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286.5-321 Redemption of savings accounts -- Limitation on claims.
When funds are available for such 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 or savings certificates on a dividend date by giving thirty (30) days' notice by
certified mail, return receipt requested or by registered 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 thirty (30) days and have not been reached for payment. 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 shall have been duly given, and if
on or before the redemption date the funds necessary for such redemption shall have been
set aside so as to be and continue to be available therefor, dividends upon the accounts
called for redemption shall cease to accrue after the dividend date specified as the
redemption date, and all rights with respect to such accounts shall, after such redemption
date, terminate, except the right of the account holder of record to receive the redemption
price without dividend. All savings account books or certificates evidencing savings
accounts which have been validly called for redemption must be tendered for payment
within ten (10) years from the date of redemption designated in the redemption notice,
otherwise they shall be canceled and all claims of such account holders against the
association shall be barred.
Effective: June 21, 1974
History: Amended 1974 Ky. Acts ch. 315, sec. 46. -- Created 1964 Ky. Acts ch. 138,
sec. 20, effective June 18, 1964.
Formerly codified as KRS 289.321.
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.
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