Return of initial capital deposit

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§ 13202. Return of initial capital deposit

The initial capital deposits, together with any dividends or interest credited thereon, may be returned, pro rata, to the contributors, or their heirs, executors, administrators, or assigns, subject to the following conditions and limitations:

(1) Prior to return of all or part of the initial capital reserve, the institution shall obtain the Commissioner's approval for such return.

(2) A return of all or part of the capital reserve may not reduce the institution's capital below the greater of the total initial capital contributions or the minimum amount prescribed by the Commissioner in accordance with section 14104 of this title.

(3) Upon release and return, the contributor's proportionate share of the amount to be returned shall be credited in his or her name to a share account or deposit in such institution, and the contributor shall then be entitled to all rights and privileges, and shall be subject to all duties and liabilities, connected with such share account or deposit.

(4) In the event of the liquidation of an institution before such contributions have been repaid in full, any portion of such contributions not required for the repayment of the expenses and the payment of creditors and other depositors in full, pursuant to subchapter 3 of chapter 209 of this title, may be repaid pro rata to the capital depositors. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)


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