§ 389 — Matured shares; conversion into shares of another class upon notice

New York § 389

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

Text

§ 389. Matured shares; conversion into shares of another class upon\nnotice. Whenever the dues and dividends credited to instalment or\naccumulative prepaid shares shall equal their matured value, notice of\nsuch maturity shall be given to the holders thereof and the payment of\ndues thereon shall cease. Such notice shall be mailed to such\nshareholder at his last known address as it appears on the books of the\nassociation and, in the discretion of the board of directors, may\ncontain a further provision that if such shareholder fails to accept\npayment for such shares, convert such shares into shares of another\nclass or file an application to withdraw such shares within sixty days\nafter the mailing of such notice, the same will be converted into\nanother class of shares specified in such notice. If such additional\nprovision has been included in such notice and the shareholder fails or\nneglects to accept payment for such shares, convert such shares into\nshares of another class or file an application to withdraw such shares,\nwithin such sixty days, the board of directors may, by resolution,\nconvert such shares into the class of shares specified in such notice.\nFor the purpose of maturing such shares, a special dividend may be\ncredited between regular dividend dates at the same rate at which the\nlast regular dividend was credited. When shares pledged to the\nassociation mature, the value of such shares shall, to the extent of the\nobligation for which they are pledged, be applied in payment thereof.\nAny remaining balance of such shares shall be treated as matured shares\nand any other collateral not required to satisfy such obligation shall\nbe returned.\n