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286.6-405 Credit union insurance on shares and deposits.
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Not later than December 31, 1984, a credit union shall apply for insurance on shares
and deposits as provided by the national credit union administration under Title II of
the Federal Credit Union Act (12 U.S.C. secs. 1781 et seq.), or alternatively, a form
of comparable insurance approved by the commissioner. This requirement does not
apply to a credit union with debt and equity capital consisting primarily of funds
from other credit unions.
A credit union which has been denied a commitment for such insurance shall within
thirty (30) days commence steps to either liquidate, or merge with an insured credit
union, or apply in writing to the commissioner for additional time to obtain an
insurance commitment. The commissioner may grant one (1) or more extensions of
time to obtain the insurance commitment upon satisfactory evidence that the credit
union has made or is making substantial effort to achieve the conditions precedent
to issuance of the commitment.
No credit union shall be granted a charter by the commissioner unless such credit
union has obtained a commitment for insurance of its member share and deposit
accounts.
The commissioner may make available reports of condition and examination
findings to the National Credit Union Administration or to any qualified insuring
organization and may accept any report of examination made on behalf of such
agency or organizations. The commissioner may appoint an official of the National
Credit Union Administration or of any qualified insuring organization as liquidating
agent of an insured credit union.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 736, effective July 15, 2010. -- Created
1984 Ky. Acts ch. 408, sec. 41, effective July 13, 1984.
Formerly codified as KRS 290.405.
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.
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