7-7-22. Savings accounts -- Liabilities -- Opening -- Relationship between
association and account holder -- Earnings -- Preferences -- Types of accounts.
The savings liability of an association is not limited, but shall consist only of the aggregate
amount of its savings accounts, plus earnings credited to those accounts, less redemption and
withdrawal payments. Except as limited by the board of directors from time to time, an account
holder may make additions to his savings accounts in such amounts and at such times as he may
elect. Savings accounts may be opened for cash or property in which the association is authorized
to invest, and, in the absence of fraud in a transaction, the value of the property taken in payment
therefor as determined by the board of directors shall be conclusive. The relationship between an
association and its account holders is that of debtor and creditor. Except as may be provided in
the rules of the commissioner governing conversions to capital stock associations, no member of a
mutual association shall be responsible for any losses which its savings liability is not sufficient to
satisfy, and no savings account shall be subject to assessment, nor shall the holder thereof be
liable for any unpaid installments on his account. Earnings on savings accounts shall be fixed or
otherwise declared in accordance with the provisions of this chapter. Except as provided in
Section 7-7-24, no association shall prefer one of its savings accounts in an account classification
over any other savings account in the same classification as to the right to participate in earnings.
No preference between savings account members in a mutual association shall be created with
respect to the distribution of assets upon voluntary or involuntary liquidation, dissolution, or
winding up of such association. An association may issue, sell, negotiate, and advertise for
issuance or sale, any type of savings account not prohibited by or inconsistent with the provisions
of this chapter or other applicable law.
Enacted by Chapter 16, 1981 General Session
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Last revised: Thursday, May 28, 2009