§ 15255 Credit Union Asset Distribution

Financial Code·California

AI SummaryVerified

When a credit union is being shut down, after all its debts are paid, any leftover money and property are split among the members based on how much they paid for their shares.

Key Takeaways

•All known debts must be paid before any money is distributed.
•Remaining assets are divided among members.
•Each member's share is proportional to the amount they paid for their share.

Example

A credit union is closing and has $100,000 left after paying all its bills.

If a member paid $5,000 for their share, they receive 5% of the remaining $100,000, which is $5,000, while a member who paid $10,000 gets 10% or $10,000.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 15255 Credit Union Asset Distribution

After determining that all known debts and liabilities of the credit union have been paid or adequately provided for, the committee or the liquidating agent in charge of liquidation shall distribute all the remaining assets of the credit union among the members or shareholders. Each share is entitled to its proportionate amount of the assets according to the amount paid on that share. (Added by Stats. 1979, Ch. 112.)

Last verified: January 11, 2026

Key Terms

debts and liabilities remaining assets proportionate amount amount paid on that share

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 15255.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References