Senate Bill No. 348
(By Senators Minard and Helmick)
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[Introduced March 10, 1993; referred to the Committee
on Banking and Insurance.]
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A BILL to amend and reenact section fifteen-a, article ten,
chapter thirty-one of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to
requiring all state-chartered credit unions to qualify for
and obtain national credit union administration insurance on
shares and deposits.
Be enacted by the Legislature of West Virginia:
That section fifteen-a, article ten, chapter thirty-one of
the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be amended and reenacted to read as follows:
ARTICLE 10. CREDIT UNIONS.
§31-10-15a. Share and deposit insurance.
(a) All credit unions established pursuant to this chapter
shall qualify for and obtain insurance on shares and deposits as
provided by the national credit union administration under Title
II of the Federal Credit Union Act: or alternatively; a form of
comparable insurance approved by the commissioner of banking Provided, That a credit union granted a charter, pursuant to this
article, prior to the first day of January, one thousand nine
hundred ninety-three, must obtain the insurance on its shares and
deposits required by this subsection on or before the thirty-
first day of December, one thousand nine hundred ninety-three.
(b) Each credit union which fails to obtain insurance as
required herein by the first day of Janury, one thousand nine
hundred eighty-two thirty-first day of December, one thousand
nine hundred ninety-three, shall be prohibited from conducting
business as a credit union until such insurance is obtained. A
credit union which has been denied a commitment for such
insurance shall within thirty days commence steps to either
liquidate, or merge with an insured credit union, or apply in
writing to the commissioner of banking for additional time to
obtain an insurance commitment. The commissioner of banking
shall grant one or more extensions of time to obtain the
insurance commitment upon satisfactory evidence that the credit
union has made or is making a substantial effort to achieve the
conditions precedent to issuance of the commitment.
(c) No credit union shall be granted a charter by the
commissioner of banking unless such credit union has obtained a
commitment for insurance of its members' share and deposit
accounts.
(d) The commissioner of banking may make available reports
of condition and examination findings to the national credit
union administration or to any qualified insuring organizationand may accept any report of examination made on behalf of such
agency or organiztion the national credit union administration.
The commissioner of banking may appoint an official of the
national credit union administration or of any qualified insuring
organization as liquidating agent of an insured credit union.
NOTE: The purpose of this bill is to require state
chartered credit unions to qualify for and obtain federally
backed insurance for their deposit accounts, thereby preventing
possible liability of the state to make good losses incurred by
the failure of a credit union and its private insurer.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.