6-427. Shares of guaranty capital; advertisement; sales; collection of subscription
A. All prospectae and advertising matter regarding the subscription for shares of guaranty capital shall include a statement to the effect that such shares of guaranty capital are not insured.
B. No association shall pay to any person any commission or other compensation for obtaining any subscription to or sale of shares of guaranty capital without the prior approval of the superintendent.
C. The board of directors shall establish a separate account to receive all funds paid in for shares of guaranty capital, and shall maintain such account until further action is authorized as follows:
1. When the aggregate amount of such funds equals or exceeds the amount of the minimum initial guaranty capital which the association must obtain, and either the board of directors has decided by resolution to proceed under the guaranty capital plan, or one year has elapsed from the date on which the issuance of shares of guaranty capital was authorized and the board has taken no action, then the separate account may be terminated and the funds may be transferred to the association's general account.
2. If the aggregate amount of such funds fails to reach the amount of the minimum initial guaranty capital which the association must obtain and one year has elapsed from the date on which the issuance of shares of guaranty capital was authorized; or if the board of directors, within such one-year period, has decided by resolution to abandon the guaranty capital plan, then the funds in the separate account shall be returned to the respective subscribers and shall not become a liability of the association or its officers or directors.Section: Previous 6-420 6-421 6-422 6-423 6-424 6-425 6-426 6-427 6-428 6-429 6-430 6-432 6-433 6-434 6-435 Next
Last modified: October 13, 2016