Indiana § 28-7-1-19.1 - Classification as adequately capitalized or lower; net worth requirements; exception

§ 28-7-1-19.1. Classification as adequately capitalized or lower; net worth requirements; exception

Sec. 19.1. (a) Beginning on the effective date of a credit union's classification as adequately capitalized or lower, the credit union must increase the dollar amount of the credit union's net worth on a quarterly basis, either:

(1) in the current quarter; or

(2) on average over the current quarter and the preceding three (3) quarters;

by an amount equal to at least one-tenth of one percent (0.1%) of the credit union's total assets (or by a greater amount at the election of the credit union) until the credit union is classified as well capitalized.

(b) Upon written application:

(1) made by a credit union described in subsection (a); and

(2) received by the director and the credit union's share insurer not later than fourteen (14) days before the end of the applicable quarter;

the director and the credit union's share insurer may permit the credit union to increase the dollar amount of the credit union's net worth by an amount that is less than the amount set forth in subsection (a), to the extent the director and the credit union's share insurer determine that the lesser amount is necessary to avoid a significant redemption of the credit union's shares, and would further the purposes of section 19(b) of this chapter.

(c) A decision under subsection (b) is subject to quarterly review and revocation unless the credit union is operating under an approved net worth restoration plan that is in accordance with the decision under subsection (b).

As added by P.L.197-2023, SEC.15.