Appointment Of Receiver — Conditions — Proceeding — Bond — Reporting Schedule — Subrogation Of Federal Agency To Rights Of Deposit Owners

TITLE 26 BANKS AND BANKING CHAPTER 21 IDAHO CREDIT UNION ACT 26-2141. APPOINTMENT OF RECEIVER — CONDITIONS — PROCEEDING — BOND — REPORTING SCHEDULE — SUBROGATION OF FEDERAL AGENCY TO RIGHTS OF DEPOSIT OWNERS. (1) If a credit union refuses to pay its shares, deposits, or obligations in accordance with the terms under which the shares were received or the deposits or obligations were incurred, becomes insolvent, or refuses to submit its books, papers, and records for inspection by the director, or if it appears to the director that the credit union is in an unsafe and unsound condition, the director may apply to the district court for Ada county or for the county in which the principal place of business of the credit union is located for appointment of a receiver for the credit union. (2)  In a proceeding for the appointment of a receiver, the court may act upon the application immediately and without notice to any person. If at any time it appears to the court that the asserted reasons for receivership may not exist, the court shall order the director to show cause as to why the court should not dissolve the receivership. (3)  An insuring federal agency or private share insurer may act as receiver without bond. All other receivers, with the exception of an employee of the Idaho department of finance appointed as receiver in his official capacity, shall post a bond in an amount determined by the court. (4)  A receiver shall report to the director regarding all matters involving the receivership on a schedule established by the director. (5)  If a credit union is closed and placed in receivership, and the insuring federal agency or private share insurer pays or makes available for payment the insured shares and deposit liabilities of the closed credit union, the federal agency or private share insurer, whether or not it has become receiver of the credit union, is subrogated to all of the rights of the owners of the deposits against the closed credit union in the same manner and to the same extent as subrogation of the federal agency or private share insurer under the laws governing the federal agency or private share insurer. (6)  For purposes of this section, "insolvent" means a credit union that meets either of the following: (a)  It is not able to pay its debts and other obligations, including those related to member shares, as they become due; or (b)  Its liabilities exceed its assets. (7)  If a federal agency is appointed as receiver of a credit union, the receivership procedures of the federal agency shall govern the receivership.