Kan. Admin. Regs. § 121-5-4

Current through Register Vol. 43, No. 49, December 5, 2024

Section 121-5-4 - Meaning of insolvent

(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.

Kan. Admin. Regs. § 121-5-4

Authorized by K.S.A. 17-2260; implementing K.S.A. 2006 Supp. 17-2206 and K.S.A. 17-2230; effective Dec. 28, 2007.