The Commissioner shall approve any director elected or appointed to serve on the governing body and any person appointed as the managing officer of a troubled credit union, before the director or officer takes office. As used in this section, “troubled credit union” means any credit union that, in the opinion of the Commissioner:

1. (1) is insolvent or is in danger of becoming insolvent;
2. (2) is not likely to be able to meet the demands of its members or to pay its obligations in the normal course of business or is likely to incur losses that may deplete all or substantially all of its capital; or
3. (3) is being operated in an unsafe and unsound manner.

(Added 2005, No. 16, § 1, eff. July 1, 2005.)