26-2141 SUSPENSION. - Idaho Statutes

TITLE 26

BANKS AND BANKING

CHAPTER 21

IDAHO CREDIT UNION ACT

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.