17-2225.   Losses; proportionate reduction in liability, when;limitations.Whenever the losses of any credit union, resulting from a depreciationin value of its loans or investments or otherwise, result in the creditunion being insolvent, shareholders of the credit union may, by athree-fourths (3/4) vote of the membership present at a meeting called toconsider the matter, order a reduction in the liability of the credit unionto each of its shareholders so as to divide the loss proportionately amongthe shareholders. If thereafter the financial structure of the credit unionwould not be impaired by repayment in whole or part, the credit union mayproportionately repay the members whose shares were so reduced:Provided, The provisions of this section shall apply only to suchshareholders of the credit union as have acquired shares after theeffective date of this act, unless a consent in writing by any priorshareholder is provided. Such a consent may be a prospective agreementwithout consideration, that the provisions of this section shall apply tothe share balance of such shareholder, but such consent shall be revocablein the absence of consideration.

      History:   L. 1963, ch. 140, § 6; June 30.