370.362. Insurance required, contents--failure to obtain or maintain, effect--exceptions--limitations of insurers.
Insurance required, contents--failure to obtain or maintain,effect--exceptions--limitations of insurers.
370.362. 1. Every credit union incorporated under thischapter and not currently insured by the National Credit UnionShare Insurance Fund (NCUSIF) shall, within ninety days of March7, 1991, make application for insurance with the NCUSIF. Suchapplication for NCUSIF insurance shall be filed with the divisionof credit unions and forwarded to the National Credit UnionAdministration. The director may suspend the charter, merge,liquidate, or take possession of any credit union which fails tocomply with this section or which loses or allows such coverageto lapse. All newly chartered credit unions shall obtain NCUSIFcoverage prior to commencing business. All credit unionschartered and existing under this chapter shall maintain theircurrent share insurance during the conversion process, but if anonfederal insurer which is providing share insurance for acredit union in this state discontinues providing such insurancefor the credit union during the period allowed in subsection 2 ofthis section for the conversion from nonfederal share insuranceto NCUSIF insurance, the credit union cannot be forced todiscontinue doing business in this state during the time periodallowed for such conversion if the credit union is complying withall other provisions of chapter 370 and rules and regulationspromulgated by the director of the division of credit unions andsuch credit union provides satisfactory evidence to the directorof the division of credit unions that the credit union is makingand has made good faith efforts to acquire NCUSIF shareinsurance.
2. Every credit union incorporated under this chapter shallobtain a certificate of insurance from the NCUSIF withintwenty-four months of March 7, 1991. The director may extend,for a period not to exceed twelve months, the date by which acredit union must secure such certificate upon satisfactoryevidence that the credit union has made and is making good faithefforts to acquire the coverage. Any credit union that fails tocomply with this subsection shall be liquidated by the director,unless the director approves the merger or consolidation of acredit union with an NCUSIF insured credit union.
3. A credit union shall forward a copy of the certificateof insurance to the director promptly and in no event later thanthirty days after receipt.
4. Every credit union organized under this chapter shalltake every action legally required to maintain NCUSIF insurancecoverage in full force and effect, and shall refrain or desistfrom taking any action that is likely to cause termination ofNCUSIF insurance coverage. The director shall order the merger,consolidation or liquidation of any credit union whose NCUSIFinsurance is terminated.
5. This act* shall not apply to any credit union organizedpursuant to section 370.365.
6. When a credit union that has been insured by anonfederal insurer converts its share insurance to the NationalCredit Union Share Insurance Fund the nonfederal insurer shallimmediately return to such credit union the amount of unearnedpremiums, paid-in capital contribution and special assessmentsthat the credit union has paid to such nonfederal insurer, unlessthe credit unions, which are members of such nonfederal insurersubsequent to March 7, 1991, agree otherwise.
7. No bylaw amendment of any nonfederal insurer shall bebinding upon any Missouri credit union unless and until approvedby the Missouri division of credit unions.
8. No special assessment or fee may be imposed upon anyMissouri credit union by any nonfederal insurer unless and untilapproved by the Missouri division of credit unions.
9. Nothing in this chapter shall preclude a nonfederalinsurer from issuing private share insurance in this state inamounts in excess of the basic share insurance required by NCUSIFif the credit union desiring such insurance is insured andcontinues to be insured for the basic share insurance required byNCUSIF.
(L. 1991 H.B. 180)Effective 3-7-91
*"This act" (H.B. 180, 1991) contained numerous sections. Consult Disposition of Sections table for a definitive listing.
(1993) Where statute may impair contractual obligations of parties and is retrospective in operation, statute does not violate state or federal constitution''s contract clause because it has significant and legitimate public purpose to remedy broad general, social or economic problem and enactment of section was proper exercise of inherent police power of state. Educational Employees Credit Union v. Mutual Guaranty Corporation, 821 F.Supp. 1294 (E.D.Mo.).
(1995) Where statute requires nonfederal insurers of Missouri credit unions to return capital contributions and special assessments upon credit union's withdrawal from membership, statute may violate Contract Clause, U. S. Const. Art. I, Sec. 10, if other similarly situated credit union members will be deprived of pro rata protection of basic share insurance fund. Educational Employees Credit Union v. Mutual Guaranty Corp., 50 F.3d 1432 (8th Cir.).