Page:United States Statutes at Large Volume 54 Part 1.djvu/520

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PUBLIC LAWS--C . 397-JUNE 19, 1940 Share and member- ship certificates; re- celL Attachment. Liability of mem- bers. Expulsion. If the association fails, within sixty days of the original offer, to purchase all or any part of the holdings offered, the member may dis- pose of the unpurchased interest elsewhere, subject to the approval of the transferee by a majority vote of the directors. Any would-be transferee not approved by the directors may appeal to the members at their first regular or special meeting thereafter, and the action of the meeting shall be final. If such transferee is not approved, the directors shall exercise their power to purchase, if and when such pur- chase can be made without jeopardizing the solvency of the association. SEC. 27. SHARE AND MEMBERSHIP CERTIFICATES; RECALL. -The bylaws may give the directors the power to use the reserve funds to recall, at par value, the holdings of any member in excess of the amount requisite for membership; and may also provide that if any member has failed to patronize the association during a period of time speci- fied in the bylaws, the directors may use the reserve funds to recall all his holdings and thereupon he shall cease to be a member of the association. When so recalled, such certificates of share or member- ship capital shall be either reissued or canceled. SEc. 28. SHARE AND MEMBERSHIP CERTICICATES; ATrACHMENT.-The holdings of any member of an association, to the extent of the mini- mum amount necessary for membership, but not to exceed $50, shall be exempt from attachment, execution, or garnishment for the debts of the owner. If any holdings in excess of this amount are subjected to such liability, the directors of the association may either admit the purchaser thereof to membership, or may purchase from him such holdings at par value. SEC. 29. LuBAn.r or MEMBERs. - Members shall not be jointly or severally liable for any debts of the association, nor shall a subscriber be so liable except to the extent of the unpaid amount on the shares or membership certificate subscribed by him. No subscriber shall be released from such liability by reason of any assignment of his inter- est in the shares or membership certificate, but shall remain jointly and severally liable with the assignee until the shares or certificates are fully paid up. SEC. 30. EXPUSIONm.- A member may be expelled by the vote of a majority of the members voting at a regular or special meeting. The member against whom the charges are to be preferred shall be informed thereof in writing at least ten days in advance of the meet- ing, and shall have an opportunity to be heard in person or by counsel at said meeting. On decision of the association to expel a member, the board of directors shall purchase the member's holdings at par value, if and when there are sufficient reserve funds. ARrTILE IX-APPORnTONMENT OF NET SAvINGs riAloston and di- SEC. 31. ALLOCATION AND DISTRIBUTION OF NET SAVINGS. -At least aM. once a year the members and/or the directors, as the articles or bylaws may provide, shall apportion the net savings of the association in the following order: Reserveund. 1) Not less than 10 per centum shall be placed in a reserve fund until such time as the fund shall equal at least 50 per centum of the paid-up capital; and such fund may be used in the general conduct of the business. The amounts apportioned to the reserve fund shall be allocated on the books of the association on a patronage basis, or in lieu thereof, the books and records of the association shall afford a means for doing so, in order that upon dissolution or earlier, if deemed advisable, such reserves may be returned to the patrons who have contributed the same, subject to the limitations of section 36 herein; 486 [54 STAT.