KRS 286.6-092: Failure to make reports or pay charges -- Notice of charges --

Injunctions.

(1) If any credit union fails to make the report prescribed by KRS 286.6 -090 within

fifteen (15) days after it is due, or fails to pay the charges required by this subtitle,

including the charges for delay in filing reports, the commissioner shall give notice

to the credit union of his intention to revoke the certificate of approval of the

corporation. If failure continues for fifteen (15) days after the notice, the

commissioner may, in his discretion, revoke the certificate of approval and take

possession of the property and business of the credit union until such time as the

commissioner permits it to resume business, or until its affairs are liquidated.

(2) If the commissio ner has knowledge or reasonable cause to believe that any credit

union, or any director, officer, employee, agent, or other person participating in the

conduct of the affairs of the credit union has engaged in violations of law, or

charter, bylaw, or admin istrative regulation of the department, or in unsafe or

unsound business practices, or a breach of any written agreement with the

department, the commissioner may issue and serve upon the credit union, director,

officer, employee, agent, or other person a notice of charges containing a statement

of facts with respect to alleged violations or practices and shall fix the time and

place at which an administrative hearing shall be held to determine whether an order

to cease and desist should issue against the c redit union, director, officer, employee,

agent, or other person. The hearing shall be conducted in accordance with KRS

Chapter 13B.

(3) Unless the party or parties so served shall appear at the hearing personally or by a

duly-authorized representative, th ey shall be deemed to have consented to the

issuance of the cease and desist order.

(4) If there is consent, or if upon the record made at any hearing the commissioner shall

find that any violation or unsafe or unsound practice specified in the notice of

charges has been established, the commissioner may issue and serve upon the credit

union, director, officer, employee, agent, or other person a final order to cease and

desist from any violation or practice and, further, to take affirmative action to

correct the conditions resulting from any violation or practice.

(5) If the commissioner shall determine that the violation or practice, as specified in the

notice of charges pursuant to subsection (2) of this section, or the continuation

thereof, is likely to c ause insolvency or substantial dissipation of assets or earnings

of the credit union, or is likely to otherwise seriously prejudice the interests of its

members, the commissioner may issue an emergency order pursuant to KRS

13B.125 requiring the credit uni on, director, officer, employee, agent, or other

person to immediately upon service cease and desist from any violation or practice.

(6) Unless set aside, limited, or suspended, as provided by subsection (7) of this

section, an emergency cease and desist o rder shall remain effective and enforceable

pending completion of the administrative hearing.

(7) Within ten (10) days after service of an emergency cease and desist order, the party

or parties served may apply to the Circuit Court of the residence of the individual or

of the principal office of the credit union for an injunction setting aside, limiting, or

suspending the enforcement, operation, or effectiveness of the order pending

completion of an administrative hearing, and the court shall have jurisdict ion to

issue an injunction.

(8) In the case of violation or threatened violation of, or failure to obey, an emergency

cease and desist order or a cease and desist order issued pursuant to this section, the

commissioner may apply to the Circuit Court of the residence of the individual or of

the principal office of the credit union for an injunction to enforce the order, and it

shall be the duty of the court to issue the injunction.