N.Y. Banking Law § 389: Matured shares; conversion into shares of another class upon notice

§ 389. Matured shares; conversion into shares of another class upon

notice. Whenever the dues and dividends credited to instalment or

accumulative prepaid shares shall equal their matured value, notice of

such maturity shall be given to the holders thereof and the payment of

dues thereon shall cease. Such notice shall be mailed to such

shareholder at his last known address as it appears on the books of the

association and, in the discretion of the board of directors, may

contain a further provision that if such shareholder fails to accept

payment for such shares, convert such shares into shares of another

class or file an application to withdraw such shares within sixty days

after the mailing of such notice, the same will be converted into

another class of shares specified in such notice. If such additional

provision has been included in such notice and the shareholder fails or

neglects to accept payment for such shares, convert such shares into

shares of another class or file an application to withdraw such shares,

within such sixty days, the board of directors may, by resolution,

convert such shares into the class of shares specified in such notice.

For the purpose of maturing such shares, a special dividend may be

credited between regular dividend dates at the same rate at which the

last regular dividend was credited. When shares pledged to the

association mature, the value of such shares shall, to the extent of the

obligation for which they are pledged, be applied in payment thereof.

Any remaining balance of such shares shall be treated as matured shares

and any other collateral not required to satisfy such obligation shall

be returned.