(1) A credit union may elect to dissolve voluntarily and liquidate its affairs in the manner prescribed in this section.
(2) If it decides to begin the procedure, the board of directors shall adopt a resolution recommending the credit union be dissolved voluntarily, and directing that the question of liquidation be submitted to the members.
(3) Within ten days after the board of directors decides to submit the question of liquidation to the members, the credit union shall notify the Board of Financial Institutions and the insuring organization in writing, setting forth the reasons for the proposed liquidation. Within ten days after the members act on the question of liquidation, the credit union shall notify the Board of Financial Institutions and the insuring organization in writing as to the action of the members on the proposal.
(4) As soon as the board of directors decides to submit the question of liquidation to the members, payments on, withdrawals of, and making any transfer of share and deposit accounts to loans and interest, making investments of any kind, and granting loans may be restricted or suspended pending action by members on the proposal to liquidate. On approval by the members of such proposal, all such business transactions shall be permanently discontinued. Necessary expenses of operation shall, however, continue to be paid on authorization of the board of directors or liquidating agent during the period of liquidation.
(5) For a credit union to enter voluntary liquidation, approval is required by a two-thirds majority of the members voting in accordance with Section 34-26-570(2) of this chapter at a regular or special meeting of the members. When authorization for liquidation is to be obtained at a meeting of the members, notice in writing shall be given to each member, by first class mail, at least ten days prior to such meeting. Certification of the voluntary liquidation shall be filed with the board accompanied by the resolution of the board of directors and a certified extract of the shareholders' meeting approving the liquidation.
(6) A liquidating credit union shall continue in existence for the purpose of discharging its debts, collecting on loans and distributing its assets, and performing all duties required in order to wind up its business and may sue and be sued for the purpose of enforcing such debts and obligations until its affairs are fully concluded.
(7) The board of directors or the liquidating agent shall distribute the assets of the credit union or the proceeds of any disposition of the assets in the sequence described in Section 34-26-220(6).
(8) As soon as the board of directors or the liquidating agent determines that all assets from which there is a reasonable expectancy of realization have been liquidated and distributed as set forth in this section, they shall execute a certificate of dissolution and file the same, together with all pertinent books and records of the liquidating credit union, with the Board of Financial Institutions, whereupon such credit union shall be dissolved.
HISTORY: 1996 Act No. 371, Section 1, eff May 29, 1996.
Structure South Carolina Code of Laws
Title 34 - Banking, Financial Institutions and Money
Chapter 26 - South Carolina Credit Union Act
Section 34-26-100. Short title.
Section 34-26-110. Definitions.
Section 34-26-200. Responsibility of Board of Financial Institutions.
Section 34-26-210. Discretionary powers of board.
Section 34-26-260. Form of credit union annual report to board.
Section 34-26-320. Model articles of incorporation to facilitate organization of credit unions.
Section 34-26-330. Amendment of articles of incorporation and bylaws.
Section 34-26-340. Name requirements of credit unions.
Section 34-26-350. Principal place of business of credit union; other locations.
Section 34-26-360. Fiscal year.
Section 34-26-380. Conduct of business out-of-state by credit union; necessity of board approval.
Section 34-26-390. Exemption of credit union from business license tax.
Section 34-26-400. Particular powers of cooperative credit union; loans to other credit unions.
Section 34-26-410. Additional powers of credit union.
Section 34-26-420. Powers incidental to purpose of credit union; limitations.
Section 34-26-500. Requirements of membership; eligible groups; requirement of board approval.
Section 34-26-510. Organizations eligible for credit union membership.
Section 34-26-520. Eligibility of other credit unions.
Section 34-26-530. Application for membership; appeal of membership denial.
Section 34-26-540. Retention of membership.
Section 34-26-550. Member liability for credit union debt.
Section 34-26-560. Expulsion; request for hearing.
Section 34-26-570. Annual and other meetings of credit union membership.
Section 34-26-580. Special meetings; grounds and proceedings.
Section 34-26-600. Authority of board of directors.
Section 34-26-605. Membership of board; term of office; board appointment of credit committee.
Section 34-26-610. Filing of record of names and addresses of membership.
Section 34-26-615. Board vacancies; credit and supervisory committee vacancies.
Section 34-26-620. Prohibition against compensation for services; accident insurance; expenses.
Section 34-26-625. Conflicts of interest; limitation on persons with pecuniary interest.
Section 34-26-630. Election of officers.
Section 34-26-635. Appointment of executive committee.
Section 34-26-640. Meetings of board; frequency of meetings.
Section 34-26-645. Duties of board.
Section 34-26-650. Credit committee supervision of member loans.
Section 34-26-655. Appointment of credit committee loan officers.
Section 34-26-660. Purpose and composition of credit union supervisory committee; term of office.
Section 34-26-665. Suspension of member; supervisory committee report to board.
Section 34-26-670. Suspension or removal of supervisory committee member.
Section 34-26-700. Share accounts; par value; pledged shares.
Section 34-26-730. Withdrawal of deposited funds; withdrawal notice.
Section 34-26-740. Payments on share accounts.
Section 34-26-750. Ownership interests in share accounts; joint accounts.
Section 34-26-760. Share accounts held in trust; beneficiaries.
Section 34-26-770. Payable-on-death share accounts; effect of transfer of account.
Section 34-26-780. Account lien; right of set-off.
Section 34-26-800. Loans and lines of credit; establishment of written policies.
Section 34-26-810. Interest rates.
Section 34-26-820. Incidental fees and expenses.
Section 34-26-830. Loan application.
Section 34-26-840. Limitation of size of loan; in general.
Section 34-26-850. Limitation on loan advances by approved line of credit; periodic review.
Section 34-26-860. Limitation on size of loan secured by real estate; approved collateral.
Section 34-26-870. Credit union participation in joint loan with other credit union.
Section 34-26-880. Credit union participation in federal or state loan programs; other powers.
Section 34-26-900. Provision of member services; in general.
Section 34-26-910. Insurance for officers, agents, and employees.
Section 34-26-920. Marketing arrangements.
Section 34-26-940. Retirement, pension, profit-sharing, and deferred income accounts.
Section 34-26-1000. Investment of credit union funds; investment committee.
Section 34-26-1010. Designation of depositories.
Section 34-26-1020. Permissible investments of credit union funds.
Section 34-26-1110. Permissible use of reserve; effect of liquidation of credit union.
Section 34-26-1120. Special reserves.
Section 34-26-1200. Dissolution; voluntary liquidation; distribution of assets.
Section 34-26-1300. Corporate credit union.
Section 34-26-1310. Purposes of corporate credit union.
Section 34-26-1320. Corporate credit union membership.
Section 34-26-1330. Application to form corporate credit union.
Section 34-26-1340. Powers and privileges of corporate credit union.
Section 34-26-1370. Board of directors of corporate credit union meetings.
Section 34-26-1380. Corporate credit union reserve requirements; exemptions.