{"data":{"id":"us-ky/krs-286.6-700","jurisdiction":"us-ky","citation":"KRS 286.6-700","heading":"Suspension of credit union operations.","body":"(1) If it appears that any credit union is bankrupt or insolvent, or that it has willfully\nviolated this subtitle, or is operating in an unsafe or unsound manner, the\ncommissioner may issue an order temporarily suspending the credit union's\noperations for not less than thirty (30) nor more than sixty (60) days. The board of\ndirectors shall be given notice by registered mail of such suspension, which notice\nshall include a list of the reasons for such suspension, or a list of the specific\nviolations of this subt itle, or both. The commissioner shall also notify any\ngovernment agency or other organization insuring the accounts of the credit union\nof any suspension.\n(2) Upon receipt of such suspension notice, the credit union shall cease all operations,\nexcept those authorized by the commissioner. The board of directors shall then file\nwith the commissioner a reply to the suspension notice, and may request a hearing\nto present a plan of corrective actions proposed if it desires to continue operations.\nThe board may request that the credit union be declared insolvent and a liquidating\nagent be appointed.\n(3) Upon receipt from the suspended credit union of evidence that the conditions\ncausing the order of suspension have been corrected, the commissioner may revoke\nthe s uspension notice, permit the credit union to resume normal operations, and\nnotify any interested insuring agency of such action.\n(4) If the commissioner, after issuing notice of suspension and providing an opportunity\nfor a hearing, rejects the credit unio n's plan to continue operations, the\ncommissioner may issue a notice of involuntary liquidation and appoint a\nliquidating agent. The credit union may request the appropriate court to stay\nexecution of such action. Involuntary liquidation may not be ordered  prior to the\nconclusion of suspension procedures outlined in this section.\n(5) If, within the suspension period, the credit union fails to answer the suspension\nnotice or request a hearing, the commissioner may then revoke the credit union's\ncharter, appoint a liquidating agent and liquidate the credit union.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14825","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:13Z","sha256":"b52158c57738b2cd8f66b4fdbf5baedd386fcc6370a3644e27b3a5fae0686e79","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.6-645","next":"us-ky/krs-286.6-705"},"notice":"GroundRules: Original legal text. Not legal advice."}