# Title 6 — Banks and Banking

## Chapter 6-07.2 — Dissolution, Insolvency, Suspension, Receivership, and Liquidation

### § 6-07.2-01. Department taking possession - Procedure.

1. The commissioner may take possession of the business and property of an institution
the commissioner supervises if it appears to the commissioner that any of the following
conditions exist:
a. The directors or officers of the institution, or the liquidators of the institution
subject to a voluntary plan of liquidation, have neglected, failed, or refused to take
action the commissioner deems necessary for the protection of the institution.
b. The directors, officers, or liquidators of the institution have impeded or obstructed
an examination. This may include concealment or refusal to submit books,
papers, records, or affairs of the institution for inspection to any examiner or to
any lawful agent of the appropriate federal financial institution regulatory agency
or of the department.
c. The business is being conducted in a fraudulent, illegal, or unsafe manner.
d. The institution is conducting business in a way causing losses to depositors.
e. The institution is operating in an unsafe or unsound condition.
f. The capital of the institution is impaired such that the likely realizable value of the
institution's assets is insufficient to pay and satisfy the claims of all depositors and
all creditors.
g. The institution is insolvent or in imminent danger of insolvency or has suspended
ordinary business transactions of the institution due to insufficient funds.
h. The institution has refused or been unable to pay deposits or obligations in
accordance with the terms under which those deposits or obligations of the
institution were incurred.
i. Substantial dissipation of assets or earnings due to:
(1) Any violation of any law or rule; or
(2) An unsafe or unsound practice.
j. The institution is unable to continue operations.
k. The institution is in violation of any applicable state or federal regulation.
l. Neglect or refusal to comply with the terms of a final order of the department,
state banking board, state credit union board, or federal financial institution's
regulatory agency essential to preserve the solvency of the institution.
m. The institution has failed to pay the fees charged by the department under section
n. The institution's board of directors requests that the department take possession
for the benefit of depositors, other creditors, shareholders, or other persons.
o. The institution has been advised by the federal deposit insurance corporation of
the federal deposit insurance corporation's intention to withdraw deposit
insurance coverage.
p. The institution has been advised by the national credit union association of the
national credit union association's intention to withdraw share insurance
coverage.
q. The directors or officers of the bank, or the liquidators of a bank subject to a
voluntary plan of liquidation, have assumed duties or performed acts in excess of
those authorized by applicable statutes or regulations, by the bank's
organizational documents or plan of liquidation, or without supplying the required
bond.
2. If it appears to the commissioner one or more of the conditions in this section exists as
to any institution, the commissioner shall cause a notice to be served on the president
or other executive officer in charge of the institution and, pursuant to such notice, take
possession of the business, property, and records of the institution from the officer
citing the reasons for such a demand from this section. The decision of the
commissioner is final upon the president or other executive officer's receipt of the
notice and the institution immediately shall surrender possession to the commissioner.

### § 6-07.2-02. When possession terminates.

If the commissioner has taken possession of the business and property of an institution
under the provisions of section 6-07.2-01, the commissioner shall hold possession of the
business and property until the affairs of the institution have been finally liquidated as provided
in this chapter, unless the institution has undertaken the voluntary liquidation of the affairs of the
institution under this chapter, or either the federal deposit insurance corporation, or any
successor federal deposit insurance agency, or the national credit union association, or any
successor federal deposit insurance agency, has been appointed receiver.
### § 6-07.2-03. Notice of possession.

