1. The director of the division of credit unions may, without notice, notwithstanding the provisions of section 370.140, suspend the charter or take possession and control of the assets, business, books and records and property of every description of any credit union organized under section 370.010, whenever:

(1) He has revoked the certificate of approval of the credit union;

(2) An examination made by the director or one of his or her deputies or examiners reveals that such credit union is insolvent, or that its continuance in business will seriously jeopardize the safety of the deposits of its members or its creditors;

(3) It has failed to comply with any cease and desist order issued by the director under the provisions of section 370.140;

(4) It refuses to permit the director to examine its affairs;

(5) The credit union board of directors requests the director to take possession of the credit union. Thereafter, the director of credit unions shall make a determination as to whether to return the credit union to the board of directors, to merge, to consolidate or to liquidate the credit union as provided in this chapter;

(6) It is conducting its business in an unsafe or unsound manner;

(7) It becomes ineligible for share insurance with the National Credit Union Administration.

2. The director shall retain possession until such time as he may permit it to resume business or its affairs are finally liquidated.

3. During the time the director is in possession, he shall have the power to operate the credit union through the agency of a qualified person, natural or corporate, who shall act under his supervision, and all expenses of the operation, including compensation of the agent and the employees of the agent, shall be paid from the credit union’s funds.

4. While in possession, the director may exercise all of the functions and powers given to credit unions by this chapter or the general laws of this state, and may exercise them through the designated agent authorized in the preceding paragraph, and shall bring and defend actions in the name of the credit union, and do any and all acts and things as are reasonable and necessary to the conservation of the business, property and affairs of the credit union, including calling special meetings of the board of directors, the committees, the members of the credit union, all of which he may attend.

5. When the director takes possession, the credit union officers shall convey to him all books, records, and property of every description of the credit union. Failure of the officers to do so shall be a misdemeanor and upon conviction shall be punishable by a fine of five hundred dollars or by confinement in the county jail for a period of thirty days, or by both the fine and confinement.

6. The director upon taking charge of a credit union shall as soon as practical ascertain the financial condition thereof by an examination of its affairs, and in his discretion, an appraisal of its assets.

7. If it shall appear therefrom that the credit union is in a condition to safely resume business without reorganization, consolidation or merger, and if any question of alleged violation or charges of unlawful action or unauthorized conduct of business has been determined, he shall return the possession, assets and conduct of the business thereof to the directors and officers.

8. If it appears that a reorganization, merger or consolidation will be necessary before the credit union can safely resume business and that such reorganization, merger or consolidation is feasible, he shall propose a plan and attempt to implement it.

9. If it shall appear that the credit union is not in a condition to safely resume business and that reorganization, merger or consolidation is not feasible, he may issue a notice of involuntary liquidation and appoint a liquidating agent to liquidate the credit union.

10. At any time within thirty days after the director has taken possession of the business and property of any credit union under this section, such credit union, with the approval of a majority of its board of directors, may apply to the circuit court in the judicial district in which the principal office of such credit union is located, for an order requiring the director to show cause why the director should not be enjoined from continuing such possession. The court may, upon good cause shown, direct the director to refrain from further proceedings and to surrender such possession of the business and property of the credit union back to the directors and officers.

11. The powers and authority conferred on the director by this section, except in case of voluntary surrender, shall be considered as discretionary and not as mandatory, and so long as the director acts in good faith in the matter, neither he nor his employees or agents shall be held liable civilly or criminally or upon their official bonds in any action taken hereunder or for any failure to act hereunder.