370.085. Membership shares, uses--valuation--withdrawal--redemption--dividends.

MISSOURI STATUTES AND CODES

370.085. Membership shares, uses--valuation--withdrawal--redemption--dividends.

Membership shares, uses--valuation--withdrawal--redemption--dividends.

370.085. 1. Membership shares may, with the approval ofthe director of the division of credit unions, be utilized tofulfill required reserves, operating deficiencies, and satisfythe contractual arrangements of share insurers or guarantors.Notwithstanding the provisions of subsection 3 of section370.340, payment for such shares, upon demand, may be delayed orwithheld without notice, in whole or in part, by order of boardof directors or director of division of credit unions to ensurethe safe and sound operations of the credit union or to fulfillcontractual commitments. When the value of membership shares isimpaired, the board of directors, under the direction of thedirector of credit unions, shall immediately revalue membershipshares in proportion to the change of the aggregate value of suchshares. The value of membership shares so affected shall holdconstant until such subsequent time as the financial condition ofthe credit union causes a revaluation of membership shares toreflect further impairments or the recovery of prior devaluationsas determined by the board of directors with the approval of thedirector of the division of credit unions.

2. A member of a credit union desiring to withdraw from thecredit union or to redeem membership shares must file a writtenapplication with the credit union, in such form and manner as theboard of directors may determine, and as the insurer or guarantormay impose as a condition of insurance or guarantee.

3. The share balance in the member's membership shareaccount shall be paid to such member only as funds thereforbecome available and after deducting any amounts due the creditunion by the member, including any fees, impaired balance, notesor obligations outstanding, whether mature or unmatured, or otherindebtedness or obligation of that member to the credit union.

4. The procedures established by the board of directors ofthe credit union for the redemption or withdrawal of themembership share shall not be amended or varied without thewritten consent of the director of the division of credit unions.

5. The board of directors may authorize dividends, afterprovision for required reserves, to be paid on membership shares.A dividend need not be paid on membership shares, but if such adividend is paid, it may, at the option of the board ofdirectors, be added to the membership share held by each member,and may not be subject to withdrawal until some future time to bedetermined by the board of directors, or upon termination ofmembership.