificate of approval; cease and desist order; suspension from office; appeal and hearing.

Credit unions shall report to the administrator of the Alabama Credit Union Administration at least annually on or before

January 31 on blanks supplied by the administrator for that purpose. Additional reports may be required. Credit unions shall be

examined at least annually by employees of the administrator or by other persons designated by the administrator. For failure

to file reports when due, unless excused for cause by the administrator, the credit union shall pay to the treasurer of the state

five dollars ($5) for each day of its delinquency.

Alaska: Sec. 06.45.050. Reports and examinations.

A credit union organized under this chapter is under the supervision of the commissioner and shall make an annual financial

report to the commissioner and shall make other financial reports required by regulations adopted by the commissioner. A

credit union is subject to examination by the commissioner.

Arizona: 6-122. Superintendent; authority; duties; exemption

B. The superintendent shall:

2. Examine or cause to be examined each bank, credit union and savings and loan association at the superintendent's discretion

but at least once in every twenty-four month period.

Arkansas: 23-35-203. Annual examination of credit unions.

(a) The State Credit Union Supervisor shall cause each credit union to be examined annually. Each credit union and all of its

officers and agents shall be required to give representatives of the supervisor full access to all books, papers, securities,

records, and other sources of information under their control. For the purpose of the examination, the representatives shall

have power to subpoena witnesses, administer oaths, compel the giving of testimony, and require the submission of

documents.

California: 14250. (a) (1) The commissioner may at any time investigate into the affairs and examine the books, accounts, records, files,

and any office within or outside of this state used in the business of every credit union, whether it acts or claims to act under or

without authority of this division.

(2) The commissioner and the commissioner's duly designated representatives shall have free access to the offices and places

of business, books, accounts, papers, records, files, safes, and vaults of every credit union referred to in paragraph (1).

(b) (1) The commissioner shall examine every credit union organized under the laws of this state to the extent and whenever

and as often as the commissioner shall deem it advisable, but in no case less than once every two years.

Colorado: 11-30-106. Examinations - reports - powers of commissioner.

(a) Credit unions shall be under the supervision of the commissioner. Every credit union shall be examined by the commissioner

at least once during any eighteen-month period. The commissioner shall assess each credit union an amount to cover the

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expenses of the division attributable to the supervision of state-chartered credit unions subject to the commissioner's

jurisdiction. The amount assessed shall be determined according to a schedule or schedules or any other method established by

the commissioner to be appropriate, but the assessment shall be at the same rate for all credit unions; except that the

commissioner may establish a separate rate schedule for corporate and central credit unions. The commissioner may waive the

payment of all or a portion of the assessment with respect to the year in which a charter is issued or cancelled or in which a

final distribution is made in liquidation.

Connecticut: Sec. 36a-440b. Report to commissioner re assets and liabilities, list of members and officers. Records. (a) A Connecticut credit

union shall submit a written report to the commissioner annually on February first and August first and otherwise as often as

the commissioner deems necessary. The report shall be in the form prescribed by the commissioner, list the assets and

liabilities of the Connecticut credit union and contain any other information the commissioner may require. The Connecticut

credit union shall also provide the commissioner with such other reports and information as may be required by the

commissioner. Each Connecticut credit union that fails to file any report or information required by this section shall pay to the

commissioner one hundred dollars for each day that it fails to file such report or information.

(b) A Connecticut credit union shall file with the commissioner, within ten business days after the organization meeting and

after each annual meeting, a list of the names and addresses of all members of the governing board, identifying which

members are officers, the members of the credit committee, if applicable, and the members of the supervisory committee,

identifying the chairperson of each such committee. The Connecticut credit union shall notify the commissioner within ten

business days after any changes to the list which occur therein.

(c) A Connecticut credit union that is required under federal law to submit a net worth restoration plan to the National Credit

Union Administration or its successor agency shall simultaneously submit a final signed copy of such plan to the commissioner.

(d) A Connecticut credit union shall establish and maintain records, accounting systems and procedures which accurately reflect

its operations and which enable the commissioner to readily ascertain the true financial condition of the credit union and

whether such credit union is complying with sections 36a-435a to 36a-472a, inclusive.

(e) A Connecticut credit union shall preserve all of its records in accordance with regulations adopted by the commissioner

pursuant to chapter 54.

Florida: 655.045 Examinations, reports, and internal audits; penalty.—

(1)(a) The office shall conduct an examination of the condition of each state financial institution during each 18-month period,

beginning July 1, 1981. The office may accept an examination made by the appropriate federal regulator, insuring or

guaranteeing corporation, or agency with respect to the condition of the state financial institution or may make a joint or

concurrent examination with the appropriate federal regulator, insuring or guaranteeing corporation, or agency. However, at

least once during each 36-month period beginning on July 3, 1992, the office shall conduct an examination of each state

financial institution in such a manner as to allow the preparation of a complete examination report not subject to the right of

any federal or other non-Florida entity to limit access to the information contained therein. If, as a part of an examination or

investigation of a state financial institution, subsidiary, or service corporation, the office has reason to believe that an affiliate is

engaged in an unsafe or unsound practice or that the affiliate has a negative impact on the state financial institution, subsidiary,

or service corporation, then the office may review such books and records as are reasonably related to the examination or

investigation. The office may furnish a copy of all examinations or reviews made of such financial institutions or their affiliates

to the state or federal financial institution regulators participating in the examination of a bank holding company; an

association holding company; or any of their subsidiaries, service corporations, or affiliates; an insuring or guaranteeing

corporation or agency or its representatives; or state financial institution regulators participating in the examination of a

holding company or its subsidiaries.

Georgia: 7-1-64. Department examinations and investigations; disclosure of information or prior notice regarding examinations of

financial institutions.

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Except as otherwise provided in subsection (b) of this Code section, the department shall examine all financial institutions at

least once each year and may examine or investigate any financial institution more frequently at any time it deems such action

necessary or desirable. At least once annually the examination shall consist of a comprehensive review of the accounts, records,

and affairs of the institution.

Hawaii: §412:2-200 Examinations. (a) The commissioner shall examine each Hawaii financial institution at least once every twenty-four

months, or more frequently as the commissioner may determine.

Idaho: 26-2136.Examinations and fees. The department of finance shall examine each credit union no less often than once in eighteen

(18) months, and more frequently whenever the director shall deem it necessary. Each credit union and all of its officers and

agents shall be required to give to representatives of said department full access to all books, papers, securities, records and

other sources of information under their control; and for the purpose of such examination, said representatives shall have

power to subpoena witnesses, administer oaths, compel the giving of testimony, and require the submission of documents.

Illinois: 305/9

3) All credit unions incorporated under this Act shall be examined at least biennially by the Department or, at the discretion of

the Director, by a public accountant registered by the Department of Professional Regulation. The costs of an examination shall

be paid by the credit union. The scope of all examinations by a public accountant shall be at least equal to the examinations

made by the Department. The examiners shall have full access to, and may compel the production of, all the books, papers,

securities and accounts of any credit union. A special examination shall be made by the Department or by a public accountant

approved by the Department upon written request of 5 or more members, who guarantee the expense of the same. Any credit

union refusing to submit to an examination when ordered by the Department shall be reported to the Attorney General, who

shall institute proceedings to have its charter revoked. If the Director determines that the examination of a credit union is to be

conducted by a public accountant registered by the Department of Professional Regulation and the examination is done in

conjunction with the credit union's external independent audit of financial statements, the requirements of this Section and

subsection (3) of Section 34 shall be deemed met.

Indiana: IC 28-7-1-12

Examinations of credit unions and affiliates; recognition of CPA audit; examination of vendors

Sec. 12. (a) Every credit union and every affiliate of a credit union shall be subject to examination by the department. A

credit union shall be examined by the department as often as the department shall deem necessary. The department shall at all

times be given free access to all of the books, papers, securities, and other sources of information, including audit reports and

audit working papers for any such credit union. The director, the members of the department, and the supervisor in charge of

the division shall have the power to subpoena documents and examine witnesses under oath pertaining to the business of the

credit union. The department may accept an audit by a certified public accountant and govern its examination procedures and

examination fees accordingly. At the close of each examination, a conference shall be conducted to disclose to the board of

directors the findings of the examination.

(b) If a credit union contracts with an outside vendor to provide a service that would otherwise be undertaken internally by

the credit union and be subject to the department's routine examination procedures, the person that provides the service to

the credit union shall, at the request of the director, submit to an examination by the department. If the director determines

that an examination under this subsection is necessary or desirable, the examination may be made at the expense of the

person to be examined. If the person to be examined under this subsection refuses to permit the examination to be made, the

director may order any credit union that receives services from the person refusing the examination to:

(1) discontinue receiving one (1) or more services from the person; or

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(2) otherwise cease conducting business with the person.

Iowa: 533.113 Examinations.

a. Make or cause to be made an examination of a credit union whenever the superintendent believes such examination is

necessary or advisable, but in no event less frequently than once during each twenty-four-month period.

Kansas: 17-2206. Supervision by administrator; reports, plans and programs; penalties;

examination, fees.

(b) Each credit union shall be examined at least once every 18 months by the administrator

or the administrator's duly authorized deputy or agent. In lieu of any particular examination, the

administrator may accept an examination report made by or under the authority of the national credit

union administration or its successor or successors, by any such other appropriate federal agency or

by an independent auditor or certified public accountant licensed to do business in the state of

Kansas if such audit and report meet the standards which the administrator may by regulation

promulgate. The administrator may order other examinations, and the administrator's agents shall

at all times be given free access to all books, papers, securities and other sources of information in

respect to the credit union. The administrator shall have the power to subpoena witnesses, compel

their attendance, require the production of evidence, administer oaths and examine any person under

oath in connection with any subject relating to a duty imposed upon or a power vested in the

administrator. If a credit union neglects to make the required reports or to pay the charges required,

including charges for delay in filing reports, for 15 days, the administrator shall notify the credit

union of the administrator's intention to revoke the certificate of approval. If the neglect or failure

continues for another 15 days, the administrator may revoke the certificate of approval and shall

cause one of the administrator's agents to take possession of the business of such credit union and

retain possession until such time as the administrator may permit such credit union to resume

business or its affairs are finally liquidated.

Kentucky: 286.6-100 Supervision by commissioner -- Financial reports -- Examination -- Fees.

(1) Credit unions shall be under the supervision of the commissioner and shall make financial reports to the commissioner as

and when he or she may require, but at least annually. Each credit union shall be subject to examination by, and for this

purpose shall make its books and records accessible to, any person designated by the commissioner. The commissioner shall fix

a scale of examination fees to be paid by credit unions, giving due consideration to the time and expense incident to such

examinations and to the ability of credit unions to pay such fees, which fees shall be assessed and paid by each credit union

promptly after completion of such examination.

Louisiana: §646. Supervision by commissioner; suspension or revocation of charter; liquidation; reports; examination fees (B)(3) Each

credit union shall be subject to examination by the commissioner or his authorized deputy on a recurring schedule consonant

with the resources of the office and in accordance with good examination practice. The commissioner may order other

examinations as necessary, and shall at all times be given free access to all the books, papers, securities, and other sources of

information with respect to the credit union. For that purpose he may, personally or through his duly authorized deputies,

subpoena and examine witnesses under oath about documents pertaining to the business of credit unions

Maine: §221. Examinations

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Requirements. The superintendent shall examine each financial institution organized under the laws of this State at least once

every 36 months or more frequently as the superintendent determines. The superintendent may examine an out-of-state

financial institution operating branches in this State in order to determine compliance with the laws of this State and to ensure

that the activities of each branch are conducted in a safe and sound manner.

Maryland: § 6-403. Examinations of credit unions.

(a) "Examiner" defined.- In this section, "examiner" means:

(1) The Commissioner; and

(2) An individual whom the Commissioner designates as examiner.

(b) Examinations required.- An examiner shall visit each credit union and examine its business:

(1) At least once during each calendar year, unless the Commissioner determines that, during a calendar year, an examination is

unnecessary, in which event an examination shall occur no less frequently than once every 18 months;

(2) When requested by the board or supervisory committee of the credit union; and

(3) At any other time that the Commissioner considers necessary.

Massachusetts: 167 Section 2. The commissioner, either personally or by his examiners, or such other of his assistants as he may designate,

shall, at least once in each calendar year, or at least once in an eighteen month period in the case of a bank which is well

capitalized as defined in 12 USC 1831(o) and the regulations promulgated thereunder, make a thorough examination of the

books, securities, cash, assets and liabilities and ascertain the condition of all banks under his supervision, including

Massachusetts and out-of-state branches, the ability of each bank to fulfill its obligations, and also whether it has complied with

all applicable law; and he may also, whenever he considers it expedient, make or cause to be made, at the expense of the bank,

such further examinations or audits as he deems advisable, by his examiners or by certified public accountants or public

accountants not connected with such bank approved by him and subject to his direction, and he may also, whenever he

considers it expedient, appoint individuals certified as real estate appraisers by the society of real estate appraisers, or similar

successor society, to make, at the expense of the bank, appraisals of real estate securing loans of the bank and at the time he

names such appraiser, he shall so notify the bank and advise it of the date on which he has requested submission of the

appraisal report to him, whereupon the bank may then appoint an appraiser who may submit the report of his appraisal to the

commissioner on the same date.

Michigan: 490.207 Examination by commissioner; conduct; report.

Sec. 207.

The commissioner or his or her authorized agent shall examine the condition and affairs of each domestic credit union, and may

examine the condition and affairs of any subsidiary of a domestic credit union, not less frequently than once every 18 months.

The commissioner shall determine whether the domestic credit union transacts its business in the manner prescribed by law

and the rules promulgated under law.

Minnesota: 52.06 SUPERVISION; REPORTS; AUDITS; FEES.

Subdivision 1.Report and audit schedule.

Credit unions shall be under the supervision of the commissioner of commerce. Each credit union shall annually, on or before

January 25, file a report with the commissioner of commerce on forms supplied by the commissioner for that purpose giving

such relevant information as the commissioner may require concerning the operations during the preceding calendar year.

Additional reports may be required. Credit unions shall be examined, at least once every 24 calendar months, by the

commissioner of commerce. Further, in lieu of this examination the commissioner may accept any examination made by the

National Credit Union Administration, provided a copy of the examination is furnished to the commissioner. A report of the

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examination by the commissioner of commerce shall be forwarded to the president, or the chair of the board if the position is

so designated pursuant to section 52.09, subdivision 4, of the examined credit union within 60 days after completion of the

examination. Within 60 days of the receipt of such report, a general meeting of the directors and committees shall be called to

consider matters contained in the report. For failure to file reports when due, unless excused for cause, the credit union shall

pay to the commissioner of management and budget $5 for each day of its delinquency.

Mississippi: SEC. 81-13-17. Examination by Commissioner of Banking and Consumer Finance; powers of Commissioner; fees; acceptance of

examination performed by National Credit Union Administration.

Each credit union shall be examined at least annually by the Commissioner of Banking and Consumer Finance. The

commissioner may conduct other examinations and the commissioner or examiners of the Department of Banking and

Consumer Finance shall at all times be given free access to all the books, papers, securities and other sources of information in

respect to said credit union. For that purpose he shall have the power to subpoena and examine personally or through one (1)

of his deputies, or examiners, duly authorized, witnesses on oath and documents pertaining to the business of the credit union.

The fees for examination shall be determined by the commissioner by assessing the association according to the cost based on

the average daily cost of all examiners of the department, plus actual and necessary expenses. The commissioner shall have the

authority to prescribe supervision fees at the rate of Ten Cents (10cents) per One Thousand Dollars ($1,000.00) of assets, and

not be less than Twenty Dollars ($20.00) nor more than Two Hundred Dollars ($200.00) a year for overhead expenses of the

department in supervising the credit union, to be paid by January 31 of each year.

In the event the commissioner's office, because of work load or other good sufficient cause, is unable to conduct an annual

examination of a credit union as provided for in this section, the commissioner is hereby authorized to accept the examination

of any credit union performed by the National Credit Union Administration or by any succession thereto in lieu of the annual

examination provided for in this section. However, in no case shall the commissioner be authorized to accept any such

examination of any credit union performed by the NCUA or its successor for any two (2) years in succession.

Missouri: Annual examination or audit report, exception--subpoena power.

370.120. 1. The director of the division of credit unions, in person or by his or her agents, shall examine each credit union

annually and at other times as he or she shall direct, and at all times shall have free access to all books, papers, securities and

other sources of information pertaining to the credit union; except that the division of credit unions shall examine qualifying

credit unions, as determined by the director, at least once each eighteen calendar months.

Montana: 32-3-203. Examinations. (1) The department of administration shall examine or cause to be examined each credit union on a

schedule determined by the department. Each credit union and all of its officers and agents shall give representatives of the

department full access to all books, papers, securities, records, and other sources of information under their control. For the

purpose of the examination, the representatives may subpoena witnesses, administer oaths, compel the giving of testimony,

and require the submission of documents.

(2) A report of the examination must be forwarded to the executive officer of each credit union promptly after completion.

The report must contain comments relative to the management of the affairs of the credit union and also as to the general

condition of its assets. Within 60 days after the receipt of the report, the directors and committee members shall meet to

consider matters contained in the report.

(3) In lieu of making an examination of a credit union, the department may accept an audit report of the condition of the

credit union made by an auditor approved by the department. The cost of the audit must be borne by the credit union.

Nebraska: 21-1736. Examinations.

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(1) The director shall examine or cause to be examined each credit union as often as deemed necessary. Each credit union and

all of its officials and agents shall give the director or any of the examiners appointed by him or her free and full access to all

books, papers, securities, and other sources of information relative to such credit union. For purposes of the examination, the

director may subpoena witnesses, administer oaths, compel the giving of testimony, and require the submission of documents.

Nevada: NRS 678.790 Examinations and audits; exceptions; fees.

1. The Commissioner shall make a thorough examination of and into the affairs of each credit union organized under the

provisions of this chapter, as often as the Commissioner may deem necessary, but at least once within each 18-month period.

In lieu thereof, the Commissioner may accept any or all of a report of an examination of a credit union made by a federal

regulatory agency. If the Commissioner accepts any part of such a report in one 18-month period, he or she shall examine the

credit union to which the report pertains in the succeeding 18-month period. For the purpose of performing the examination,

the Commissioner may:

(a) Subpoena witnesses and documents;

(b) Administer oaths; and

(c) Compel the giving of testimony.

2. The report of the examination must contain comments to the members relative to the management of the affairs of the

credit union and the general condition of the assets. Within 30 days following the receipt of the report, the directors shall call a

general meeting of key personnel to consider matters contained in the report.

3. The Commissioner shall forward a copy of the report to the chair of each credit union within 30 days after it is completed.

The board of directors shall inform the members of the credit union of its general condition at the next annual meeting.

4. For each examination the credit union shall pay a fee based on the rate established pursuant to NRS 658.101.

5. The board of directors may engage a certified public accountant to perform such an examination in lieu of the

Commissioner. In such cases, the examination must be equivalent to the type of examination made by the Commissioner and

the expense must be borne by the credit union being inspected.

