§ 54-109.61. Reduction in shares. - North Carolina Statutes

§54‑109.61.  Reduction in shares.

(a)        Whenever the lossesof any credit union, resulting from a depreciation in value of its loans orinvestments or otherwise, exceed its undivided earnings and reserve fund sothat the estimated value of its assets is less than the total amount due theshareholders, the credit union may by a majority vote of the members present ata special meeting called for that purpose order a reduction in the shares ofeach of its shareholders to divide the loss proportionately among the members.

(b)        If the credit unionthereafter realizes from such assets a greater amount than was fixed by theorder of reduction, such excess shall be divided proportionately among theshareholders whose assets were reduced, but only to the extent of suchreduction. (1975, c. 538, s. 1.)