§ 54B-126. Forced retirement of withdrawable accounts. - North Carolina Statutes

§54B‑126.  Forced retirement of withdrawable accounts.

(a)        At any time thatfunds may be on hand and available for such a purpose, and the bylaws of anassociation and withdrawable account contracts so provide, an association shallhave the authority and right to redeem all or any portion of its withdrawableaccounts which have not been pledged as security for loans by forcing theretirement thereof. The number of and total amount of such withdrawableaccounts to be retired by an association shall be determined by the board ofdirectors.

(b)        An associationshall give notice by certified mail to the last address of each holder of anaffected withdrawable account of at least 30 days. The redemption price ofwithdrawable accounts so retired shall be the full withdrawal value of theaccount, as determined on the last dividend date, plus all dividends onwithdrawable accounts credited or paid as of the effective retirement date.Dividends shall continue to accrue and be paid or credited by the associationto the withdrawable accounts to be retired up to and including the effectiveretirement date.

(c)        If the requirednotice has been properly given, and if on the effective retirement date thefunds necessary for payment have been set aside so as to be available, andshall continue to be available therefor, dividends on those withdrawableaccounts called for forced retirement shall cease to accrue after the effectiveretirement date. All rights with respect to such account shall, after theeffective retirement date, terminate, except only the right of the holder ofthe retired withdrawable account to receive the full redemption price.

(d)        No association mayredeem withdrawable accounts by forced retirement whenever it has on fileapplications for withdrawal, or maturities which have not yet been acted uponand paid. No association may redeem withdrawable accounts by forced retirementuntil the maturity of any fixed minimum term which may be required for theclass of withdrawable accounts to be retired. (1981, c. 282, s. 3.)