2006 Minnesota Statutes

52.063 PROCEEDINGS FOLLOWING SUSPENSION, CONTINUATION OF
SUSPENSION, OR CONSENT CEASE AND DESIST ORDER; APPOINTMENT OF
NATIONAL CREDIT UNION ADMINISTRATION BOARD AS RECEIVER.
    Subdivision 1. Proceedings following suspension or continuation of suspension. Upon
receipt of the suspension notice or the notice of the continuation of suspension under section
52.062, subdivision 2 or 3, the credit union shall immediately cease or continue cessation of all
operations except those operations specifically authorized by the commissioner of commerce. If
the notice is given pursuant to determination by the commissioner of commerce after a hearing,
the board of directors shall have 60 days from the receipt of said notice in which to file with the
commissioner of commerce a proposed plan of corrective actions or to request that a receiver
be appointed for the credit union. The commissioner of commerce shall have 30 days from
the receipt of the proposed plan of corrective actions to determine if the proposed corrective
actions are sufficient to correct the deficiencies which formed the basis for the suspension. If the
commissioner of commerce determines that the proposed corrective actions are sufficient, the
suspension shall be lifted and the credit union returned to normal operations under its board of
directors. If the commissioner of commerce believes the proposed corrective actions insufficient,
or if the board has failed to answer the suspension notice, or has requested that a receiver be
appointed, then the commissioner of commerce shall apply to the district court for appointment of
a receiver. The credit union shall have the right, within six months of the receipt of any notice of
suspension or continuation of suspension pursuant to a determination by the commissioner of
commerce after hearing, to appeal to the district court for a ruling as to the validity of such notice.
    Subd. 2. Proceedings following consent cease and desist order. If the commissioner of
commerce and the board of directors of the credit union execute a consent cease and desist order
in lieu of a suspension under section 52.062, subdivision 4, the board of directors of the credit
union may request that the commissioner of commerce seek court appointment of a receiver for
the credit union. The consent cease and desist order must state that the credit union has requested
that the commissioner seek appointment of a receiver.
    Subd. 3. Appointment of National Credit Union Administration Board as receiver. Upon
a request by the commissioner of commerce, the court may appoint the National Credit Union
Administration Board, created by section 3 of the Federal Credit Union Act, as amended, as
receiver of a credit union, without bond, when the deposits of the credit union are to any extent
insured by the National Credit Union Administration Board, and the credit union has had its
operations suspended or has executed a consent cease and desist order with the commissioner
in lieu of a suspension under section 52.062. Notwithstanding any other provisions of law, the
commissioner of commerce may, in the event of the suspension or consent cease and desist order,
tender to the National Credit Union Administration Board the proposed appointment as receiver
of the credit union. If the National Credit Union Administration Board accepts the proposed
appointment and the court appoints the National Credit Union Administration Board as receiver
upon a request by the commissioner, the National Credit Union Administration Board shall have
and possess all the powers and privileges provided by the laws of this state and section 207 of the
Federal Credit Union Act, as amended, with respect to a receiver of a credit union, the board of
directors of the credit union, and its members.
History: 1967 c 51 s 4; 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s 92; 1997 c 157 s 40