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Can you summarize NYCL BNK Article 11-A?
Banking > Credit Union Insurance Fund
Short Summary
The provided legal document governs the administration and operation of a credit union insurance fund. It applies to fifty or more credit unions organized under the provisions of this chapter. The document allows these credit unions to enter into an agreement, subject to the approval of the superintendent, to create a fund for the purpose of insuring the shares of the credit unions. The agreement designates a corporate trustee or a board of trustees to collect, hold, administer, and disburse the fund. The agreement can be continued even if some credit unions cease to be parties. The agreement must be filed with the superintendent to become effective. The document outlines the procedure for resignation, removal, and selection of substitute trustees. It specifies the initial contribution to the fund, subsequent calls for contributions, and the superintendent’s authority to exempt parties from such calls. The document includes provisions for amending, terminating, and liquidating the fund. It grants the superintendent the power to demand payment from the fund in cases of liquidation. The document also exempts the fund and its income from taxation. Credit unions that are parties to the agreement are liable for the payment of contributions. Contributions paid into the fund may be carried as an asset on the books of the parties. No specific penalties are mentioned in this document.
Whom does it apply to?
Fifty or more credit unions organized under the provisions of this chapter
What does it govern?
Administration and operation of a credit union insurance fund
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned in this document.
Jurisdiction
New York