6. The Commissioner shall determine whether an examination performed by an accountant pursuant to subsection 5 is

equivalent to an examination conducted by the Commissioner. The Commissioner may examine any area of the operation of a

credit union if the Commissioner determines that the examination of that area is not equivalent to an examination conducted

by the Commissioner.

New Hampshire: 383:9 Duties. –

I. The commissioner shall have general supervision of all banks (except national banks), trust companies, building and loan

associations, credit unions, Morris plan banks, small loan companies, and other similar institutions in the state. He shall

examine into the condition and management of all such institutions at least every 18 months with the exception of highly rated

institutions provided for in RSA 383:9-d, and more often when necessary in his judgment or when so directed by the governor.

He may regulate the buying or selling of securities by savings banks for officers, employees, or customers. He shall assign to the

deputy commissioner and the assistants appointed under RSA 383:7 such of his duties as he sees fit.

II. The commissioner shall adopt rules, pursuant to RSA 541-A, relative to the duties assigned him by paragraph I.

New Jersey: 17:13-112. Supervision and examination by commissioner; exhibition of papers and documents; subpenas; perjury

Every credit union shall be subject to the supervision and examination of the commissioner. In lieu of making an examination

of a credit union, the commissioner may accept the examination of a certified public accountant who has examined the records

of the credit union and who files an opinion of his examination with the commissioner. If an examiner deems it advisable, he

may verify the liabilities of the credit union to its members by an inspection and verification of their accounts. The

commissioner shall promptly communicate the results of each examination to the president of the credit union examined, who

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shall present the report to the board at the next regular meeting or a special meeting if the commissioner so directs. The action

taken by the board shall be communicated by the president to the commissioner within five days.

New Mexico: 58-11-5. Examinations; supervision fees.

The director shall examine or cause to be examined each credit union. A credit union and any of its board members, executive

officers, agents and employees shall give the director or his representatives full access to all books, papers, securities, records

and other desired sources of information under their control.

E. If at any time the director deems it necessary to examine a credit union more than once in any calendar year and if the credit

union is determined to have violated the Credit Union Act [58-11-1 NMSA 1978] or other state laws or federal laws or

regulations, the credit union shall pay to the director reimbursement of the actual costs of that examination or those

examinations.

New York: Article 2

§ 36. Examinations; right of inspection; penalties for refusing to permit examination.

1. The superintendent shall have the power to examine every banking organization, every bank holding company and any

non-banking subsidiary thereof (as such terms "bank holding company" and "non-banking subsidiary" are defined in article

three-A of this chapter) and every licensed lender at any time prior to its dissolution whenever in his judgment such

examination is necessary or advisable.

2. At least once in each calendar year upon such date or dates within each such period as in his or her discretion he or she

deems proper, the superintendent shall cause every banking organization to be examined;

provided, however, that:

(a) the provisions of this subdivision shall not be applicable to an investment company unless (i) such investment

company has been authorized by the banking board to receive deposits, in accordance with

the terms of subdivision three of section five hundred eight of this chapter, (ii) a bank or trust company, or any two or

more of such organizations, shall own an aggregate of twenty-five per centum or more of the capital stock of such

investment company, or (iii) such investment company is a corporation which, under the terms of subdivision six of

this section, is deemed for the purposes of this section to be a corporation affiliated with a corporate banking

organization, and

(b) the superintendent may extend the examination interval from at least once in each calendar year to at least once in

each eighteen month period if the banking organization to be examined:

(1) has total assets of less than two hundred fifty million dollars;

(2) is well-capitalized, which for purposes of this paragraph is defined as having capital which significantly exceeds the

required minimum level for each relevant capital measure or as having such capital as the superintendent shall otherwise

define by regulation;

(3) at its most recent examination, was found to be well-managed and its composite condition was found to be outstanding

or good;

(4) is not currently subject to a formal enforcement proceeding or order by the superintendent, the federal deposit

insurance corporation or any other federal banking agency; and

(5) has not been acquired by any person during the twelve month period in which an examination would be required but for

this paragraph, and

(c) the superintendent may modify the examination intervals as prescribed by this subdivision to the extent the

superintendent deems appropriate, in his or her sole discretion, in order to obtain the

efficient use of the personal and nonpersonal resources of the department by maximizing coordination with identical

or parallel examinations having differing or varying intervals performed by federal

banking regulators, whether such examinations are performed in conjunction with the department or on an alternating

schedule with such federal banking regulators; provided, that nothing in this paragraph

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shall be deemed in any manner to lessen or modify the requirement imposed pursuant to section ten of this article.

North Carolina:

§ 54‑109.16. Annual examinations required; payment of cost.

The Administrator of Credit Unions shall cause every such corporation to be examined once a year and whenever he deems it

necessary. The examiners appointed by him shall be given free access to all books, papers, securities, and other sources of

information in respect to the corporation; and for the purpose of such examination the Administrator shall have power and

authority to subpoena and examine personally, or by one of his deputies or examiners, witnesses on oath and documents,

whether such witnesses are members of the corporation or not, and whether such documents are documents of the

corporation or not. The Administrator may designate an independent auditing firm to do the work under his direction and

supervision, with the cost to be paid by the credit union involved.

North Dakota: 6-06-08. State credit union board to supervise credit unions - Reports -

Examinations - Fees.

2. Credit unions must be examined at least once each twenty-four months by the commissioner. In lieu of the examinations

herein required, the commissioner may accept any examination made or obtained by the national credit union administration

and may conduct a joint examination with the national credit union administration.

Ohio: 1733.32 Powers of superintendent of financial institutions.

(A)(1) The superintendent of financial institutions shall see that the laws relating to credit unions are executed and enforced.

The deputy superintendent for credit unions shall be the principal supervisor of credit unions. In that position, the deputy

superintendent for credit unions shall, notwithstanding division (A)(3) of this section, be responsible for conducting

examinations and preparing examination reports under that division. In addition, the deputy superintendent for credit unions

shall, notwithstanding sections 1733.191, 1733.41, 1733.411, and 1733.412 of the Revised Code, have the authority to adopt

rules in accordance with those sections, and, notwithstanding section 1733.05 of the Revised Code, shall have the authority to

approve issues and matters pertaining to fields of membership. In performing or exercising any of the examination, rule-

making, or other regulatory functions, powers, or duties vested by division (A)(2) of this section in the deputy superintendent

for credit unions, the deputy superintendent for credit unions shall be subject to the control of the superintendent of financial

institutions.

Oklahoma: § 2008. Examinations - reports - Access to information - Alternative examination or report - Failure to make and transmit or

publish report - Certificate and bylaw forms - Annual financial reports

A regular examination of credit unions organized under the laws of this state shall be made by or under the supervision of the

Administrator appointed by the State Banking Commissioner. The Administrator shall investigate and examine credit unions

organized under section 2001 et seq. of this title at least every eighteen (18) months, or more often if the Administrator and

the State Banking Commissioner deem it necessary. For the purpose of making such examinations, examiners shall have full

access to all books, papers, securities, records and other sources of information under the control of credit unions.

Oregon: 723.112 Examinations. (1) The Director of the Department of Consumer and Business Services shall examine each credit union

to determine its condition and whether the credit union is complying with the laws of this state and such other matters as the

director may prescribe. For the purpose of conducting an examination or any part thereof, the director may employ an

independent consultant determined by the director as qualified to conduct examinations. Except as provided in subsection (3)

of this section, examinations under this subsection must be conducted not less frequently than 24 months apart.

(2) For purposes of an examination under subsection (1) of this section:

127



(a) Each credit union and all of its officers and agents shall be required to give to representatives of the director full access

to all of the credit union’s books, papers, securities, records and other sources of information under their control.

(b) The director may subpoena witnesses, administer oaths, compel the giving of testimony and require the submission of

documents.

(3) Instead of an examination under subsection (1) of this section, the director may accept an examination or report made

by an agency of the United States Government under statutes of the United States.

(4) A report of an examination under subsection (1) of this section shall be forwarded to the executive officer of each credit

union within 60 days after completion. The report shall contain comments relative to the management of the affairs of the

credit union and also as to the general condition of its assets. Within 45 days after the receipt of the report, the directors and

supervisory committee members shall meet to consider matters contained in the report and shall report in writing to the

director on the manner in which the credit union is complying or will comply with the director’s recommendations.

Pennsylvania: § 503. Regulation by department.

(a) General rule.--Credit unions shall be under the supervision of the department. The department is hereby

authorized and empowered to issue general rules and regulations and specific orders for the protection of members of credit

unions, for insuring the conduct of the business of credit unions on a safe and sound basis and for the effective enforcement of

this title. Credit unions shall report to the department as often as may be required by it and at least annually on forms supplied

by the department for that purpose. Supplementary reports may be required by the department from time to time. Credit

unions shall be examined as often as may be required by the department and at least annually, and the department may use

such other methods of assuring itself of the

condition of the credit unions as it shall deem advisable. The cost of all such examinations and inspections shall be paid byte

credit union. A credit union shall also pay annually its proportionate share of the overhead expense of the department

determined by regulation of the department. The department shall give written notice to each credit union of the costs of

examinations, investigations and the credit union’s proportionate share of the overhead expenses of the department. The

credit union shall pay the amount of such costs within 30 days of the notice. If payment is not made within 30 days of the

notice, the department may assess a penalty fee of $150 for that

30-day period and each successive 30-day period of delinquency. For failure to file reports when due, unless excused for cause,

a credit union shall pay to the department $100 for each day of its delinquency.

Rhode Island: § 19-4-2 Periodic examinations – Access to records. – (a) The director or the director's designee shall, whenever he or she

considers it advisable, but at least once in each year, examine each regulated institution. However, the director may extend the

examination period for eligible financial institutions to at least once every eighteen (18) months. For the purposes of this

section, an eligible financial institution means a financial institution with total assets of less than two hundred fifty million

dollars ($250,000,000) which has not experienced a change in control in the last twelve (12) month period and which is:

(1) Well capitalized;

(2) Well managed;

(3) Highly rated by state and federal banking regulatory agencies; and

(4) Not subject to a formal enforcement proceeding or order.

In addition, the director may also consider other factors that may be considered by federal banking regulatory agencies when

those agencies determine whether financial institutions qualify for an extended examination cycle. At each examination the

director or the director's designee shall have free access to all books, records, papers, assets and any other information deemed

necessary by the director or the director's designee to ascertain the regulated institution's condition, its ability to fulfill its

obligations, and whether it has complied with the provisions of law.

South Carolina: SECTION 34-26-240. Duty of board to examine credit union; disclosure requirements of credit union officers and agents.

128



(1) The board at periodic intervals not to exceed twenty-four months shall examine or cause to be examined each credit union.

A credit union and any of its officers and agents shall be required to give the board or the board's representatives full access to

all books, papers, securities, records, and other sources of information under their control.

(2) A report of such examination shall be forwarded to the chairman of the board after completion. The report shall contain

comments relative to the management of the affairs of the credit union and the general condition of its assets. Within sixty

days after the receipt of such report, the directors and committeemen shall meet to consider matters contained in the report.

(3) In lieu of making an examination of a credit union, the commissioner may accept an examination or audit report of the

condition of the credit union made by the National Credit Union Administration.

Tennessee:

45-4-1002. Examinations — Examiners — Supervision fee

(a) The commissioner shall either personally or by competent examiner appointed by the commissioner visit and examine

every credit union subject to the commissioner's supervision at least once in each year; provided, that this provision requiring

examination at least once in each year may be extended to eighteen (18) months. In making a determination, the commissioner

should consider the credit union's quality of management, capitalization, internal controls and any other factors the

commissioner deems relevant. In no event may a credit union's examination cycle be extended to eighteen (18) months if it did

not receive a composite rating of one (1) or two (2) at its last examination. The commissioner may order examinations and shall

at all times be given free access to all the books, papers, securities and other sources of information in respect to the credit

union. For that purpose, the commissioner shall have the power to subpoena and examine, personally or through a deputy duly

authorized, witnesses on oath and documents pertaining to the business of the credit union. The commissioner may have

follow-up examinations and visitations conducted on a credit union if the commissioner believes that the examinations and

visitations are necessary to protect the interests of the members of the credit union.

Texas: Sec. 126.051. EXAMINATIONS.

The department, through examiners it appoints and in accordance with commission rules, shall periodically examine the books

and records of each credit union

Utah: 7-1-314. Examination of institutions by commissioner or supervisor.

The commissioner or the responsible supervisor shall visit and examine or cause to be visited and examined every depository

institution and such other institutions subject to the jurisdiction of the department as the commissioner considers necessary or

advisable.

Vermont: § 30601. Examinations

(a) The commissioner shall conduct a regular examination of the condition of each Vermont credit union at least once every

three years or more frequently as the commissioner deems prudent.

Virginia: § 6.2-1309. (Effective October 1, 2010) Examinations.

A. Each credit union shall be examined as often as the Commission deems that an examination is in the interest of its members,

provided that an examination shall be conducted at least twice in every three-year period. The examiners shall be given free

access to all books, papers, securities, and other sources of information in respect to the credit union. For the purpose of

making an examination, the Commission may subpoena and examine personally witnesses under oath, whether such witnesses

are members of the credit union or not, and may require the production of any documents, whether such documents are

documents of the credit union or not.

B. All expenses incident to any special examination which may be necessary shall be paid by the credit union so examined.

129



Washington: RCW 31.12.545

Examinations and investigations — Reports — Access to records — Oaths — Subpoenas.

(1) The director shall make an examination and investigation into the affairs of each credit union at least once every eighteen

months, unless the director determines with respect to a credit union, that a less frequent examination schedule will

satisfactorily protect the financial stability of the credit union and will satisfactorily assure compliance with the provisions of

this chapter

West Virginia: §31C-1-5. Examinations.

(a) The commissioner shall examine, or cause to be examined, each credit union at least once every eighteen months. A credit

union and any of its officers and agents shall be required to give the commissioner, or the commissioner's representatives, full

access to all books, papers, securities, records and other sources of information under their control.

Wisconsin 186.235(16)

(16) Periodic examination. At least once every 18 months, the office of credit unions shall examine the records and accounts of

each credit union. For that purpose the office of credit unions shall have full access to, and may compel the production of, each

credit union's records and accounts. The office of credit unions may administer oaths to and examine each credit union's

officers and agents.

130 Supervisory Authorities – Alternatives to Examining Credit Unions



Alternatives to Examining Credit Unions



EXAMINATIONS

Section 10.45. Examinations.

(1) The commissioner shall examine or cause to be examined each credit union on a regular basis. A credit union

and any of its officers and agents shall be required to give the commissioner or the commissioner‘s representatives

full access to all books, papers, securities, records, and other sources of information under their control unless

such information is otherwise protected by law.

(2) A report of such examination shall be forwarded to the credit union‘s chair of the board within thirty days after

completion. The report shall contain comments relative to the management of the affairs of the credit union and

the general condition of its assets. Within thirty days after the receipt of such report, the directors shall meet to

consider and respond to matters contained in the report.

(3) All information contained in or related to the examination report prepared by, or on behalf of, the commission

will be deemed the property of the commission and any dissemination of the contents of the examination report

by any officers, employees, or agents of the commission or the credit union, for any reason other than the business

of the commission or the credit union, will be subject to liability. Furthermore, the contents of the examination

report shall not be subject to subpoena.

(4) In lieu of making an examination of a credit union, the commissioner may accept an examination of the

credit union made by the National Credit Union Administration. The cost of any such examination shall be borne

by the credit union, except that the costs of any regular or special examination initiated by the National Credit

Union Administration will be assessed no more than once annually.

Comparative Summary

In lieu of making an examination, the supervisory authority may accept an examination of the credit union made

by the National Credit Union Administration:

Florida* Kentucky Mississippi North Dakota South Carolina Hawaii* Minnesota Nebraska Oklahoma West Virginia

In lieu of an examination by the supervisory authority, an external audit by the NCUA (federal agency), a CPA, or

an approved auditor/organization may be accepted:

Arizona Iowa Kansas

In lieu of an examination by the supervisory authority, an external audit by either the NCUA (federal agency) or

another state examiner may be accepted:

California Oregon Rhode Island* Utah*


department.



In lieu of an examination by the supervisory authority, an external audit by either a CPA or approved auditor

may be accepted:

Idaho Missouri New Jersey Washington Illinois Montana New Mexico Indiana Nevada North Carolina

In lieu of an examination by the supervisory authority, an external audit by the NCUA (federal agency), another

state examiner, or a foreign examiner may be accepted:

Georgia Maine* Michigan New York* Texas

State Acts that are silent as it pertains to alternatives to examinations by state supervisory authority:

Alabama Colorado Maryland Ohio Virginia Alaska Connecticut Massachusetts Tennessee Wisconsin Arkansas Louisiana New Hampshire Vermont

Other Acts:

Pennsylvania: The department may use other methods other than examinations to determine the condition of credit

unions it supervises.

Comparison by State There are 47 state credit union acts. Delaware, South Dakota, and Wyoming do not have a state credit union act.

Alabama Silent

Alaska Silent

Arizona NCUA, CPA, or Other Qualified Person/Organization

Arkansas Silent

California NCUA or Other State

Colorado Silent

Connecticut Silent

Florida* NCUA (Federal Agency)

Georgia NCUA, Other State, or Foreign

Hawaii* NCUA (Federal Agency)

Idaho CPA or Other Qualified Person/Organization

Illinois CPA or Other Qualified Person/Organization

Indiana CPA or Other Qualified Person/Organization

Iowa NCUA or CPA

Kansas NCUA or CPA

Kentucky NCUA

Louisiana Silent

Maine* NCUA (Federal Agency), Other State, or Foreign

Maryland Silent


Michigan NCUA (Federal Agency) or Foreign

Minnesota NCUA

Mississippi NCUA

Missouri Other Qualified Person/Organization


department.



Montana Other Qualified Person/Organization

Nebraska NCUA

Nevada CPA


New Jersey CPA

New Mexico CPA or Other Qualified Person/Organization

New York* NCUA (Federal Agency), Other State, or Foreign

North Carolina Other Qualified Organization

North Dakota NCUA

Ohio Silent

Oklahoma NCUA

Oregon NCUA (Federal Agency)

Pennsylvania Other

Rhode Island* Federal Agency or Other State

South Carolina NCUA

Tennessee Silent

Texas NCUA (Federal Agency) or Other State

Utah* Federal Agency or Other State

Vermont Silent

Virginia Silent

Washington CPA

West Virginia NCUA

Wisconsin Silent


department.




Alternatives to Examining Credit Unions


Alabama: Silent

Alaska: Silent

Arizona: 6-502. Reports and examinations

B. In lieu of the examination required by subsection A of this section, the superintendent may accept an examination or audit

report of the condition of a credit union made by the national credit union administration or by a certified public accountant

licensed in this state or other qualified person or organization approved by the superintendent. The credit union shall bear the

cost of any such examination or audit. A certified public accountant or other qualified person or organization making an audit to

be submitted in lieu of an examination by the superintendent shall obtain prior approval from the superintendent before

conducting such an audit. In approving such an audit the superintendent may prescribe minimum requirements for the audit

including the date by which the audit must be completed and a copy filed with the superintendent.

Arkansas: Silent

California: 14250

(2) For purposes of this subdivision, an examination made by the commissioner in conjunction with or with assistance from the

National Credit Union Administration or a credit union regulatory agency of another state of the United States is deemed to be

an examination made by the commissioner.

