7-7-26. Redemption of savings accounts.
At any time funds are on hand for the purpose, the association may redeem by lot or
otherwise, as the board of directors may determine, all or any part of any of its savings accounts
on an earnings date by giving 30 days' notice by registered or certified mail addressed to each
affected account holder at his last address as recorded on the books of the association. No
association shall redeem any of its savings accounts when the association is in an impaired
condition or when it has applications for withdrawal which have been on file more than 14 days
and have not been paid. The redemption price of savings accounts redeemed shall be the full
value of the account redeemed, as determined by the board of directors, but in no event shall the
redemption price be less than the withdrawal value. If the notice of redemption has been duly
given and if on or before the redemption date the funds necessary for redemption have been set
aside so as to be and continue to be available for redemption, earnings upon the accounts called
for redemption shall cease to accrue from and after the earnings date specified as the redemption
date, and all rights with respect to these accounts shall forthwith, after the redemption date,
terminate, excepting only any right of the account holder of record to receive the redemption price
without interest. All savings account books or certificates evidencing former savings accounts
which have been validly called for redemption must be tendered for payment within seven years
from the date of redemption designated in the redemption notice, otherwise they shall be
cancelled and the funds set aside for those accounts presumed abandoned, and they shall be
disposed of in accordance with the provisions of Title 67, Chapter 4a, Unclaimed Property Act.
Amended by Chapter 20, 1995 General Session
Amended by Chapter 198, 1995 General Session
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Last revised: Thursday, May 28, 2009