Title 6, Banks and Financial Institutions

If the deputy director does not deny the application on the basis of the data submitted by the applicants and any other information in the deputy director's possession, the applicants shall publish a notice of intention to organize in such form as the deputy director shall prescr…

The deputy director shall not approve the application and issue a permit to organize unless the deputy director finds: 1. A need exists for an association, and that the public convenience and advantage will be promoted by the proposed association, in the community or area of oper…

On receipt of the permit to organize an association, the applicants shall constitute the organization committee and shall perfect a temporary organization by electing a chairman, vice chairman, and a secretary, who shall act as the temporary officers of such association until the…

A. If the board of directors has organized as provided in this chapter and the report of such organization has been filed with the deputy director, the deputy director shall make a thorough examination into the affairs of the proposed association, and if the deputy director appro…

A. The articles of incorporation shall set forth: 1. The name of the association. 2. The location of the principal place of business. 3. The general nature of the business to be transacted. 4. The authorization, if any, to issue withdrawable shares, the aggregate amount of which …

A. The membership of an association shall consist of: 1. Every holder of an account or one or more shares of guaranty capital issued by the association. 2. Every borrower from the association, as long as his loan remains unpaid and he remains liable to the association for the pay…

A. Each annual meeting of the members shall be held at the time specified in the articles of incorporation; but the failure to hold an annual meeting at the time so specified shall not work a forfeiture or dissolution of the association. The board of directors, or the holders of …

For the purpose of determining the holders of accounts and of shares of guaranty capital, and membership entitled to notice of or to vote at any meeting of the members, or in order to make a determination of the members, holders, or other persons for any other proper purpose, the…

The business affairs of the association shall be exercised by its board of directors, which shall be elected, and shall exercise its powers, as follows: 1. The board of directors shall consist of the number of directors fixed by the articles of incorporation but shall be not less…

Whenever notice is required to be given under this chapter, a waiver thereof in writing signed by the person or persons entitled to said notice shall be deemed equivalent thereto.

A. The officers of an association shall consist of a president, one or more vice presidents, secretary, treasurer, and such other officers as the by-laws shall provide, to be elected by the directors. If the by-laws so provide, any two or more offices may be held by the same pers…

A. Every person appointed or elected to any position requiring the receipt, payment, management or use of money belonging to an association, or whose duties allow the person to have access to or custody of any of the association's money or securities or whose duties allow the per…

A. Every member or holder of capital shall have the right to inspect such books and records of the association as pertain to the member's or holder's account. Otherwise, the right of inspection and examination of the books and records shall be limited to the deputy director, as p…

A. The capital of an association may be represented by capital notes and debentures, accounts or guaranty capital, as provided in this article and as authorized by the articles of incorporation. B. All accounts, capital notes and debentures and guaranty capital shall be personal …

A. An association may maintain all types of deposit accounts and prescribe those terms and conditions relating to the accounts as are allowable for the association to maintain the insurance of its deposits by an insurance corporation. B. Accounts are: 1. Withdrawable and subject …

A. Shares of guaranty capital shall constitute a secondary reserve out of which losses shall be paid after all other available reserves have been exhausted, and such shares shall be: 1. Nonwithdrawable, except as provided in section 6-428, until all liabilities of the association…

A. An association may provide for the issuance of shares of guaranty capital, either by its original articles of incorporation or by an amendment to the articles of incorporation. B. The aggregate initial guaranty capital of an association being organized under this chapter shall…

When an association already in operation amends its articles of incorporation to authorize the issuance of shares of guaranty capital, or when an association already in operation with provision in its original articles of incorporation for the issuance of guaranty shares but whic…

A. All prospectae and advertising matter regarding the subscription for shares of guaranty capital shall include a statement to the effect that such shares of guaranty capital are not insured. B. No association shall pay to any person any commission or other compensation for obta…

A. The board of directors of an association operating with guaranty capital may propose an amendment to the articles of incorporation providing for the retirement of all of the guaranty capital, and a detailed plan for effectuating such an amendment. The resulting capital of the …

A. An association may evidence an account by one or more appropriate certificates. B. The holder of an account may transfer his rights in the account absolutely or conditionally to any other person eligible to hold the same by written assignment. Notwithstanding the effectiveness…

Accounts, shares of guaranty capital, and membership in an association may be held: 1. By any person in his own right, regardless of his age or marital status, or by two or more of such persons. 2. By a government or governmental instrumentality when authorized by law.

