If there is either a voluntary or involuntary liquidation of a credit union the assets of the credit union or the proceeds from any disposition of the assets shall be applied and distributed in the following order:

Terms Used In Arizona Laws 6-586

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Credit union: means a cooperative nonprofit association that is incorporated under this chapter for the purposes of encouraging thrift among its members and creating a source of credit and other financial services at fair and reasonable cost. See Arizona Laws 6-501
  • Deputy director: means the deputy director of the financial institutions division of the department. See Arizona Laws 6-101
  • Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
  • Governmental unit: means a board, agency, department, authority, instrumentality or other unit or organization of the federal, state, county, municipal or other level of government. See Arizona Laws 6-501
  • Insuring organization: means the national credit union administration or successor organization or any other equivalent insurer approved by the deputy director. See Arizona Laws 6-501
  • United States: includes the District of Columbia and the territories. See Arizona Laws 1-215

1. Taxes owed to the United States, this state or any other governmental unit.

2. Secured creditors up to the fair market value of their collateral, not to exceed the amount of their debt.

3. Costs and expenses of liquidation.

4. Wages due the employees of the credit union.

5. Costs and expenses incurred by creditors in successfully opposing the release of the credit union from certain debts as allowed by the deputy director.

6. Debts owed to the United States or this state.

7. General creditors, secured creditors, to the extent their claims exceed the fair market value of their collateral, and owners of deposit accounts, to the extent the accounts are uninsured.

8. Members, to the extent of uninsured accounts, and the insuring organization that insured the accounts of the credit union.

  Previous section
Next section  
 Article 11 Contents