Share insurance required - confidentiality.

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(1) Each credit union shall apply for insurance on its shares and deposits as provided by the national credit union administration board under section 201 of the "Federal Credit Union Act", 12 U.S.C. sec. 1781, or comparable insurance approved by the commissioner. Credit unions with debt and equity capital consisting primarily of funds from other credit unions shall not be subject to the requirements of this section.

  1. Any credit union which is denied a commitment for such insurance shall, withinthirty days of such denial, commence steps to liquidate or merge with an insured credit union or shall apply in writing to the commissioner for an extension of time to obtain an insurance commitment. The commissioner shall grant one or more extensions of time to obtain the insurance commitment upon satisfactory evidence that the credit union has made or is making a substantial effort to satisfy the conditions precedent to the issuance of an insurance commitment.

  2. No credit union shall be granted a charter by the commissioner unless such creditunion has applied for insurance on its shares and deposits as provided in this section.

  3. Neither the commissioner, the commissioner's deputy, nor any other person appointed by the commissioner shall divulge any information acquired in the discharge of the person's duties; except that:

  1. A person specified in the introductory portion to this subsection (4) may divulgeinformation acquired in the discharge of the person's duties if doing so is made necessary by law or under order of court in an action involving the division or in criminal actions;

  2. Any party entitled to appear in a hearing on an application for a community creditunion charter shall have access to the applicant's proposed articles or amended articles of incorporation, application for charter, and proposed bylaws;

  3. The commissioner may furnish information as to the condition of a credit union tothe national credit union administration board or its successors, a qualified insuring organization, a liquidating agent appointed by the commissioner, a federal home loan bank, a federal reserve bank, the division of banking, the executive director of the department of regulatory agencies, or a department or division of any other state having supervisory authority over credit unions and may accept any report of examination made on behalf of such board, organization, liquidating agent, bank, department, or division;

  4. The commissioner may give records or information in the commissioner's possessionto a licensing agency within the department of regulatory agencies relating to possible misconduct by a person or entity licensed by said agency;

  5. The board, the commissioner, and their respective designees may exchange information obtained by the division as to possible criminal violations of any law relating to the activities of a credit union with the appropriate law enforcement agencies; and

  6. Notwithstanding any provision of this article to the contrary, the commissioner maydisclose any information in the records of the division or acquired by the commissioner in the discharge of the commissioner's duties that is available from the national credit union administration board or its successors, or the disclosure of which has been specifically authorized by the board of directors of the credit union to which such information relates. Nothing in this section shall be construed to authorize the board of directors of a credit union to waive any privileges that belong solely to the financial services board, the division, or its employees.

Source: L. 81: Entire section added, p. 616, § 2, effective July 1. L. 89: (4) amended, p. 611, § 4, effective April 19. L. 93: (4) amended, p. 1446, § 7, effective June 6. L. 94: (1) and (3) amended, p. 65, § 5, effective July 1. L. 99: (4) amended, p. 1009, § 2, effective August 4. L. 2004: (4) amended, p. 132, § 8, effective July 1. L. 2007: (4) amended, p. 2020, § 13, effective June 1. L. 2008: (4) amended, p. 179, § 1, effective August 5.


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