17-5424.   Same; restoration of stock when impaired; reduction; sale ofstock to satisfy assessment; forfeiture, when.Whenever it shall appear that the guarantee stock of any association isimpaired, the commissioner shall notify such association to restore theguarantee stock within ninety (90) days. Within fifteen (15) days after thereceipt of such notice, it shall be the duty of the board of directors ofsuch association to levy an assessment on the guarantee stock sufficient torestore the same: Provided, That such association, with the approvalof the board, may reduce its guarantee stock to the extent of theimpairment, if such reduction will not reduce the guarantee stock below theamount required by the savings and loan code, and acts amendatory thereofor supplemental thereto. Whenever any guarantee stockholder of anassociation, or his assignee, fails to pay any assessment on his stock whenthe same is required to be paid, the directors of such association may sellthe guarantee stock of such delinquent stockholder, or so much thereof asshall be necessary, to satisfy the assessment and any expenses incidentthereto, to any person paying the highest price therefor, which price shallbe not less than the amount due upon such stock with any expense incidentthereto, and such sale may be either public or private. If sold at privatesale and the price offered by any non-stockholder shall not exceed thehighest bid of any stockholder, then such stock shall be sold to thestockholder. If such sale shall be public, then three (3) weeks noticethereof, published in a newspaper of general circulation in the city orcounty where the association is located, shall be given. The excess, ifany, realized upon the sale of said stock shall be paid to the delinquentstockholder, unless he is further indebted to the association, when it maybe retained by the association as an offset. If no purchaser can be foundfor such stock upon the terms herein stated, the stock shall be forfeitedto the association to be disposed of within six (6) months thereafter asthe board of directors shall determine.

      History:   L. 1955, ch. 141, § 6; June 30.