(1) The commissioner may order the merger or sale of a domestic credit union under this section if the commissioner determines that all of the following are met:
    (a) The domestic credit union is in danger of insolvency, in an unsafe or unsound condition, or in danger of becoming in an unsafe or unsound condition.

Terms Used In Michigan Laws 490.251

  • Commissioner: means the director. See Michigan Laws 490.102
  • Credit union: means a domestic or foreign credit union. See Michigan Laws 490.102
  • Domestic credit union: means a cooperative, nonprofit entity organized under this act for the purposes of encouraging thrift among its members, providing a variety of financial services to its members, and providing an opportunity for its members to use and control their own money on a democratic basis in order to improve their economic and social condition. See Michigan Laws 490.102
  • Financial institution: means a credit union, bank, savings bank, or savings and loan association. See Michigan Laws 490.102
  • Foreign credit union: means a credit union organized under the laws of another state or territory of the United States or a federal credit union. See Michigan Laws 490.102
  • Insolvent: means a credit union that meets either of the following:
    (i) It is not able to pay its debts and other obligations, including those related to member shares, as they become due. See Michigan Laws 490.102
    (b) That expeditious action is required by the commissioner to deal with a condition described in subdivision (a).
    (c) That other actions available to the commissioner under this act are not reasonably available to the commissioner with respect to the credit union described in subdivision (a).
    (2) The commissioner may initiate and order an involuntary merger of a distressed credit union with another credit union if both of the following are met:
    (a) The other credit union agrees to a merger.
    (b) If the other credit union is a foreign credit union, it is authorized to complete the merger under any state or federal law applicable to it.
    (3) The commissioner may initiate and order an involuntary merger of a distressed credit union with a financial institution other than a credit union if all of the following are met:
    (a) The commissioner is unable to complete an involuntary merger under subsection (2).
    (b) The other financial institution agrees to a merger.
    (c) The other financial institution is authorized to complete the merger under any state or federal law applicable to it.
    (4) As used in this section, “distressed credit union” means a domestic credit union that the commissioner determines is insolvent, in danger of insolvency, in an unsafe or unsound condition, or in danger of becoming in an unsafe or unsound condition under subsection (1).
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