§ 710.3. Approval of the liquidation proposal by members.
249 words·~1 min read·
/us/cfr/t12/s§ 710.3·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)When the board of directors decides to present the question of liquidation to the members, it shall act promptly to obtain the members' approval. The members shall be given advance notice of the membership meeting at which the liquidation proposal is to be submitted. The notice shall:
(1)Inform members that they have the right to vote on the liquidation proposal in person at the membership meeting called for that purpose or by written ballot to be received no later than the time and date indicated on the notice.
(2)Include or be accompanied by a ballot for the liquidation proposal.
(b)The liquidation proposal must be approved by the affirmative vote of a majority of the Federal credit union members who vote on the proposal.
(c)If the members do not approve the liquidation, the board of directors, or if delegated the authority, the liquidating agent, must decide within seven days whether the Federal credit union should resume operations or, if good cause exists, to resubmit the question of liquidation to the members.
(d)If the members approve the liquidation, neither the members nor the board of directors may rescind the decision to liquidate unless the Regional Director concurs in the recision.
(e)The Regional Director will be notified in writing of the results of the membership vote on the voluntary liquidation proposal within three days of the date of the vote. [58 FR 35365, July 1, 1993, as amended at 72 FR 30246, May 31, 2007]