(205 ILCS 305/61) (from Ch. 17, par. 4462)
Sec. 61. Suspension.
(1) If the Secretary determines that any credit
union is bankrupt, insolvent, impaired or that it has violated
this Act, or is operating in an unsafe or unsound manner, he shall issue
an order temporarily suspending the credit union's operations for not more than
60 days. The board of directors shall be given notice by
registered or certified mail of such suspension, which notice shall include
the reasons for such suspension and a list of specific violations of the
Act. The Secretary shall also notify
the members of the credit union board of advisors of any suspension. The
Director may assess to the credit union a penalty, not to exceed the
regulatory fee as set forth in this Act, to
offset costs incurred in determining the condition of the credit union's
books and records.
(2) Upon receipt of such suspension notice, the credit union shall cease
all operations, except those authorized by the Secretary, or the Secretary may
appoint a manager-trustee to operate the credit union during the suspension
period. The board of directors
shall, within 10 days of the receipt of the suspension notice,
file with the Secretary a
reply to the suspension notice by
submitting a corrective plan of action or a
request for formal hearing on said action pursuant to the Department's
rules and regulations.
(3) Upon receipt from the suspended credit union of evidence that the
conditions causing the order of suspension have been corrected, and after
determining that the proposed corrective plan of action submitted is
factual, the Secretary shall revoke
the suspension notice, permit the credit union to resume normal operations,
and notify the board of credit union advisors of such action.
(4) If the Secretary determines that the proposed corrective plan of action
will
not correct such conditions,
he may take possession and control of the credit union. The Secretary
may permit the credit union to operate under his direction and
control and may appoint a manager-trustee to manage its affairs until such
time as the condition requiring such action has been remedied, or in the case
of insolvency or danger of insolvency where an emergency requiring expeditious
action exists, the Secretary may involuntarily merge the credit union without
the
vote of the suspended credit union's board of directors or members (hereafter
involuntary merger)
subject
to rules promulgated by the Secretary. No
credit union shall be required to serve as a surviving credit union in any
involuntary merger. Upon the request of the Secretary, a credit union by a vote
of a majority of its board of directors may elect to serve as a surviving
credit union in an involuntary merger. If the Secretary
determines
that
the suspended
credit union should be liquidated, he may appoint a liquidating
agent and require of that person such bond and security as he considers proper.
(5) Upon receipt of a request for a formal hearing, the Secretary shall
conduct proceedings pursuant to rules and regulations of the Department. The credit union may request the appropriate court
to stay execution of such action. Involuntary liquidation or involuntary
merger may not be ordered
prior to the conclusion of suspension procedures outlined in this Section.
(6) If, within the suspension period, the credit union fails to answer
the suspension notice or fails to request a formal hearing, or both,
the Secretary may then (i) involuntarily merge the credit union if the credit
union is insolvent or in danger of insolvency and an emergency
requiring expeditious action exists or (ii) revoke
the credit union's charter, appoint a liquidating
agent and liquidate the
credit union.
(Source: P.A. 97-133, eff. 1-1-12.)
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