Legal Seminar

The proposed purchase of the bank’s assets by a credit union violates both § 11-103-709 and § 11-103- 801, C.R.S. as structured in the proposed Purchase and Assumption Agreement (“Agreement”) and the Plan of Complete Liquidation and Dissolution (“Liquidation”) of the bank because the credit union is acquiring the bank’s deposits under both the Agreement and the Liquidation. That acquisition violates § 11-103-709, C.R.S. which does not allow a credit union to purchase bank deposits, and § 11-103-801, C.R.S. which requires the bank to return deposits to deposit holders.