New York Laws
Article 10 - Savings and Loan Associations
389 - Matured Shares; Conversion Into Shares of Another Class Upon Notice.

§ 389. Matured shares; conversion into shares of another class upon
notice. Whenever the dues and dividends credited to instalment or
accumulative prepaid shares shall equal their matured value, notice of
such maturity shall be given to the holders thereof and the payment of
dues thereon shall cease. Such notice shall be mailed to such
shareholder at his last known address as it appears on the books of the
association and, in the discretion of the board of directors, may
contain a further provision that if such shareholder fails to accept
payment for such shares, convert such shares into shares of another
class or file an application to withdraw such shares within sixty days
after the mailing of such notice, the same will be converted into
another class of shares specified in such notice. If such additional
provision has been included in such notice and the shareholder fails or
neglects to accept payment for such shares, convert such shares into
shares of another class or file an application to withdraw such shares,
within such sixty days, the board of directors may, by resolution,
convert such shares into the class of shares specified in such notice.
For the purpose of maturing such shares, a special dividend may be
credited between regular dividend dates at the same rate at which the
last regular dividend was credited. When shares pledged to the
association mature, the value of such shares shall, to the extent of the
obligation for which they are pledged, be applied in payment thereof.
Any remaining balance of such shares shall be treated as matured shares
and any other collateral not required to satisfy such obligation shall
be returned.

Structure New York Laws