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