Colorado: Silent

Connecticut: Silent

Florida: 655.045 Examinations, reports, and internal audits; penalty.—

(1)(a)The office may accept an examination made by the appropriate federal regulator, insuring or guaranteeing corporation, or

agency with respect to the condition of the state financial institution or may make a joint or concurrent examination with the

appropriate federal regulator, insuring or guaranteeing corporation, or agency. However, at least once during each 36-month

period beginning on July 3, 1992, the office shall conduct an examination of each state financial institution in such a manner as

to allow the preparation of a complete examination report not subject to the right of any federal or other non-Florida entity to

limit access to the information contained therein.



Georgia: 7-1-635.1. Out-of-state credit unions

(d) The department may enter into cooperative and reciprocal agreements with the credit union regulatory authority of any

government for the periodic examination of credit union offices and facilities of any kind located within this state and may

accept reports from such authorities in lieu of conducting its own examination for compliance with the laws of this state.

Hawaii: §412:2-201 Use of federal examinations. The commissioner may accept, adopt, or use in lieu of an examination prescribed by

section 412:2-200 all or any part of the results of an examination conducted by a federal regulatory agency of a Hawaii financial

institution for the same period or subject matter that would be covered by an examination required or permitted under this

article.

Idaho: 26-2136.Examinations and fees.

The director may in his discretion at any time accept in lieu of any portion of his examinations the findings or result of an audit

by a firm of independent certified public accountants or other qualified person or firm approved by the director. The cost of the

audit shall be borne by the credit union.

Illinois: 205 ILCS 305/9) (from Ch. 17, par. 4410)

Sec. 9. Reports and examinations (3)If the Director determines that the examination of a credit union is to be conducted by a

public accountant registered by the Department of Professional Regulation and the examination is done in conjunction with the

credit union's external independent audit of financial statements, the requirements of this Section and subsection (3) of Section

34 shall be deemed met.


Examinations of credit unions and affiliates; recognition of CPA audit; examination of vendors

Sec. 12. (a) Every credit union and every affiliate of a credit union shall be subject to examination by the department. A

credit union shall be examined by the department as often as the department shall deem necessary. The department shall at all

times be given free access to all of the books, papers, securities, and other sources of information, including audit reports and

audit working papers for any such credit union. The director, the members of the department, and the supervisor in charge of

the division shall have the power to subpoena documents and examine witnesses under oath pertaining to the business of the

credit union. The department may accept an audit by a certified public accountant and govern its examination procedures and

examination fees accordingly. At the close of each examination, a conference shall be conducted to disclose to the board of

directors the findings of the examination.

Iowa: 533.113 Examinations.

1. The superintendent may do any or all of the following:

e. Accept, in lieu of the examination of a state credit union, or any corporation or credit union service organization in which a

state credit union owns shares or has made an investment, or of any person having business transactions or a relationship with

any state credit union, an examination report prepared by a federal regulatory authority.

f. Accept, in lieu of the examination of a state credit union, an audit report conducted by a certified public accounting firm

selected from a list of firms previously approved by the superintendent. The cost of the audit shall be paid by the state credit

union.




examination, fees.

(b) Each credit union shall be examined at least once every 18 months by the administrator

or the administrator's duly authorized deputy or agent. In lieu of any particular examination, the

administrator may accept an examination report made by or under the authority of the national credit union administration or

its successor or successors, by any such other appropriate federal agency or by an independent auditor or certified public

accountant licensed to do business in the state of Kansas if such audit and report meet the standards which the administrator

may by regulation promulgate.


(2) In lieu of the examination provided for in this section, the commissioner may accept any examination made by the national

credit union administration. One (1) copy of the examination report shall be promptly submitted to the commissioner for

processing and analysis by the Department of Financial Institutions.

Louisiana: Silent

Maine: §221. Examinations

1. Requirements.

2. Exception. In satisfaction of the examination requirements of this section, the superintendent may accept the examination

reports of other state, federal or foreign regulatory agencies as a method of satisfying such requirements in whole or in part.

Maryland: Silent

Massachusetts: Silent

Michigan: 490.207 Examination by commissioner; conduct; report.

Sec. 207.

4) In an examination under this section, the commissioner may use an examination made under the federal credit union act,

chapter 750, 48 Stat. 1216, 12 U.S.C. 1751 to 1795k, any other federal law related to the chartering or insuring of financial

institutions, or the law of another state governing the activities of foreign credit unions organized in or regulated by that state.

The commissioner may require a credit union to furnish a copy of any report required by a federal or state credit union

regulatory agency.

Minnesota: 52.06 SUPERVISION; REPORTS; AUDITS; FEES.

Subdivision 1.Report and audit schedule

Further, in lieu of this examination the commissioner may accept any examination made by the National Credit Union

Administration, provided a copy of the examination is furnished to the commissioner. A report of the examination by the

commissioner of commerce shall be forwarded to the president, or the chair of the board if the position is so designated

pursuant to section 52.09, subdivision 4, of the examined credit union within 60 days after completion of the examination.



Mississippi: SEC. 81-13-17. Examination by Commissioner of Banking and Consumer Finance; powers of Commissioner; fees; acceptance of

examination performed by National Credit Union Administration. In the event the commissioner's office, because of work load

or other good sufficient cause, is unable to conduct an annual examination of a credit union as provided for in this section, the

commissioner is hereby authorized to accept the examination of any credit union performed by the National Credit Union

Administration or by any succession thereto in lieu of the annual examination provided for in this section. However, in no case

shall the commissioner be authorized to accept any such examination of any credit union performed by the NCUA or its

successor for any two (2) years in succession.

Missouri: Annual examination or audit report, exception--subpoena power.

370.120.

3. The director of the division of credit unions may accept, in lieu of making an annual examination of a credit union, an audit

report of the condition of the credit union made by an auditor approved by the director of the division of credit unions for the

purpose of making such credit union audits, the cost of which audit shall be borne by the credit union.

Montana:

32-3-203. Examinations. (3) In lieu of making an examination of a credit union, the department may accept an audit report of

the condition of the credit union made by an auditor approved by the department. The cost of the audit must be borne by the

credit union.

Nebraska: 21-1736. Examinations.

(4) The director may accept, in lieu of any examination of a credit union authorized by the laws of this state, a report of an

examination made of a credit union by the National Credit Union Administration or may examine any such credit union jointly

with such federal agency. The director may make available to the National Credit Union Administration copies of reports of any

examination or any information furnished to or obtained by the director in any examination.

Nevada: NRS 678.790 Examinations and audits; exceptions; fees.

5. The board of directors may engage a certified public accountant to perform such an examination in lieu of the

Commissioner. In such cases, the examination must be equivalent to the type of examination made by the Commissioner and

the expense must be borne by the credit union being inspected.

6. The Commissioner shall determine whether an examination performed by an accountant pursuant to subsection 5 is

equivalent to an examination conducted by the Commissioner. The Commissioner may examine any area of the operation of a

credit union if the Commissioner determines that the examination of that area is not equivalent to an examination conducted

by the Commissioner.

New Hampshire: Silent

New Jersey: 17:13-112. Supervision and examination by commissioner; exhibition of papers and documents; subpoenas; perjury

a. Every credit union shall be subject to the supervision and examination of the commissioner. In lieu of making an

examination of a credit union, the commissioner may accept the examination of a certified public accountant who has

examined the records of the credit union and who files an opinion of his examination with the commissioner. If an examiner

deems it advisable, he may verify the liabilities of the credit union to its members by an inspection and verification of their

accounts. The commissioner shall promptly communicate the results of each examination to the president of the credit union



examined, who shall present the report to the board at the next regular meeting or a special meeting if the commissioner so

directs. The action taken by the board shall be communicated by the president to the commissioner within five days.

New Mexico: 58-11-5. Examinations; supervision fee

C. In lieu of examination, the director may accept an audit report of the condition of a credit union, conducted by a certified

public accountant or other qualified person or firm approved by the director. The cost of the audit shall be borne by the credit

union.

New York: § 36. Examinations; right of inspection; penalties for refusing to permit examination.

6-a (d) The superintendent may use the reports of regulatory agencies of this state, of other states, of any foreign

government, and of federal regulatory agencies in making such examinations or in conjunction with such examination. All

regulatory agencies of this state, shall upon request of the superintendent, furnish or make available to him or her reports

of examination made by them of any such non-banking subsidiary.

North Carolina: § 54-109.16. Annual examinations required; payment of cost.

The Administrator of Credit Unions shall cause every such corporation to be examined once a year and whenever he deems it

necessary. The examiners appointed by him shall be given free access to all books, papers, securities, and other sources of

information in respect to the corporation; and for the purpose of such examination the Administrator shall have power and

authority to subpoena and examine personally, or by one of his deputies or examiners, witnesses on oath and documents,

whether such witnesses are members of the corporation or not, and whether such documents are documents of the

corporation or not. The Administrator may designate an independent auditing firm to do the work under his direction and

supervision, with the cost to be paid by the credit union involved.

North Dakota: 6-06-08. State credit union board to supervise credit unions - Reports -

Examinations - Fees. 2. Credit unions must be examined at least once each twenty-four months by the commissioner. In lieu of

the examinations herein required, the commissioner may accept any examination made or obtained by the national credit

union administration and may conduct a joint examination with the national credit union administration.

Ohio: Silent

Oklahoma: §6-2008

B. In lieu of making an examination of a credit union, an examination or audit report of the condition of the credit union made

by the National Credit Union Administration may be accepted by the Administrator.

Oregon: 723.112 Examinations.

(3) Instead of an examination under subsection (1) of this section, the director may accept an examination or report made by an

agency of the United States Government under statutes of the United States.

723.136 Agreements with other credit union supervisory agencies and Financial Crimes Enforcement Network; contracts for use

of credit union examiners; joint examination or enforcement; fees. (1) The Director of the Department of Consumer and

Business Services may enter into cooperative, coordinating and information sharing agreements with another credit union

supervisory agency, with the Financial Crimes Enforcement Network established by order of the United States Secretary of the



Treasury or with an organization affiliated with or representing one or more credit union supervisory agencies. The director

may enter into the agreements in order to examine or supervise a non-Oregon institution branch or other office or place of

business located in this state or to examine or supervise a branch of a credit union that is chartered in Oregon and is located in

another state. The director may accept an agency report made pursuant to an agreement entered into under this section in lieu

of the director’s own examination or investigation. The agreement may resolve conflicts of laws and specify the manner in

which examination, supervision and application processes will be coordinated between this state and the home state of the

non-Oregon institution. The director may also share information with the Federal Home Loan Bank and the directors of the

Federal Home Loan Bank.

Pennsylvania: § 503. Regulation by department.

General rule.

Credit unions shall be under the supervision of the department. The department is hereby

authorized and empowered to issue general rules and regulations and specific orders for the protection of members of credit

unions, for insuring the conduct of the business of credit unions on a safe and sound basis and for the effective enforcement

of this title. Credit unions shall report to the department as often as may be required by it and at least annually on forms

supplied by the department for that purpose. Supplementary reports may be required by the department from time to

time. Credit unions shall be examined as often as may be required by the department and at least annually, and the

department may use such other methods of assuring itself of the condition of the credit unions as it shall deem advisable. The

cost of all such examinations and inspections shall be paid by the credit union. A credit union shall also pay annually its

proportionate share of the overhead expense of the department determined by regulation of the department. The

department shall give written notice to each credit union of the costs of examinations, investigations and the credit union's

proportionate share of the overhead expenses of the department. The credit union shall pay the amount of such costs within

30 days of the notice. If payment is not made within 30 days of the notice, the department may assess a penalty fee of

$150 for that 30-day period and each successive 30-day period of delinquency. For failure to file reports when due, unless

excused for cause, a credit union shall pay to the department $100 for each day of its delinquency.

Rhode Island: § 19-4-2 Periodic examinations – Access to records.

d) The director or the director's designee is authorized to accept in his or her discretion the report of any examination

conducted by any federal banking regulatory or federal deposit insuring agencies or other state banking regulatory agency in

lieu of an examination by the director or his or her designee

South Carolina: SECTION 34-26-240. Duty of board to examine credit union; disclosure requirements of credit union officers and agents.

(1) The board at periodic intervals not to exceed twenty-four months shall examine or cause to be examined each credit union.

A credit union and any of its officers and agents shall be required to give the board or the board's representatives full access to

all books, papers, securities, records, and other sources of information under their control.

(2) A report of such examination shall be forwarded to the chairman of the board after completion. The report shall contain

comments relative to the management of the affairs of the credit union and the general condition of its assets. Within sixty

days after the receipt of such report, the directors and committeemen shall meet to consider matters contained in the report.

(3) In lieu of making an examination of a credit union, the commissioner may accept an examination or audit report of the

condition of the credit union made by the National Credit Union Administration.

Tennessee: Silent



Texas: Sec. 15.411. AGREEMENTS WITH OTHER REGULATORS. (a) The commissioner may enter into an agreement with any credit

union supervisory agency regarding the examination or supervision of branch offices of credit unions chartered in this state

doing business in other states and foreign credit unions doing business in this state. In lieu of conducting an examination or

investigation required by this subtitle, the commissioner may accept examinations or reports from other credit union

supervisory agencies. The acceptance of the examination or report does not waive any fee, charge, or revenue required to be

paid by a credit union, including a foreign credit union doing business in this state.

(b) The commissioner may enter into any cooperative arrangement with other credit union supervisory agencies to promote

the effective regulation of state credit unions doing business across state lines, including contracting to use another agency's

examiners, allowing for the use of examiners of this state by another agency, or collecting fees on behalf of or receiving

payments through another agency.

Utah: 7-1-314. Examination of institutions by commissioner or supervisor.

(3) The commissioner may, in his discretion, accept examinations of any institution which are made by federal examiners or

examiners from other states having jurisdiction over that institution in lieu of any examination required under the laws of this

state.

Vermont: Silent

Virginia: Silent


Examinations and investigations — Reports — Access to records — Oaths — Subpoenas.

(5) The director may accept in lieu of an examination under this section:

(b) The report of an accountant, satisfactory to the director, who has made and submitted a report of the condition of the

affairs of a credit union or an out-of-state, federal, or foreign credit union, or other financial institution. The director may

accept all or part of such a report in lieu of all or part of an examination. The accepted report or accepted part of the report has

the same force and effect as an examination under this section.

West Virginia: §31C-1-5. Examinations.

(c) In lieu of making an examination of a credit union, the commissioner may accept an examination or audit report of the

condition of the credit union made by the national credit union administration.

Wisconsin: Silent

140 Supervisory Authorities – Preservation of Records



Preservation of Records



RECORDS Section 10.50. Records. A credit union shall maintain all books, records, accounting systems, and procedures that accurately

reflect its operations and enable the commissioner to readily ascertain the true financial condition of

the credit union and whether it is complying with this Act. These books, records, accounting systems and

procedures shall be maintained at the credit union‘s principal place of business in accordance with the

credit union‘s record retention policy.

Comparative Summary

Act is similar to the intent of the Model Act:

Arizona Florida Illinois

Act mandates record keeping requirements determined by the supervisory authority:

Colorado Maine* Oregon Connecticut Nebraska Rhode Island

Act requires credit unions to maintain records as prescribed by in regulations; may also refer to the admissibility

of records as evidence of transactions:

Georgia* New Mexico South Carolina Vermont Mississippi North Carolina Texas West Virginia Montana Oklahoma Utah

Credit union records shall be kept for a specified period, may detail requirements:

Arkansas Iowa Massachusetts North Dakota Hawaii* Maryland New York Ohio

Credit union records shall be kept in accordance with generally accepted accounting principles and with

standards prescribed by the supervisor:

Idaho Wisconsin


department.



Other:

Michigan: Requires a domestic credit union to maintain books and records at its principal place of business or may be

held off site commissioner approval. Records more than 3 years old can be stored at an off-site facility. Also

allows for records to be held out of state

Act is silent as it pertains to preserving credit union records:

Alabama Kansas Missouri Pennsylvania Alaska Kentucky Nevada Tennessee California Louisiana New Hampshire Virginia Indiana Minnesota New Jersey Washington


Alabama Silent

Alaska Silent

Arizona Similar to Model

Arkansas Specified Period

California Silent

Colorado Determined by Supervisory Authority

Connecticut Determined by Supervisory Authority

Florida Similar to Model

Georgia* Determined by Supervisory Authority with Admissibility of Evidence

Hawaii* Specified Period

Idaho Generally Accepted Accounting Principles

Illinois Similar to Model

Indiana Silent

Iowa Specified Period

Kansas Silent

Kentucky Silent

Louisiana Silent

Maine* Determined by Supervisory Authority

Maryland Specified Period

Massachusetts Specified Period

Michigan Other

Minnesota Silent

Mississippi Determined by Supervisory Authority with Admissibility of Evidence

Missouri Silent

Montana Determined by Supervisory Authority with Admissibility of Evidence

Nebraska Determined by Supervisory Authority

Nevada Silent


New Jersey Silent

New Mexico Determined by Supervisory Authority with Admissibility of Evidence

New York Specified Period


department.



North Carolina Determined by Supervisory Authority with Admissibility of Evidence

North Dakota Specified Period

Ohio Specified Period

Oklahoma Determined by Supervisory Authority with Admissibility of Evidence

Oregon Determined by Supervisory Authority

Pennsylvania Silent

Rhode Island Determined by Supervisory Authority

South Carolina Determined by Supervisory Authority with Admissibility of Evidence

Tennessee Silent

Texas Determined by Supervisory Authority with Admissibility of Evidence

Utah* Determined by Supervisory Authority with Admissibility of Evidence

Vermont Determined by Supervisory Authority with Admissibility of Evidence

Virginia Silent

Washington Silent

West Virginia Determined by Supervisory Authority with Admissibility of Evidence

Wisconsin Generally Accepted Accounting Principles


department.




Preservation of Records


Alabama: Silent

Alaska: Silent

Arizona: 6-503. Accounting and records

A. A credit union shall keep and use in its business those books, accounts and records that will enable the superintendent to

readily ascertain the true financial condition of the credit union and whether the credit union is complying with the provisions

of this chapter.

B. A credit union and any of its officers, directors, employees and agents shall give the superintendent full access to all books,

papers, securities, records and other sources of information under their control. All books and records of the credit union shall

be maintained at the address of the credit union as filed with the superintendent.

Arkansas: 23-35-611. Records.

(a) All credit union records shall be kept for a period of five (5) years from the date of making them or from the date of the last

entry thereon.

California: Silent

Colorado: 11-30-109. Directors and officers - compensation.

(h) Maintain records pursuant to rules promulgated by the financial services board concerning how long records should be

retained and in what manner;

Connecticut: Sec. 36a-440b. Report to commissioner re assets and liabilities, list of members and officers. Records.

(d) A Connecticut credit union shall establish and maintain records, accounting systems and procedures which accurately reflect

its operations and which enable the commissioner to readily ascertain the true financial condition of the credit union and

whether such credit union is complying with sections 36a-435a to 36a-472a, inclusive.

(e) A Connecticut credit union shall preserve all of its records in accordance with regulations adopted by the commissioner

pursuant to chapter 54.

