Payment of withdrawals.

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(1) In case the funds of an association applicable to withdrawals are not sufficient to pay off all members desiring to withdraw, such members may be paid off in either one of two methods, dependent upon which method the board of directors of the association may desire to follow, in full in the order in which withdrawal notices are filed or on a pro rata basis, as follows:

  1. In the event an association elects to pay withdrawals in full in the order in whichwithdrawal notices are filed, all notices of withdrawal shall be filed in writing in order of time in which filed, and shall be kept in numerical order and so numbered, and shall be paid in the order filed as funds are available for that purpose.

  2. As to associations which elect to pay withdrawals on a pro rata basis, all shares oraccounts on which notices of withdrawal have been filed during any period of notice shall receive their pro rata share of the funds available for withdrawal at the end of such notice period, based upon the withdrawal value of the shares or account at the time distribution is made.

  3. Repealed.

  1. Notice of withdrawal shall not make such withdrawing member a creditor of theassociation.

  2. As to all shares on which a withdrawal notice is on file, the holder thereof shall beentitled to the same rate of dividends paid like shares not on withdrawal.

  3. In all cases, withdrawals shall be governed by the bylaws of the association insofaras such bylaws are not in conflict with the provisions of articles 40 to 46 of this title.

Source: L. 33: p. 321, § 5. CSA: C. 25, § 30. CRS 53: § 122-3-20. C.R.S. 1963: § 1223-20. L. 83: IP(1), (1)(a), (1)(b), and (2) amended and (1)(c) repealed, pp. 502, 503, §§ 5, 7, effective May 23.


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