{"data":{"id":"us-ky/krs-286.6-296","jurisdiction":"us-ky","citation":"KRS 286.6-296","heading":"Suspension and removal of officers -- Review of such actions --","body":"Injunction.\n(1) The supervisory committee by a unanimous vote may suspend any member of the\ncredit committee and shall report such action to the board of directors for\nappropriate action.\n(2) The supervisory committee by a unanimous vote may suspend any officer or\nmember of the board of directors until the next members' meeting, which shall be\nheld not less than seven (7) nor more than twenty -one (21) days after such\nsuspension. At such meeting the suspension shall be acted upon by the members.\n(3) Any member of the supervisory committee may be removed by the board of\ndirectors for failure to perform his duties in accordance with this subtitle, the\narticles of incorporation, or the bylaws.\n(4) If the commissioner shall determine that any officer or director of a credit union has\ncommitted any violation of law, administrative regulation, or of a cease and desist\norder which has become final, or has engaged in or participated in any unsafe o r\nunsound practice in connection with the credit union, or has committed or engaged\nin any act, omission, or practice which constitutes a breach of his fiduciary duty as\nsuch officer or director, and the commissioner determines that the credit union has\nsuffered or will probably suffer substantial financial loss or other damages or that\nthe interests of its members could be seriously prejudiced by reason of such\nviolation or practice or breach of fiduciary duty, or that the director or officer has\nreceived financial gain by reason of the violation or practice or breach of fiduciary\nduty, the commissioner may serve upon such director or officer a written notice of\nintention to remove him or her from office. The violation, practice, or breach must\nbe one invol ving personal dishonesty on the part of such director or officer, or one\nwhich demonstrates a willful or continuing disregard for the safety or soundness of\nthe credit union. The written notice shall serve to suspend the officer or director\nfrom office. Su ch suspension shall become effective upon service of such notice\nand, unless stayed by a court in proceedings authorized by subsection (6) of this\nsection, shall remain in effect pending the completion of the administrative\nproceedings under subsection (5)  of this section and until such time as the\ncommissioner shall dismiss the charges specified in such notice or, if an order of\nremoval is issued against the officer or director, the effective date of any such order.\n(5) A notice of intention to remove an o fficer or director from office shall contain a\nstatement of the facts constituting grounds therefor, and shall fix a time and place at\nwhich a hearing will be held thereon. Such hearing shall be fixed for a date not\nearlier than thirty (30) days nor later than sixty (60) days after the date of service of\nsuch notice, unless an earlier date is set by the commissioner at the request of such\nofficer or director and for good cause shown. Unless such officer or director shall\nappear at the hearing in person or b y duly authorized representative, he or she shall\nbe deemed to have consented to the issuance of an order of removal. In the event of\nsuch consent, or if upon the record made at any such hearing the commissioner shall\nfind that any of the grounds specified  in such notice have been established, the\ncommissioner may issue such orders of suspension or removal from office as he or\nshe deems appropriate.\n(6) Within ten (10) days after an officer or director has been suspended from office,\nsuch officer or directo r may apply to the Circuit Court of the residence of the\nindividual or of the principal office of the credit union for a stay of such suspension\npending the completion of the administrative proceedings pursuant to the notice\nserved upon such officer or dir ector, and such court shall have jurisdiction to grant\nsuch stay.\n(7) Any person aggrieved by a final order of the commissioner under subsection (5) of\nthis section may obtain a review of the order by filing in the Circuit Court of the\nresidence of the individual or of the principal office of the credit union a petition of\nappeal within ten (10) days after the rendition of a final order. A copy of the petition\nshall be served upon the commissioner and thereupon the commissioner or the\ncommissioner's agent s hall certify and file in court a copy of the record or other\nevidence upon which the order is entered. No objection to the order may be\nconsidered by the court unless it was argued before the commissioner or there were\nreasonable grounds for failure to do so.\n(8) The commissioner may apply to the Circuit Court of the residence of the individual\nor of the principal office of the credit union for an injunction to enforce any order\nunder subsection (5) of this section and it shall be the duty of the court to i ssue such\ninjunction.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14787","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:13Z","sha256":"c7f99d8dcce7901c70087772ce962353f2a46a61a29237e305c33ad047b54477","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.6-285","next":"us-ky/krs-286.6-305"},"notice":"GroundRules: Original legal text. Not legal advice."}