§ 54-109.93. Liquidation. - North Carolina Statutes

§54‑109.93.  Liquidation.

(a)        A credit union mayelect to dissolve voluntarily and liquidate its affairs in the mannerprescribed in this section.

(b)        The board ofdirectors shall adopt a resolution recommending the credit union be dissolvedvoluntarily, and directing that the question of liquidation be submitted to themembers.

(c)        Within 10 daysafter the board of directors decides to submit the question of liquidation tothe members, the president shall notify the Administrator of Credit Unionsthereof in writing, setting forth the reasons for the proposed action. Within10 days after the members act on the question of liquidation, the presidentshall notify the Administrator in writing as to whether or not the membersapproved the proposed liquidation.

(d)        As soon as theboard of directors decides to submit the question of liquidation to themembers, payment on shares, withdrawal of shares, making any transfer of sharesto loans and interest, making investments of any kind, and granting loans shallbe suspended pending action by members on the proposal to liquidate. Onapproval by the members of such proposal, all such business transactions shallbe permanently discontinued. Necessary expenses of operation shall, however,continue to be paid on authorization of the board of directors or liquidatingagent during the period of liquidation.

(e)        For a credit unionto enter voluntary liquidation, approval by a majority of the members inwriting or by a two‑thirds majority of the members present at a regularor special meeting of the members is required. Where authorization forliquidation is to be obtained at a meeting of the members, notice in writingshall be given to each member, by first‑class mail, at least 10 daysprior to such meeting.

(f)         A liquidating creditunion shall continue in existence for the purpose of discharging its debts,collecting and distributing its assets, and doing all acts required in order towind up its business and may sue and be sued for the purpose of enforcing suchdebts and obligations until its affairs are fully adjusted.

(g)        The board ofdirectors or the liquidating agent shall use the assets of the credit union topay: first, expenses incidental to liquidating including any surety bond thatmay be required; second, any liability due nonmembers; third, deposits andspecial purpose thrift accounts as provided in Articles 14A to 14L of thisChapter. Assets then remaining shall be distributed to the membersproportionately to the shares held by each member as of the date dissolutionwas voted.

(h)        As soon as theboard of directors or the liquidating agent determines that all assets fromwhich there is a reasonable expectancy of realization have been liquidated anddistributed as set forth in this section, the Administrator of Credit Unionsshall issue to such corporation, in duplicate, a certificate of dissolutionwhich shall be filed by the corporation in the office of the register of deedsof the county in which the corporation has its place of business. Thecorporation shall then be dissolved and its certificate of incorporationrevoked. All pertinent books and records of the liquidating credit union shallbe retained by the liquidating agent and/or filed with the Credit UnionDivision and kept for a minimum period not to exceed five years. Theliquidating agent's fee, if any, shall be set by the Administrator of CreditUnions. (1915, c. 115, s. 24; C.S., s. 5224; 1925, c. 73, ss.3, 15; 1935, c. 87; 1957, c. 989, s. 4; 1965, c. 956, s. 1; 1967, c. 823, s.11; 1975, c. 538, s. 1.)