6-435. Voluntary withdrawal of accounts

631 words·~3 min read·/az/title-6/6-435

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. A holder of an account may make application for withdrawal of, and the association may pay, all or any part of the withdrawal value thereof at any time.

B. If the association has insufficient funds in the treasury and from current receipts to pay all matured accounts and applications for withdrawal within thirty days after such accounts mature or payment is requested, then the board of directors shall provide by resolution:

1. The amount of money available in each calendar month to pay maturities and withdrawals, in accordance with safe and required operating procedure, but after making provision for expenses, debts, obligations, and cash dividends on accounts, due or to become due, not less than fifty percent of the remainder of such treasury funds and current receipts shall be made available for the payment of withdrawals and maturities.

2. For a list of matured accounts in order of maturity, and if in the same series, in order of issuance in such series and also of applications for withdrawals in chronological order of filing. Separate lists may be established for such purposes, in which event the resolution shall provide the proportion of available money that shall be applied to each list.

3. For a maximum sum, that shall not exceed $1,000, that may be paid to any one holder at any one time and if any holder's application for withdrawal or for payment of matured shares exceeds the sum so fixed, then the holder shall be paid in turn the sum so fixed, and the holder's application, reduced by such payment, shall be deemed refiled in its order as if filed on the date of such payment. Such limited payment may be made on a fixed date in each month and such refiling and renumbering, as the case may be, may take place on the same date in each subsequent month as long as any applications remain unpaid.

4. For a maximum sum, that shall not exceed $200, which may be paid on any application for withdrawal or to any one holder of matured shares in any calendar month, regardless of the order of application.

C. Accounts pledged as sole security for a loan shall be subject to the withdrawal provisions of this section, but amounts available for payment on the application for withdrawal shall be applied first to the repayment of the loan balance.

D. Accounts may be accepted by the association in payment or part payment for any real estate or other assets owned by the association, but if the association has a list of withdrawals, or withdrawals and maturities, such sale of assets shall be to the highest bidder, and at least ten days' notice of the proposed sale shall be given by mail to all holders of accounts whose names appear on the withdrawal or maturity list.

E. A holder shall not have more than one application for withdrawal in effect at any one time, but may cancel the application or reduce the amount thereof at any time as to any amount not yet paid.

F. The holder of accounts for which application for withdrawal has been made does not become a creditor by reason of such application.

G. The board of directors of any association operating on the serial plan or with regular installment or prepaid shares on which dividends have not been credited directly to the share accounts, may determine by resolution the portion of profits that may be paid to withdrawing members.

H. Notwithstanding any other provision of this chapter, a savings and loan association may offer payment order accounts, approved for federal associations doing business in this state, and authorizing withdrawals therefrom by written drafts payable to third parties, subject to conditions, limitations and restrictions as the deputy director may by rule prescribe.