Procedure when requests for withdrawals exceed amount available.
1. Whenever an association has on file more withdrawal requests than can be met in full from current funds, it shall apply to the withdrawals one-half of the monthly receipts, after first deducting the amount necessary to pay the actual and reasonable expenses incurred in the operation of the association and the protection of its assets and reserves set up by it for interest on its savings accounts or certificates.
2. Should the one-half of the monthly receipts fail to retire at least 5 percent of the aggregate withdrawal requests, then such portion of the other one-half of the monthly receipts shall be applied as is necessary to retire 5 percent of the total amount on withdrawal order.
3. For purposes of this section, “receipts” means all money coming into the hands of the association except borrowed money. Borrowed money shall not be considered receipts for the payment of withdrawals; but all money borrowed from the Federal Home Loan Bank or from any other federal loan agency for the purpose of paying withdrawals may be used for such purpose and shall not be considered as receipts.
Last modified: February 26, 2006