05. Involuntary liquidation. (a)(1) If the Commissioner determines that a District credit union is bankrupt or insolvent, the Commissioner may issue a notice of involuntary liquidation, revoke the District credit union's charter, and appoint a liquidating agent. (2) The District credit union may request the appropriate court to stay execution of the action authorized by this subsection. (b) In the event of liquidation, the assets of the District credit union or the proceeds from any disposition of assets shall be applied and distributed in the following priority: (1) Secured creditors up to the value of their collateral; (2) Costs and expenses of liquidation; (3) Wages due the employees of the District credit union; (4) Taxes owed to any government unit; (5) Debts, other than taxes, owed to the United States; (6) General creditors, and secured creditors to the extent their claims exceed the value of their collateral; (7) Costs and expenses incurred by creditors in successfully opposing the release of the District credit union from certain debts as allowed by the Commissioner; (8) Shareholders or depositors, to the extent of uninsured share or deposit accounts; and (9) ully opposing the release of the District credit union from certain debts as allowed by the Commissioner; (8) Shareholders or depositors, to the extent of uninsured share or deposit accounts; and (9) Members, to the extent of membership shares. (May 6, 2020, D.C. Law 23-86, § 1005, 67 DCR 3476.)
District of Columbia Legal Code