1. Immediately upon taking possession of the business and property of an institution
under section 6-07.2-01, the commissioner shall give notice by:
a. Causing the notice to be served upon the president or other executive officer in
charge of the business of the institution;
b. Causing the notice to be provided to all correspondent banks of the institution.
However, if the commissioner fails to provide the notice, the commissioner shall
incur no liability for such failure to act; and
c. Causing the notice to be made public.
2. The rights and liabilities of an institution and of the institution's creditors, depositors,
shareholders, and all other persons interested in the institution's estate, unless
otherwise directed, must be fixed as of the date of the delivery of the notice of
possession to the president or other executive officer actively in charge of the business
of the institution. In the case of mutual debts or mutual credits of equal priority
between the institution and another person, the credits and debts must be setoff and
the balance only must be allowed or paid. The right to setoff must be determined as of
the date of delivery of the notice of possession of the institution to the president or
other executive officer actively in charge of the business of the institution.
### § 6-07.2-04. Appointment of receiver - Restrictions on proceedings, liens, or credits -

Bonding.
1. After taking possession of the business and property of the institution, the
commissioner may appoint the appropriate federal deposit insurance agency or other
qualified party as the receiver of the closed institution. If the federal deposit insurance
corporation or national credit union association accepts appointment as receiver, the
federal deposit insurance corporation or national credit union association is not
required to post bond.
2. Upon appointment as receiver, title to all assets of the institution vests in the receiver
without the execution of any instruments of conveyance, assignment, transfer, or
endorsement. If no other receiver is appointed as provided in this chapter, the
commissioner shall act as receiver and has all of the powers and duties of a receiver
as provided in this chapter.
3. Except as otherwise provided, the sole and exclusive right to liquidate and terminate
the affairs of an institution is vested in the receiver appointed under this section, and
another receiver, assignee, trustee, or liquidating agent may not be appointed by any
court or any other person.
4. After the commissioner has taken possession of the business and property of an
institution, a suit, action, or other proceeding at law or in equity may not be
commenced or prosecuted against the institution upon any debt, obligation, claim, or
demand. All such claims may be brought against the receiver.
5. A person holding any of the property or credits of the institution does not have a lien or
charge against the property or credits for any payment, advance, or clearance made
after the commissioner has taken possession. A lien may not attach to any of the
assets or property of the institution by reason of the entry of any judgment recovered
against the institution after the commissioner has taken possession of the institution's
business and property.

6. Every receiver appointed by the commissioner, except a federal deposit insurance
agency, before entering upon the discharge of the receiver's duties and before
proceeding to liquidate the affairs of any institution, may be required by the
commissioner to furnish a bond. Such bond must be approved as to form and amount
by the commissioner. The cost of such bond must be paid from the assets of the
institution being liquidated.
### § 6-07.2-05. Powers of receiver.

The receiver of a closed institution may do the following:
1. Take possession of all books, records, and assets of the institution.
2. Collect all debts, claims, and judgments belonging to the institution and do such other
acts as are necessary to preserve and liquidate the assets of the institution.
3. Execute in the name of the institution any instrument necessary or proper to effectuate
the receiver's powers or perform the duties as receiver.
4. Initiate, pursue, and defend litigation involving any right, claim, interest, or liability of
the institution.
5. Exercise any and all existing fiduciary functions of the institution as of the date of
appointment as receiver.
6. Borrow money as necessary and secure the borrowings by the pledge or mortgage of
assets. The repayment of money borrowed under this subsection and interest on the
money borrowed under this section must be considered an expense of administration
under section 6-07.2-09.
7. Abandon or convey title to any holder of a mortgage, deed of trust, security interest, or
lien against property in which the institution has an interest if the receiver determines
that to continue to claim the interest is burdensome and of no advantage to the
institution or the institution's depositors, creditors, or shareholders.
8. Repudiate any leases or executory contracts to which the institution is a party in
accordance with section 6-07.2-09.
9. Sell any and all real and personal property to compromise any debt, claim, or
judgment due from the institution and discontinue any action or other proceedings
pending.
10. Pay off all mortgages, deeds of trust, security agreements, and liens upon any real or
personal property belonging to the institution and purchase at judicial sale or at sale
authorized by court order, any real or personal property in order to protect the
institution's equity in that property.
11. Sell in bulk the assets and liabilities of the institution.
### § 6-07.2-06. Sale of assets - Assumptions of deposit liabilities by new institution.

