26-2140A. CONSERVATORSHIP. (a) The director may, in his discretion and without notice, appoint himself or an agent as conservator and immediately take possession and control of the business and assets of any credit union in any case in which:

(1) The director determines that such action is necessary to conserve the assets of any credit union or to protect the interests of the members of such credit union;

(2) The credit union, by a resolution of its board of directors, consents to such an action by the director;

(3) There is a violation of a cease and desist order, or any law, rule, regulation or any written agreement entered into with the director; or

(4) There is concealment of books, papers, records, or assets of the credit union or refusal to submit books, papers, records, or affairs of the credit union for inspection to any examiner or to any lawful agent of the director.

(b) Not later than thirty (30) calendar days after the date on which the director takes possession and control of the business and assets of a credit union, such credit union may apply to the district court for the judicial district in which the credit union is located for an order requiring the director to show cause why he should not be enjoined from continuing such possession and control. Except as provided in this subsection, no court may take any action, except at the request of the director, to restrain or affect the exercise of powers or functions of the director as conservator.

(c) The director may maintain possession and control of the business and assets of such credit union and may operate such credit union until such time as:

(1) The director shall permit such credit union to continue business subject to such terms and conditions as may be imposed by the director;

(2) Such credit union is liquidated in accordance with the provisions of section 26-2141, Idaho Code; or

(3) Otherwise ordered by the district court of the judicial district in which the credit union is located.

(d) The director may appoint such agents as he considers necessary in order to carry out his duties as conservator.

(e) All expenses of the credit union during the period of the conservatorship shall be paid by the credit union.

(f) The conservator shall have all the powers of the members, the directors, the officers and the committees of the credit union and shall be authorized to operate the credit union in its own name or to conserve its assets in the manner and to the extent authorized by the director.

(g) The authority granted in this section is in addition to all other authority granted to the director under this chapter.

History:

[26-2140A, added 1991, ch. 236, sec. 6, p. 571.]