Investment certificates: Rights and liabilities of holders; types of certificates; limitation on approval.
1. An association may issue investment certificates, with or without passbooks. The holders of investment certificates are not liable for debts or assessments, and are entitled upon liquidation of an association to receive payment in full before any payment or distribution is made to stockholders. The holders of investment certificates have no right to participate in the profits of the association.
2. Investment certificates may be issued as fully paid investment certificates, accumulative investment certificates, minimum term investment certificates or other types of certificates approved by the Commissioner. The Commissioner shall not approve any certificates whose issuance would impair the insurance of the association’s accounts by the Federal Deposit Insurance Corporation.
Last modified: February 26, 2006