N.Y. Banking Law § 390: Withdrawal of unpledged shares; provisions for dividends

§ 390. Withdrawal of unpledged shares; provisions for dividends. 1.

The accumulations upon shares of any savings and loan association which

are not pledged to the association to secure a loan, whether or not such

shares are matured, may be withdrawn subject to the provisions of this

chapter and of the by-laws and regulations of the association made in

accordance therewith. In addition to his rights as a shareholder of an

association, a shareholder shall be a creditor of the association to the

extent of all dues and dividends credited to him. An association may by

regulation adopted by resolution of its board of directors require a

written notice of thirty days before paying withdrawals, in which event

no withdrawal shall be paid until thirty days after notice of intention

to make the withdrawal shall have been filed. It shall on the day such

regulation is made effective notify the superintendent by telephone or

telegraph that such regulation has been made and shall thereafter

number, date and file in the order of actual receipt every notice of

intention to make a withdrawal. Except as provided in section three

hundred seventy-eight-a of this chapter, no savings and loan association

shall hereafter agree with any of its shareholders in advance to waive

the said thirty days' notice. Except in the case of special savings

shares, if the by-laws so provide, a special dividend may be credited on

shares withdrawn between regular dividend dates at the rate of the last

dividend, computing from the last dividend period to the first day of

the month in which such withdrawal is made.

1-a. A savings and loan association may permit a shareholder to

withdraw the accumulations upon his shares of the association which are

not pledged to the association to secure a loan, whether or not such

shares are matured, through a disbursing savings and loan association

that is a member of the federal deposit insurance corporation if the

office of the disbursing association through which payment of such

withdrawal is made is located more than fifty miles from the principal

dwelling place of such shareholder. The association may authorize

payment by the disbursing association only upon receiving a specific

telephonic withdrawal request, which may be oral or electronic, from

such shareholder, and the amount so paid shall be immediately withdrawn

from the shareholder's account at such association. A savings and loan

association providing withdrawal services pursuant to this subdivision

one-a may, but is not required to: (a) charge a fee to shareholders

making such withdrawals, (b) place a limitation upon the amount of such

withdrawal requests, and (c) pay a fee to the disbursing association. A

savings and loan association may also act as the disbursing association

in a similar withdrawal transaction from such accumulations on shares in

another association that is a member of the federal deposit insurance

corporation, and may collect a fee for its services. This subdivision

one-a shall not apply to time deposits received by an association

pursuant to section three hundred seventy-eight-a of this chapter.

2. If a member shall not apply for the withdrawal within fifteen days

after the expiration of the thirty days' notice of intention no

withdrawal shall be payable under such notice or by reason thereof.

While any withdrawal application made pursuant to the required notice of

intention remains in effect and unpaid, no withdrawal application made

pursuant to a notice of intention subsequently filed shall be paid and

no loan may be made secured by transfer or pledge of shares, nor shall

shares be retired or applied by the association, or by the member toward

the payment of fines and obligations due to the association, nor shall

dividends be declared or paid.

3. Upon the withdrawal of instalment or accumulative prepaid shares

prior to their maturity, or upon the withdrawal of income shares issued

for a fixed term prior to the expiration of such fixed term, a portion

of the dividends credited to such shares may be retained by the

association as its own property, in accordance with a schedule, clearly

and fully set forth in the by-laws. Such schedule shall make proper

provision with respect to each class of share, and in the case of

instalment shares shall take into account the period such shares have

been in force, provided, however, that the portion of such dividends

that may be retained by the association upon the withdrawal of a share

shall in no case exceed forty per centum of the dividends apportioned

and credited upon such share.

4. The board of directors may permit a member to withdraw part of the

accumulations on his shares, other than instalment shares issued in

series, without reducing the number of shares held by him.

5. Subject to any regulations and restrictions prescribed by the

superintendent of financial services, a savings and loan association may

accept deposits, including demand deposits, without the issuance of a

passbook in connection therewith, and may issue such other evidences of

its obligation to repay such deposits as may be appropriate to safeguard

the interests of the depositors and of the savings and loan association.

6. In case of conflict between this section and any other provision of

law, this section shall control.