Section 393:26 Guaranty Fund. - New Hampshire Statutes

Every building and loan association shall, at each distribution of profits, or at the end of the fiscal year, reserve as a guaranty fund not less than 5 percent of its net profits accrued since the last preceding distribution, until such fund amounts to not less than 5 nor more than 20 percent of its total withdrawable savings. Said guaranty fund, by vote of the board of directors, may be used to pay losses. Subject to the approval of the bank commissioner it may also be used to maintain the distribution of profits at the same rate of dividend and for any other purpose. The board of directors may at any time, by vote duly recorded, transfer to the guaranty fund the whole or any part of any surplus or reserve under whatever name, and may increase such funds to a sum equal to 20 percent of the total withdrawable savings.

Source. 1933, 26:3. 1937, 106:2. 1939, 72:14. RL 314:22. 1943, 7:1. RSA 393:26. 1977, 265:1, eff. Aug. 21, 1977.