12 Cfr 709.4

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§ 709.2

12 CFR Ch. VII (1–1–18 Edition)

§ 709.4 Powers and duties of liquidating agent.
(a) Inventory of assets. As soon as
practicable after taking possession, the
liquidating agent shall inventory the
assets of such credit union as of the
date of taking possession, showing the
value as carried on the books of the
credit union, and the security therefore, if any, a brief description of the
assets and any security, and a record of
the credit union’s creditor and accounts liabilities.
(b) Notice to creditors. The liquidating
agent shall promptly publish a notice
to the credit union’s creditors to
present their claims, together with
proof, to the liquidating agent by a
date specified in the notice. This date
shall be not less than 90 days after the
publication of the notice. The liquidating agent shall republish such notice approximately one and two
months, respectively, after the initial
publication. At the time of initial publication, the liquidating agent shall
mail a notice similar to the published
notice to any creditor shown on the
credit union’s books at the last address
appearing therein. If the liquidating
agent discovers the name of a creditor
whose name does not appear on the
credit union’s books, a notice similar
to the published notice shall be mailed
to such creditor within 30 days after
the discovery of the name and address.
(c) General. The liquidating agent
shall collect all obligations and money

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National Credit Union Administration

§ 709.4

due such credit union and may, to the
extent consistent with its appointment, do all things desirable or expedient in its discretion to wind up the
affairs of the credit union including,
but not limited to, the following:
(1) Exercise all rights and powers of
the credit union including, but not limited to, any rights and powers under
any mortgage, deed of trust, chose in
action, option, collateral note, contract, judgment or decree, or instrument of any nature;
(2) Institute, prosecute, maintain, defend, intervene, and otherwise participate in any and all actions, suits, or
other legal proceedings by and against
the liquidating agent or the credit
union or in which the liquidating
agent, the credit union, or its creditors
or shareholders, or any of them, shall
have an interest, and in every way to
represent the credit union, its shareholders and creditors, subject to the direction of General Counsel;
(3) Employ on a salary or fee basis
such persons as in the judgment of the
liquidating agent are necessary or desirable to carry out its responsibilities
and functions, including, but not limited to, appraisers and Certified Public
Accountants, and pay the costs out of
the assets of the liquidated credit
union;
(4) Employ or retain any attorney or
attorneys designated by, or acceptable
to, the General Counsel in connection
with litigation or for legal advice and
assistance, for the liquidation generally or in particular instances, and
pay compensation and retainers of such
attorney or attorneys, together with
all expenses, including, but not limited
to, the costs and expenses of any litigation, as approved by the General Counsel, out of the assets of the liquidated
credit union;
(5) Execute, acknowledge, and deliver
any and all deeds, contracts, leases, assignments, bills of sale, releases, extensions, satisfactions, and other instruments necessary or proper for any purposes, including, but not limited to,
the effectuation, termination, or transfer of real, personal or mixed property,
or that shall be necessary or proper to
liquidate the credit union, and any
deed or other instrument executed pursuant to the authority hereby given

shall be as valid and effective for all
purposes as if the same had been executed as the act and deed of the credit
union;
(6) With concurrence of General
Counsel, disaffirm or repudiate any
contract or lease to which the credit
union is a party, the performance of
which the liquidating agent, in his sole
discretion, determines to be burdensome, and which disaffirmance or repudiation in the liquidating agent’s sole
discretion will promote the orderly administration of the credit union’s affairs;
(7) Deposit, withdraw, or transfer
funds, and otherwise exercise complete
control over all investment or depository accounts maintained by or for the
credit union at financial dispository or
similar institutions;
(8) Do such things, and have such
rights, powers, privileges, immunities,
and duties, whether or not otherwise
granted in this part 709, as shall be authorized, directed, conferred, or imposed from time to time by the Board,
or as shall be conferred by the Federal
Credit Union Act;
(9) Exercise such other authority as
is conferred by the Federal Credit
Union Act; and
(10) Where acting as liquidating
agent for a state-chartered federally
insured credit union, exercise all the
rights, powers, and privileges granted
by state law to such a liquidating
agent.
(d) Expenditure of funds of the liquidation. The liquidating agent shall have
power to:
(1) Pay all costs and expenses of the
liquidation as determined by the liquidating agent;
(2) Pay off and discharge taxes and
liens;
(3) Pay out and expend such sums as
are deemed necessary or advisable for
or in connection with the preservation,
maintenance, conservation, protection,
remodeling, repair, rehabilitation, or
improvement of any asset or property
of any nature of the credit union or the
liquidating agent;
(4) Pay off and discharge any assessments, liens, claims, or charges of any
kind against any asset or property of
any nature on which the credit union
or the liquidating agent has a lien by

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§ 709.5

12 CFR Ch. VII (1–1–18 Edition)

way of mortgage, deed of trust, pledge,
or otherwise, or in which the credit
union or liquidating agent has any interest;
(5) Settle, compromise, or obtain the
release of, for cash or other consideration, claims and demands against the
credit union or the liquidating agent;
and
(6) Indemnify its employees and
agents from the assets of the credit
union against liabilities incurred in the
good faith performance of their duties.
(e) Assets, claims, and contracts. The
liquidating agent shall have power to:
(1) Sell for cash or on terms, exchange, assign, or otherwise dispose of,
in whole or in part, any or all of the assets and property of the credit union,
real, personal and mixed, tangible and
intangible, of any nature, including
any mortgage, deed of trust, chose in
action, bond, note, contract, judgment,
or decree, share or certificate of share
of stock or debt, owing to the credit
union or the liquidating agent; and
(2) Surrender, abandon, and release
any chose in action, or other assets or
property of any nature, whether the
subject of pending litigation or not,
and settle, compromise, modify, or release, for cash or other consideration,
claims and demands in favor of the
credit union or the liquidating agent.

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[56 FR 56925, Nov. 7, 1991, as amended at 75
FR 34621, June 18, 2010]

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