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This entry was published on 2014-09-22
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Retirement of shares; suspension; transfer
§ 392. Retirement of shares; suspension; transfer. 1. The board of
directors of any savings and loan association may retire shares which
are not pledged to the association by requiring their withdrawal, if the
by-laws clearly state the manner in which such withdrawals may be
required. The holders of such shares shall be paid the book value of
their shares less all lawful obligations.

2. Whenever a member of any savings and loan association shall have
failed for six months to pay dues upon any instalment shares owned by
him, such association may serve notice upon him to pay such dues within
the time stated in such notice, which time shall be not less than thirty
days. If such shareholder does not make such payment within the time
stated in the notice, the amount which would be due him if his shares
were withdrawn shall be determined and such amount transferred and
credited to him in a savings share account or a suspense account. If
transferred to a suspense account, the rights of such member shall cease
except the right to withdraw, subject to the provisions of section three
hundred ninety of this article, the amount thus credited to him and such
dividends as may be credited thereon following the date of such
transfer. Dividends on amounts in suspense accounts shall be credited at
a rate of at least three-fifths of the lowest rate at which dividends
are apportioned to any type of instalment shares.

3. No transfer of shares shall be binding upon any savings and loan
association until such transfer has been recorded upon its books. The
transferee of any share shall take the same subject to all liabilities
to the association and all conditions attaching thereto at the time of
the transfer. If the shares are in the names of two persons and in the
form to be paid to either or the survivor of them, the assignment
thereof by one of such persons shall authorize the association to record
the assignment upon its books or to accept it as collateral for a share
loan made pursuant to subdivision two-a of section three hundred eighty
of this article.