7-7-26 - Redemption of savings accounts. - Utah Statutes

7-7-26. Redemption of savings accounts.
At any time funds are on hand for the purpose, the association may redeem by lot orotherwise, as the board of directors may determine, all or any part of any of its savings accountson an earnings date by giving 30 days' notice by registered or certified mail addressed to eachaffected account holder at his last address as recorded on the books of the association. Noassociation shall redeem any of its savings accounts when the association is in an impairedcondition or when it has applications for withdrawal which have been on file more than 14 daysand have not been paid. The redemption price of savings accounts redeemed shall be the fullvalue of the account redeemed, as determined by the board of directors, but in no event shall theredemption price be less than the withdrawal value. If the notice of redemption has been dulygiven and if on or before the redemption date the funds necessary for redemption have been setaside so as to be and continue to be available for redemption, earnings upon the accounts calledfor redemption shall cease to accrue from and after the earnings date specified as the redemptiondate, and all rights with respect to these accounts shall forthwith, after the redemption date,terminate, excepting only any right of the account holder of record to receive the redemptionprice without interest. All savings account books or certificates evidencing former savingsaccounts which have been validly called for redemption shall be tendered for payment withinseven years from the date of redemption designated in the redemption notice, otherwise they shallbe cancelled and the funds set aside for those accounts presumed abandoned, and they shall bedisposed of in accordance with the provisions of Title 67, Chapter 4a, Unclaimed Property Act.

Amended by Chapter 378, 2010 General Session