{"data":{"id":"us-dc/d.c.-code-26-510.05","jurisdiction":"us-dc","citation":"D.C. Code § 26-510.05","heading":"Involuntary liquidation.","body":"(a)\n(1)\nIf the Commissioner determines that a District credit union is bankrupt or insolvent, the Commissioner may issue a notice of involuntary liquidation, revoke the District credit union's charter, and appoint a liquidating agent.\n(2)\nThe District credit union may request the appropriate court to stay execution of the action authorized by this subsection.\n\n(b)\nIn the event of liquidation, the assets of the District credit union or the proceeds from any disposition of assets shall be applied and distributed in the following priority:\n(1)\nSecured creditors up to the value of their collateral;\n(2)\nCosts and expenses of liquidation;\n(3)\nWages due the employees of the District credit union;\n(4)\nTaxes owed to any government unit;\n(5)\nDebts, other than taxes, owed to the United States;\n(6)\nGeneral creditors, and secured creditors to the extent their claims exceed the value of their collateral;\n(7)\nCosts and expenses incurred by creditors in successfully opposing the release of the District credit union from certain debts as allowed by the Commissioner;\n(8)\nShareholders or depositors, to the extent of uninsured share or deposit accounts; and\n(9)\nMembers, to the extent of membership shares.","path":["Title 26. Banks and Other Financial Institutions.","Chapter 5. Credit Unions.","Subchapter I. Credit Union Act of 2020.","Part J. Supervision and Regulation."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/26-510.05","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"87cc851a040f243233015cc5050aa8f3c8d16cbfdef033203c519fe800f972c9","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-26-510.04","next":"us-dc/d.c.-code-26-510.06"},"notice":"GroundRules: Original legal text. Not legal advice."}