2009 Kentucky Revised Statutes Subtitle 5. Savings and Loan Associations 286.5.261 Liability of association to members -- Members not liable for losses.
286.5-261 Liability of association to members -- Members not liable for losses.
The savings liability of an association shall consist only of the aggregate amount of <br>savings accounts of its members, plus dividends credited to such accounts, less <br>redemption and withdrawal payments. Except as limited by the board of directors from <br>time to time, a member may make additions to his savings accounts in such amounts and <br>at such times as he may elect. The members of an association shall not be responsible for <br>any losses which its savings liability shall not be sufficient to satisfy, and savings <br>accounts shall not be subject to assessment, except as herein specifically provided, nor <br>shall the holders thereof be liable for any unpaid installments on their accounts. <br>Dividends shall be declared in accordance with the provisions of this subtitle. No <br>preference between savings account members shall be created with respect to the <br>distribution of assets upon voluntary or involuntary liquidation, dissolution, or winding <br>up of an association. No association shall have power to contract with respect to the <br>savings liability in a manner inconsistent with the provisions of this subtitle.
Effective: June 18, 1964 <br>History: Created 1964 Ky. Acts ch. 138, sec. 15, effective June 18, 1964. <br>Formerly codified as KRS 289.261. <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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