The Florida Senate

657.262  Detection and prevention of insolvencies.--To aid in the detection and prevention of credit union insolvencies or liquidations:

(1)  It shall be the duty of the board of directors of the corporation to promptly notify the department of any information it has indicating that any member credit union may be insolvent or in an unsound financial condition that might jeopardize the safety of shares and deposits of the members or potential members of the credit union.

(2)  The board of directors may request that the department order an examination of any member credit union which the board in good faith believes may be in an unsound financial condition that might jeopardize the safety of the shares and deposits in the credit union. Within a reasonable time after receipt of such request, the department shall commence such examination. The department may charge the actual cost of such examination, which shall be paid by the corporation to the department, and the examination report shall be treated as are other examination reports under part I. The department shall notify the corporation when the examination is completed in writing and forthwith furnish the corporation with a copy of the report.

(3)  It shall be the duty of the department to report immediately in writing to the corporation when it has reasonable cause to believe that any member credit union examined, or which is being examined at the request of the corporation, may be insolvent or in an unsound financial condition.

(4)  The corporation may make reports and recommendations to the department upon any matter which is relevant to the solvency, liquidation, rehabilitation, or conservation of any member credit union. In order to protect the integrity and financial reputation of the credit union involved and the privacy of the members of that credit union, such reports and recommendations under subsection (3) and this subsection shall not be considered to be public records or documents.

(5)  The corporation may make recommendations to the department for the detection and prevention of member credit union insolvencies or to enhance the financial soundness of member credit unions.

(6)  The corporation shall, within 6 months after the conclusion of any credit union liquidation proceedings in which the corporation was obligated to pay covered claims, prepare a report of the history and the causes of such insolvency, based on the information available to the corporation. Such report shall be submitted to the department.

History.--s. 14, ch. 74-183; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 11, ch. 78-123; ss. 4, 6, ch. 80-258; ss. 2, 3, ch. 81-318; ss. 7, 11, 12, ch. 91-17; ss. 1, 3, ch. 91-307; s. 4, ch. 91-429.