Show Cause Requirement; Appointment of Receiver; Role of Conservator; Limitation on Court's Role

  1. Law
  2. Georgia Code
  3. Banking and Finance
  4. Financial Institutions
  5. Credit Unions
  6. Credit Union Conservators
  7. Show Cause Requirement; Appointment of Receiver; Role of Conservator; Limitation on Court's Role

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  1. No later than ten days after the date a conservator is appointed pursuant to Code Section 7-1-640, a credit union may apply to its principal court for an order requiring the department to show cause why it should not be enjoined from continuing the conservatorship.
  2. If at any time the department determines that a credit union is not in a condition to continue business under a conservator, the department may appoint a receiver in accordance with Code Section 7-1-150.
  3. A conservator may conduct the business of a credit union and take steps toward the removal of the causes and conditions that have necessitated the appointment of a conservator until such time as:
    1. The department shall permit such credit union to continue business subject to such terms and conditions as may be imposed by the department;
    2. Such credit union is liquidated in accordance with the provisions of subsection (b) of this Code section; or
    3. Otherwise ordered by the principal court of such credit union.
  4. Except as provided in this chapter, no court shall take any action, except at the request of the department, to restrain or affect the exercise of powers or functions of a conservator.

(Code 1981, §7-1-645, enacted by Ga. L. 2015, p. 344, § 19/HB 184.)


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