Washington Code 31.12.545 – Examinations and investigations — Reports — Access to records — Oaths — Subpoenas
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(1) The director shall make an examination and investigation into the affairs of each credit union at least once every eighteen months, unless the director determines with respect to a credit union, that a less frequent examination schedule will satisfactorily protect the financial stability of the credit union and will satisfactorily assure compliance with the provisions of this chapter.
Terms Used In Washington Code 31.12.545
- Capital: means a credit union's reserves, undivided earnings, and allowance for loan and lease losses, and other items that may be included under RCW 31. See Washington Code 31.12.005
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Credit union: means a credit union organized and operating under this chapter. See Washington Code 31.12.005
- Credit union service organization: means an organization that a credit union has invested in pursuant to RCW 31. See Washington Code 31.12.005
- Director: means the director of financial institutions. See Washington Code 31.12.005
- Federal credit union: means a credit union organized and operating under the laws of the United States. See Washington Code 31.12.005
- Financial institution: means any commercial bank, trust company, savings bank, or savings and loan association, whether state or federally chartered, and any credit union, out-of-state credit union, or federal credit union. See Washington Code 31.12.005
- Foreign credit union: means a credit union organized and operating under the laws of another country or other foreign jurisdiction. See Washington Code 31.12.005
- Oath: A promise to tell the truth.
- Organization: means a corporation, partnership, association, limited liability company, trust, or other organization or entity. See Washington Code 31.12.005
- Out-of-state credit union: means a credit union organized and operating under the laws of another state or United States territory or possession. See Washington Code 31.12.005
- Person: means an organization or a natural person including, but not limited to, a sole proprietorship. See Washington Code 31.12.005
- primarily: means more than one-half. See Washington Code 31.12.005
- Testimony: Evidence presented orally by witnesses during trials or before grand juries.
(2) In regard to credit unions, and out-of-state and foreign credit unions permitted to operate a branch in Washington pursuant to RCW 31.12.471, the director:
(a) Shall have full access to the credit union’s books and records and files, including but not limited to computer files;
(b) May appraise and revalue the credit union’s investments; and
(c) May require the credit union to charge off or set up a special reserve for loans and investments.
(3) The director may make an examination and investigation into the affairs of:
(a) An out-of-state or foreign credit union permitted to operate a branch in Washington pursuant to RCW 31.12.471;
(b) A nonpublicly held organization, or its subsidiary, in which a credit union has a material investment;
(c) A publicly held organization the capital stock or equity of which is controlled by a credit union;
(d) A credit union service organization, or any tier subsidiary of a credit union service organization, in which a credit union has an interest;
(e) An organization that is not a credit union, out-of-state credit union, federal credit union, or foreign credit union, and that has a majority interest in a credit union service organization in which a credit union has an interest;
(f) A sole proprietorship or organization primarily in the business of managing one or more credit unions;
(g) A person providing electronic data processing services to a credit union or to a credit union service organization; or
(h) A corporation or other business entity that provides alternative share insurance in accordance with RCW 31.12.408.
The director shall have full access to the books, records, personnel, and files, including but not limited to computer files, of persons described in this subsection.
(4) In connection with examinations and investigations, the director may:
(a) Administer oaths and examine under oath any person concerning the affairs of any credit union or of any person described in subsection (3) of this section; and
(b) Issue subpoenas to and require the attendance and testimony of any person at any place within this state, and require witnesses to produce any books and records and files, including but not limited to computer files, that are material to an examination or investigation.
(5) The director may accept in lieu of an examination under this section:
(a) The report of an examiner authorized to examine a credit union or an out-of-state, federal, or foreign credit union, or other financial institution; or
(b) The report of an accountant, satisfactory to the director, who has made and submitted a report of the condition of the affairs of a credit union or an out-of-state, federal, or foreign credit union, or other financial institution. The director may accept all or part of such a report in lieu of all or part of an examination. The accepted report or accepted part of the report has the same force and effect as an examination under this section.