Kansas Administrative Regulations
Agency 121 - DEPARTMENT OF CREDIT UNIONS
Article 5 - CREDIT UNION DETERIORATING CONDITION
Section 121-5-4 - Meaning of insolvent

Universal Citation: KS Admin Regs 121-5-4

Current through Register Vol. 43, No. 52, December 26, 2024

(a) For purposes of this regulation, the following definitions shall apply:

(1) "Assets" shall mean all items owned by a credit union, including cash, loans, investments, buildings, equipment, accounts receivable, and repossessed collateral.

(2) "Liabilities" shall mean all items owed by a credit union, including accounts payable, notes payable, and outstanding checks.

(b) A credit union shall be deemed to be "insolvent," as that term is used in K.S.A. 17-2206(d) and K.S.A. 17-2230(b) and amendments thereto, if the total amount of the credit union's shares exceeds the credit union's assets after accounting for liabilities, unless all of the following conditions are met:

(1) The administrator of the Kansas department of credit unions determines that the facts that caused the deficient share-asset ratio no longer exist.

(2) Further depreciation of the share-asset ratio is not likely.

(3) The return of the share-asset ratio to its normal limits within a reasonable time for the credit union is probable.

Disclaimer: These regulations may not be the most recent version. Kansas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.