17-5402.Reserve stock shares.
Any association in existence upon the effective date of this act and
having permanent stock at that date may retain such permanent stock and
from time to time may issue additional shares of such stock according to
the provisions of its bylaws and upon which a full dividend, or a definite
dividend, may be paid, which dividend shall in no case exceed the percent
of profit per annum then being paid or credited by said association on the
class or series of stock of such association bearing the highest dividend
rate of said association. The balance of profits, if any, and the principal
paid on such stock shall not be paid to the holders of the same until all
lawful claims of every other class of stock in its series, as expressed in
the certificate of such other classes, and all other liabilities of such
corporation shall have been fully liquidated and paid. Permanent stock in
existing associations may be converted to reserve stock shares under rules
to be made by the board. Any incorporators of a new association
incorporated hereafter under the provisions of this act may provide for
reserve stock shares in said new association, which reserve stock shares
shall be subscribed and paid for in cash as part of the original
subscription in amounts not less than those provided for the minimum
subscriptions to capital under the provisions of this act. Reserve stock
shares may participate in dividends as provided in the bylaws. Reserve
stock shares shall be considered a secondary reserve out of which losses
shall be paid after all other available reserves have been exhausted, and
when losses have thus been charged against said secondary reserve, the
participating value of said shares shall be reduced pro rata, and shall
represent a redemption of said shares, and shall in every way be construed
the same as repurchase payments to other members on shares or share
accounts. In case of voluntary or involuntary liquidation or dissolution or
winding up of affairs the balance of profits, if any, and reserves and the
participation value of said reserve stock shares shall be paid to the
holders of said reserve stock shares after all outstanding liabilities have
been fully liquidated, paid or satisfied and after the full participation
value of all other shares has been paid or credited to said shareholders.
If at any time all of the reserves plus the undivided profits less the
amount to the credit of the reserve stock shares and less all indicated
losses of such association shall exceed five percent of the total
liabilities, the amount to the credit of said reserve stock shares may be
paid or credited to the holders of said shares by order of the board of
directors upon surrender of their reserve stock share certificates for
cancellation and approval by a majority of the reserve stock:
Provided, (a) That such amounts shall be paid or credited from the
reserve stock shares proportionately to the participating value of said
reserve stock shares; (b) that such payment to holders of reserve stock
shares must first be approved in writing by the commissioner; and (c) that
such payment shall not be made if after such payment the total book value
of the association's real estate owned, judgments, loans in foreclosures,
and real estate sale contracts on which there is an unpaid balance due in
excess of eighty percent of the original sale price, shall be more than
twice the remaining general reserves, undivided profits and reserve stock
shares.
History: L. 1943, ch. 133, § 60; L. 1945, ch. 159, § 1; June 28.
17-5402.Reserve stock shares.
Any association in existence upon the effective date of this act and
having permanent stock at that date may retain such permanent stock and
from time to time may issue additional shares of such stock according to
the provisions of its bylaws and upon which a full dividend, or a definite
dividend, may be paid, which dividend shall in no case exceed the percent
of profit per annum then being paid or credited by said association on the
class or series of stock of such association bearing the highest dividend
rate of said association. The balance of profits, if any, and the principal
paid on such stock shall not be paid to the holders of the same until all
lawful claims of every other class of stock in its series, as expressed in
the certificate of such other classes, and all other liabilities of such
corporation shall have been fully liquidated and paid. Permanent stock in
existing associations may be converted to reserve stock shares under rules
to be made by the board. Any incorporators of a new association
incorporated hereafter under the provisions of this act may provide for
reserve stock shares in said new association, which reserve stock shares
shall be subscribed and paid for in cash as part of the original
subscription in amounts not less than those provided for the minimum
subscriptions to capital under the provisions of this act. Reserve stock
shares may participate in dividends as provided in the bylaws. Reserve
stock shares shall be considered a secondary reserve out of which losses
shall be paid after all other available reserves have been exhausted, and
when losses have thus been charged against said secondary reserve, the
participating value of said shares shall be reduced pro rata, and shall
represent a redemption of said shares, and shall in every way be construed
the same as repurchase payments to other members on shares or share
accounts. In case of voluntary or involuntary liquidation or dissolution or
winding up of affairs the balance of profits, if any, and reserves and the
participation value of said reserve stock shares shall be paid to the
holders of said reserve stock shares after all outstanding liabilities have
been fully liquidated, paid or satisfied and after the full participation
value of all other shares has been paid or credited to said shareholders.
