South Carolina Code of Regulations
Chapter 15 - STATE BOARD OF FINANCIAL INSTITUTIONS CONSUMER FINANCE DIVISION
Article 2 - COOPERATIVE CREDIT UNIONS
Section 15-40 - Notice of Intention to Withdraw Shares
Current through Register Vol. 48, No. 3, March 22, 2024
Plan of operation for credit unions where the board of directors have, under Section 4, Article III, of the bylaws, required members to give sixty (60) days notice of intention to withdraw the whole or any part of the amount of shares paid in the credit union:
If there is good reason to believe that at the expiration of the sixty (60) day period, there may be requests from members to withdraw shares, which, if paid in full, would deplete cash on hand, the following procedure shall be put into effect and in the order listed.
1. Borrowed money, including accrued interest, shall be paid, or cash set aside for payment, before any payment of shares is made.
2. Each shareholder shall be apportioned an amount of the remaining cash in the same proportion that his shares were to the total outstanding at the start of the sixty (60) day period. If, however, a shareholder has a loan with the credit union and requests withdrawal of his shares, his proportionate share of cash shall first be applied to the loan balance and accrued interest and any remaining cash, after the loan and accrued interest is paid in full, shall be paid to the shareholder.
3. No loan shall be made or money borrowed so long as this regulation is in effect without prior approval of the Board of Bank Control.
After all cash has been distributed in the above manner or set aside for those shareholders not requesting it, or applied to a loan, the directors of the credit union shall at the expiration of each thirty (30) days from the end of the sixty (60) day required notice, again distribute accumulated cash according to 1 and 2 above.
Statutory Authority: 1976 Code Section 34-27-30
