2005 Vermont Code - § 2077. — Share reduction

§ 2077. Share reduction

Whenever the losses of any credit union, resulting from a depreciation in value of its loans or investments or otherwise, exceed its undivided earnings and reserve fund so that the estimated value of its assets is less than the total amount due the shareholders the credit union may, by a majority vote of the entire membership order a reduction in the shares of each of its shareholders to divide the loss proportionately among the members. If thereafter the credit union realizes from those assets a greater amount than was fixed by the order of reduction, the excess shall be divided among the shareholders whose assets were reduced, but only to the extent of the reduction. (Added 1967, No. 312 (Adj. Sess.), § 1, eff. March 22, 1968.)