17-5414.   Repurchase procedure to be followed by association.The association shall have the right to repurchase its shares at anytime upon application therefor and to pay to the holders thereof therepurchase value thereof. Holders of shares shall have the right to filewith the association their written applications to repurchase their shares,in part or in full, at any time. Upon the filing of such writtenapplications to repurchase, the association shall number and file the samein the order received and shall either pay the holder the repurchase valueof the shares, in part or in full as requested, or, after thirty (30) daysfrom the receipt of such application to repurchase, apply at leastone-third of the receipts of the association from holders of shares andborrowers, to the repurchase of such shares in numerical order:Provided, That if any holder of a share applies for the repurchase ofmore than one thousand dollars ($1,000) of his shares, he shall be paid onethousand dollars ($1,000) in order when reached, and his application shallbe charged with such amount as paid and shall be renumbered and placed atthe end of the list of applications to repurchase, and thereafter, uponagain being reached shall be paid a like amount, but not exceeding thevalue of his shares, and until paid in full shall continue to be so paid,renumbered, and replaced at the end of the list. When an application torepurchase is reached for payment as above provided, a written notice shallbe sent to the applicant by registered mail at his last address recorded onthe books of the association, and, unless the applicant shall apply inperson or in writing for such repurchase payment within thirty (30) daysfrom the date of mailing such notice, no payment on shares of suchapplication shall be made and such application shall be canceled. The boardof directors shall have the absolute right to repurchase not exceeding twohundred dollars ($200) of any one share of any one holder in any one monthin any order regardless of whether or not such holder has filed anapplication for repurchase. Holders of shares filing written applicationfor repurchase shall remain holders of shares and be entitled toparticipate in dividends until paid and shall not become creditors.

      History:   L. 1943, ch. 133, § 72; L. 1951, ch. 212, § 1; June 30.