If at any time all of the reserves plus the undivided profits less the
amount to the credit of the reserve stock shares and less all indicated
losses of such association shall exceed five percent of the total
liabilities, the amount to the credit of said reserve stock shares may be
paid or credited to the holders of said shares by order of the board of
directors upon surrender of their reserve stock share certificates for
cancellation and approval by a majority of the reserve stock:
Provided, (a) That such amounts shall be paid or credited from the
reserve stock shares proportionately to the participating value of said
reserve stock shares; (b) that such payment to holders of reserve stock
shares must first be approved in writing by the commissioner; and (c) that
such payment shall not be made if after such payment the total book value
of the association's real estate owned, judgments, loans in foreclosures,
and real estate sale contracts on which there is an unpaid balance due in
excess of eighty percent of the original sale price, shall be more than
twice the remaining general reserves, undivided profits and reserve stock
shares.
History: L. 1943, ch. 133, § 60; L. 1945, ch. 159, § 1; June 28.
17-5402.Reserve stock shares.
Any association in existence upon the effective date of this act and
having permanent stock at that date may retain such permanent stock and
from time to time may issue additional shares of such stock according to
the provisions of its bylaws and upon which a full dividend, or a definite
dividend, may be paid, which dividend shall in no case exceed the percent
of profit per annum then being paid or credited by said association on the
class or series of stock of such association bearing the highest dividend
rate of said association. The balance of profits, if any, and the principal
paid on such stock shall not be paid to the holders of the same until all
lawful claims of every other class of stock in its series, as expressed in
the certificate of such other classes, and all other liabilities of such
corporation shall have been fully liquidated and paid. Permanent stock in
existing associations may be converted to reserve stock shares under rules
to be made by the board. Any incorporators of a new association
incorporated hereafter under the provisions of this act may provide for
reserve stock shares in said new association, which reserve stock shares
shall be subscribed and paid for in cash as part of the original
subscription in amounts not less than those provided for the minimum
subscriptions to capital under the provisions of this act. Reserve stock
shares may participate in dividends as provided in the bylaws. Reserve
stock shares shall be considered a secondary reserve out of which losses
shall be paid after all other available reserves have been exhausted, and
when losses have thus been charged against said secondary reserve, the
participating value of said shares shall be reduced pro rata, and shall
represent a redemption of said shares, and shall in every way be construed
the same as repurchase payments to other members on shares or share
accounts. In case of voluntary or involuntary liquidation or dissolution or
winding up of affairs the balance of profits, if any, and reserves and the
participation value of said reserve stock shares shall be paid to the
holders of said reserve stock shares after all outstanding liabilities have
been fully liquidated, paid or satisfied and after the full participation
value of all other shares has been paid or credited to said shareholders.
If at any time all of the reserves plus the undivided profits less the
amount to the credit of the reserve stock shares and less all indicated
losses of such association shall exceed five percent of the total
liabilities, the amount to the credit of said reserve stock shares may be
paid or credited to the holders of said shares by order of the board of
directors upon surrender of their reserve stock share certificates for
cancellation and approval by a majority of the reserve stock:
Provided, (a) That such amounts shall be paid or credited from the
reserve stock shares proportionately to the participating value of said
reserve stock shares; (b) that such payment to holders of reserve stock
shares must first be approved in writing by the commissioner; and (c) that
such payment shall not be made if after such payment the total book value
of the association's real estate owned, judgments, loans in foreclosures,
and real estate sale contracts on which there is an unpaid balance due in
excess of eighty percent of the original sale price, shall be more than
twice the remaining general reserves, undivided profits and reserve stock
shares.
History: L. 1943, ch. 133, § 60; L. 1945, ch. 159, § 1; June 28.