The Florida Senate

657.257  Guaranty certificates.--

(1)  Every member credit union shall maintain a guaranty certificate issued by the corporation until the accounts of the credit union are insured through the National Credit Union Administration.

(2)  The guaranty certificate issued by the corporation shall evidence the undertaking by the corporation to guarantee accounts of member credit unions to the extent of covered claims subject to such terms and conditions as the board of directors may from time to time prescribe. Guaranty certificates may be regular or provisional.

(a)  Provisional guaranty certificates shall be issued for a period determined by the board of directors, but not less than 6 months nor more than 2 years. A provisional certificate may be renewed for an additional period not to exceed 12 months. There may be only one such renewal period.

(b)  A regular guaranty certificate shall be issued for a continuing and indefinite period.

(c)  The board of directors may cancel any certificate if the board of directors finds that there has been a deterioration since the issuance of the guaranty certificate in the financial condition, adequacy of reserves, application of financial and loan policies, or extent of delinquencies of the member credit union or if the department determines that the credit union is engaging in an unsafe or unsound practice, is violating any provision of chapter 655 or this chapter, or is violating any department rule, department order, or agreement entered into with the department. In the event of cancellation of a regular guaranty certificate, the corporation shall issue to such member credit union a provisional guaranty certificate unless, at the time of such cancellation, the credit union is insolvent and, in such event, the corporation may decline to issue a provisional guaranty certificate.

(3)  If, during the term of a provisional certificate, including any renewal thereof, the member credit union fails to qualify for share insurance through the National Credit Union Administration or a regular guarantee of its accounts and full membership in the corporation, the corporation will notify the department stating, with particularity, the deficiency which prevents the qualification for such share insurance through the National Credit Union Administration or issuance of the regular guaranty certificate, and, thereupon, the department shall institute proceedings to revoke the certificate of organization of such credit union.

(4)  Each member credit union shall surrender the guaranty certificate from the corporation in the following manner:

(a)  A member credit union directed by the department must file a complete application for federal share insurance through the National Credit Union Administration not later than 30 days after April 18, 1991. The department may direct the corporation to assume control or shall order involuntary liquidation of any member credit union that fails to file a complete application within the prescribed time.

(b)  A member credit union must obtain a certificate of insurance issued through the National Credit Union Administration within 42 months after April 18, 1991. The department may extend the period not to exceed 12 months if the department finds that the credit union is making substantial effort to satisfy the conditions precedent to issuance of the certificate of insurance and the credit union is likely to satisfy such conditions within the additional 12-month period. The department may order the involuntary liquidation or merger of any member credit union that fails to timely comply with the provisions of this paragraph.

(c)  A member credit union that receives a certificate of insurance through the National Credit Union Administration must file a copy of the certificate with the department and with the corporation within 10 days after receipt. Upon receipt of the certificate of insurance by the member credit union, the guaranty certificate from the corporation is canceled and neither the member credit union nor the members of the credit union shall have any further claim against the corporation except as otherwise provided in this part.

History.--s. 9, ch. 74-183; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 6, ch. 78-123; ss. 2, 4, 6, ch. 80-258; ss. 2, 3, ch. 81-318; ss. 22, 58, ch. 85-82; ss. 3, 11, 12, ch. 91-17; ss. 1, 3, ch. 91-307; s. 4, ch. 91-429.