369.039. Expense fund, mutual associations, purpose, amount--contributions, how repaid--associations exempted, when. - Missouri Statutes

Expense fund, mutual associations, purpose, amount--contributions, howrepaid--associations exempted, when.

369.039. 1. The incorporators of a mutual associationshall also create an expense fund in an amount not less thanone-half of the amount of initial accounts required by section369.034 from which the expense of organizing the association andits operating expenses may be paid until such time as its netincome is sufficient to pay such earnings as may be declared.The incorporators, before a certificate of incorporation isissued, shall pay to the chairman of the incorporators in cashthe amount of the expense fund. The amounts contributed to theexpense fund shall constitute loans to the association.

2. Contributions made to the expense fund may be repaid prorata to the contributors from the net income of the associationafter provision for statutory reserves and payment of earnings onaccounts. In case of the liquidation of an association beforecontributions to the expense fund have been repaid, anycontributions to the expense fund remaining unexpended shall berepaid to the contributors pro rata after payment of all claims,including accounts, but before payment of reserves. Contributorsto the expense fund shall be paid interest on the amountscontributed by them.

3. This section shall not apply to an association which hasobtained a firm commitment for insurance of its accounts from theFederal Deposit Insurance Corporation or any successor thereof orfrom any other insurer approved by the director of the divisionof finance.

(L. 1971 S.B. 3 § 7, A.L. 1982 S.B. 464, A.L. 1994 H.B. 1165)

Effective 7-6-94