KRS 286.6-705: Voluntary liquidation -- Filing certificate of dissolution.

(1) A credit union may elect to dissolve voluntarily and liquidate its affairs in the

manner prescribed in this section.

(2) The board of directors shall adopt a resolution recommending the credit union be

dissolved voluntarily, and directing that the question of liquidation be submitted to

the members.

(3) Within ten (10) days after the board of directors decides to submit the question of

liquidation to the members, the president shall notify the commissioner and any

government agency or other organization ins uring member accounts thereof in

writing, setting forth the reasons for the proposed liquidation. Within ten (10) days

after the members act on the question of liquidation, the president shall notify the

commissioner and any government agency or other orga nization insuring member

accounts in writing as to the action of the members on the proposal.

(4) As soon as the board of directors decides to submit the question of liquidation to the

members, payments on shares, share certificates, deposits, deposit cert ificates,

withdrawal of shares, making any transfer of shares to loans and interest, making

investments of any kind, and granting loans shall be suspended pending action by

members on the proposal to liquidate. On approval by the members of such

proposal, all such business transactions shall be permanently discontinued.

Necessary expenses of operation shall, however, continue to be paid on

authorization of the board of directors or liquidating agent during the period of

liquidation.

(5) For a credit union t o enter voluntary liquidation, approval by a majority of the

members in writing or by a two -thirds (2/3) majority of the members present at a

regular or special meeting of the members is required. Where authorization for

liquidation is to be obtained at a meeting of the members, notice in writing shall be

given to each member, by first class mail, at least ten (10) days prior to such

meeting.

(6) A liquidating credit union shall continue in existence for the purpose of discharging

its debts, collecting on l oans and distributing its assets, and doing all acts required

in order to wind up its business and may sue and be sued for the purpose of

enforcing such debts and obligations until its affairs are fully concluded.

(7) The board of directors or the liquidat ing agent shall use the assets of the credit

union to pay: first, expenses incidental to liquidation including any surety bond that

may be required; second, any liability due non-members; third, deposits and deposit

certificates as provided in this subtitl e. Assets then remaining shall be distributed to

the members proportionately to the shares held by each member of the date

dissolution was voted.

(8) As soon as the board of directors or the liquidating agent determines that all assets

from which there is a reasonable expectancy of realization have been liquidated and

distributed as set forth in this section, they shall execute a certificate of dissolution

on a form prescribed by the commissioner and file it, together with all pertinent

books and records of the liquidating credit union, with the commissioner,

whereupon such credit union shall be dissolved.