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Can you summarize IC 28-7-2.5?
SPECIALIZED FINANCIAL INSTITUTIONS > Conservatorship of Credit Unions
Short Summary
The provided legal document content pertains to the conservatorship of credit unions in Indiana. It outlines the powers and obligations of a conservator appointed under this chapter. The conservator is responsible for taking possession of the books, records, and assets of the credit union and conserving its assets for the benefit of the members, depositors, and other creditors. The conservator is required to give a bond or security as determined by the department. The department has the authority to appoint a private insurance company, the National Credit Union Administration, or any competent and disinterested person as a conservator. The conservator is responsible for reimbursing the department for all amounts expended in connection with the conservatorship, and these expenses are considered a first charge against the assets of the credit union. The conservator is also responsible for paying all other administrative expenses of the conservatorship from the assets of the credit union. The document also covers the actions and requirements related to credit unions placed in conservatorship, including the segregation of post-conservatorship shares, deposits, or assets, and the restrictions on using these assets to liquidate the credit union’s indebtedness. Additionally, the document allows the conservator to borrow money secured by the assets of the credit union to aid in its operation or reorganization. The document also addresses the termination of conservatorship, appointment of a receiver, and liquidation of credit unions, providing the department with the authority to terminate a conservatorship and allow the credit union to resume its business under prescribed terms and conditions. If the department determines that liquidation is in the public interest, it must terminate the conservatorship and apply for the appointment of a receiver. The document concludes by stating that the department may adopt rules to implement this chapter. Overall, these documents apply to credit unions and provide guidelines and procedures for the appointment and responsibilities of conservators, as well as the termination and liquidation of credit unions in conservatorship.
Whom does it apply to?
Credit unions
What does it govern?
Conservatorship of credit unions
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Indiana