N.Y. Banking Law § 392: Retirement of shares; suspension; transfer

§ 392. Retirement of shares; suspension; transfer. 1. The board of

directors of any savings and loan association may retire shares which

are not pledged to the association by requiring their withdrawal, if the

by-laws clearly state the manner in which such withdrawals may be

required. The holders of such shares shall be paid the book value of

their shares less all lawful obligations.

2. Whenever a member of any savings and loan association shall have

failed for six months to pay dues upon any instalment shares owned by

him, such association may serve notice upon him to pay such dues within

the time stated in such notice, which time shall be not less than thirty

days. If such shareholder does not make such payment within the time

stated in the notice, the amount which would be due him if his shares

were withdrawn shall be determined and such amount transferred and

credited to him in a savings share account or a suspense account. If

transferred to a suspense account, the rights of such member shall cease

except the right to withdraw, subject to the provisions of section three

hundred ninety of this article, the amount thus credited to him and such

dividends as may be credited thereon following the date of such

transfer. Dividends on amounts in suspense accounts shall be credited at

a rate of at least three-fifths of the lowest rate at which dividends

are apportioned to any type of instalment shares.

3. No transfer of shares shall be binding upon any savings and loan

association until such transfer has been recorded upon its books. The

transferee of any share shall take the same subject to all liabilities

to the association and all conditions attaching thereto at the time of

the transfer. If the shares are in the names of two persons and in the

form to be paid to either or the survivor of them, the assignment

thereof by one of such persons shall authorize the association to record

the assignment upon its books or to accept it as collateral for a share

loan made pursuant to subdivision two-a of section three hundred eighty

of this article.