Whenever the state credit union board determines that a merger or acquisition of any of the credit unions under its supervision is necessary because the institution’s equity is impaired, it is conducting its business in an unsafe, unsound, or unauthorized manner, or it is endangering the interests of shareholders, creditors, or the public, whether or not the institution is insolvent, the state credit union board may, without a hearing, declare an emergency and declare that the institution is a failing institution. Upon such declaration, the state credit union board may authorize the commissioner of financial institutions to immediately take possession of the institution. The board is authorized to do all things necessary to continue service to the affected community, including any merger or acquisition under this chapter or otherwise.

Terms Used In North Dakota Code 6-06-08.2

  • Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
  • board: when used in this title includes the state banking board and the state credit union board. See North Dakota Code 6-01-03
  • Commissioner: means the commissioner of financial institutions. See North Dakota Code 6-01-02
  • Credit union: means a cooperative, nonprofit association organized for the purposes of encouraging thrift among its members, creating a source of credit at a fair and reasonable rate of interest, and providing an opportunity for its members to improve their economic and social condition. See North Dakota Code 6-01-02
  • Record: means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. See North Dakota Code 6-01-02
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49

An institution which is the subject of such a board declaration may ask for a hearing before the state credit union board within five days after service of the state credit union board’s declaration upon it. The application for a hearing must be granted and the hearing must be held not later than ten days after the application is filed. A complete record of the hearing must be established and maintained. On the basis of the hearing, the board shall enter a final order. The institution may appeal the order to the district court of the county in which the credit union is located within ten days after the order is served upon it. The appeal is governed by chapter 28-32 except that the board has ten days after service of the notice of appeal to certify the record, and the district court shall hear the appeal as expeditiously as possible.

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