The receiver may sell all or any part of the institution's assets to one or more other state or
federally chartered depository institution or to a federal deposit insurance agency in the
receiver's corporate capacity. The receiver may also borrow from a federal deposit insurance
agency an amount necessary to facilitate the assumption of deposit liabilities by a newly
chartered or existing state or federally chartered depository institution, assigning any part or all
of the assets of the institution as security for the loan.
### § 6-07.2-07. Presentation of claims - Notice of claims procedure - Rejection of claims -

Statute of limitations.
1. All parties having claims against the closed institution shall present the claims of the
parties supported by proof to the receiver within one hundred eighty days after the
commissioner has taken possession. This period may be extended by written
agreement between the claimant and the receiver. The receiver shall cause notice of
the claims procedures prescribed by this section to be made public and mailed to each
person whose name appears as a creditor upon books of the institution at the person's
last address of record. Within one hundred eighty days following receipt of the claim,
the receiver shall notify in writing any claimant whose claim has been rejected. Notice

is effective when mailed. A claimant whose claim has been rejected by the receiver
may petition a court for a hearing on the claim within sixty days from the date the claim
was rejected. The claim of a party against the closed institution must be disallowed,
other than any portion of the claim which was allowed by the receiver, as of the end of
the sixty-day period if the party having the claim fails to:
a. Request an administrative review of any claim by the receiver in accordance with
proper procedure; or
b. File suit on the claim, or continue an action commenced before the appointment
of the receiver, before the end of the sixty-day period.
2. The disallowance is final, and the claimant has no further rights or remedies with
respect to the claim.
### § 6-07.2-08. Claims filed after one hundred eighty-day claim period.

A claim filed after the one hundred eighty-day claim period prescribed by section 6-07.2-07
and subsequently accepted by the receiver is entitled to share in the distribution of assets only
to the extent of the undistributed assets in the hands of the receiver on the date the claim is
accepted or allowed.
### § 6-07.2-09. Payment of claims.

1. All claims against the institution's estate, proved to the receiver's satisfaction or
approved by the circuit court, must be paid in the following order:
a. Administration expenses, including compensation of each regular officer or
employee of the receiver for the time actually devoted to the liquidation of the
institution at an amount not to exceed the compensation paid to the officer or
employee for the performance of the officer's or employee's regular duties; actual
expenses of each regular officer and employee necessarily incurred in the
performance of the officer's or employee's duties; compensation and expenses of
any special representative, assistant, accountant, agent, or attorney employed by
the receiver; court costs; and if the commissioner is acting as receiver, such
reasonable general overhead expenses as may be incurred by the commissioner
in the liquidation of the affairs of the institution which shall be ascertained,
determined, and fixed by the commissioner.
b. Claims given priority under other provisions of state or federal law.
c. Deposit obligations, except that notwithstanding sections 6-03-67 and 41-04-31, if
a depositor is indebted to an insolvent bank, the insolvent bank has a right to
setoff against the depositor's account.
d. Other general liabilities.
e. Debt subordinated to the claims of depositors and general creditors.
f. Equity capital securities.
g. For credit unions and cooperative financial institutions, pro rata distribution to
members computed based on the total amount in each member's deposit
accounts as of the date of liquidation.
2. Interest on a claim may not be paid until all claims within the same class have received
the full principal amount of claim.
### § 6-07.2-10. Rejection of contracts and leases.

1. Within one hundred eighty days after the date the commissioner has taken
possession, the receiver may reject:
a. An executory contract to which the closed institution is a party without any further
liability to the closed institution or the receiver; and
b. An obligation of the institution as a lessee of real or personal property.
2. The receiver's election to reject a lease does not create a claim for rent other than rent
accrued to the date of termination.

### § 6-07.2-11. Subrogation of federal deposit insurance agency to right of depositors.

If a federal deposit insurance agency pays or makes available for payment the insured
deposit liabilities of a closed institution, the federal deposit insurance agency, whether or not the
federal deposit insurance agency acts as receiver, must be subrogated by operation of law to all
rights of depositors against the closed institution relating to claims for deposits so paid by the
federal deposit insurance agency to the extent necessary to enable the federal deposit
insurance agency, under federal law, to make insurance payments available to depositors of
closed institutions.
### § 6-07.2-12. Appointment of successor fiduciary and representative proceedings.

