6-435

6-435. Voluntary withdrawal of accounts

A. A holder of an account may make application for withdrawal of, and the
association may pay, all or any part of the withdrawal value thereof at any time.

B. If the association has insufficient funds in the treasury and from current
receipts to pay all matured accounts and applications for withdrawal within thirty days
after such accounts mature or payment is requested, then the board of directors shall
provide by resolution:

1. The amount of money available in each calendar month to pay maturities and
withdrawals, in accordance with safe and required operating procedure; but after making
provision for expenses, debts, obligations, and cash dividends on accounts, due or to
become due, not less than fifty per cent of the remainder of such treasury funds and
current receipts shall be made available for the payment of withdrawals and maturities.

2. For a list of matured accounts in order of maturity, and if in the same series,
in order of issuance in such series; and also of applications for withdrawals in
chronological order of filing. Separate lists may be established for such purposes, in
which event the resolution shall provide the proportion of available money which shall be
applied to each list.

3. For a maximum sum, which shall not exceed one thousand dollars, which may be
paid to any one holder at any one time; and if any holder's application for withdrawal or
for payment of matured shares exceeds the sum so fixed, then he shall be paid in his turn
the sum so fixed, and his application, reduced by such payment, shall be deemed refiled
in its order as if filed on the date of such payment. Such limited payment may be made
on a fixed date in each month and such refiling and renumbering, as the case may be, may
take place on the same date in each subsequent month as long as any applications remain
unpaid.

4. For a maximum sum, which shall not exceed two hundred dollars, which may be paid
on any application for withdrawal or to any one holder of matured shares in any calendar
month, regardless of the order of application.

C. Accounts pledged as sole security for a loan shall be subject to the withdrawal
provisions of this section, but amounts available for payment on the application for
withdrawal shall be applied first to the repayment of the loan balance.

D. Accounts may be accepted by the association in payment or part payment for any
real estate or other assets owned by the association; but if the association has a list
of withdrawals, or withdrawals and maturities, such sale of assets shall be to the
highest bidder, and at least ten days' notice of the proposed sale shall be given by mail
to all holders of accounts whose names appear on the withdrawal or maturity list.

E. No holder shall have more than one application for withdrawal in effect at any
one time; but a holder may cancel his application or reduce the amount thereof at any
time as to any amount not yet paid.

F. The holder of accounts for which application for withdrawal has been made does
not become a creditor by reason of such application.

G. The board of directors of any association operating on the serial plan or with
regular installment or prepaid shares on which dividends have not been credited directly
to the share accounts, may determine by resolution the portion of profits which may be
paid to withdrawing members.

H. Notwithstanding any other provision of this chapter, a savings and loan
association may offer payment order accounts, approved for federal associations doing
business in this state, and authorizing withdrawals therefrom by written drafts payable
to third parties, subject to conditions, limitations and restrictions as the
superintendent may by rule prescribe.