Florida: 655.057 Records; limited restrictions upon public access.—

(5) Every credit union and mutual association shall maintain, in the principal office where its business is transacted, full and

correct records of the names and residences of all the members of the credit union or mutual association. Such records shall be

subject to the inspection of all the members of the credit union or mutual association, and the officers authorized to assess

taxes under state authority, during business hours of each business day. A current list of members shall be made available to



the office’s examiners for their inspection and, upon the request of the office, shall be submitted to the office. Except as

otherwise provided in this subsection, the list of the members of the credit union or mutual association is confidential and

exempt from the provisions of s. 119.07(1).

Georgia: 7-1-63. Retention of records.

(a) The department shall issue regulations classifying records kept by financial institutions and prescribing the period, if any, for

which records of each class shall be retained and the form in which such records shall be maintained. Such periods may be

permanent or for a lesser term of years. In issuing such regulations, consideration shall be given to the objectives of this

chapter and to:

(1) Evidentiary effect in actions at law and administrative proceedings in which the production of records of financial

institutions might be necessary or desirable;

(2) State and federal statutes of limitation applicable to such actions or proceedings;

(3) Availability of information contained in the records of the financial institution from other sources;

(4) Requirements of electronic systems of transferring funds; and

(5) Other pertinent matters;

so that financial institutions will be required to retain records for as short a period as is commensurate with interests of

customers, shareholders, and the people of this state.

(b) The regulations of the department shall not require financial institutions to maintain originals of checks or items for the

payment of money or original computer tapes or original records with respect to accounts which have been inactive for a

period of 12 successive months. Where a financial institution employs computers, its records may consist of legible products of

computer operations.

(c) Any copy of a record or of a reproduction of a record stored in an electronic or photographic medium permitted to be kept

in lieu of the original, under this Code section or the regulations of the department, including legible products of computer

operations, shall be admissible in evidence as though it were the original.

Hawaii: §412:3-111 Maintenance of books and records.

(d) The books and records of the Hawaii financial institution may be maintained as originals or photocopies, on microfilm or

microfiche, on computer disks or tapes, or similar forms, provided that they are readily accessible and may be easily examined.

(e) Records, statements, or reports required or authorized by this chapter may be in a spoken language other than English

provided that English translations are also maintained.

(f) No Hawaii financial institution shall be required to preserve or keep its records or files for a period longer than six years,

except as specified in subsection (g).

(g) The following records or files of a Hawaii financial institution shall not be destroyed except in accordance with rules of the

commissioner adopted under chapter 91:

(1) Minute books of meetings of shareholders, directors, and executive committees;

(2) Articles of incorporation or association and bylaws, and any amendments thereto;

(3) Capital stock ledgers; and

(4) General ledgers and trust ledgers.

These records and files may be maintained in original form or in the form of a photographic, photostatic, microfilm, microcard,

miniature photographic, or other reproduction by a durable medium for reproducing the original.

(h) No liability shall accrue against any Hawaii financial institution for its destruction of its records or files in accordance with

this section or the rules adopted hereunder. A showing by the financial institution that its records or files have been destroyed

in accordance with this section or rules adopted hereunder shall be sufficient excuse for the failure to produce them.

Idaho: 26-2135.Books and records. The books and records of a credit union shall be kept in accordance with generally accepted

accounting principles and by procedures approved by the director. Every credit union shall keep correct and complete books of



accounts, minutes of meetings of members and directors and shall make such books and records and accounts available for

examination. The books of account and records shall not be removed from the principal place of business without the consent

of the director.

If a credit union utilizes the data processing services of another company the providing of such services by the other

corporation shall be subject to the approval of the director and the director shall have the power to require the servicing

company to provide such information as the director requires in a form required by the director. Any company providing data

processing services for credit unions must agree to provide the director with information for purposes of examination which

the director may by rule or regulation require in a form required by the director.

Illinois: 205 ILCS 305/10) (from Ch. 17, par. 4411)

Sec. 10. Credit union records; member financial records.

(1) A credit union shall establish and maintain books, records, accounting systems and procedures which accurately reflect its

operations and which enable the Department to readily ascertain the true financial condition of the credit union and whether it

is complying with this Act.

(2) A photostatic or photographic reproduction of any credit union records shall be admissible as evidence of transactions

with the credit union.

Indiana: Silent

Iowa: 533.322 Preservation of records.

1. The superintendent may adopt rules regarding the preservation of records and files of a state credit union or any other

person supervised or regulated by the superintendent. A state credit union is not required to preserve its records for a period

longer than eleven years after the first day of January of the year following the time of the making or filing of such records.

However, account records showing unpaid balances due to depositors shall not be destroyed.

2. A copy of an original may be kept in lieu of any original records.

a. For purposes of this section, a copy includes any duplicate, rerecording or reproduction of an original record from any

photograph, photostat, microfilm, microcard, miniature or microphotograph, computer printout, electronically stored data or

image, or other process that accurately reproduces or forms a durable medium for accurately and legibly reproducing an

unaltered image or reproduction of the original record.

b. A copy is deemed to be an original and shall be treated as an original record in a judicial or administrative proceeding for

purposes of admissibility in evidence. A facsimile, exemplification, or certified copy of any such copy reproduced from a film

record is deemed to be a facsimile, exemplification, or certified copy of the original.

Kansas: Silent

Kentucky: Silent

Louisiana: Silent

Maine: 225. Retention of financial institution records



1. Superintendent's authority. All records of financial institutions authorized to do business in this State and of credit unions

authorized to do business in this State, insofar as this section does not contravene paramount federal law, must be retained for

such minimum periods as the superintendent may prescribe.

2. Minimum retention period. The superintendent may from time to time issue regulations classifying all records kept by these

institutions and prescribing the minimum period for which these records shall be retained. Such periods may be permanent or

for a lesser term. Such regulations may be amended or repealed from time to time; provided that any amendment or repeal

shall not affect any action taken prior to such amendment or repeal.

3. Retention criteria. Prior to issuing regulations pursuant to subsection 2, the superintendent shall consider:

A. Court and administrative proceedings in which the production of these records might be necessary or desirable;

B. State and federal statutes of limitation applicable to such proceedings

C. The availability of information from other sources; and

D. Such other matters as the superintendent shall deem pertinent in order that the regulations will require retention of records

for such reasonable period as is commensurate with the interests of customers, depositors, stockholders and the people of this

State in having such records available

4. Reproductions. Reproductions, as defined by Title 16, section 456 shall be deemed acceptable, in lieu of the originals, for

purposes of the prescribed periods for which such records shall be retained.

5. Disposal of records. Institutions may dispose of any record which has been retained for the minimum period prescribed by

the superintendent.

Maryland: § 6-715. Books and records.

(a) Duty to maintain.- A credit union shall keep the books and records that the Commissioner requires to determine

compliance with this title.

(b) Term.- Unless a longer period is expressly required by State or federal law, a credit union shall retain the books and records

required under subsection (a) of this section for a period of at least 5 years.

(c) Location.- A credit union may retain the books and records required under subsection (a) of this section at any location,

provided that the credit union:

(1) Notifies the Commissioner in writing of the location of the books and records; and

(2) Makes the books and records available at the credit union's principal place of business, as agreed by the Commissioner

and the credit union, within 7 days of a written request for examination by the Commissioner.

(d) Form.- A credit union shall retain the books and records required under subsection (a) of this section in one of the following

ways:

(1) Original form;

(2) An electronic equivalent approved by the Commissioner; or

(3) A microphotographic copy approved by the Commissioner.

Massachusetts: Ch. 171, Sec. 28

Section 28. Each credit union shall preserve all of its records of original and final entry, including cancelled checks and

withdrawal and deposit slips, for a period of at least six years from the date of making the same or from the date of the last

entry thereof. Such records shall be preserved in their original form for two years and thereafter may be preserved on

microfilm or microfiche. All original records, age three years or older, may be stored in off property locations; provided,

however, that withdrawal slips may be destroyed after a period of two years, if such withdrawal slips are properly

microphotographed and the microphotographs shall be preserved for the period provided in this section.

Michigan: 490.305 Books and records; availability.

Sec. 305.



(1) A domestic credit union shall maintain its books and records at its principal place of business filed with the commissioner

under section 304 and make the books and records available for examination by the commissioner or his or her authorized

agent, except as follows:

(a) A credit union may maintain specified books and records at a location in this state other than its principal place of business if

it gives notice to the commissioner of the location of the specified books and records and can produce those books and records

at its principal place of business within 3 business days after a request from the commissioner to examine them.

(b) Except as required by other applicable law, a credit union may store records that are more than 3 years old at an off-site

facility or on alternative storage media if the records are available for examination by the commissioner or his or her appointed

agent.

(c) A domestic credit union may maintain records specific to a branch located outside of this state at that branch if the credit

union can make the originals of those records available to the commissioner within this state within 3 business days after a

request from the commissioner to examine them. If a law applicable in the state where the branch is located prohibits the

removal of the original records from that state, the credit union shall notify the commissioner of that law and provide copies of

the records to the commissioner.

(2) If a domestic credit union does not make its books and records available to the commissioner or his or her authorized agent

in the manner described in subsection (1), the commissioner may obtain an order from the circuit court of the county in which

the credit union is located requiring the credit union to produce the books and records for examination.

Minnesota: Silent

Mississippi: SEC. 81-13-73. Record keeping.

Each credit union shall keep sufficient books and accounts in such form as shall be approved by the Commissioner of Banking

and Consumer Finance in accordance with the NCUA guidelines. However, any state credit union may cause any or all records,

books and accounts at any time in its custody to be reproduced in a format of storage commonly used, whether electronic,

imaged, magnetic, microphotographic, or otherwise, and any reproduction so made shall have the same force and effect as the

original thereof and be admitted in evidence equally with the original.

Missouri: Silent

Montana:

32-3-204. Records. (1) A credit union shall maintain all books, records, accounting systems, and procedures in accordance

with rules that the department of administration prescribes. In prescribing rules, the department shall consider the relative size

of a credit union and its reasonable capability of compliance.

(2) A credit union is not liable for destroying records after the expiration of the record retention time prescribed by the

department.

(3) A photostatic or photographic copy or reproduction of any kind, including electronic or computer-generated data that has

been electronically stored and is capable of being converted into written form, of any credit union records is admissible as

evidence of transactions with the credit union.

Nebraska: 21-1737. Records.

(1) A credit union shall maintain all books, records, accounting systems, and procedures in accordance with the rules and

regulations as the director from time to time may prescribe.



(2) Credit unions shall preserve or keep their records or files, or photographic or microphotographic copies thereof, for a period

of not less than six years after the first day of January of the year following the time of the making or filing of such records or

files except as provided in subsection (3) of this section.

(3)(a) Ledger sheets showing unpaid balances in favor of members of credit unions shall not be destroyed unless the credit

union has remitted such unpaid balances to the State Treasurer in accordance with the Uniform Disposition of Unclaimed

Property Act. Credit unions shall retain a record of every such remittance for ten years following the date of such remittance.

(b) Corporate records that relate to the corporation or the corporate existence of the credit union shall not be destroyed.

(4) A credit union shall not be liable for destroying records after the expiration of the record retention period provided in this

section except for records involved in an official investigation or examination about which the credit union has received notice.

(5) A reproduction of any credit union records shall be admissible as evidence of transactions with the credit union as provided

in section 25-12,112.

Nevada: Silent

New Hampshire: Silent

New Jersey: Silent

New Mexico: 58-11-6. Records.

A. A credit union shall maintain all books, records, accounting systems and procedures in accordance with the rules,

regulations and orders the director from time to time establishes or issues. In establishing and issuing such rules, regulations

and orders, the director shall consider the relative size of a credit union and its reasonable capability of compliance.

B. A credit union is not liable for destroying records after the expiration of the record retention time prescribed by

regulation, except for any records involved in an official investigation or examination about which the credit union has received

notice.

C. A photostatic, photographic or xerographic reproduction of any credit union record or any credit union record retrieved

in perceptible form from an electronic record maintained pursuant to the provisions of the Uniform Electronic Transactions Act

[14-16-1 NMSA 1978] shall be admissible as evidence of transaction with the credit union.

New York: § 485. 2. Every credit union shall preserve all of its records of original and final entry, including cancelled checks,

withdrawal slips and deposit tickets, for a period of at least six years from the date ofmaking same or from the date of

the last entry thereon; provided, however, that preservation of photographic reproduction thereof or records in

photographic form shall constitute compliance with the requirements of this section.

North Carolina: § 54-109.17. Records.

(a) A credit union shall maintain all books, records, accounting systems and procedures in accordance with such rules as the

Administrator from time to time prescribes. In prescribing such rules, the Administrator shall consider the relative size of a

credit union and its reasonable capability of compliance.

(b) A credit union is not liable for destroying records after the expiration of the record retention time prescribed by the

Administrator.

(c) A photostatic or photographic reproduction of any credit union records shall be admissible as evidence of transactions




North Dakota: 6-06-38. Destruction of records. No credit union may be required to preserve and retain its records of accounts or files, except

share and deposit files, for a longer period than six years next after the first day of January of the year following the final date

of the termination of such accounts or files. No credit union may be required to preserve and retain its share and

deposit account records and files for a longer period than two years next after the first day of January of the year following the

date of the death of the shareholder or deposit holder. All credit unions shall, however, keep sufficient records to satisfy the

reporting requirements of the escheat and abandoned property laws of the state.

Ohio: 1733.291 Preservation of records - retention period - disposal.

(A) Every credit union shall retain or preserve the following credit union records and supporting documents for only the

following periods of time:

(1) For one year:

(a) Broker’s confirmations, invoices, and statements relating to security transactions of the credit union or for or with its

customers, after the date of transaction;

(b) Corporate resolutions, partnership authorizations, and similar authorizations relating to closed accounts, loans that have

been paid, or other completed transactions, after the date of closing, payment, or completion;

(c) Ledger records of safe deposit accounts, after the date of last entry on the ledger;

(d) Night depository records, after the date of transaction;

(e) Records relating to closed Christmas club or similar limited duration special purpose accounts, after the date of closing;

(f) Records relating to customer collection accounts, after the date of transaction;

(g) Stop payment orders, after the effective date;

(h) All records relating to closed consumer credit loans and discounts, after the date of closing;

(i) Deposit tickets relating to demand deposit accounts, after the date of deposit.

(2) For six years:

(a) Deposit and withdrawal tickets relating to open or closed savings accounts, after the date of transaction;

(b) Individual ledger sheets or other records serving the same purpose that show a zero balance and that relate to demand,

time, or savings deposit accounts, and safekeeping accounts, after the date of last entry, or, where the ledger sheets or other

records show an open balance, after the date of transfer of the amount of the balance to another ledger sheet or record;

(c) Official checks, drafts, money orders, and other instruments for the payment of money issued by the credit union and that

have been canceled, after the date of issue;

(d) Records relating to closed escrow accounts, after the date of closing;

(e) Records, other than corporate resolutions, partnership authorizations, and similar authorizations relating to closed loans

and discounts other than consumer credit loans and discounts, after the date of closing;

(f) Safe deposit access tickets and correspondence or documents relating to access, after the date of transaction;

(g) Lease or contract records relating to closed safe deposit accounts, after the date of closing;

(h) Signature cards relating to closed demand, savings, or time accounts, closed safe deposit accounts, and closed safekeeping

accounts, after the date of closing;

(i) Undelivered statements for demand deposit, negotiable order of withdrawal, savings, agency, brokerage, or other accounts

for which customer statements are prepared, and canceled checks or other items, after the date of statement, provided the

credit union has attempted to send the statements and checks or other items to its customer, has held them pursuant to the

instructions of or an agreement with its customer, or has made them available to its customer.

(B) The superintendent of financial institutions may designate a retention period of either one year or six years for any record

maintained by a credit union but not listed in division (A) of this section. The credit union shall retain or preserve records that

are not listed in division (A) of this section and for which the superintendent has not designated a retention period for six years

from the date of completion of the transaction to which the record relates or, if the last entry has been transferred to a new

record showing the continuation of a transaction not yet completed, from the date of the last entry.

(C) The requirements of divisions (A) and (B) of this section may be complied with by the preservation of records in the manner

prescribed in section 1733.29 of the Revised Code.

(D) In construing the terms set forth in division (A) of this section, reference may be made to general credit union usage.



(E) A credit union may dispose of any records that have been retained or preserved for the period set forth in divisions (A) and

(B) of this section.

(F) Any action by or against a credit union based on, or the determination of which would depend on, the contents of records

for which a period of retention or preservation is set forth in divisions (A) and (B) of this section shall be brought within the

time for which the record must be retained or preserved.

(G) Where a record may be classified under either division (A)(1) or (2) of this section, the credit union shall retain or preserve

the record for the period set forth in division (A)(2) of this section.

Oklahoma: § 2019.1 Maintenance of books, records, accounting systems and procedures - Destruction of records - Records as evidence

(A) A credit union shall maintain all books, records, accounting systems, and procedures in accordance with such regulations as

the State Credit Union Board from time to time prescribes. In prescribing such regulations, the State Credit Union Board shall

consider the relative size of a credit union and its reasonable capability of compliance.

(B) A credit union is not liable for destroying records after the expiration of the record retention time prescribed by regulation,

except for any records involved in an official investigation or examination about which the credit union has received notice.

(C) Reproduction of any credit union records shall be admissible as evidence of transactions with the credit union as provided

by the laws of the State of Oklahoma.

Oregon: 723.116 Records; rules. A credit union shall maintain all books, records, accounting systems and procedures in accordance with

such rules as the Director of the Department of Consumer and Business Services from time to time prescribes. In prescribing

such rules, the director shall consider the relative size of a credit union and its reasonable capability of compliance.

Pennsylvania: Silent

Rhode Island: § 19-5-21 Destruction of records. – A credit union may, in accordance with rules and regulations that the director or the

director's designee may adopt, destroy its records that have become obsolete.

History of Section.

South Carolina: SECTION 34-26-250. Duty of credit union to maintain books, records, accounting systems, and procedures.

(1) A credit union shall maintain all books, records, accounting systems, and procedures in accordance with such regulations as

the board from time to time prescribes.

(2) A credit union is not liable for destroying records after the expiration of the record retention time prescribed by regulation,

except for any records involved in an official investigation or examination about which the credit union has received notice.

(3) Reproduction of any credit union records shall be admissible as evidence of transactions with the credit union as provided in

Section 34-3-540.

Tennessee: Silent

Texas: Sec. 123.110. RECORDS.

(a) A credit union may:

(1) copy any record kept by the credit union; and

(2) dispose of the original record in accordance with commission rules.



(b) A copy of a record is considered an original record for any purpose, including admissibility in evidence as an original record

before any court or administrative agency for the purpose of the copy's admissibility in evidence.

Utah: 7-9-42. Record requirements.

(1) A credit union shall maintain all books, records, accounting systems, and procedures in accordance with rules the

commissioner may prescribe or in accordance with Chapter 1.

(2) In prescribing these rules, the commissioner shall consider the size of a credit union and its ability to comply.

(3) A credit union is not liable for destroying records after the expiration of the record retention time prescribed by the rules.

