Effective: March 23, 2015
Latest Legislation: House Bill 652 - 130th General Assembly
(A) A credit union share guaranty corporation may terminate the participation in the corporation of a participating credit union for any of the following reasons:
(1) The participating credit union fails to satisfy the risk eligibility standards established by the corporation and applicable to all applying and participating credit unions;
(2) The participating credit union otherwise operates in an unsafe and unsound manner as determined by the corporation;
(3) The participating credit union fails to furnish financial statements, delinquent loan reports, or other information considered necessary by the corporation under division (B) or (C) of section 1761.08 of the Revised Code;
(4) The participating credit union fails to remedy in a timely manner a qualification arising from an audit under division (E) of section 1761.08 of the Revised Code;
(5) The participating credit union fails to pay when due a capital contribution or applicable premium, fee, or assessment under section 1761.10 of the Revised Code;
(6) The participating credit union fails to comply with any provision of this chapter, the articles of incorporation or bylaws of the corporation, or any corrective action agreement executed between the participating credit union and the corporation;
(7) Continued participation would result in a violation of this chapter or other applicable state or federal law by the corporation.
(B)(1) The credit union share guaranty corporation shall, at least thirty days prior to the effective date of any termination, notify in writing the participating credit union to be terminated and the superintendent of credit unions, any other credit union supervisory authority, or the national credit union administration of the pending termination and the reasons for such termination.
(2) The thirty-day notice of termination required under division (B)(1) of this section does not apply to the termination of excess coverage.