17-2225. Losses; proportionate reduction in liability, when; limitations.
17-2225
17-2225. Losses; proportionate reduction in liability, when;
limitations.
Whenever the losses of any credit union, resulting from a depreciation
in value of its loans or investments or otherwise, result in the credit
union being insolvent, shareholders of the credit union may, by a
three-fourths (3/4) vote of the membership present at a meeting called to
consider the matter, order a reduction in the liability of the credit union
to each of its shareholders so as to divide the loss proportionately among
the shareholders. If thereafter the financial structure of the credit union
would not be impaired by repayment in whole or part, the credit union may
proportionately repay the members whose shares were so reduced:
Provided, The provisions of this section shall apply only to such
shareholders of the credit union as have acquired shares after the
effective date of this act, unless a consent in writing by any prior
shareholder is provided. Such a consent may be a prospective agreement
without consideration, that the provisions of this section shall apply to
the share balance of such shareholder, but such consent shall be revocable
in the absence of consideration.
History: L. 1963, ch. 140, § 6; June 30.