In the event the bank or credit union is experiencing significant financial difficulty, and the circumstances warrant further intervention by the Department, the Commissioner has the authority to determine whether the institution should be placed into a receivership or conservatorship. In the event a bank or credit union must be placed into receivership, the Department’s primary objective is to maintain public confidence by engaging in a transparent and equitable wind down of the institution’s business. The Department does this by facilitating the liquidation of the bank or credit union in an expeditious, cost-effective manner. The scope of services to be rendered is assisting the Commissioner and the Department in winding down the bank or credit union’s business, which includes, but is not limited to, liquidating the institution’s assets, securing finances, securing facilities, corresponding with customers and the general public, retaining and terminating employees and any other activities associated with the receivership process. In a conservatorship, the Department’s primary objective is to carry on the business of the bank or credit union, to preserve and conserve the assets and property of the institution, and to return the bank or credit union to a safe and sound condition or transfer the business of the institution to a successor institution. The scope of services to be rendered includes, but is not limited to, assisting the Commissioner and the Department in preserving the assets and franchise value of the bank or credit union, maintaining critical operations in order to rehabilitate the bank or credit union to a sound condition and preparing the bank or credit union for an orderly transfer to a successor institution.