1. The receiver may appoint one or more successors to any or all of the rights,
obligations, assets, deposits, agreements, and trusts held by the closed institution as
trustee, administrator, executor, guardian, agent, and all other fiduciary or
representative capacities. The approval may be obtained in connection with the
proceedings authorized under section 6-07.2-06.
2. A successor's duties and obligations begin upon appointment to the same extent
binding upon the closed institution and as though the successor had originally
assumed the duties and obligations. Specifically, a successor must be appointed to
administer trusteeships, administrations, executorships, guardianships, agencies, and
other fiduciary or representative proceedings to which the closed institution is named
or appointed in wills, whenever probated, or to which it is appointed by any other
instrument or court order, or by operation of law.
3. This section does not impair any right of the grantor or beneficiaries of trust assets to
secure the appointment of a substituted trustee or manager.
4. Within thirty days after appointment, a successor shall give written notice, insofar as
practical, that the successor has been appointed in accordance with applicable law to
all interested parties named in:
a. The books and records of the closed institution; and
b. Trust documents held by the successor.
### § 6-07.2-13. Notice concerning safekeeping and safe deposit boxes.

The receiver shall cause notice to be mailed to the last address of record to the owners of
any personal property in the possession of or held by a closed institution for safekeeping, and to
all lessees of safe deposit boxes. The notice must require the intended recipients to appear and
assert the claims of the recipients to the property within sixty days from the date of the notice.
The receiver shall make such agreements or arrangements as may be necessary for the
disposition of property held by the closed institution for safekeeping and the contents of safe
deposit boxes, and for the termination of any leases or other contracts relating to the property or
contents.
### § 6-07.2-14. Actions for enforcement or rights, demands, or claims vested in an

institution or its shareholders of creditors.
Notwithstanding any other provision of state law, the receiver may, within five years from the
date of closing of the institution, institute and maintain, in the name of the receiver, any action or
proceeding for the enforcement of any right, demand, or claim that is vested in the institution.
### § 6-07.2-15. Contents of articles of dissolution.

If the proceedings described in this chapter have been completed, the receiver shall
execute and file, in the manner provided in this section, articles of dissolution, setting forth the
following information:
1. The name of the institution;
2. The place where the institution's main office was located;
3. The names and addresses of the directors and officers of the institution at the time the
liquidation proceedings were begun;

4. A brief summary of the aggregate amount of general claims finally allowed against the
institution, the order in which the claims were paid, and the aggregate amount of all
other claims against the institution. A statement of the aggregate payments made on
each of the groups of claims must be provided, referencing the orders of the receiver
authorizing those payments and the current reports documenting such payments; and
5. A brief summary of the aggregate amount of payments made to the shareholders of
the institution, whether of money or other property, and a reference to the orders of the
receiver authorizing the payments and to the current reports in which documentation of
the payments is made.
### § 6-07.2-16. Execution and filing of articles with department - Certificate of dissolution.

1. The articles of dissolution must be executed in duplicate and presented in duplicate to
the department of financial institutions.
a. Upon presentation of the articles of dissolution, the commissioner shall endorse
the commissioner's approval upon each of the duplicate copies of the articles if
the commissioner finds the articles conform to law.
b. The commissioner shall file one copy of the articles in the department and issue
two certificates of dissolution. The commissioner shall file one certificate of
dissolution with the department and shall deliver the second to the receiver.
2. Upon the issuance of the certificate of dissolution, the institution is dissolved and its
existence ceases. Upon the issuance of the certificate of dissolution, the receiver is
authorized, as agent for the directors and shareholders of any subsidiary trust
company, to file any and all documents with the secretary of state necessary to
terminate the subsidiary trust company's corporate existence under applicable
corporate law.
### § 6-07.2-17. Emergency temporary suspension or conservatorship.

