286.6-705 Voluntary liquidation -- Filing certificate of dissolution.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
A credit union may elect to dissolve voluntarily and liquidate its affairs in the
manner prescribed in this section.
The board of directors shall adopt a resolution recommending the credit union be
dissolved voluntarily, and directing that the question of liquidation be submitted to
the members.
Within ten (10) days after the board of directors decides to submit the question of
liquidation to the members, the president shall notify the commissioner and any
government agency or other organization insuring member accounts thereof in
writing, setting forth the reasons for the proposed liquidation. Within ten (10) days
after the members act on the question of liquidation, the president shall notify the
commissioner and any government agency or other organization insuring member
accounts in writing as to the action of the members on the proposal.
As soon as the board of directors decides to submit the question of liquidation to the
members, payments on shares, share certificates, deposits, deposit certificates,
withdrawal of shares, making any transfer of shares to loans and interest, making
investments of any kind, and granting loans shall be suspended pending action by
members on the proposal to liquidate. On approval by the members of such
proposal, all such business transactions shall be permanently discontinued.
Necessary expenses of operation shall, however, continue to be paid on
authorization of the board of directors or liquidating agent during the period of
liquidation.
For a credit union to enter voluntary liquidation, approval by a majority of the
members in writing or by a two-thirds (2/3) majority of the members present at a
regular or special meeting of the members is required. Where authorization for
liquidation is to be obtained at a meeting of the members, notice in writing shall be
given to each member, by first class mail, at least ten (10) days prior to such
meeting.
A liquidating credit union shall continue in existence for the purpose of discharging
its debts, collecting on loans 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 concluded.
The board of directors or 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 non-members; third, deposits and deposit
certificates as provided in this subtitle. Assets then remaining shall be distributed to
the members proportionately to the shares held by each member of the date
dissolution was voted.
As soon as the board of directors 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 commissioner and file it, together with all pertinent
books and records of the liquidating credit union, with the commissioner,
whereupon such credit union shall be dissolved.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 743, effective July 15, 2010. -- Created
1984 Ky. Acts ch. 202, sec. 2, effective July 13, 1984.
Formerly codified as KRS 290.705.
Legislative Research Commission Note (7/12/2006). In accordance with 2006 Ky. Acts
ch. 247, secs. 38 and 39, this statute has been renumbered as a section of the
Kentucky Financial Services Code, KRS Chapter 286, and KRS references within
this statute have been adjusted to conform with the 2006 renumbering of that code.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.