(4) A photostatic or photographic reproduction of any credit union records shall be admissible as evidence of transactions


Vermont: § 30401. Preservation of records

(a) A Vermont credit union and any state-chartered credit union with an office in this state shall keep such books, accounts, and

records relating to all of its transactions that will enable the commissioner to ensure full compliance with the laws of this state.

Each such credit union shall retain its business records for such periods as prescribed by the commissioner by regulation.

(b) Any such credit union may dispose of any record which has been retained for the period prescribed by or in accordance with

the regulation for retention of records of its class, and thereafter shall be under no duty to produce the record in any action or

proceeding.

(c) Records required to be preserved and retained by law or regulation may be maintained in paper, photograph, microprocess,

magnetic, digital, mechanical, or electronic media, or in or by any other information storage device or process which forms a

durable medium providing reasonable assurances against tampering and degradation of any reproduction of the original

record, and which can be accurately transferred to paper in a legible written form within a reasonable time. Records

maintained in a computer-based format shall be archival in nature only, so as to preclude the possibility of alteration of the

content of the record by computer once the record has been transferred to that format. Any record reproduced from a record

maintained in compliance with this subsection shall have the same force and effect as the original thereof and may be admitted

in evidence equal to the original.

Virginia: Silent

Washington: Silent

West Virginia: §31C-1-6. Records.

(a) A credit union shall maintain all books, records, accounting systems and procedures in accordance with such rules as the

commissioner from time to time prescribes. In prescribing such rules, the commissioner shall consider the relative size of a

credit union and its reasonable capability of compliance. Unless otherwise required or permitted by a specific rule, credit

unions shall follow the record retention requirements set forth in section thirty-five, article four, chapter thirty-one-a of this

code.

(b) A credit union is not liable for destroying records after the expiration of the record retention time prescribed by subsection

(a) of this section, except for any records involved in an official investigation or examination about which the credit union has

received notice.

(c) Reproduction of any credit union records shall be admissible as evidence of transactions with the credit union as provided in

section seven-b, article one, chapter fifty-seven; and section thirty-five, article four, chapter thirty-one-a of this code.



Wisconsin: 186.235(18)

(18) Record-keeping and accounting procedure.

186.235(18)(a)

(a) A credit union shall keep records and accounts in a manner consistent with generally accepted accounting principles or with

standards prescribed by the office of credit unions. If a credit union does not keep its records and accounts in a manner

consistent with generally accepted accounting principles, the office of credit unions may require the credit union to keep

records and accounts under standards prescribed by the office.

153 Supervisory Authorities – Supervision Fees: Annual Assessments and Examination Fees



Supervision Fees: Annual Assessments and Examination Fees


2011 Model Credit Union Act: The section covering supervisory fees, specifically the fees paid by credit unions for annual assessments and examinations has been removed and replaced by the “Supervisory Agency Fund.” The Supervisory Agency Fund will prohibit the sweeping of fees that credit unions specifically pay to examiners for supervision from being confiscated to fix the state’s inability to balance the state’s budget. The provision from the Model Act on a “Supervisory Agency Fund” is as follows:

SUPERVISORY AGENCY FUND Section 10.10. Supervisory Agency Fund. (1) A credit union supervision fund is created in the state treasury. The commissioner shall deposit all money received from credit unions and foreign credit unions under this section, this Act, or the federal government as reimbursement for conducting credit union examinations in the credit union fund. The money in the fund shall only be used for expenses incurred in the supervision, examination, and regulation of credit unions under this Act and shall not be subject to appropriation to the general fund. The fund may be expended by the commissioner solely for such administrative, supervisory, or other expenses incurred in implementing the credit union laws of this state, including the establishment of a reasonable reserve, in conformity with the budget approved for the commission. The money in the fund shall not be subject to appropriation to the general fund. (2) The commissioner may waive all or a portion of such fees or assessments.

Comparative Summary

Statutory fee schedule or table available in Act:

Alabama Idaho Maryland Missouri New Mexico California Illinois Michigan New Hampshire* Utah*

Annual assessment and/or examination fee to be determined by supervisory authority:

Alaska Hawaii* Maryland North Carolina Rhode Island* Arizona* Iowa Montana* North Dakota Texas Arkansas Kansas Nevada* Oregon Virginia Colorado Kentucky New Jersey* Oklahoma Washington Georgia* Louisiana* New York* Pennsylvania Wisconsin

Annual assessment based on assets, may have additional examination fee:

Alabama Illinois Minnesota* New Mexico Utah* California Indiana Mississippi Ohio Vermont Connecticut Maine* Missouri Oklahoma West Virginia Florida Massachusetts* Nebraska* South Carolina Idaho Michigan New Hampshire* Tennessee


department




Alabama Based on Assets Alaska Determined by Supervisory Authority Arizona* Determined by Supervisory Authority Arkansas Determined by Supervisory Authority California Based on Assets Colorado Determined by Supervisory Authority Connecticut Based on Assets Florida Based on Assets Georgia* Determined by Supervisory Authority Hawaii* Determined by Supervisory Authority Idaho Based on Assets Illinois Based on Assets Indiana Based on Assets Iowa Determined by Supervisory Authority Kansas Determined by Supervisory Authority Kentucky Determined by Supervisory Authority Louisiana* Determined by Supervisory Authority Maine* Based on Assets Maryland Determined by Supervisory Authority Massachusetts* Based on Assets Michigan Based on Assets Minnesota* Based on Assets Mississippi Based on Assets Missouri Based on Assets Montana* Determined by Supervisory Authority Nebraska* Based on Assets Nevada* Determined by Supervisory Authority New Hampshire* Based on Assets New Jersey* Determined by Supervisory Authority New Mexico Based on Assets New York* Determined by Supervisory Authority North Carolina Determined by Supervisory Authority North Dakota Determined by Supervisory Authority Ohio Based on Assets Oklahoma Based on Assets Oregon Determined by Supervisory Authority Pennsylvania Determined by Supervisory Authority Rhode Island* Determined by Supervisory Authority South Carolina Based on Assets Tennessee Based on Assets Texas Determined by Supervisory Authority Utah* Based on Assets Vermont Based on Assets Virginia Determined by Supervisory Authority Washington Determined by Supervisory Authority West Virginia Based on Assets Wisconsin Determined by Supervisory Authority


department.




Supervision Fees: Annual Assessments and Examination Fees

*There are 47 state credit union acts. Delaware, South Dakota, and Wyoming do not have a state credit union act

Alabama: § 5-17-7. Operating fees; fee filed with certificate of organization.

(a) During 1986 and each year thereafter, all state chartered credit unions shall pay an annual operating fee, the exact amount

of which shall be fixed from time to time by the administrator of the Alabama Credit Union Administration. During 1985, credit

unions shall continue to be charged and be liable to the Alabama Credit Union Administration for the examination fee presently

fixed by the administrator.

(b) Except as hereinafter provided, the annual operating fee set by the administrator shall not exceed the fee calculated by

use of the following scale:

(1) Credit unions having total assets of less than $500,000.00 shall pay a fee not in excess of $.12 for each $100.00 of

assets, subject to a minimum of $200.

(2) Credit unions with assets of $500,000.00 or more shall pay a fee of $600.00 plus $.05 per $100.00 of assets over

$500,000.00 but not in excess of $1,000,000.00 plus three and one-half cents per $100.00 of assets of $1,000,000.00 but not in

excess of $5,000,000.00 plus $.02 per $100.00 of assets over $5,000,000 but not in excess of $10,000,000 plus one and eight-

tenths per $100.00 on assets over $10,000,000.00 but not in excess of $20,000,000.00 plus one and six-tenths cents per

$100.00 on assets over $20,000,000.00 but not in excess of $50,000,000.00 plus one and two-tenths cents per $100.00 on

assets over $50,000,000.00 but not in excess of $100,000,000.00 plus $.01 per $100.00 on all assets over $100,000,000.00.

(c) On one occasion, the administrator may fix an annual operating fee which is not more than 10 percent greater than the

above fee scale if the credit union board approves such fee, if said fee is not in effect for more than one year, and if the

administrator establishes that such fee is necessary in order that the Alabama Credit Union Administration not be operated at a

deficit and that the Alabama Credit Union Administration operated at a deficit during the preceding year.

(d) The annual operating fee shall be paid on or before the last day of January of each year, based upon the assets of the

credit union as of the end of the previous year. Any credit union failing to pay said operating fee may be charged a penalty

assessment not to exceed $50.00 for each day that said fee remains unpaid.

(e) Whenever application is made to the administrator of the Alabama Credit Union Administration for permission to

organize a credit union, the applicant shall at the time of filing the certificate of organization with the administrator of the

Alabama Credit Union Administration pay a fee not to exceed $100.00 for the purpose of paying the costs incidental to the

determination by the administrator of the Alabama Credit Union Administration whether such certificate of organization shall

be approved. The administrator of the Alabama Credit Union Administration shall from time to time fix the exact charge to be

made, but in no event shall the charge exceed $100.00. The provisions of this subsection shall not apply to any existing credit

union seeking charter conversion.

(f) All fees collected under this section shall be paid into the special fund set up by the state treasurer. This special fund shall

be used to pay the salaries of the officials and employees and the expenses of the Alabama Credit Union Administration

including the purchase of equipment, vehicles and supplies necessary for the examination and supervision of credit unions and

may be spent by the administrator of the Alabama Credit Union Administration for the uses and purposes specified herein. No

taxes, fees, assessments, penalties or other revenues collected by the Alabama Credit Union Administration shall be used for

any purpose other than the expenses of operating the Alabama Credit Union Administration.

(g) All the jurisdiction, authority, powers and duties now conferred upon and imposed by law upon the superintendent of

banks and the supervisor of the credit union bureau in relation to the management, control, regulation and general supervision

of credit unions are hereby transferred to, conferred upon and imposed upon the Alabama Credit Union Administration and

administrator.

(h) All assets primarily used by the bureau of credit unions, including books, records, documents, furniture, equipment and

supplies are hereby transferred to the Alabama Credit Union Administration. All funds in the special fund previously maintained

by the state treasurer for the bureau of credit unions are hereby transferred to the Alabama Credit Union Administration. All



taxes, fees, assessments, penalties or other revenues owed to or collected by the bureau of credit unions are hereby

transferred to the Alabama Credit Union Administration. Any employee presently employed by the superintendent of banks

who is presently primarily involved with the bureau of credit unions shall be employed by the Alabama Credit Union

Administration

Alaska: Sec. 06.45.040. Fees.

(a) The commissioner shall assess a credit union a fee for expenses under AS 06.01.010 in processing an application

(1) for approval of articles of incorporation and bylaws and the issuance of a certificate of authority for a credit union;

(2) for the approval of a branch of a credit union;

(3) for a merger or conversion of a credit union; or

(4) for an examination under AS 06.45.050 .

(b) Failure of a credit union to pay a fee required by (a)(2), (3), or (4) of this section within 30 days of receipt of billing from the

commissioner is grounds for the revocation of the certificate of authority of the credit union.

Arizona: 6-125. Annual examination assessment of financial institutions and enterprises; costs of foreign examination; payment

A. Before August 31 of each year the superintendent shall make the following annual assessments:

3. Upon credit unions, the annual assessment set by the superintendent.

E. The superintendent shall set the amount of the annual assessment to be charged to banks and credit unions. In setting the

annual assessment upon banks, the superintendent shall consider the annual assessment set by the comptroller of currency for

national banks. In setting the annual assessment upon credit unions the superintendent shall consider the annual assessment

set by the national credit union administration for federal credit unions.

Arkansas: 23-35-205. Annual supervision fee.

Each credit union subject to the provisions of this chapter shall pay an annual supervision fee which shall be determined by the

State Credit Union Supervisor. The fees must be reasonably related to the administrative cost of supervisory services required

under this chapter and shall be determined after notice and an opportunity to be heard is given to the credit unions affected.

HISTORY: Acts 1971, No. 132, § 31; A.S.A. 1947, § 67-931.

California: 14350. The commissioner shall annually levy on and collect from credit unions holding certificates authorizing them to act as

credit unions, pro rata on the basis of total assets, an assessment in a total amount that is sufficient in the commissioner's

opinion to (a) meet the expenses of the department in administering this division and other laws relating to credit unions or the

credit union business that are not otherwise provided for and (b) provide a reasonable reserve for contingencies.

14351. (a) The amount of the annual assessment on any credit union holding a certificate authorizing it to act as a credit union

shall be the greater of (1) one thousand five hundred dollars ($1,500) or (2) the sum of the products determined by multiplying

(A) increments of the credit union's total assets by (B) percentages of the base assessment rate, according to the following

table:

Total Assets Percentage of Base

(In millions) Assessment Rate

First $3 85.0%

Next $3 30.0%

Next $4 12.5%

Excess over $10 11.0%

(b) The base assessment rate for each annual assessment shall be fixed by the commissioner but shall not exceed two dollars

and twenty cents ($2.20) per one thousand dollars ($1,000) of total assets.



Colorado: 11-30-106. Examinations - reports - powers of commissioner.

(1) (a) Credit unions shall be under the supervision of the commissioner. Every credit union shall be examined by the

commissioner at least once during any eighteen-month period. The commissioner shall assess each credit union an amount to

cover the expenses of the division attributable to the supervision of state-chartered credit unions subject to the commissioner's

jurisdiction. The amount assessed shall be determined according to a schedule or schedules or any other method established by

the commissioner to be appropriate, but the assessment shall be at the same rate for all credit unions; except that the

commissioner may establish a separate rate schedule for corporate and central credit unions. The commissioner may waive the

payment of all or a portion of the assessment with respect to the year in which a charter is issued or cancelled or in which a

final distribution is made in liquidation.

(b) The commissioner shall establish the division's annual assessment to be collected at least semiannually in such amounts as

are sufficient to generate the moneys appropriated by the general assembly to the division for each fiscal year.

Connecticut: Sec. 36a-65. (Formerly Sec. 36-12a). Assessment of expenses of Department of Banking. State Banking Fund. Fees. (a) The

commissioner shall annually, on or after July first for the fiscal year commencing on said July first, collect pro rata based on

asset size from each Connecticut bank and each Connecticut credit union an amount sufficient in the commissioner’s judgment

to meet the expenses of the Department of Banking, including a reasonable reserve for contingencies, provided the

commissioner shall not collect such amount from a newly organized Connecticut credit union until July first following the third

full calendar year after issuance by the commissioner of such credit union’s certificate of authority. Such assessments and

expenses shall not exceed the budget estimates submitted in accordance with section 36a-13. Such assessments may be made

more frequently than annually at the discretion of the commissioner. Such assessments for any fiscal year shall be reduced pro

rata by the amount of any surplus from the assessments of prior fiscal years, which surplus shall be maintained in accordance

with subdivision (4) of subsection (b) of this section. The commissioner may reduce any such assessment collected from a

Connecticut bank up to the amount of any assessment for the same fiscal year collected from such bank by another state in

which such bank has established a branch, limited branch or mobile branch. The commissioner may reduce any such

assessment collected from a Connecticut credit union up to the amount of any assessment for the same fiscal year collected

from such credit union by another state in which such credit union has established a branch. Such assessments for any fiscal

year shall be a liability of such banks and credit unions as of the assessment date. Except as provided in this subsection, such

assessments shall not be prorated for any reason.

(b) (1) Each such bank and credit union shall pay the commissioner the amount allocated to it within twenty business days from

the time the commissioner mails a notice to it of the amount due, with an additional two hundred dollars if the amount

allocated is not paid in the time specified. The provisions of this subdivision shall not apply to any person required to pay the

commissioner any fee for license or registration or the whole cost of all examinations made by the commissioner.

Florida: 657.053 Assessments; state credit unions.—Each state credit union shall pay to the office a semiannual assessment equal to

$500 plus 15 cents for each $1,000 of total assets. The amounts of all assessments provided for in this section shall be deemed

to be maximum amounts. The commission has the authority to establish, by rule, and from time to time to change, assessments

in amounts less than the maximum amounts stated in this section.

Georgia: 7-1-41. Prescribing fees; payment procedure.

(a) The department may, by regulation, prescribe annual examination fees, license fees, registration fees, and supervision fees

to be paid by the institutions and entities assigned to the department by this title for regulation, supervision, licensure, or

registration. In addition, the department may, by regulation, prescribe reasonable application and related fees, special

investigation fees, hearing fees, mortgage loan fees, and fees to provide copies of any book, account, report, or other paper



filed in its office or for any certification thereof or for processing any papers as required by this title. Such fees may vary by type

of institution regulated and nature of the work performed.

(b) The department, in its discretion, may require the payment of such fees in any manner deemed to be efficient, including

collection through automated clearing-house arrangements or other electronic means, so that the state receives funds no later

than the date the payment is required to be made.

Hawaii: §412:2-105 Fees and assessments. (a) The commissioner may charge an examination fee based upon the cost per hour per

examiner for all financial institutions examined by the commissioner or the commissioner's staff. Effective July 1, 1995, the

hourly fee shall be $40. After July 1, 1996, the commissioner may establish, increase, decrease, or repeal the hourly fee when

necessary pursuant to rules adopted in accordance with chapter 91.

(b) In addition to the examination fee, the commissioner may charge any financial institution examined or investigated by the

commissioner or the commissioner's staff, additional amounts for travel, per diem, mileage and other reasonable expenses

incurred in connection with the examination.

(c) The commissioner shall bill the affected financial institution for examination fees and expenses as soon as feasible after the

close of the examination or investigation. The affected financial institution shall pay the division of financial institutions within

thirty days following the billing. All such payments shall be deposited to the compliance resolution fund established pursuant to

section 26-9(o). All disputes relating to these billings between the affected financial institution and the commissioner shall be

resolved in accordance with the procedures for contested cases under chapter 91.

(d) The commissioner, by rules adopted in accordance with chapter 91, may set reasonable fee amounts to be collected by the

division in connection with its regulatory functions, including, without limitation, any fees for renewals, applications, licenses,

and charters. Unless otherwise provided by statute, all such fees shall be deposited into the compliance resolution fund

established pursuant to section 26-9(o).

(e) A Hawaii financial institution that fails to make a payment required by this section shall be subject to an administrative fine

of not more than $250 per day for each day it is in violation of this section, which fine, together with the amount due under this

section, may be recovered pursuant to section 412:2-611 and shall be deposited into the compliance resolution fund

established pursuant to section 26-9(o).

Idaho: On or before February 15 of each calendar year, the director shall fix and collect from each credit union an assessment fee

based upon the total assets of the credit union as of December 31 of the previous calendar year, which fees shall not exceed

the amounts set forth in the following schedule:

TOTAL ASSETS FEE

$50,000 or less ................... $50.00 + $1.00 per thousand dollars of assets

Over $50,000 and not over $100,000 ........................ $100.00 + $.99 per thousand dollars of assets in excess of $50,000

Over $100,000 and not over 250,000 ........................ $149.00 + $.94 per thousand dollars of assets in excess of $100,000

Over $250,000 and not over 1 million ...................... $291.00 + $.89 per thousand dollars of assets in excess of $250,000

Over $1 million and not over 2 million ...................... $958.00 + $.80 per thousand dollars of assets in excess of $1 million

Over $2 million and not over 5 million ...................... $1,758.00 + $.61 per thousand dollars

of assets in excess of $2 million

Over $5 million and not over 8 million ...................... $3,588.00 + $.48 per thousand dollars

of assets in excess of $5 million

Over $8 million ................... $5,028.00 + $.35 per thousand dollars of assets in excess of $8 million

The director may in his discretion at any time accept in lieu of any portion of his examinations the findings or result of an audit

by a firm of independent certified public accountants or other qualified person or firm approved by the director. The cost of the

audit shall be borne by the credit union.

