6.2-1168 - (Effective October 1, 2010) Redemption. - Virginia Statutes

§ 6.2-1168. (Effective October 1, 2010) Redemption.

At any time that funds are on hand for the purpose, a mutual savingsinstitution shall have the right to redeem by lot or otherwise, as the boardof directors may determine, all or any part of any of its savings accounts onan earnings date by giving 30 days' notice by certified mail addressed toeach affected account holder at his last address as recorded on the books ofthe institution. No mutual savings institution shall redeem any of itssavings accounts when its liabilities exceed its assets or when it hasapplications for withdrawal that have been on file more than 30 days and havenot been reached for payment. The redemption price of savings accountsredeemed shall be the full value of the account redeemed, as determined bythe board of directors, but in no event shall the redemption price be lessthan the withdrawal value. If the notice of redemption has been duly given,and if on or before the redemption date the funds necessary for suchredemption have been set aside to be, and continue to be, available therefor,interest upon the accounts called for redemption shall cease to accrue fromand after the date specified as the redemption date. All rights with respectto such accounts shall terminate upon the redemption date, other than anyright of the account holder of record to receive the redemption price withoutinterest. Accounts called for redemption, if unclaimed, shall be subject tothe Uniform Disposition of Unclaimed Property Act (§ 55-210.1 et seq.).

(1985, c. 425, § 6.1-194.51; 2010, c. 794.)