{"data":{"id":"us-ky/krs-286.6-705","jurisdiction":"us-ky","citation":"KRS 286.6-705","heading":"Voluntary liquidation -- Filing certificate of dissolution.","body":"(1) A credit union may elect to dissolve voluntarily and liquidate its affairs in the\nmanner prescribed in this section.\n(2) The board of directors shall adopt a resolution recommending the credit union be\ndissolved voluntarily, and directing that the question  of liquidation be submitted to\nthe members.\n(3) Within ten (10) days after the board of directors decides to submit the question of\nliquidation to the members, the president shall notify the commissioner and any\ngovernment agency or other organization ins uring member accounts thereof in\nwriting, setting forth the reasons for the proposed liquidation. Within ten (10) days\nafter the members act on the question of liquidation, the president shall notify the\ncommissioner and any government agency or other orga nization insuring member\naccounts in writing as to the action of the members on the proposal.\n(4) As soon as the board of directors decides to submit the question of liquidation to the\nmembers, payments on shares, share certificates, deposits, deposit cert ificates,\nwithdrawal of shares, making any transfer of shares to loans and interest, making\ninvestments of any kind, and granting loans shall be suspended pending action by\nmembers on the proposal to liquidate. On approval by the members of such\nproposal, all such business transactions shall be permanently discontinued.\nNecessary expenses of operation shall, however, continue to be paid on\nauthorization of the board of directors or liquidating agent during the period of\nliquidation.\n(5) For a credit union t o enter voluntary liquidation, approval by a majority of the\nmembers in writing or by a two -thirds (2/3) majority of the members present at a\nregular or special meeting of the members is required. Where authorization for\nliquidation is to be obtained at a meeting of the members, notice in writing shall be\ngiven to each member, by first class mail, at least ten (10) days prior to such\nmeeting.\n(6) A liquidating credit union shall continue in existence for the purpose of discharging\nits debts, collecting on l oans and distributing its assets, and doing all acts required\nin order to wind up its business and may sue and be sued for the purpose of\nenforcing such debts and obligations until its affairs are fully concluded.\n(7) The board of directors or the liquidat ing agent shall use the assets of the credit\nunion to pay: first, expenses incidental to liquidation including any surety bond that\nmay be required; second, any liability due non-members; third, deposits and deposit\ncertificates as provided in this subtitl e. Assets then remaining shall be distributed to\nthe members proportionately to the shares held by each member of the date\ndissolution was voted.\n(8) As soon as the board of directors or the liquidating agent determines that all assets\nfrom which there is a reasonable expectancy of realization have been liquidated and\ndistributed as set forth in this section, they shall execute a certificate of dissolution\non a form prescribed by the commissioner and file it, together with all pertinent\nbooks and records of  the liquidating credit union, with the commissioner,\nwhereupon such credit union shall be dissolved.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14826","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:13Z","sha256":"5292aca6e190047cc3621a847a489c4bd685d7d17eae084307324064d574ffd0","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.6-700","next":"us-ky/krs-286.6-710"},"notice":"GroundRules: Original legal text. Not legal advice."}