§ 15-4-1219 — Withdrawal of members

(a) (1) Membership in a company shall be for an indeterminate period not to exceed the termination date of the company stated in its articles of incorporation or articles of organization. (2) Provided, however, that: (A) Upon written notice given to a company five (5) years in advance, a member may withdraw from membership in the company at the expiration date of the notice; or (B) (i) In the event that a member, herein called a "constituent member", shall consolidate with, merge into, or sell all or substantially all of its property and assets to another financial institution, herein called the "continuing institution", the board of directors or the management committee may permit, in such manner as it determines, the withdrawal of the constituent member from membership in the company if the continuing institution at the time of the withdrawal is a member and has assumed any obligation of the constituent member to make loans to the company. (ii) If the continuing institution is not a member prior to the consolidation, merger, or sale, the assumed obligation shall be discharged at the time the continuing institution becomes a member. (b) A member shall not be obligated to make any loans to the company pursuant to calls made either before or after the withdrawal of the member.

Legislative History

Acts 1991, No. 1029, § 19; 1999, No. 37, § 18.