All fees, fines, examination and miscellaneous charges collected by the director pursuant to the Idaho credit union act shall be

deposited into the finance administrative account pursuant to section 67-2702, Idaho Code.



Illinois: (205 ILCS 305/12) (from Ch. 17, par. 4413)

Sec. 12. Regulatory fees.

(1) For the fiscal year beginning July 1, 2007, a credit union regulated by the Department shall pay a regulatory fee to the

Department based upon its total assets as shown by its Year-end Call Report at the following rates or at a lesser rate

established by the Secretary in a manner proportionately consistent with the following rates and sufficient to fund the

actual administrative and operational expenses of the Department's Credit Union Section pursuant to subsection (4) of

this Section:

TOTAL ASSETS REGULATORY FEE $25,000 or less .......... $100 Over $25,000 and not over

$100,000 ............... $100 plus $4 per $1,000 of assets in excess of $25,000 Over $100,000 and not over



$1,000,000 .............. $1,300 plus $1.40 per $1,000 of assets in excess of $500,000 Over $1,000,000 and not

over $5,000,000........... $2,000 plus $0.50 per $1,000 of assets in excess of $1,000,000 Over $5,000,000 and not

over $30,000,000 .......... $4,540 plus $0.397 per $1,000 assets in excess of $5,000,000 Over $30,000,000 and not over

$100,000,000............. $14,471 plus $0.34 per $1,000 of assets in excess of $30,000,000 Over $100,000,000 and not

over $500,000,000 ......... $38,306 plus $0.17 per $1,000 of assets in excess of $100,000,000 Over $500,000,000 ......... $106,406 plus $0.056 per $1,000 of assets in excess of $500,000,000

(2) The Secretary shall review the regulatory fee schedule in subsection (1) and the projected earnings on those fees on an

annual basis and adjust the fee schedule no more than 5% annually if necessary to defray the estimated administrative and

operational expenses of the Credit Union Section of the Department as defined in subsection (5). However, the fee schedule

shall not be increased if the amount remaining in the Credit Union Fund at the end of any fiscal year is greater than 25% of the

total actual and operational expenses incurred by the State in administering and enforcing the Illinois Credit Union Act and

other laws, rules, and regulations as may apply to the administration and enforcement of the foregoing laws, rules, and



regulations as amended from time to time for the preceding fiscal year. The regulatory fee for the next fiscal year shall be

calculated by the Secretary based on the credit union's total assets as of December 31 of the preceding calendar year. The

Secretary shall provide credit unions with written notice of any adjustment made in the regulatory fee schedule.

(3) A credit union shall pay to the Department a regulatory fee in quarterly installments equal to one-fourth of the regulatory

fee due in accordance with the regulatory fee schedule in subsection (1), on the basis of assets as of the Year-end Call Report of

the preceding calendar year. The total annual regulatory fee shall not be less than $100 or more than $141,875, provided that

the regulatory fee cap of $141,875 shall be adjusted to incorporate the same percentage increase as the Secretary makes in the

regulatory fee schedule from time to time under subsection (2). No regulatory fee shall be collected from a credit union until it

has been in operation for one year. The regulatory fee shall be billed to credit unions on a quarterly basis and it shall be payable

by credit unions on the due date for the Call Report for the subject quarter.

(4) The aggregate of all fees collected by the Department under this Act shall be paid promptly after they are received,

accompanied by a detailed statement thereof, into the State Treasury and shall be set apart in the Credit Union Fund, a special

fund hereby created in the State treasury. The amount from time to time deposited in the Credit Union Fund and shall be used

to offset the ordinary administrative and operational expenses of the Credit Union Section of the Department under this Act. All

earnings received from investments of funds in the Credit Union Fund shall be deposited into the Credit Union Fund and may be

used for the same purposes as fees deposited into that fund. Moneys deposited in the Credit Union Fund may be transferred to

the Professions Indirect Cost Fund, as authorized under Section 2105-300 of the Department of Professional Regulation Law of

the Civil Administrative Code of Illinois.

Notwithstanding provisions in the State Finance Act, as now or hereafter amended, or any other law to the contrary, the

Governor may, during any fiscal year through January 10, 2011, from time to time direct the State Treasurer and Comptroller to

transfer a specified sum not exceeding 10% of the revenues to be deposited into the Credit Union Fund during that fiscal year

from that Fund to the General Revenue Fund in order to help defray the State's operating costs for the fiscal year.

Notwithstanding provisions in the State Finance Act, as now or hereafter amended, or any other law to the contrary, the total

sum transferred from the Credit Union Fund to the General Revenue Fund pursuant to this provision shall not exceed during

any fiscal year 10% of the revenues to be deposited into the Credit Union Fund during that fiscal year. The State Treasurer and

Comptroller shall transfer the amounts designated under this Section as soon as may be practicable after receiving the direction

to transfer from the Governor.

(5) The administrative and operational expenses for any fiscal year shall mean the ordinary and contingent expenses for that

year incidental to making the examinations provided for by, and for administering, this Act, including all salaries and other

compensation paid for personal services rendered for the State by officers or employees of the State to enforce this Act; all

expenditures for telephone and telegraph charges, postage and postal charges, office supplies and services, furniture and

equipment, office space and maintenance thereof, travel expenses and other necessary expenses; all to the extent that such

expenditures are directly incidental to such examination or administration.

(6) When the balance in the Credit Union Fund at the end of a fiscal year exceeds 25% of the total administrative and

operational expenses incurred by the State in administering and enforcing the Illinois Credit Union Act and other laws, rules,

and regulations as may apply to the administration and enforcement of the foregoing laws, rules, and regulations as amended

from time to time for that fiscal year, such excess shall be credited to credit unions and applied against their regulatory fees for

the subsequent fiscal year. The amount credited to each credit union shall be in the same proportion as the regulatory fee paid

by such credit union for the fiscal year in which the excess is produced bears to the aggregate amount of all fees collected by

the Department under this Act for the same fiscal year.

(7) (Blank).

(8) Nothing in this Act shall prohibit the General Assembly from appropriating funds to the Department from the General

Revenue Fund for the purpose of administering this Act.

(9) For purposes of this Section, "fiscal year" means a period beginning on July 1 of any calendar year and ending on June 30

of the next calendar year.




Schedule of fees; classification of assets; changes or modifications of fees; excess costs of examinations

Sec. 5. (a) As used in this section, "assets" means the assets of a financial institution as disclosed by a report made by the

financial institution at the end of the year immediately preceding the fiscal year in which a fee is fixed under this section.

(b) The department shall fix and collect, on an annual basis, a schedule of fees for the services rendered and the duties

performed by the department in the administration of financial institutions.

(c) The fees may not exceed the comparative cost to the department in the administration of financial institutions. In

determining the costs, the department may classify the assets of financial institutions and fix fees at different rates for the

examination, supervision, regulation, and liquidation of the classes of assets, based on the proportionate cost and expense

incurred by the department in making examinations and in the administration of financial institutions.

(d) The fees shall be charged and collected until changed or modified by the department. A change or modification of fees

may not be adopted more often than one (1) time each state fiscal year. A modified schedule of fees is effective on the first day

of the state fiscal year following the fiscal year in which the modification is adopted.

(e) Administrative charges included in the fee are in addition to charges collected under other statutes.

(f) If the reasonable costs of performing an examination of a financial institution exceed the fees established under this

section, the financial institution shall pay the excess costs not later than thirty (30) days after receipt of an invoice from the

department. The department may impose a fee, in an amount fixed by the department under this section, for each day that the

excess costs are not paid, beginning on the first day after the thirty (30) day period described in this subsection.

Iowa: 533.112 Annual fees — examination fees — delinquencies.

1. Each state credit union shall pay an annual fee as determined by the superintendent based on the actual cost of operating

the credit union division. The superintendent shall consider recommendations from the review board and from state credit

unions in determining the amount of the annual fee.

2. Each state credit union, corporation, credit union service organization, or other person subject to an examination pursuant

to section 533.113 shall pay an examination fee. The superintendent shall establish by rule an examination fee schedule.

3. a. Failure of a state credit union, corporation, credit union service organization, or other person to pay a fee pursuant to

subsection 1 or 2 shall result in the fee being considered delinquent and a penalty equal to five percent of the original fee may

be assessed for each day or part of a day the payment remains delinquent.

b. A fee delinquency under this subsection by a corporation, credit union service organization, or other person may result in

the superintendent collecting the delinquent fee and penalty from the state credit union owning shares or investments or

having business transactions or a relationship with such corporation, credit union service organization, or other person.

c. A fee delinquency under this subsection may also constitute grounds for revocation of the certificate of approval of the

credit union to operate in this state.


examination, fees.

(f) Each credit union shall pay to the administrator a fee for examination, established in

accordance with this subsection. Prior to June 1 of each year, the administrator, after advising the

credit union council, shall establish such annual fees as the administrator determines to be sufficient

to meet the budget requirements of the department of credit unions for the fiscal year beginning July

1. Such fees shall be due and payable 30 days after receipt of billing from the department of credit

unions.




(1) Credit unions shall be under the supervision of the commissioner and shall make financial reports to the commissioner as

and when he or she may require, but at least annually. Each credit union shall be subject to examination by, and for this

purpose shall make its books and records accessible to, any person designated by the commissioner. The commissioner shall fix

a scale of examination fees to be paid by credit unions, giving due consideration to the time and expense incident to such

examinations and to the ability of credit unions to pay such fees, which fees shall be assessed and paid by each credit union

promptly after completion of such examination.

Louisiana: §126. Assessments on financial institutions; disposition of fees; creation of special fund

Every financial institution subject to the jurisdiction of the office of financial institutions shall be assessed by the commissioner

as provided by law or regulation. The commissioner shall have the authority to promulgate regulations affecting assessments

and fees levied upon financial institutions and to amend existing regulations to change assessments periodically as he deems

necessary and appropriate

Maine: §214. Revenues and expenses

1. Examination expenses. The expenses of the bureau necessarily incurred in the examination of financial institutions under its

supervision shall be chargeable to such financial institutions as follows:

A. Every financial institution shall be assessed for the actual expenses incurred by the bureau in connection with any

examination or investigation, whether regular or special, such assessments to include the proportionate part of the salaries of

the examiners while engaged at such institutions and the board, room and travel expenses of such persons while away from

home.

B. Such assessment shall be made by the superintendent as soon as feasible after the close of such examination or investigation

and notice thereof shall forthwith be sent to such institution.

C. All assessments so made shall be paid to the Treasurer of State by such institutions within 30 days following such notice.

2. Assessment on financial institutions.

A. To provide for the balance of the reasonable expenses incurred to fulfill the bureau's duty pursuant to this Title, including

general regulatory costs, overhead, transportation and general office and administrative expenses, the superintendent shall

assess each financial institution under the superintendent's supervision at the annual rate of at least 6¢ for each $1,000 of the

total of average assets, as defined by the superintendent. The frequency of assessment may coincide with the frequency of

filing periodic financial reports with the bureau but may not be more frequent than quarterly. The superintendent may raise

the minimum assessment rate of 6¢ for each $1,000 of the total of average assets by promulgating rules pursuant to section

251 at such time as economic conditions warrant such an increase. In no event may the assessment be less than $25.

The superintendent shall notify the financial institution of the assessment. The assessment must be paid to the Treasurer of

State within 10 days following the assessment date.

Maryland: § 6-712. Credit unions with assets of $300,000 or greater; annual assessment

(a) In general. -- This section applies only to a credit union with assets of $ 300,000 or greater.

(b) Annual assessment. --

(1) The Commissioner shall impose an annual assessment on each credit union as provided in this subsection to cover the

expense of regulating credit unions.

(2) The Commissioner shall assess each credit union the sum of:

(i) $ 1,000; and

(ii) 8 cents for each $ 1,000 of the assets of the credit union over $ 1,000,000.

(3) The assessment shall be based on assets stated in the credit union's most recent financial report.

(c) When payable. -- A credit union shall pay the assessment imposed under this section to the Commissioner on or before the



March 1 after the assessment is imposed.

Massachusetts: Section 2. The commissioner, either personally or by his examiners, or such other of his assistants as he may designate, shall, at

least once in each calendar year, or at least once in an eighteen month period in the case of a bank which is well capitalized as

defined in 12 USC 1831(o) and the regulations promulgated thereunder, make a thorough examination of the books, securities,

cash, assets and liabilities and ascertain the condition of all banks under his supervision, including Massachusetts and out-of-

state branches, the ability of each bank to fulfill its obligations, and also whether it has complied with all applicable law; and he

may also, whenever he considers it expedient, make or cause to be made, at the expense of the bank, such further

examinations or audits as he deems advisable, by his examiners or by certified public accountants or public accountants not

connected with such bank approved by him and subject to his direction, and he may also, whenever he considers it expedient,

appoint individuals certified as real estate appraisers by the society of real estate appraisers, or similar successor society, to

make, at the expense of the bank, appraisals of real estate securing loans of the bank and at the time he names such appraiser,

he shall so notify the bank and advise it of the date on which he has requested submission of the appraisal report to him,

whereupon the bank may then appoint an appraiser who may submit the report of his appraisal to the commissioner on the

same date.

An annual charge shall be paid by each bank under the supervision of the commissioner which shall be based on the total

amount of assets held by each such bank as stated on the report to the commissioner filed most recent to the thirty-first day of

December of each preceding year which will be sufficient to reimburse the commonwealth for all direct and indirect costs of

the operations of the office of the commissioner of banks, and each such bank shall within thirty days notice from the

commissioner of the charge assessed, pay such charge. Said notice shall be issued annually by the commissioner on the thirty-

first day of January of each calendar year. Such charge shall be determined annually by the commissioner of administration,

with the assistance of the commissioner, under the provisions of section three B of chapter seven and may contain such

classifications and differentiations based upon the financial condition of such banks as he deems appropriate; provided,

however, that such classifications of individual institutions shall be exempt from the provisions of section ten of chapter sixty-

six. Such annual charge shall be paid, on a pro rata basis, by the successor of any bank which is merged into, or whose assets

are purchased and its deposit liabilities are assumed by a federally chartered or out-of-state bank during the preceding year. No

annual charge shall be collected from a bank which has been in operation for one year or less. The aggregate amount of charges

assessed by the division of banks for a fiscal year under the provisions of this section and other applicable fee provisions shall

not be less than the aggregate amount of revenues for such fiscal year as estimated for the division of banks or its successor

agency in section one B of the general appropriation act for such fiscal year.

The cost of the annual examination or audit of each bank under the supervision of the commissioner shall be paid by said bank

and shall include, subject to the limitations herein contained, all monies expended by the commonwealth for personal services

and such proportion of the general overhead of the division of banks and loan agencies, including travel, hotel and meal

allowances, and other direct and indirect costs, as is determined by the commissioner to be attributable to such examination or

audit. Such costs shall include an amount equal to the cost of fringe benefits as established by the commissioner of

administration pursuant to section six B of chapter twenty-nine. The charge for each examiner participating in such examination

or audit shall be determined annually by the commissioner of administration under the provision of section three B of chapter

seven, and shall be paid by each bank within thirty days notice from the commissioner of the charge for such examination or

audit. In addition to the foregoing, a charge, also determined under the aforementioned provision, and which shall be based on

the total amount of assets held by each bank as stated on the report to the commissioner of banks filed most recent to

December thirty-first of each preceding year, may be assessed annually which together with the charge authorized by the

preceding sentence will be sufficient to reimburse the commonwealth for the direct and indirect costs of the operations of the

office of the commissioner of banks, and each bank shall within thirty days notice from the commissioner of the charge

assessed under the preceding sentence, pay to him such charge. Such costs shall include an amount equal to the cost of fringe

benefits as established by the commissioner of administration pursuant to section six B of chapter twenty-nine. Said notice shall

be issued annually by the commissioner on January thirty-first. No examination charge shall be collected hereunder from a bank

which has been in operation for one year or less nor shall a charge in excess of one-half of the amount actually attributable to



such examination or audit be assessed against a bank which has been in operation for more than one year but less than two

years.

The commissioner or the person making the examination shall, at the time of any such examination, have free access to the

vaults, investments, cash, books and papers. In making any examination which in the opinion of the commissioner is necessary,

the commissioner shall have access to the vaults, books and papers of each of the bank’s affiliates and may make such

examination of the affairs of its affiliates as may be necessary to disclose fully the relations between such bank and its affiliates

and the effect of this relationship upon the affairs of the bank.

The expense of the examination of the affairs of any affiliate of a bank, determined as provided in this section, shall be paid by

the affiliate examined. For the purposes of this section, the term “affiliate” shall include holding company affiliates, but shall

not include any person or corporation the control of which is held by a bank when acting in a fiduciary capacity.

The commissioner shall preserve a full record of each such examination of a bank including a statement of its condition. Such

records, and information contained in the reports of such banks, other than information required by law to be published or to

be open to the inspection of the public, shall be open only to the inspection of the commissioner, his examiners and assistants,

and such other officers of the commonwealth as may have occasion and authority to inspect them in the performance of their

official duties. Nothing herein contained shall be construed to prohibit the required production of such records, and

information contained in the reports of such banks, before any court of this commonwealth or any master or auditor appointed

by any such court, in any criminal or civil proceeding therein pending, affecting such bank, its officers, directors or employees.

Copies of reports of such examinations shall be furnished to such bank for its use only and shall not be exhibited to any other

person, organization or agency without the prior written approval of the commissioner. The commissioner may, in his

discretion, furnish to the chief national bank examiner, the Federal Reserve Bank of Boston, the Federal Deposit Insurance

Corporation, the Depositors Insurance Fund, the Cooperative Central Bank, the Massachusetts Credit Union Share Insurance

Corporation, the National Credit Union Administration, the Office of Thrift Supervision, or any successor to such entities, any

other bank regulatory or law enforcement agency, or the banking departments of other states or foreign countries, such

information, reports and statements relating to the institutions under his supervision as he deems appropriate.

Michigan: 490.201 Supervision by administrator; administration of laws; annual operating fee; limitation; report filed by domestic credit

union; delinquent fee; waiver; amendment to bylaws or certificate of organization; examination of accounts, books, and

records; "records" defined.

Sec. 201.

(1) The commissioner shall administer the laws of this state relating to credit unions transacting business in this state and shall

supervise domestic credit unions, and foreign credit unions other than federal credit unions transacting business in this state.

Each domestic credit union shall report its financial condition as required by the commissioner.

(2) The commissioner shall charge an annual operating fee to each domestic credit union. All of the following apply to the

annual operating fee:

(a) Subject to subdivision (d), the commissioner shall establish a fee amount that is sufficient to defray the estimated expenses

of the credit union division of the office of financial and insurance services in performing all credit union examinations and the

supervision of domestic credit unions.

(b) The commissioner shall invoice each domestic credit union for the fee before July 1 of each year and each domestic credit

union shall pay the operating fee before July 16 of that year.

