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This entry was published on 2014-09-22
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Insurance of accounts and eligibility provisions
§ 420-g. Insurance of accounts and eligibility provisions. 1. It
shall be the duty of the fund to insure the accounts of all state
savings and loan associations that apply and qualify therefor. Approval
of the application shall constitute the savings and loan association a
member of the fund.

2. Applications shall be in such form as the fund shall prescribe, and
shall contain an agreement (a) to pay the reasonable cost of such
examinations as the fund shall deem necessary in connection with such
insurance, and (b) if the insurance is granted, to permit and pay the
cost of such examinations as in the judgment of the fund may from time
to time be necessary for its protection and the protection of member
savings and loan associations, to permit the fund to have access to any
information or report with respect to any examination made by any public
regulatory authority and to furnish any additional information with
respect thereto as the fund may require, and to pay the premium charges
for insurance as hereinafter provided.

3. The fund shall reject the application of any applicant if it finds
that the applicant has assets insufficient to pay its debts and the
amount due its members upon savings accounts or that its financial
policies or management are unsafe or unsound; and the fund may reject
the application of any applicant if it finds that the character of the
management of the applicant or its home financing policy is inconsistent
with economical home financing or with the purposes of this article.
Upon the approval of any application for insurance the fund shall notify
the applicant, and upon the required purchase of the capital stock of
the fund and upon the payment of the initial premium charge for such
insurance and required advance premiums the fund shall issue to the
applicant a certificate stating that it has become an insured
institution. In considering applications for such insurance the fund
shall give full consideration to all factors in connection with the
financial condition of applicants and insured institutions, and shall
have power to require such adjustments in their financial statements as
the fund finds to be necessary.

4. Any savings and loan association which applies after January first,
nineteen hundred sixty-seven for insurance under this article shall pay,
in the event its application is approved, an admission fee in such
amount as the fund shall determine, taking into consideration the total
cost of processing all insurance applications.