Rules & Regulations

Section 6.        Share Insurance

III.     Powers And Duties

In carrying out its general purposes, a credit union share guaranty corporation

may:

A.      guarantee to participating credit unions the payment of any deficiency in an individual member's credit union share account(s) caused by insolvency or any other reason;

B.      issue credit share guaranty insurance policies or otherwise effect credit union share guaranty, and enter into other contracts necessary or advisable in the conduct of its business;

C.      advance funds in accordance with agreed upon lending terms and conditions to aid participating credit unions to operate and to meet liquidity needs;

D.      upon the written order of the Administrator of credit unions, and at such compensation as shall be agreed upon, the corporation may assume control of the property and business of any participating credit union and operate it at the direction of the Administrator until its financial stability has been reestablished to the satisfaction of the Administrator, or the credit union has been liquidated or merged into another credit union.

E.      assist in the merger, consolidation, or liquidation of participating credit unions;

F.      purchase or otherwise acquire, lease as lessee, invest in, hold, use, lease as lessor, encumber, sell, exchange, assign, mortgage, transfer, and disposes of property of any description or any interest therein;

G.      borrow money, and issue, sell, and pledge its notes, bonds, and other evidence or indebtedness, and secure any of its obligations by mortgage, pledge, or deed of trust of all or any of its property, and guarantee or secure obligations of participating credit unions;

H.      receive money or other property from its participating credit union, or any person(s);

I.       conduct investigations, examinations, and audits of any applicant or participating credit union in order to determine the financial and operations condition of the applicant or participating credit union;

J        establish conditions for participation by credit unions, including the establishment or risk eligibility standards.

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