KRS 286.6-415: Reduction in shares.

(1) 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 those voting on the

proposition order a reduction in the shares of each of its shareholders to divide the

loss proportionately among the members.

(2) If the credit union thereafter realizes from such asset s a greater amount than was

fixed by the order of reduction, such excess shall be divided proportionately among

the shareholders whose assets were reduced, but only to the extent of such

reduction.