§ 388 — Fines and penalties for failure to make payments on instalment shares

New York § 388

• Jurisdiction: New York
• Law BNK: Banking
• Art. 10: Savings and Loan Associations

Text

§ 388. Fines and penalties for failure to make payments on instalment\nshares. 1. Where dividends on instalment shares are credited by series,\na savings and loan association may impose fines upon the holders of\ninstalment shares of a series, their legal representatives or successors\nin interest, if they neglect to pay dues, interest or premium when due,\nbut such fines shall not exceed one per centum per month of the amount\nin default for the period during which such dues, interest and premium\nshall have remained in default, except that a fine at the rate of two\nper centum per month of the amount in default may be imposed during the\nfirst three months of any default.\n 2. Where dividends on instalment shares are credited individually to\nshares, a savings and loan association may declare a lower rate of\ndividend on instalment shares upon which there has been a default for\nmore than sixty days since the last declaration of dividends, provided\nthat such dividend shall be not less than sixty per centum of the\ndividend declared on like instalment shares not in default.\n 3. Where dues on instalment shares are applied directly in reduction\nof a mortgage loan, a savings and loan association may provide, as one\nof the terms of the obligation, that interest may be added to the unpaid\nbalance of the obligation on the first day of each month and computed\nupon the unpaid balance of the obligation due as of the last day of the\npreceding month.\n 4. No fine shall be charged against or deducted from the dues actually\npaid by a member and no fines or penalties other than those provided in\nthis section shall be imposed for failure to meet payments on instalment\nshares.\n