1. If upon the examination or investigation of an institution regulated by the
commissioner, the commissioner determines the laws are not being fully observed,
that any irregularities are being practiced, or that the institution's capital has been or is
in danger of being impaired, the commissioner shall give immediate notice of such
determination to the officers and directors of the institutions. In addition, if it is deemed
necessary in order to conserve the assets of the institution or to protect the interests of
depositors and creditors of the institution, the commissioner may do any one or more
of the following:
a. Temporarily suspend the right of the institution to receive any further deposits;
b. Temporarily close the bank, for a period not exceeding sixty days, which period
may be further extended for one or more sixty-day periods as the commissioner
may deem necessary;
c. Require the officers and directors of the bank to liquidate its outstanding loans
insofar as required;
d. Recapitalize the institution;
e. Require that any irregularities be corrected promptly;
f. Require the institution to make reports, daily or at such other times as may be
required to the commissioner; and
g. Without examination, close or appoint a receiver to operate, for such period as
the commissioner may deem necessary, an institution facing an emergency due
to withdrawal of deposits, a liquidity event in which the institution is unable to
continue operations, a cyber- or technology-related incident, or otherwise, or,
without closing the institution, grant the institution the right to suspend or limit the
withdrawal of deposits, for such period as the commissioner may determine.
2. If an institution fails or refuses to comply with any such order of the commissioner, or if
the commissioner determines a receiver for the institution should be appointed, the
commissioner may apply for the appointment of a receiver to take charge of the
business affairs and assets of the institution and to wind up the institution's affairs as
provided in this chapter.

3. A bank or credit union may request a hearing before the state banking board or state
credit union board within ten days of the emergency temporary suspension or
conservatorship to review the factual basis used to issue the emergency temporary
suspension or conservatorship. The decision made by the state banking board or state
credit union board during the hearing is final. If a hearing is not requested, the initial
decision of the commissioner is final.
### § 6-07.2-18. Voluntary liquidation of a bank.

1. An application for approval to voluntarily liquidate the affairs of a bank must be
submitted to the commissioner in the manner and form that the commissioner may
prescribe, must include the information set forth in this section, and must contain such
additional information the commissioner may require. The application must include
duplicate copies of a resolution authorizing the dissolution and duplicate copies of a
certificate, verified by the applicant's president or chief executive officer or a vice
president, stating the facts pertaining to the resolution and that the applicant's liabilities
have been paid in full. Each duplicate certificate must have annexed to the duplicate,
over the official signatures, evidence showing:
a. The date on which the resolution was authorized by the affirmative vote of the
holders of at least a simple majority of the outstanding shares entitled to vote on
the resolution;
b. The number of shares of each class entitled to vote on the resolution which were
outstanding on the date of the stockholders' meeting;
c. The number of shares of each class entitled to vote on the resolution whose
owners were present in person or by proxy;
d. The number of shares of each class voted for and against the resolution; and
e. The manner in which the meeting was called and the time and manner of giving
notice, with a certification that the meeting was lawfully called and held.
2. Upon receipt of the application, the commissioner shall investigate the merits of the
application. If the commissioner is satisfied the application is complete and all
applicable provisions of law have been complied with, the commissioner shall cause
an examination to be made of the applicant institution for the purpose of verifying the
payment of all the applicant's liabilities. If the examination satisfies the commissioner
that all of the applicant's liabilities have been paid, the commissioner shall endorse
one copy of the certificate with the commissioner's statement that the institution is
voluntarily liquidating. The return of the endorsed copy of the certificate operates to
free the institution from further examination and to authorize the institution, under the
original corporate name of the institution, to sue and be sued, to execute conveyances
and other instruments, to take, hold, and own property, and to do all such other things
as may be necessary to realize upon the institution's remaining assets for the pro rata
benefit of the institution's stockholders, but not to engage or continue in any new or
other business under the institution's charter or otherwise. The liquidation must
proceed as expeditiously as possible, and upon conclusion, the institution shall
surrender its charter. In lieu of continuing the liquidation under the original corporate
name, the institution may transfer the remaining assets to a trustee agreed upon by
the stockholders by a majority vote and upon so doing shall surrender the institution's
charter.
### § 6-07.2-19. Voluntary liquidation of a credit union or cooperative financial institution.

