The Florida Senate

657.062  Assumption of control by guarantor or insurer.--

(1)  The department may direct the corporation or the National Credit Union Administration, whichever is applicable, to assume control of the property, assets, and business of its member credit union and to operate it subject to the directions of the department:

(a)  Whenever the department finds that the credit union:

1.  Is engaging or has engaged in an unsafe or unsound practice;

2.  Is violating or has violated any provision of this chapter; or

3.  Is violating or has violated any department rule, department order, or written agreement entered into with the department,

in such a manner that the credit union is threatened with imminent insolvency.

(b)  Whenever a majority of the members of the board of directors of the credit union have been removed by the department or shall have resigned.

(2)  Except when prohibited by federal or state law, in the event of assumption of control, the guarantor or insurer may elect the board of directors and the operating committees and may, without penalty or liability, prepay any deposit accounts; terminate any contracts or agreements with employees, independent contractors, or consultants; terminate any contract or agreement with any person to provide goods, products, or services if the performance of such contract would adversely affect the safety or soundness of the credit unions or if such contract was entered into in violation of s. 657.0315(1); and terminate or assign any lease for property. The authority of the guarantor or insurer to continue operation of a credit union shall continue for a period not to exceed 180 days, unless extended by the department for an additional period not to exceed 180 days at the request of the guarantor or insurer, or unless involuntary liquidation proceedings have been initiated by the department. In the event that the guarantor or insurer does assume control pursuant to the direction of the department, a meeting of the credit union shall be called within 180 days, or within the period of extension as approved by the department, for the specific purpose of electing a new board of directors, who shall take office when the guarantor or insurer surrenders control, or considering such other recommendations as the guarantor or insurer and the department may make.

History.--ss. 1, 6, ch. 80-258; ss. 2, 3, ch. 81-318; ss. 17, 58, ch. 85-82; s. 1, ch. 91-307; ss. 1, 97, ch. 92-303.