(1) (a) Credit unions shall be under the supervision of the commissioner. Every credit union shall be examined by the commissioner at least once during any eighteen-month period. The commissioner shall assess each credit union an amount to cover the expenses of the division attributable to the supervision of state-chartered credit unions subject to the commissioner's jurisdiction. The amount assessed shall be determined according to a schedule or schedules or any other method established by the commissioner to be appropriate, but the assessment shall be at the same rate for all credit unions; except that the commissioner may establish a separate rate schedule for corporate and central credit unions. The commissioner may waive the payment of all or a portion of the assessment with respect to the year in which a charter is issued or cancelled or in which a final distribution is made in liquidation.
The commissioner shall establish the division's annual assessment to be collected atleast semiannually in such amounts as are sufficient to generate the moneys appropriated by the general assembly to the division for each fiscal year.
Repealed.
Annually, every credit union shall file a financial report with the commissioner on adate established by the commissioner, in a form prescribed by the commissioner. Said commissioner may require that additional reports be filed. For failure to file a report when due, unless excused for cause, a credit union shall pay to said commissioner a penalty, as prescribed by regulation, for each day of delinquency in filing.
The board may issue rules and regulations necessary for the administration and enforcement of this article and shall reference the same to the sections of this article to which they apply. Such rules and regulations shall be promulgated pursuant to the provisions of article 4 of title 24, C.R.S., and a copy of such rules and regulations and of each order shall be mailed to each credit union in this state at least thirty days prior to the effective date thereof, except as to temporary or emergency rules.
Except in cases where there is a statutory right to appeal to the board, any personaggrieved and directly affected by a final order of the commissioner may obtain judicial review thereof by filing an action for review with the Colorado court of appeals pursuant to section 244-106 (11), C.R.S., within thirty days after the date of issuance of such order.
The commissioner has the power to charge off the whole or any part of any asset ofany credit union which could not be lawfully acquired by it and to reduce the value of any asset of a credit union to its market value or to a reasonable value, if no market value can be established. If the losses of a credit union exceed its undivided earnings and reserve funds so that the reasonable value of its assets is less than the total amount due the shareholders, the commissioner may order a reduction in the liability to each shareholder, dividing the loss proportionately among all shareholders. Any reduction from each share account shall be a specified percentage sufficient to correct the impaired condition and preserve the solvency of the credit union. If thereafter the credit union shall realize from such assets a greater amount than that fixed by the order of reduction, such excess shall be divided proportionately among the shareholders to whom liability was previously reduced but only to the extent of such reduction.
The commissioner has the power to issue subpoenas and require attendance of anyand all officers, directors, agents, and employees of any credit union and such other witnesses as he may deem necessary in relation to its affairs, transactions, and conditions, and may require such witnesses to appear and answer such questions as may be put to them by the commissioner, and may require such witnesses to produce such books, papers, or documents in their possession as may be required by the commissioner. Upon application of the commissioner, any person served with a subpoena issued by him may be required, by order of the district court of the county where the credit union has its principal office, to appear and answer such questions as may be put to him by the commissioner and be required to produce such books, papers, or documents in his possession as may be required by the commissioner.
The commissioner may issue cease-and-desist orders if the commissioner determinesfrom competent and substantial evidence that a credit union is engaged or has engaged, or when the commissioner has reasonable cause to believe the credit union is about to engage, in an unsafe or unsound practice or is violating or has violated, or when the commissioner has reasonable cause to believe the credit union is about to violate, a material provision of any law or regulation or any condition imposed in writing by the commissioner or any written agreement made with the commissioner. Any person aggrieved by a final order of the commissioner issued pursuant to this section may appeal such order to the financial services board pursuant to section 11-44-101.8.
(a) (I) The commissioner may suspend or remove any director, officer, or employee of a credit union when the commissioner determines such person has:
Violated the provisions of this article or a lawful regulation or order issued thereunder;
Engaged or participated in any unsafe or unsound practice in the conduct of creditunion business;
Committed or engaged in any act, omission, or practice which constitutes a breach offiduciary duty to the credit union, and the credit union has suffered or will probably suffer financial loss or other damage, or the interests of members or account holders may be seriously prejudiced thereby; or
Received financial gain by reason of a violation, practice, or breach of fiduciary dutythat involved personal dishonesty or demonstrated a willful or continuing disregard for the safety or soundness of the credit union.
(II) The commissioner may suspend or remove any director, officer, or employee of a credit union who, under the laws of this state, the United States, or any other state or territory of the United States:
Has entered a plea of guilty or nolo contendere to or been convicted of a crimeinvolving theft or fraud that is classified as a felony; or
Is subject to an order removing or suspending such individual from office, or prohibiting such individual's participation in the conduct of the affairs of any credit union, savings and loan association, bank, or other financial institution.
(b) (I) A suspension or removal order shall specify the grounds for the suspension or removal. A copy of the order shall be sent to the credit union concerned and to each member of its board of directors. The commissioner shall send written notice by certified mail, return receipt requested, to any person affected by paragraph (a) of this subsection (8), at least ten days prior to a hearing held pursuant to section 24-4-105, C.R.S., at which the commissioner shall preside.
If the commissioner determines that extraordinary circumstances require immediateaction, a person may be suspended or removed under paragraph (a) of this subsection (8) without notice or a hearing, but the commissioner shall conduct a hearing under section 24-4-105, C.R.S., within thirty days after such suspension or removal.
In extraordinary circumstances, upon order of the commissioner, any hearing conducted pursuant to this section shall be exempt from any provision of law requiring that proceedings of the commissioner be conducted publicly. Such extraordinary circumstances occur when specific concern arises about prompt withdrawal of moneys from the institution.
Any person who performs any duty or exercises any power of a credit union afterreceipt of a suspension or removal order under paragraph (a) of this subsection (8) commits a class 1 misdemeanor and shall be punished as provided in section 18-1.3-501, C.R.S.
Source: L. 31: p. 298, § 6. CSA: C. 47, § 6. L. 41: p. 373, § 6. L. 51: p. 314, § 1. CRS
53: § 38-1-6. L. 56: p. 132, § 1. L. 62: p. 142, § 1. C.R.S. 1963: § 38-1-6. L. 67: p. 317, § 5. L. 75: (1) amended, p. 380, § 4, effective July 1. L. 81: (1) amended, p. 615, § 1, effective July 1. L. 83: (2) amended, p. 484, § 4, effective July 1. L. 89: (1) and (2) amended and (6) to (8) added, p. 608, § 2, effective April 19. L. 92: (1) amended, p. 928, § 5, effective February 25. L. 93: (3) and (7) amended, p. 1445, § 5, effective June 6. L. 94: (1)(b), (2), (4), and (8) amended, p. 63, § 2, effective July 1. L. 95: (1)(a) amended, p. 85, § 1, effective March 23. L. 96: (1)(c) repealed, p. 185, § 3, effective April 8. L. 2000: (2) amended, p. 155, § 1, effective August 2. L. 2002: (8)(b)(IV) amended, p. 1470, § 35, effective October 1. L. 2004: IP(8)(a)(I) amended, p. 130, § 3, effective July 1.
Cross references: For the legislative declaration contained in the 2002 act amending subsection (8)(b)(IV), see section 1 of chapter 318, Session Laws of Colorado 2002.