KRS 286.6-405: Credit union insurance on shares and deposits.

(1) Not later than December 31, 1984, a credit union shall apply for insurance on shares

and deposits as provided by the national credit union administration under Title II of

the Federal Credit Union Act (12 U.S.C. secs. 1781 et seq.), or alternatively, a for m

of comparable insurance approved by the commissioner. This requirement does not

apply to a credit union with debt and equity capital consisting primarily of funds

from other credit unions.

(2) A credit union which has been denied a commitment for such insurance shall within

thirty (30) days commence steps to either liquidate, or merge with an insured credit

union, or apply in writing to the commissioner for additional time to obtain an

insurance commitment. The commissioner may grant one (1) or more exten sions of

time to obtain the insurance commitment upon satisfactory evidence that the credit

union has made or is making substantial effort to achieve the conditions precedent

to issuance of the commitment.

(3) No credit union shall be granted a charter by the commissioner unless such credit

union has obtained a commitment for insurance of its member share and deposit

accounts.

(4) The commissioner may make available reports of condition and examination

findings to the National Credit Union Administration or to any qualified insuring

organization and may accept any report of examination made on behalf of such

agency or organizations. The commissioner may appoint an official of the National

Credit Union Administration or of any qualified insuring organization as liquidating

agent of an insured credit union.