17-2332. Same; membership of organization; limitation and apportionment of loans by members; withdrawal.
17-2332
17-2332. Same; membership of organization; limitation and
apportionment of loans by members; withdrawal.
The members of the corporation shall consist of such banks, banking
institutions and insurance companies within the state as may make
application to this corporation to lend funds to it upon call and up to the
limit herein provided. Each member shall lend funds to this corporation as
and when called upon by it to do so, but the total amount on loan by any
member at any one time shall not exceed the following limit, to be
determined as of the time of it becoming a member: For commercial banks and
trust companies, three percent (3%) of capital and surplus; and comparable
limits for other banking institutions. All loan limits shall be established
as the thousand dollars amount nearest to the amount computed on an actual
basis. All calls when made by this corporation shall be prorated among the
members of the same proportion that the maximum lending limit of each bears
to the aggregate maximum lending limit of all members. Upon notice given
one (1) year in advance a member of the corporation may withdraw from
membership in the corporation at the expiration date of such notice and
from said expiration date shall be free from obligations hereunder except
as to those accrued prior to said expiration date.
History: L. 1955, ch. 144, § 5; June 30.