A. Unless the written agreement provides otherwise, or unless the association has had written notice of the terms under which a fiduciary holds an account, the association may pay the value thereof and dividends thereon: 1. To any minor who is the holder of such account. 2. To su…

A. If the holder in his own right of an account becomes a person with a disability and a conservator has been appointed, by a court of competent jurisdiction, and has qualified then the association may pay the value of such account and dividends thereon to the conservator. Until …

A. All accounts of a federal savings and loan association and all accounts of a savings and loan association operating under this chapter, whose accounts are insured by the federal deposit insurance corporation, as provided in title IV of the national housing act, as now or herea…

A. A holder of an account may make application for withdrawal of, and the association may pay, all or any part of the withdrawal value thereof at any time. B. If the association has insufficient funds in the treasury and from current receipts to pay all matured accounts and appli…

A. When a regular installment or prepaid share reaches maturity value by reason of payments or dividend credits, or both, all payments thereon by the holder shall cease. The association either shall pay to the holder the maturity value of such share, in accordance with the provis…

A. The board of directors, when authorized by the by-laws, and in conformity with the provisions of this section and of the by-laws, may retire on any dividend payment date any accounts, which have not been pledged as security for loans, by enforcing the retirement thereof. B. Th…

An association may charge initial membership fee and a fee for transfer of membership or capital, as may be authorized by the by-laws, but no such fee shall exceed twenty-five cents per share or per one hundred dollars of the account.

Every account shall be subject to a lien for the payment of such charges as lawfully may accrue thereon under the provisions of this chapter, and the by-laws may prescribe the manner of enforcing such lien, but no member shall be responsible for any losses which the then existing…

The board of directors may apportion the profits of the association as the bylaws may prescribe, and each apportionment shall be made in accordance with the following procedure: 1. Proper allocation first shall be made to accrued interest on accounts. 2. Proper allocation then sh…

A. Subject to the restrictions set forth in this section and the association's bylaws, an association from time to time may determine the term, rate and amount of interest to be paid on accounts, and for that purpose may establish reasonable classifications of accounts, based on …

For the purpose of encouraging thrift, systematic savings and long-term investment, the board of directors may establish by resolution bonus plans for holders of accounts. The board then shall transfer from the periodical profits of the association additional amounts to a bonus r…

A. After the effective date hereof, an association shall not give for the opening of, or increasing the amount of, any account, any giveaway that has a monetary value in excess of the sum fixed for specified classes of accounts by rule of the deputy director. The monetary value o…

A. An association may invest funds as follows: 1. In an account of any state or federal association, the accounts of which are insured by an insurance corporation. 2. In obligations of or fully guaranteed by the United States, in stock or obligations of federal home loan banks or…

A. Each loan, and any agreement for securing the same, shall be evidenced by one or more written instruments, consistent with sound lending practices in the locality, and whenever recording of such an agreement is necessary to establish priority over the claim of any third party,…

The association at any time may enter into a written agreement with the borrower to modify, in any manner not inconsistent with the provisions of this chapter, the terms of a loan as to the amount, time, or method of the payments to be made, the interest rate, and any other provi…

An association may contract to service a loan in any manner unless restricted by regulations prescribed by the deputy director and shall require sufficient compensation to reimburse the association for all expenses incurred under such contract.

An association may purchase, at any sheriff's or other judicial sale, either public or private, any real or personal property upon which the association has any mortgage, lien, or other encumbrance or in which the association has any other interest or accept a deed in lieu of suc…

An association may invest in land on which to erect an office building, an office building or buildings and appurtenances, for the transaction of such association's business, or for the transaction of such business and for rental, but no such investment may be made if the total a…

At the time of acquisition by purchase, foreclosure or otherwise, an association shall cause to be appraised, in the manner, and by appraisers appointed in accordance with section 6-457, each parcel of real estate acquired and shall keep a signed copy of such appraisal in its rec…

A. Every loan or other investment made in violation of this chapter shall be due and payable according to its terms, and the obligation thereof shall not be impaired. B. Every director or officer of an association who knowingly shall violate, participate in, or assent to, or who …

Every appraisal or reappraisal of property that an association is required to make shall be made as follows: 1. In accordance with the deputy director's rules and regulations on appraisals. Each appraisal shall be filed and preserved by the association during the life of the loan…

No acknowledgment of a deed, mortgage, or other instrument shall be invalid because such acknowledgment was taken before an officer authorized by the laws of this state to acknowledge conveyances, who is also a member, director, employee, or officer of an association which is a p…

An association may amend its articles of incorporation from time to time, in accordance with the procedure prescribed in this article; but the articles of incorporation, as amended, shall conform to all legal requirements which pertain to original articles adopted at the time of …

The procedure to effect an amendment of articles of incorporation shall be as follows: 1. The board of directors shall adopt a resolution setting forth the proposed amendment and directing that it be submitted to a vote at a meeting of the members, which may be an annual or a spe…