286.5-161 Expense fund created -- Amount -- Repayment.
(1) The incorporators, in addition to their subscriptions to savings accounts, shall create
an expense fund in an amount not less than one-half (1/2) of the minimum amount <br>of savings account subscriptions required to be paid in under this subtitle, from <br>which expense fund the expense of organizing the association and its operating <br>expenses may be paid until such time as its income is sufficient to pay its operating <br>expenses in addition to such dividends as may be declared and paid or credited to its <br>savings account holders from its income. The incorporators and others shall not <br>constitute a liability of the association except as hereinafter provided.
(2) Contributions made by the incorporators and others to the expense fund may be
repaid pro rata to the contributors from the net income of the association after <br>provisions for statutory reserves and declaration of dividends of not less than two <br>percent (2%) on savings accounts. In case of the liquidation of an association before <br>contributions to the expense fund have been repaid, any contributions to the <br>expense fund remaining unexpended, after the payment of expenses of liquidation, <br>all creditors, and the withdrawal value of all savings accounts, shall be repaid to the <br>contributors pro rata. The books of the association shall reflect the expense fund. <br>Contributors to the expense fund shall be paid dividends on the amounts paid in by <br>them and for such purpose such contributions shall in all respects be considered as <br>savings accounts of the association.
Effective: June 18, 1964 <br>History: Created 1964 Ky. Acts ch. 138, sec. 3 (6) and (7), effective June 18, 1964. <br>Formerly codified as KRS 289.161. <br>Legislative Research Commission Note (7/12/2006). In accordance with 2006 Ky. Acts
ch. 247, secs. 38 and 39, this statute has been renumbered as a section of the <br>Kentucky Financial Services Code, KRS Chapter 286, and KRS references within <br>this statute have been adjusted to conform with the 2006 renumbering of that code.
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