6-436. Maturity of shares

318 words·~1 min read·/az/title-6/6-436

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

A. When a regular installment or prepaid share reaches maturity value by reason of payments or dividend credits, or both, all payments thereon by the holder shall cease. The association either shall pay to the holder the maturity value of such share, in accordance with the provisions of this article, or shall mail a notice to the holder at his last known address as it appears on the association's records, to the effect that he is entitled to receive payment for such share or to transfer the same or such portion thereof, as the directors may specify, into other accounts, and that if he takes neither action within sixty days after the date on which such notice is mailed, the value of such share may be held in a creditor account without interest or dividends, available for the holder upon his application, or the board of directors may transfer such share to another account of equivalent value on which dividends shall accrue as on a new account opened on the transfer date.

B. If the association has insufficient funds to make immediate payment upon the date of maturity of any shares, such shares shall be listed in the order of their respective dates of maturity, and shall be paid in the manner provided in section 6-435. Shares in the same series maturing on the same date shall be listed, as of such date, in the order in which they were issued in that series. From the date of maturity until payment, dividends shall be apportioned to such matured shares at a rate to be determined by resolution of the board of directors.

Dividends so apportioned shall be accumulated to the credit of such shares and shall be paid to the holder at the time when the shares are paid, but the rate of such dividends shall not exceed the highest rate being currently apportioned to any other shares.