§ 11-42-114 — Bonus plan

(1) Any association may adopt a plan for the payment
of a cash bonus to members agreeing to make share investments in order to provide
funds for the financing of homes. Such plan, before being adopted, shall be
approved by a majority of the members of the board of directors at any regular or
special meeting thereof and shall become effective upon the filing with and
approval of the commissioner. The board of directors at any regular or special
meeting may abolish the bonus plan as to shares purchased after the date of such
action.

(2) After adoption and approval of such bonus plan, the board of directors
shall transfer out of net earnings to an account designated bonus reserve an
amount which, together with existing credits to the bonus reserve, is sufficient to
pay the bonus on all accounts then entitled to participation in the bonus reserve in
accordance with the provisions of this section. The board of directors may transfer
any excess in the bonus reserve to the undivided profits account.

Legislative History

Source: L. 33: p. 357, � 13. CSA: C. 25, � 81. L. 39: p. 254, � 29. CRS 53: � 122-3-14. L. 59: p. 664, � 5. C.R.S. 1963: � 122-3-14.