2023 New York Laws › BNK - Banking › Article 10 - Savings and Loan Associations › 390 - Withdrawal of Unpledged Shares; Provisions for Dividends.

§ 390.  Withdrawal  of  unpledged shares; provisions for dividends. 1.
  The accumulations upon shares of any savings and loan association  which
  are not pledged to the association to secure a loan, whether or not such
  shares  are  matured, may be withdrawn subject to the provisions of this
  chapter and of the by-laws and regulations of the  association  made  in
  accordance  therewith.  In addition to his rights as a shareholder of an
  association, a shareholder shall be a creditor of the association to the
  extent of all dues and dividends credited to him. An association may  by
  regulation  adopted  by  resolution  of its board of directors require a
  written notice of thirty days before paying withdrawals, in which  event
  no  withdrawal shall be paid until thirty days after notice of intention
  to make the withdrawal shall have been filed. It shall on the  day  such
  regulation  is  made effective notify the superintendent by telephone or
  telegraph that such  regulation  has  been  made  and  shall  thereafter
  number,  date  and  file  in the order of actual receipt every notice of
  intention to make a withdrawal. Except  as  provided  in  section  three
  hundred seventy-eight-a of this chapter, no savings and loan association
  shall  hereafter  agree with any of its shareholders in advance to waive
  the said thirty days' notice. Except in  the  case  of  special  savings
  shares, if the by-laws so provide, a special dividend may be credited on
  shares  withdrawn between regular dividend dates at the rate of the last
  dividend, computing from the last dividend period to the  first  day  of
  the month in which such withdrawal is made.
1-a.  A  savings  and  loan  association  may  permit a shareholder to
  withdraw the accumulations upon his shares of the association which  are
  not  pledged  to  the  association to secure a loan, whether or not such
  shares are matured, through a disbursing savings  and  loan  association
  that  is  a  member  of the federal deposit insurance corporation if the
  office of the disbursing  association  through  which  payment  of  such
  withdrawal  is  made is located more than fifty miles from the principal
  dwelling place  of  such  shareholder.  The  association  may  authorize
  payment  by  the  disbursing  association only upon receiving a specific
  telephonic withdrawal request, which may be  oral  or  electronic,  from
  such  shareholder, and the amount so paid shall be immediately withdrawn
  from the shareholder's account at such association. A savings  and  loan
  association  providing  withdrawal services pursuant to this subdivision
  one-a may, but is not required to: (a)  charge  a  fee  to  shareholders
  making  such withdrawals, (b) place a limitation upon the amount of such
  withdrawal requests, and (c) pay a fee to the disbursing association.  A
  savings  and loan association may also act as the disbursing association
  in a similar withdrawal transaction from such accumulations on shares in
  another association that is a member of the  federal  deposit  insurance
  corporation,  and  may  collect a fee for its services. This subdivision
  one-a shall not apply  to  time  deposits  received  by  an  association
  pursuant to section three hundred seventy-eight-a of this chapter.
2.  If a member shall not apply for the withdrawal within fifteen days
  after the  expiration  of  the  thirty  days'  notice  of  intention  no
  withdrawal  shall  be  payable  under  such notice or by reason thereof.
  While any withdrawal application made pursuant to the required notice of
  intention remains in effect and unpaid, no withdrawal  application  made
  pursuant  to  a notice of intention subsequently filed shall be paid and
  no loan may be made secured by transfer or pledge of shares,  nor  shall
  shares be retired or applied by the association, or by the member toward
  the  payment  of fines and obligations due to the association, nor shall
  dividends be declared or paid.
3. Upon the withdrawal of instalment or  accumulative  prepaid  shares
  prior  to their maturity, or upon the withdrawal of income shares issued
  for a fixed term prior to the expiration of such fixed term,  a  portion

  of  the  dividends  credited  to  such  shares  may  be  retained by the
  association as its own property, in accordance with a schedule,  clearly
  and  fully  set  forth  in  the by-laws. Such schedule shall make proper
  provision  with  respect  to  each  class  of  share, and in the case of
  instalment shares shall take into account the period  such  shares  have
  been  in  force,  provided,  however, that the portion of such dividends
  that may be retained by the association upon the withdrawal of  a  share
  shall  in  no  case exceed forty per centum of the dividends apportioned
  and credited upon such share.
4. The board of directors may permit a member to withdraw part of  the
  accumulations  on  his  shares,  other  than instalment shares issued in
  series, without reducing the number of shares held by him.
5. Subject to any  regulations  and  restrictions  prescribed  by  the
  superintendent of financial services, a savings and loan association may
  accept  deposits,  including  demand deposits, without the issuance of a
  passbook in connection therewith, and may issue such other evidences  of
  its obligation to repay such deposits as may be appropriate to safeguard
  the interests of the depositors and of the savings and loan association.
6. In case of conflict between this section and any other provision of
  law, this section shall control.