1. A credit union or cooperative financial institution may go into voluntary liquidation
following a vote of the majority of the board of directors and approval by the majority of
its members in writing or by a vote in favor of the liquidation by a majority of the
members of the credit union or cooperative financial institution at a regular meeting of
the members or at a special meeting called for that purpose.
a. When authorization for liquidation is to be obtained at a meeting of members:

(1) Notice in writing must be given to each member at least ten days before the
meeting and the notice must inform members they have the right to vote on
the proposed liquidation.
(2) The minutes of the meeting must show the number of members present and
the number that voted for and against liquidation.
b. If approval by a majority of all members of a credit union is not obtained at the
meeting of members, authorization for voluntary liquidation may be obtained by
having a majority of members sign a statement in substantially the following form:
We the undersigned members of the _____ Credit Union, Charter No. _____,
hereby request the dissolution of our credit union.
c. If approval by a majority of all members of a cooperative financial institution is not
obtained at the meeting of members, authorization for voluntary liquidation may
be obtained by having a majority of members sign a statement in substantially the
following form: We the undersigned members of the _____ cooperative financial
institution, Charter No. _____, hereby request the dissolution of our cooperative
financial institution.
2. The board of directors of a credit union or cooperative financial institution in voluntary
liquidation:
a. Is responsible for conserving the assets, for expediting the liquidation, and for
equitably distributing the assets to members.
b. Shall determine all persons handling or having access to funds of the credit union
or cooperative financial institution are adequately covered by surety bond.
c. Shall appoint a custodian for the credit union's or cooperative financial
institution's records that are to be retained for five years after the charter is
canceled.
d. May appoint a liquidating agent and delegate part or all of these responsibilities to
the agent and may authorize reasonable compensation for the agent's services. A
liquidating agent must be adequately bonded for faithful performance of the
agent's duties, and the coverage must remain in effect or the discovery period
extended for at least four months after the final distribution of assets.
3. The supervisory committee, a certified public accountant hired by the supervisory
committee, or if the bylaws do not establish a supervisory committee, a certified public
accountant hired by the board of directors, is responsible for making periodic audits of
the credit union's or cooperative financial institution's records, at least quarterly, during
the period of liquidation.
4. Within three days after the decision of the board of directors to submit the question of
liquidation to the members, the president shall notify the commissioner and the
regional director of the national credit union administration or federal deposit insurance
corporation as appropriate in writing, setting forth in detail:
a. The reasons for the proposed action;
b. The previous month-end balance sheet and income statement; and
c. A written plan for the liquidation of assets, payment of creditors, and payment of
shares to be completed within one year of the date of membership approval to
liquidate.
5. Within three days after the action of the members on the question of liquidation, the
president shall notify the commissioner and the regional director of the national credit
union administration or federal deposit insurance corporation as appropriate in writing
as to whether a majority of the members approved the proposed liquidation.
6. Within ten days of the decision to liquidate by the board of directors, a notice of the
decision must be handed to each member, electronically distributed, or mailed to the
member's last-known address to confirm in writing the shares and deposits held by the
member in the credit union or cooperative financial institution and the loans owed by
the member to the credit union or cooperative financial institution.
7. Within ten days of the approval of a majority of the members of a credit union or
cooperative financial institution of a proposal to liquidate, the board of directors of the
credit union or cooperative financial institution shall have prepared and mailed to all