(c) The commissioner shall compute the fee based on the total assets of the domestic credit union on December 31 of the

previous year as shown on the report of the domestic credit union filed with the commissioner under subsection (1).

(d) The amount of the fee is the greater of $500.00 or the sum of all of the following:

(i) A base fee established by the commissioner of not less than $1.00 or more than $3.50 per $1,000.00 of assets up to

$500,000.00.

(ii) A fee of 40% of the base fee per $1,000.00 of assets greater than $500,000.00 up to $1,000,000.00.

(iii) A fee of 30% of the base fee per $1,000.00 of assets greater than $1,000,000.00 up to $5,000,000.00.

(iv) A fee of 20% of the base fee per $1,000.00 of assets greater than $5,000,000.00 up to $10,000,000.00.

(v) A fee of 10% of the base fee per $1,000.00 for all assets greater than $10,000,000.00.



Minnesota: 46.131 ASSESSMENTS AND FEES FOR FINANCIAL INSTITUTIONS.

Subdivision 1.Examination fee authority.

Examination fees of the Department of Commerce shall be assessed against financial institutions in accordance with the

provisions of this section.

Subd. 2.Assessment authority.Each bank, trust company, savings bank, savings association, regulated lender, industrial loan and

thrift company, credit union, motor vehicle sales finance company, debt management services provider, debt settlement

services provider, and insurance premium finance company organized under the laws of this state or required to be

administered by the commissioner of commerce shall pay into the state treasury its proportionate share of the cost of

maintaining the Department of Commerce.

Subd. 3.Assessment allocation.A proportionate share of all annual office expenses of the commissioner of commerce and the

portion of the general support costs of the Department of Commerce and of the cost of services provided by the attorney

general that is attributable to the commissioner of commerce, as well as all actual expenses of the examiners in the field,

excepting salaries, shall be allocated to each industry affected, and referred to in subdivision 4, as assessments and on the basis

of the total time devoted to each.

Subd. 4.General assessment basis.Assessments shall be made by the commissioner against each institution within the industry

on an equitable basis, according to the total assets of each institution as of the end of the previous calendar year.

Subd. 5.Application and adjustment of fees.If the income from the fees provided for herein during any fiscal year shall be more

than 103 percent of such expenditures for that year, any excess above such sum of 103 percent may be carried over to

succeeding years in order to cover any deficit below 103 percent which may occur in such succeeding years. If the income from

the fees provided for herein during any fiscal year shall produce less than the expenditures for that year, the Department of

Commerce in adjusting its schedule of fees for use in the next fiscal year shall fix the fees so as to produce income in the

amount of the expenditures for the latter year plus the amount of the difference between the expenditures for the first year

referred to herein and the total income from such fees during the year and plus three percent of the total expenditures for

both the latter and the first year referred to herein.

Subd. 6.[Repealed, 1981 c 220 s 18]

Subd. 7.Fiscal year assessments.Such assessments shall be levied on July 1, 1965, and at the beginning of each fiscal period

beginning July 1 and ending June 30 thereafter, and shall be based on the total estimated expense as herein referred to during

such period.

Subd. 8.Examination fee amounts.In addition to such assessments, each institution referred to in subdivision 2, with the

exception of credit unions under $25,000, shall pay an examination fee upon the request of the commissioner and to be based

on the salary cost of examiners or assistants, and at such an average rate per day or fraction thereof so as to provide for the

total cost of such examinations.

Subd. 9.Payment requirements.These assessments or fees shall be paid by the institution examined within 20 days after a

statement of the amount has been submitted to the institution examined by the commissioner of commerce and, if not so paid,

shall bear interest at the rate of interest provided for by section 549.09. The penalty shall be payable to the commissioner on

request.

Subd. 10.Change fee.Each financial institution described in subdivision 2 shall pay a fee of $50 to the commissioner of

commerce upon application to the commissioner for approval of a change in its certificate, charter, articles of incorporation,

bylaws, powers or license. Money collected by the commissioner under this subdivision shall be deposited in the general fund.

Mississippi: [From and after July 2, 1997, Section 81-13-17 shall read as follows:]

81-13-17. Each credit union shall be examined at least once per eighteen-month period by the Commissioner of Banking and

Consumer Finance. The commissioner may conduct other examinations and the commissioner or examiners of the Department

of Banking and Consumer Finance shall at all times be given free access to all the books, papers, securities and other sources of

information in respect to the credit union. For that purpose he shall have the power to subpoena and examine personally or



through one (1) of his deputies, or examiners, duly authorized, witnesses on oath and documents pertaining to the business of

the credit union. The fees for examination shall be determined by the commissioner by assessing the association according to

the cost based on the average daily cost of all examiners of the department, plus actual and necessary expenses. The

commissioner shall have the authority to prescribe supervision fees at the rate of Ten Cents (10) per One Thousand Dollars

($1,000.00) of assets, and not be less than Twenty Dollars ($20.00) nor more than Two Hundred Dollars ($200.00) a year for

overhead expenses of the department in supervising the credit union * * *. The commissioner shall send each such credit union

a statement of the amount due by it and shall specify how the same shall be paid. The fees shall be due and payable in

accordance with the statement so furnished and shall be paid within ten (10) days after the date fixed for their payment. Such

fees shall constitute a lien on the assets of the credit union until paid. Any such credit union failing to make payment within ten

(10) days as herein provided shall be liable to a penalty of ten percent (10%) of the amount in default for each day thereafter.

In the event the commissioner's office, because of work load or other good sufficient cause, is unable to conduct an annual

examination of a credit union as provided for in this section, the commissioner is hereby authorized to accept the examination

of any credit union performed by the National Credit Union Administration or by any succession thereto * * *. However, in no

case shall the commissioner be authorized to accept any such examination of any credit union performed by the NCUA or its

successor for any two (2) consecutive eighteen-month periods.

Missouri: Annual fee--how computed--division of credit unions fund, created, uses--salary schedule of division employees to be maintained*. 370.107. 1. Every credit union organized pursuant to section 370.010 and operating pursuant to the laws of this state shall pay to the department of revenue a fee determined by the director based on the total assets of the credit union as of December thirty-first of the preceding fiscal year. One-half of the fee shall be paid on or before July fifteenth, and the balance shall be paid on or before January fifteenth of the next succeeding year. The maximum fee shall be calculated according to the following table:

Total Assets Fee

Under $2,000,000 . . . . . . . . . $0.125 per $1,000

of assets up to a

maximum of $250 $ 2,000,000 or more but less than $5,000,000 . . . . $250, plus $1 per

$1,000 of assets in

excess of $2,000,000 $ 5,000,000 or more but less than $10,000,000 . . . . $3,250, plus $0.35 per

$1,000 of assets in

excess of $5,000,000 $10,000,000 or more but less than $25,000,000 . . . $5,000, plus $0.20 per

$1,000 of assets in

excess of $10,000,000 $25,000,000 or more . . . . . . . $8,000, plus $0.15 per

$1,000 of assets in

excess of $25,000,000.



The shares of one credit union which are owned by another credit union shall be excluded from the assets of the first credit union for the purpose of computing the supervisory fee levied pursuant to this section. All fees assessed shall be accounted for as prepaid expenses on the books of the credit union. 2. The state treasurer shall credit such payments, including all fees and charges made pursuant to this chapter to a special fund to be known as the "Division of Credit Unions Fund", which is hereby created and which shall be devoted solely and exclusively to the payment of expenditures actually incurred by the division and attributable to the regulation of credit unions. Any amount remaining in such fund at the end of any fiscal year and any earnings attributed to such fund shall not be transferred and placed to the credit of the general revenue fund as provided in section 33.080 but shall be used, upon appropriation by the general assembly, for the payment of such expenditures of the division in the succeeding fiscal year and shall be applied by the division to the reduction of the amount to be assessed to credit unions in such succeeding fiscal year. In the event two or more credit unions are merged or consolidated, such excess amounts shall be credited to the surviving or new credit union. 3. The expense of every regular and every special examination, together with the expenses of administering the laws pertaining to credit unions, including salaries, travel expenses, supplies and equipment, credit union commission expenses of administrative and clerical assistance, legal costs and any other reasonable expense in the performance of its duties, and an amount not to exceed fifteen percent of the above-estimated expenses to pay the actual costs of rent, utilities, other occupancy expenses and other supporting services furnished by any department, division or executive office of this state and an amount sufficient to cover the cost of fringe benefits shall be paid by the credit unions of this state by the payment of fees yielded by this section. 4. The director of the division of credit unions shall prepare and maintain an equitable salary schedule for examiners, professional staff, and support personnel that are employees of the division. Personnel employed by the division shall be compensated according to the following schedule, provided that such expense of administering the credit union laws is assessed and paid in accordance with this section. The positions and classification plan for such personnel attributed to the examination of the state credit unions shall allow for a comparison of such positions with similar examiner positions at federal credit union regulatory agencies. State credit union examiner positions shall not be compensated at more than ninety percent parity for corresponding federal positions for similar geographic locations in the state as determined by the director of the division of credit unions. *This section was amended by both H.B. 379 and S.B. 318 during the First Regular Session of the 93rd General Assembly, 2005. Due to possible conflict, both versions are printed here.

Annual fee--how computed--division of credit unions fund, created, uses--equitable salary schedule to be maintained*. 370.107. 1. Every credit union organized pursuant to section 370.010 and operating pursuant to the laws of this state shall pay to the department of revenue a fee determined by the director based on the total assets of the credit union as of December thirty-first of the preceding fiscal year. One-half of the fees shall be paid on or before July fifteenth, and the balance shall be paid on or before January fifteenth of the next succeeding year. The maximum fee shall be calculated according to the following table:

Total Assets Fee

Under $2,000,000 . . . . . . . . . $0.125 per $1,000

of assets up to a

maximum of $250 $ 2,000,000 or more but less than $5,000,000 . . . . . $250, plus $1 per

$1,000 of assets in

excess of $2,000,000 $ 5,000,000 or more but less than $10,000,000 . . . $3,250, plus $0.35 per

$1,000 of assets in

excess of $5,000,000 $10,000,000 or more but less than $25,000,000 . . . $5,000, plus $0.20 per

$1,000 of assets in

excess of $10,000,000 $25,000,000 or more . . . . . . $8,000, plus $0.15 per



$1,000 of assets in

excess of $25,000,000.

The shares of one credit union which are owned by another credit union shall be excluded from the assets of the first credit union for the purpose of computing the supervisory fee levied pursuant to this section. All fees assessed shall be accounted for as prepaid expenses on the books of the credit union. 2. The state treasurer shall credit such payments, including all fees and charges made pursuant to this chapter to a special fund to be known as the "Division of Credit Unions Fund", which is hereby created and which shall be devoted solely and exclusively to the payment of expenditures actually incurred by the division and attributable to the regulation of credit unions. Any amount remaining in such fund at the end of any fiscal year and any earnings attributed to such fund shall not be transferred and placed to the credit of the general revenue fund as provided in section 33.080 but shall be used, upon appropriation by the general assembly, for the payment of such expenditures of the division in the succeeding fiscal year and shall be applied by the division to the reduction of the amount to be assessed to credit unions in such succeeding fiscal year. In the event two or more credit unions are merged or consolidated, such excess amounts shall be credited to the surviving or new credit union. 3. The expense of every regular and every special examination, together with the expenses of administering the laws pertaining to credit unions, including salaries, travel expenses, supplies and equipment, credit union commission expenses of administrative and clerical assistance, legal costs and any other reasonable expense in the performance of its duties, and an amount not to exceed fifteen percent of the above-estimated expenses to pay the actual costs of rent, utilities, other occupancy expenses and other supporting services furnished by any department, division or executive office of this state and an amount sufficient to cover the cost of fringe benefits shall be paid by the credit unions of this state by the payment of fees yielded by this section. 4. The director of the division of credit unions shall prepare and maintain an equitable salary schedule for examiners, professional staff, and support personnel who are employees of the division. Personnel employed by the division shall be compensated according to this schedule, provided that such expense of administering the credit union laws is assessed and paid in accordance with this section. The positions and classification plan for such personnel attributed to the examination of the state credit unions shall allow for a comparison of such positions with similar examiner positions at federal credit union regulatory agencies. State credit union examiner positions shall not be compensated more than ninety percent of parity for corresponding federal positions for similar geographic locations in Missouri as determined by the director of the division of credit unions. Personnel employed by the division shall be compensated according to this schedule, provided that such expense of administering the credit union laws is assessed and paid in accordance with this section. *This section was amended by both H.B. 379 and S.B. 318 during the First Regular Session of the 93rd General Assembly, 2005. Due to possible conflict, both versions are printed here.

Montana: 32-3-201. Department of administration.

(2) The department may adopt rules for the administration of this chapter and may establish chartering, supervisory, and

examination fees. Fees collected must be deposited in the state special revenue fund for the use of the department in its

supervision function.

Nebraska: 8-601. Director of Banking and Finance; employees; financial institutions; levy of assessment authorized.

The Director of Banking and Finance may employ deputies, examiners, attorneys, and other assistants as may be necessary for

the administration of the provisions and purposes of Chapter 8, articles 1, 2, 3, 5, 6, 7, 8, 9, 10, 13, 14, 15, 16, 19, 20, 21, 23, 24,

and 25; Chapter 21, article 17; and Chapter 45, articles 1, 2, 3, 7, 9, and 10. The director may levy upon financial institutions,

namely, the banks, trust companies, building and loan associations, savings and loan associations, savings banks, and credit

unions, organized under the laws of this state, and holding companies, if any, of such financial institutions, an assessment each

year based upon the asset size of the financial institution, except that in determining the asset size of a holding company, the

assets of any financial institution or holding company otherwise assessed pursuant to this section and the assets of any

nationally chartered financial institution shall be excluded. The assessment shall be a sum determined by the director in

accordance with section 8-606 and approved by the Governor.

8-606. Department of Banking and Finance; costs of examination of financial institution or entity; billing; travel costs.



(1) As soon as reasonably possible following the examination of a financial institution or entity pursuant to the laws specified in

section 8-601, the Department of Banking and Finance shall bill the financial institution or entity the costs of the examination.

Such costs may include an hourly fee for examiner time, which shall be determined once each year by the Director of Banking

and Finance, with the approval of the Governor, and which shall take into consideration whether the financial institution or

entity is subject to the assessment.

(2) In case an extra examination or an investigation of any financial institution or entity becomes necessary and is made

pursuant to the laws specified in section 8-601, the costs thereof shall be paid by the financial institution or entity examined or

investigated.

(3) In the case of a financial institution or entity organized under the law of a state other than this state or a financial institution

or entity organized under the law of this state but which maintains an office in another state or states, travel expenses involved

in conducting an examination or investigation may also be billed to the financial institution or entity, if the examination or

investigation involves travel outside this state.

Nevada: NRS 678.270 Powers of Commissioner concerning regulations and legal actions. The Commissioner may: 1. Adopt regulations, subject to the advice and consent of the Credit Union Advisory Council, establishing chartering, supervisory and examination fees; and 2. Cause appropriate legal action to be taken in the district court of any county to secure an injunction or order restraining a violation of this chapter. NRS 658.101 Rates charged by Commissioner for supervision and examination.

1. The Commissioner shall establish by regulation rates to be paid by banks and other financial institutions for supervision

and examinations by the Commissioner or the Division of Financial Institutions.

2. In establishing a rate pursuant to subsection 1, the Commissioner shall consider:

(a) The complexity of the various examinations to which the rate applies;

(b) The skill required to conduct the examinations;

(c) The expenses associated with conducting the examination and preparing a report; and

(d) Any other factors the Commissioner deems relevant.

New Hampshire: 383:11 Payment of Cost of Examination. –

The bank commissioner shall, each fiscal year, charge and collect from the institutions, the condition and management of which

he or she is required to examine under the provisions of RSA 383:9, and which he or she supervises under the provisions of RSA

361-A, RSA 397-A, RSA 397-B, RSA 399-A, RSA 399-D, and RSA 399-G, the total amount appropriated for the bank

commissioner's department. Said sum shall be collected as follows:

I. From each such institution examined a sum equal to the product of the average daily rate of overall salary costs, including

the benefits portion thereof, and expenses of all examining personnel employed in making examinations pursuant to the

provisions of RSA 383:9, multiplied by the number of personnel days devoted to the examination of the particular institution,

provided, however, that no such institution shall be charged or pay for less than one full day. Sums collected under this section

shall be payable to the state treasurer as restricted revenue and credited, in accordance with the banking department's

program appropriation unit designation, to the appropriation for the bank commissioner or the consumer credit administration

division.

II. The balance of said sum remaining after the charges provided for in paragraph I have been deducted from the total sum

shall be charged and collected as follows:

(a) From banks and credit unions. Each state-chartered savings bank, commercial bank, trust company, cooperative bank,

building and loan association, credit union, Morris Plan bank, or similar institution required to be examined under the

provisions of RSA 383:9 shall be charged and pay such proportion of said balance applicable to such institutions under the

banking department's program appropriation unit designation, as its total assets bear to the total assets of all such institutions



as shown by their reports to the commissioner as of June 30 preceding such charges, except that the percent of the fiduciary

assets used in the calculation of the total assets of each institution and all such institutions shall be determined as follows:

(1) Fiduciary assets up to $5,000,000,000 shall be calculated at 25 percent;

(2) Fiduciary assets that are between $5,000,000,000 and $10,000,000,000, shall be calculated at 20 percent;




(6) Fiduciary assets that are between $25,000,000,000 and $50,000,000,000, shall be calculated at 2.5 percent;

(7) Fiduciary assets that are $50,000,000,000 or more, shall be calculated at one percent.

(b) From non-depository lenders, debt adjusters, money transmitters, and brokers. Each licensee and registrant subject to

the supervision of the bank commissioner under the provisions of RSA 397-A, RSA 397-B, RSA 399-A, RSA 399-D, RSA 399-G, and

sales finance companies under RSA 361-A, shall be charged and shall pay such proportion of said balance applicable to the

consumer credit administration division under the banking department's program appropriation unit designation as the gross

revenue received from the total dollar volume of loans made, originated, funded, or brokered, or debt adjustment contracts

entered into, or mortgage servicing fees received or money transmitted from each licensee's New Hampshire business bears to

the total gross revenue received from the total dollar volume of all such loans made, originated, funded, or brokered, or debt

adjustment contracts entered into, or mortgage servicing fees received, or money transmitted, from New Hampshire business

by such licensees during the preceding calendar year ending December 31, as shown by their annual reports to the

commissioner.

III. Payments of the charges provided for by paragraphs I and II shall be made within 60 days of receipt of the notice thereof.

IV. Any excess collected in any fiscal year under the provisions of this section shall be used to reduce the sum required to be

collected in the next succeeding fiscal year.

New Jersey: 17:13-113. Expenses of examination

Every credit union examined by the commissioner shall pay the actual expenses of the examination, and the commissioner

may maintain an action against any credit union to recover the fees and expenses herein provided for.

New Mexico: 58-11-5. Examinations; supervision fees.

