534.305 - REDEMPTION. - Iowa Statutes

534.305 REDEMPTION. When funds are on hand for the purpose, the association may redeem by lot or otherwise, as the board of directors determines, all or any part of any of its savings accounts on a dividend date by giving thirty days' notice by registered mail addressed to the account holders at their last addresses recorded on the books of the association. An association shall not redeem its share accounts when the association is in an impaired condition or when it has applications for withdrawal which have been on file more than thirty days and have not been reached for payment. The redemption price of a savings account shall be the full value of the account redeemed, as determined by the board of directors, but the redemption value shall not be less than the withdrawal value. If the notice of redemption has been given, and if on or before the redemption date the funds necessary for the redemption have been set aside for redemptions, dividends upon the accounts called for redemption shall cease to accrue from and after the dividend date specified as the redemption date, and rights with respect to those accounts terminate as of the redemption date, subject only to the right of the account holder of record to receive the redemption value without interest. Savings accounts which have been validly called for redemption must be tendered for payment within ten years from the date of redemption designated in the redemption notice, or they shall be canceled and paid to the treasurer of state for deposit in the department of commerce revolving fund created in section 546.12 and all claims of the account holders against the association are barred forever. Redemption shall not be made of any savings accounts which are held by a person who is a director and which are necessary to qualify the person to act as director.          Section History: Early Form [59 Acts, ch 338, § 12; 61 Acts, ch 265, § 7; C62, 66, 71, 73, 75, 77, 79, 81, § 534.12]          Section History: Recent Form 83 Acts, ch 185, §51, 62; 83 Acts, ch 186, § 10108, 10201, 10204 C85, § 534.305 2009 Acts, ch 181, §106          Footnotes For future repeal of 2009 amendment to this section, effective July 1, 2011, see 2009 Acts, ch 179, §146