7-9-45 - Insurance of shares and deposits -- Security on shares and deposits. - Utah Statutes

7-9-45. Insurance of shares and deposits -- Security on shares and deposits.
(1) Except as provided in Subsection (2), a credit union subject to the jurisdiction of thedepartment shall obtain and maintain insurance on shares and deposits from the National CreditUnion Administration or successor federal deposit insurance agency.
(2) Notwithstanding Subsection 7-1-704(7)(a)(v) and Subsection (1), a credit union maynot be required to obtain federal insurance on shares and deposits if:
(a) the commissioner approves the credit union's election not to obtain federal insuranceon shares and deposits;
(b) as security for the shares and deposits, the credit union maintains securities:
(i) that are issued by or directly and unconditionally guaranteed by:
(A) the United States; or
(B) an agency of the United States;
(ii) that are held in an account with a primary reporting dealer that is:
(A) recognized by the Federal Reserve Bank of New York; and
(B) independent of the credit union;
(iii) that are held in accordance with Title 70A, Chapter 8, Uniform Commercial Code -Investment Securities; and
(iv) in which the department has an express and exclusive security interest; and
(c) the aggregate value of the securities described in Subsection (2)(b) is at all times equalto or greater than 1.15 times the aggregate amount of the shares and deposits of the credit union.
(3) The commissioner may appoint the administrator of the National Credit UnionAdministration as liquidating agent of an insured credit union.
(4) Failure to comply with this section constitutes grounds for supervisory action underChapter 2 or 19.

Amended by Chapter 329, 1999 General Session