creditors a notice of liquidation containing instructions to present claims to the credit
union or cooperative financial institution within ninety days for payment. New creditor
claims subsequent to this notice which are necessary for the continued operation of
the credit union during liquidation must continue to be paid upon authorization of the
board of directors or liquidating agent.
8. Immediately upon the decision of the membership to liquidate, the credit union or
cooperative financial institution may continue to do all things under the original
corporate name of the institution, to sue and be sued, to execute conveyances and
other instruments, to take, hold, and own property, and to do all other things as may be
necessary to realize upon the institution's remaining assets for the benefit of the
institution's members, but not to engage or continue in any new or other business
under the institution's charter or otherwise. At the discretion of the board of directors or
the liquidating agent, transactions upon membership transactional accounts may
continue to be honored up to the federal insurance limit until the accounts are sold or
otherwise liquidated.
9. At the commencement of voluntary liquidation of a credit union or cooperative financial
institution, the treasurer or agent conducting the liquidation shall file with the
commissioner a financial and statistical report and a schedule showing the name, book
number or account number, share balance, and loan balance of each member.
10. Credit unions or cooperative financial institutions in the process of voluntary liquidation
shall file with the commissioner a financial and statistical report as of December thirty-
first or within thirty days after such date. Additional reports, as determined by the
commissioner to be necessary, must be furnished promptly on written request.
11. When deemed advisable by the commissioner, an examination of the books and
records of a credit union or cooperative financial institution may be made before,
during, or following completion of voluntary liquidation. The commissioner shall set
fees for the examination at an hourly rate sufficient to cover all reasonable expenses of
the department of financial institutions associated with the examination. Fees must be
collected by the commissioner and deposited in the financial institutions regulatory
fund.
12. If at any time during the liquidation of credit union assets or cooperative financial
institution, it is found the value of remaining assets will not be sufficient to cover the
claims of creditors and shareholders, the board of directors or, if appointed, the
liquidating agent shall immediately notify the commissioner and the regional director of
the national credit union administration or federal deposit insurance corporation as
appropriate. Further liquidation of credit union or cooperative financial institution
assets or distributions to shareholders after notice requires written approval from the
commissioner.
13. With the written approval of the commissioner, a partial distribution of the credit union's
or cooperative financial institution's assets may be made to its members from cash
funds available on authorization by its board of directors or by a duly authorized
liquidating agent whose appointment specifically includes the authority. Partial
distributions cannot exceed the national credit union share insurance limit.
14. When all assets of the credit union or cooperative financial institution have been
converted to cash or found to be worthless and all loans and debts owing to it have
been collected, sold, or found to be uncollectible and all obligations of the credit union
or cooperative financial institution have been paid, with the exception of amounts due
its members:
a. The books must be closed and the pro rata distribution to members computed.
This computation must be based on the total amount in each member's share
accounts as of the date the board of directors voted to voluntarily liquidate.
b. The amount of gain or loss must be entered in each member's share account and
should be entered in the member's passbook or statement of account.
c. Promptly, funds must be distributed to each member. The funds must be mailed
to such members at their last-known addresses, electronically transmitted to the
members designated account, or handed to them in person.

d. The passbooks or written confirmations submitted by members to verify balances
must be retained with the credit union or cooperative financial institution records.
e. Unclaimed share accounts subject to the escheat or abandoned property laws of
the state or the state of the members' residence must be paid to the state as
required by such laws.
f. The commissioner must be promptly notified of the date final distribution of assets
to the members is started.
g. In the event of a loss on members share accounts, a claim must be submitted by
the board of directors or the liquidating agent if appointed, to the national credit
union administration or federal deposit insurance corporation as appropriate,
private share insurance if available, and bonding company.
15. Within one hundred twenty days after the final distribution to members is started, the
credit union or cooperative financial institution shall furnish to the commissioner's
office a schedule of unpaid claims. The board of directors of the credit union or
cooperative financial institution or the liquidating agent if appointed shall report money
in the account of a member who failed to surrender their passbooks or confirm their
balances, final distribution checks not cashed within one hundred twenty days, and
any unpaid claims to the unclaimed property division of the board of university and
school lands pursuant to chapter 47-30.2.
