17-5517.   Lien on shares to secure loan.To secure loans to members an association shall have a lien withoutfurther agreement or pledge, upon all shares owned by the borrower. Upondefault upon any loan, the association may, without any notice to, orconsent of, the borrower, cancel on its books all or any shares owned bythe borrower and apply the value of such shares in payment on account ofthe loan. An association may waive its lien in whole or in part by writing.Any association may take the pledge of shares of the association owned by amember other than the borrower as additional security for any loan securedby shares or by shares and real estate or as additional security for anyreal-estate loan.

      History:   L. 1943, ch. 133, § 95; July 1.