- If it appears to the Commissioner of Banking and Consumer Finance, as a result of any examination or from any report made to him, that the public interest may be served by the appointment of a conservator, and if he shall find that: (a) the capital of a credit union is impaired, or (b) the credit union is concealing any assets, books or records or (c) the members of such credit union are in actual danger of loss due to mismanagement, misappropriation of funds, fraud, violation of this chapter, or violation of any lawful rule of the board or (d) has lost its field of membership or (e) the credit union is in violation of an order or injunction, as authorized by this section, which has become final since time to appeal has expired without appeal or a final order entered from which there can be no appeal, the commissioner may appoint a conservator for such credit union, which may be the commissioner or any other person, and upon such appointment the commissioner shall apply immediately to the chancery court in the county in which the home office of the credit union is located for confirmation of such appointment, and such court shall have exclusive jurisdiction to determine the issues and all related matters. Such proceedings shall be given precedence over other cases pending in such court, and shall in every way be expedited. Such court shall confirm such appointment if it shall find that one or more of such grounds exist, and a certified copy of the order of the court confirming such appointment shall be evidence thereof. Such conservator shall have the power and authority provided in this chapter and such other power and authority as may be expressed in the order of the court. Such conservator shall endeavor promptly to remedy the situations complained of by the commissioner in his application for confirmation of such appointment. Within six (6) months of the date of such appointment, or within twelve (12) months if the court shall extend such period of six (6) months, such credit union shall be returned to the board of directors thereof and thereafter shall be managed and operated as if no conservator had been appointed. If the commissioner serves as conservator, he shall receive no additional compensation, but if another person is appointed, then the compensation of the conservator, as determined by the court, shall be paid by the credit union. A certified copy of the order of the court discharging such conservator and returning such credit union to the directors thereof shall be sufficient evidence thereof.
- Any conservator appointed shall have all the rights, powers and privileges possessed by the officers, board of directors and members of the credit union and shall have the power, with the approval of the court, to limit or condition withdrawals from the credit union and to effectuate a system for payment of withdrawals.
- The directors and officers shall remain in office and the employees shall remain in their respective positions, but the conservator may remove any director, officer or employee, provided the order of removal of a director or officer shall be approved by the chancery court.
- While the credit union is in the charge of a conservator, members or borrowers of such credit union shall continue to make payments to the credit union in accordance with the terms and conditions of their contracts. All expenses of the credit union during such conservatorship shall be paid by the credit union.