D. Each credit union shall annually pay to the director a supervision fee in accordance with the following schedule:

If the credit union's total assets are —

The fee is —

Over

But Not Over

This Amount

Plus

Per

Of Excess Over

-0-

49,999

400.00

50,000

100,000

400.00

1.7227

1,000

50,000

100,001

250,000

400.00

1.1021

1,000

100,000

250,001

500,000

400.00

0.9095

1,000

250,000

500,001

1,000,000

575.13

0.5136

1,000

500,000

1,000,001

2,000,000

833.42

0.3959

1,000

1,000,000

2,000,001

5,000,000

1,226.04

0.3470

1,000

2,000,000

5,000,001

20,000,000

2,267.21

0.1800

1,000

5,000,000

20,000,001

50,000,000

4,898.96

0.1680

1,000

20,000,000



50,000,001

100,000,000

9,854.85

0.1551

1,000

50,000,000

100,000,001

17,642.07

0.1423

1,000

100,000,000

The supervision fee shall be calculated as of December 31. The fee shall be paid on or before the March 1 following the asset computation. For failure to pay the supervision fee when due, unless excused for cause by the director, the credit union shall pay to the division fifty dollars ($50.00) for each day of its delinquency. The director may prescribe lower supervision fees by regulation and in determining those fees, he may use criteria other than the total assets of the credit union paying the fee.

E. If at any time the director deems it necessary to examine a credit union more than once in any calendar year and if the credit union is determined to have violated the Credit Union Act [58-11-1NMSA 1978] or other state laws or federal laws or regulations, the credit union shall pay to the director reimbursement of the actual costs of that examination or those examinations.

New York: § 17. Expenses of department; assessments.

2. All general expenses, including in addition to the direct costs of personal service, the cost of maintenance and operation, the cost of retirement contributions made and workers' compensation premiums paid by the state for or on account of personnel, rentals for space occupied in state owned or state leased buildings and all other direct or indirect costs, incurred in connection with the supervision of any person or entity licensed, registered, or incorporated or otherwise formed pursuant to this chapter shall be charged to and paid by them in such proportions as the superintendent shall deem just and reasonable. The provisions of this subdivision shall not be applicable to a bank holding company, as that term is defined in article three-A of this chapter. The superintendent shall require that partial payments of the charges for expenses of each fiscal year commencing on or after April first, nineteen hundred eighty-three shall be paid on March tenth of the preceding fiscal year and on June tenth, September tenth and December tenth of the fiscal year, or on such other dates as the superintendent may prescribe. Each such payment shall be equal to twenty-five per centum of the charges, or such other per centum or per centums as the superintendent may prescribe, for the fiscal year as estimated by the superintendent. The balance of the expenses shall be charged and paid upon the determination of the actual amount due. An overpayment of charges resulting from the requirements of this subdivision shall be refunded or at the option of the assessed shall be applied as a credit against the charges for the succeeding fiscal year. As an alternative, if the estimated annual charge for the fiscal year is equal to or less than the annual minimum assessment set by the superintendent, the superintendent may require full payment to be made on or before September thirtieth or such other date of the fiscal year as the superintendent may determine. 3. The expenses incurred in making examinations of, or for special services performed on account of, any bank holding company, as that term is defined in article three-A of this chapter, or any other person or entity licensed, registered, or incorporated or otherwise formed pursuant to this chapter, shall be assessed as provided in subdivision two of this section; provided, however, the superintendent, in his or her sole discretion, may determine, with respect to expenses incurred in the making of any specific examination or investigation, or the performing of any special services, that any such expense shall be assessed against and paid by the bank holding company or any other person or entity licensed, registered, or incorporated or otherwise formed pursuant to this chapter for which they were incurred or performed.

North Carolina:

§ 54‑109.14. Fees.

(a) Each credit union subject to supervision and examination by the Administrator of Credit Unions, including credit unions

in process of voluntary liquidation, shall pay into the office of the Administrator of Credit Unions twice each year, in the months

of January and July, supervision fees, except those credit unions which liquidate or convert its charter shall pay into the office of

the Administrator of Credit Unions, to the date of dissolution, pro rata supervision fees. Examination fees shall be paid

promptly upon receipt of the examination report and invoice.

The Administrator of Credit Unions, subject to the advice and consent of the Credit Union Commission, shall, on or before

December 1 of each year, determine and fix the scale of supervisory and examination fees to be assessed during the next

calendar year.



No credit union shall be required to pay any supervisory fee until the expiration of 12 months from the date of the issuance of

a certificate of incorporation to such credit union.

(b) Moneys collected under this section shall be deposited with the State Treasurer of North Carolina and expended, under

the terms of the Executive Budget Act, to defray expenses incurred by the office of the Administrator of Credit Unions in

carrying out its supervisory and auditing functions.

(c) All revenue derived from fees will be placed into a special account to be administered solely for the operation of the

Credit Union Division.

North Dakota: 6-06-08. State credit union board to supervise credit unions - Reports - Examinations - Fees. 1. Credit unions and the permanent loan funds of credit unions, if any, are under the supervision of the commissioner. Credit unions shall report to the commissioner when called by the commissioner and at least four times each year. The commissioner shall prescribe the forms for the reports. At the discretion of the commissioner, a call may be complied with by submission of a copy of the call reporte-mailed directly to the department of financial institutions or by other electronic means of transmission. The call reports are due within thirty days of the call, or according to the deadlines published on the form NCUA 5300, whichever comes first. The commissioner may call for special reports from any credit union whenever in the commissioner's judgment it is necessary to obtain complete knowledge of the condition of the credit union. Every credit union that fails to make and transmit any report required in pursuance of this section shall forfeit and pay to the state a penalty of up to five hundred dollars for each day of delinquency, not to exceed two thousand five hundred dollars. At the discretion of the commissioner, all or part of this penalty may be waived if the reports are submitted within three days after the due date required by this section. 2. Credit unions must be examined at least once each twenty-four months by the commissioner. In lieu of the examinations herein required, the commissioner may accept any examination made or obtained by the national credit union administration and may conduct a joint examination with the national credit union administration. 3. If it is determined through an examination or otherwise that the credit union is violating the provisions of this chapter, or is insolvent, the state credit union board may serve notice on the credit union of its intention to revoke the charter. If such violations continue for a period of fifteen days after such notice, the board may revoke the charter and take possession of the business and property of such credit union and shall maintain possession then until such time as it permits the reinstatement of the charter and the continuation of business by the credit union, or until its affairs finally are liquidated. The board may take similar action if any required report remains in arrears for more than fifteen days. 4. Every state credit union, including any "corporate central" or "corporate" credit union, placed under the jurisdiction and control of the state credit union board and the commissioner by the provisions of this title shall pay a yearly assessment. This assessment is to be determined by the state credit union board as necessary to fund that portion of the department's budget relating to the regulation of state-chartered credit unions. The assessment must be paid to the state treasurer within thirty days of each June thirtieth. Credit unions that have not been examined by the commissioner or the state credit union board for three years prior to any assessment date are not required to pay the assessment. The state treasurer shall report the payments of fees to the commissioner, and if any credit union is delinquent more than twenty days in making payment, the board may make an order suspending the functions of the delinquent credit union until payment of the amount due. The commissioner may assess a penalty of five dollars for each day that the penalty is delinquent. The examination fee for any "corporate central" or "corporate" credit union shall be charged by the department at an hourly rate to be set by the commissioner, sufficient to cover all reasonable expenses of the department associated with the examination. All fees and penalties under this section must be paid to the state treasurer and deposited in the financial institutions regulatory fund.

Ohio: 1733.32 Powers of superintendent of financial institutions.

(E)(1) Except as provided in division (E)(2) of this section, each credit union doing business in this state shall remit, semiannually

and within fifteen days after billing, to the treasurer of state, a supervisory fee in an amount determined by the superintendent

and confirmed by the credit union council. The supervisory fee described in division (E)(1) of this section shall be based on a

percentage of the gross assets of the credit union as shown by its last annual financial report filed with the superintendent in

accordance with division (C) of this section. The minimum supervisory fee shall be determined by the superintendent and

confirmed by the credit union council.



Oklahoma: § 2001.2. Powers of Board - Administrator; powers and duties - Failure to comply with Bank Commissioner's orders or

requirements

The Board may adopt and promulgate, from time to time, a fee schedule for the processing of submissions by credit unions.

Any payments received pursuant to the provisions of this paragraph shall be deposited to the revolving fund for the State

Banking Department created in Section 211.1 of this title;

10. Charge and collect assessments from each credit union under its supervision on each One Thousand Dollars ($1,000.00) of

assets, or major fraction thereof, at rates established by the Board. The assessments shall be paid annually to the State Banking

Department no later than the fifth day of February in each year. All assessments and all fees shall be deposited in the revolving

fund for the State Banking Department pursuant to the provisions of Section 211.1 of this title. Effective January 1, 2007, and

each year thereafter, ten percent (10%) of all assessments collected pursuant to this paragraph shall be deposited to the

General Revenue Fund of the State Treasury. The State Credit Union Board may charge and collect assessments on an annual

basis and may, in addition to any annual assessment, charge and collect a special assessment from each credit union, at rates

established by the Board; and

11. Charge and collect from each credit union under its supervision an annual fee of One Thousand Dollars ($1,000.00) which

shall be deposited in the Oklahoma State Banking Department revolving fund created pursuant to Section 211.1 of this title.

Oregon: 723.114 Annual fees paid by credit unions. (1) Each credit union shall pay to the Director of the Department of Consumer and

Business Services each year a fee set in a schedule the director adopts by rule. The fee shall be paid by the date set by the

director in the rule establishing the schedule.

(2) In addition to any fee collected under subsection (1) of this section, whenever the director devotes any extra attention to

the affairs of a credit union, either upon determination by the director or upon request of the credit union, the fee for the extra

service shall be the actual cost of the extra service.

(3) The director shall set or change the fee schedule described in subsection (1) of this section after considering:

(a) The amount of other moneys available for the director to use in performing the director’s duties;

(b) The costs the director will incur in performing the director’s duties in the year in which the director will collect the fee;

and

(c) The amount the director needs to establish and maintain a reasonable emergency fund.

Pennsylvania: § 503. Regulation by department. (a) General rule.--Credit unions shall be under the supervision of the department. The department is hereby authorized and empowered to issue general rules and regulations and specific orders for the protection of members of credit unions, for insuring the conduct of the business of credit unions on a safe and sound basis and for the effective enforcement of this title. Credit unions shall report to the department as often as may be required by it and at least annually on forms supplied by the department for that purpose. Supplementary reports may be required by the department from time to time. Credit unions shall be examined as often as may be required by the department and at least annually, and the department may use such other methods of assuring itself of the condition of the credit unions as it shall deem advisable. The cost of all such examinations and inspections shall be paid by the credit union. A credit union shall also pay annually its proportionate share of the overhead expense of the department determined by regulation of the department. The department shall give written notice to each credit union of the costs of examinations, investigations and the credit union’s proportionate share of the overhead expenses of the department. The credit union shall pay the amount of such costs within 30 days of the notice. If payment is not made within 30 days of the notice, the department may assess a penalty fee of $150 for that 30-day period and each successive 30-day period of delinquency. For failure to file reports when due, unless excused for cause, a credit union shall pay to the department $100 for each day of its delinquency.

Rhode Island: § 19-4-2 Periodic examinations – Access to records



(b) The total cost of an examination made pursuant to this section shall be paid by the examined party, and shall include the

following expenses:

(1) One hundred fifty percent (150%) of the salary and benefits of the examining personnel engaged in the examination and

shall be paid to the director to and for the use of the state. The assessment shall be in addition to any taxes and fees otherwise

payable to the state. The total examination fees under this section payable in any one year shall not exceed one hundred

thousand dollars ($100,000) for any one regulated institution;

(2) All reasonable technology costs related to the examination process. Technology costs shall include the actual cost of

software and hardware utilized in the examination process and the cost of training examination personnel in the proper use of

the software or hardware; and

(3) All necessary and reasonable education and training costs incurred by the state to maintain the proficiency and

competence of the examination personnel. All such costs shall be incurred in accordance with appropriate state of Rhode Island

regulations, guidelines and procedures.

(c) Expenses incurred pursuant to subsections (b)(2) and (b)(3) of this section shall be allocated equally to each regulated

institution no more frequently than annually and shall not exceed an annual average assessment of seven hundred fifty dollars

($750) per regulated institution for any given three (3) calendar year period. All revenues collected pursuant to this section shall

be deposited as general revenues. That assessment shall be in addition to any taxes and fees otherwise payable to the state.

(d) The director or the director's designee is authorized to accept in his or her discretion the report of any examination

conducted by any federal banking regulatory or federal deposit insuring agencies or other state banking regulatory agency in

lieu of an examination by the director or his or her designee.

South Carolina: SECTION 34-26-270. Fees to defray administration, supervision, examination and other expenses of annual examination of

credit union.

(1) The board shall establish annual supervisory fees to be paid by credit unions. Such fees shall defray, as far as practicable, the

administrative, supervisory, examining, and other expenses of the annual examination.

(2) Any such fees established shall be in accordance with a graduated scale on the basis of assets and shall be payable annually.

Tennessee: 45-4-1002. Examinations — Examiners — Supervision fee.

(c) (1) Each credit union shall pay an annual supervision fee into the state treasury upon notice from the commissioner. All

moneys so collected by the commissioner shall be used in the administration of the department of financial institutions and for

no other purpose. The supervision fee shall be assessed against each credit union on a graduated scale in proportion to its

assets.

45-4-1210. Supervision by commissioner of financial institutions — Fee.

(b) The corporation shall pay an annual supervision fee equal in amount to one half (½) of the fee calculated to be due in

accordance with § 45-4-1002(c)(1) from a no corporate credit union having assets equal in amount to the corporation.

45-4-1904. Foreign credit unions.

(e) Whenever the laws of any other state of the United States shall impose a supervisory fee or any other charge upon the

assets or deposits of credit unions chartered under the laws of this state, the credit unions chartered under the laws of the

foreign states shall be required to pay to the commissioner an annual supervision fee based upon the assets of the foreign

credit unions located within Tennessee, including loans made by the credit unions to persons or entities that resided in

Tennessee at the time the loans were first made. The fee shall be calculated in accordance with § 45-4-1002(c)(1).

Texas: Sec. 15.402. ADOPTION OF RULES.

(c) The commission by rule shall establish reasonable and necessary fees for the administration of this chapter and Subtitle D, Title 3. Sec. 15.4032. EXAMINATION OF RELATED ENTITIES.



(b) The commissioner may collect a fee from an examined contractor or organization in connection with each examination to

cover the cost of the examination or may collect that fee from the credit unions that use the examined contractor.

Utah: 7-1-401. Fees payable to commissioner.

(1) Except for an out-of-state depository institution with a branch in Utah, a depository institution under the jurisdiction of

the department shall pay an annual fee:

(a) computed by averaging the total assets of the depository institution shown on each quarterly report of condition for the

depository institution for the calendar year immediately proceeding the date on which the annual fee is due under Section 7-1-

402; and

(b) at the following rates:

(i) on the first $5,000,000 of these assets, the greater of:

(A) 65 cents per $1,000; or

(B) $500;

(ii) on the next $10,000,000 of these assets, 36 cents per $1,000;

(iii) on the next $35,000,000 of these assets, 17 cents per $1,000;

(iv) on the next $50,000,000 of these assets, 14 cents per $1,000;

(v) on the next $200,000,000 of these assets, 11 cents per $1,000;

(vi) on the next $300,000,000 of these assets, 7 cents per $1,000; and

(vii) on all amounts over $600,000,000 of these assets, 2.625 cents per $1,000.

(7) (a) Per diem assessments for an examination shall be calculated at the rate of $55 per hour: (i) for each examiner; and (ii) per hour worked.

(b) For an examination of a branch or office of a financial institution located outside of this state, in addition to the per diem

assessment under this Subsection (7), the institution shall pay all reasonable travel, lodging, and other expenses incurred by

each examiner while conducting the examination.

Vermont: § 30202. Fees and department expenses

The provisions of sections 18 and 19 of this title shall apply to credit unions in the same manner as they apply to financial

institutions. Except for fees related to the formation of a credit union, formation of a credit union service organization, and

formation of a corporate credit union, credit unions with less than $30 million in assets shall not be charged more than $100.00

per service for the services described in subsection 19(a) of this title.

Virginia: § 6.2-1310. (Effective October 1, 2010) Fees for examination, supervision, and regulation.

In order to defray the costs of an examination pursuant to § 6.2-1309 and of supervision and regulation by the Commission,

every credit union shall pay an annual fee, to be calculated in accordance with a schedule set by the Commission. The schedule

shall bear a reasonable relationship to the total assets of various individual credit unions, to the actual cost of their respective

examinations, and to other factors relating to their supervision and regulation. Fees shall be assessed pursuant to this section

on or before March 1 each year. All fees so assessed shall be paid by the credit union to the state treasury on or before March

31 following the assessment.


Powers of director.

(6) The director may charge fees to credit unions and other persons subject to examination and investigation under this chapter and chapter 31.13 RCW, and to other parties where the division contracts out its services, in order to cover the costs of the



operation of the division of credit unions, and to establish a reasonable reserve for the division. The director may waive all or a portion of the fees.

West Virginia: §31C-1-8. Assessments.

The commissioner of banking shall charge and collect from each credit union and pay into a special revenue account in the state

treasury for the department of banking an annual assessment payable on the first day of July computed upon the total assets of

the credit union shown on the report of condition of the credit union as of the last business day in December of the previous

year as is set out in section eight, article two, chapter thirty-one-a of this code.

Wisconsin: 186.235(14) 14) Annual assessments and examination costs.

186.235(14)(a)

(a) The office of credit unions, with the approval of the credit union review board, shall fix the amounts to be assessed against

credit unions for their supervision and examinations under this chapter. Amounts shall be determined and paid as provided in

this subsection.

186.235(14)(b)

(b) On or before July 15 of each year, each credit union shall pay to the office of credit unions an annual assessment, which shall

represent as nearly as practicable its fair share of the maintenance of the office of credit unions.

186.235(14)(c)

(c) In addition to the annual assessment, each credit union shall be charged for the cost of every examination made. The

examination charge shall include the prorated amount of salaries and expenses of all examiners and other employees actively

engaged in the examination, the salaries and expenses of any other person whose services are required in connection with the

examination and any examination report and any other expenses which may be directly attributable to the examination. The

examination charge shall be paid on the day on which the examination is completed.

186.235(14)(d)

(d) Failure of any credit union to pay any amount as provided in this subsection shall be grounds for the revocation of the

charter of the credit union failing to make the payment.

186.235(14)(e)

(e) If the amounts collected under this subsection exceed the actual amounts necessary for the supervision and examination of

credit unions in a year, the excess shall be retained by the office of credit unions and applied in reducing the amounts

chargeable for ensuing years.

e) Whenever the laws of any other state of the United States shall impose a supervisory fee or any other charge upon the

assets or deposits of credit unions chartered under the laws of this state, the credit unions chartered under the laws of the

foreign states shall be required to pay to the commissioner an annual supervision fee based upon the assets of the foreign

credit unions located within Tennessee, including loans made by the credit unions to persons or entities that resided in

Tennessee at the time the loans were first made. The fee shall be calculated in accordance with § 45-4-1002(c)(1).

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