155.090 Distribution among members of loan call -- Interest rate.

194 words·~1 min read·/ky/chapter-155/155-090

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

(1)Each call made by the corporation shall be prorated among the members of the

corporation in substantially the same proportion that the adjusted loan limit of each

member bears to the aggregate of the adjusted loan limits of all members. The

adjusted loan limit of a member shall be the amount of such member's loan limit,

reduced by the balance of outstanding loans made by such member to the

corporation, other than short term loans, and the investment in capital stock of the

corporation held by such member at the time of such call.

(2)All loans to the corporation by members, other than short term loans, shall be

evidenced by bonds, debentures, notes, or other evidence of indebtedness of the

corporation, which shall be freely transferable at all times, and which shall bear

interest at a rate of not less than one-quarter of one percent (0.25%) in excess of the

rate of interest as determined by the prime rate prevailing on unsecured commercial

loans among the majority of the New York City clearing house member banks on

the first day of the month in which the loan is made to the corporation.