Payout priorities in involuntary liquidation.

CFR · 2024-01-01 · US · Title 12

(a) Claimants whose claims are secured shall receive their security. To the extent their respective claims exceed the value of the security for those claims, as determined to the satisfaction of the liquidating agent, they shall each have an unsecured claim against the credit union having priority as provided in paragraph (b) of this section. (b) Unsecured claims against the liquidation estate that are proved to the satisfaction of the liquidating agent shall have priority in the following order: (1) Administrative costs and expenses of liquidation; (2) Claims for wages and salaries, including vacation, severance, and sick leave pay; (3) Taxes legally due and owing to the United States or any state or subdivision thereof; (4) Debts due and owing the United States, including the National Credit Union Administration; (5) General creditors, and secured creditors (to the extent that their respective claims exceed the value of the security for those claims); (6) Shareholders to the extent of their respective uninsured shares and the National Credit Union Share Insurance Fund to the extent of its payment of share insurance; (7) in a case involving liquidation of a corporate credit union, holders of then-outstanding membership capital accounts and nonperpetual capital accounts or instruments to the extent not depleted in a calendar year prior to the date of liquidation and also subject to the capital priority option described in appendix A of part 704 of this chapter; (8) Outstandin

official document · source cfr-2024 · id 12:§ 709.5