Ind. Code § 27-11-6-7

Current through P.L. 171-2024

Section 27-11-6-7 - Payment of owner's equitable proportion of deficiency where society's reserves are impaired

A society shall provide in its laws that if its reserves as to all or any class of certificates become impaired its board of directors or corresponding body may require that there shall be paid by the owner to the society the amount of the owner's equitable proportion of such deficiency as ascertained by its board, and that, if the payment is not made, either:

(1) it shall stand as an indebtedness against the certificate and draw interest not to exceed the rate specified for certificate loans under the certificates; or

(2) instead of or in combination with subdivision (1), the owner may accept a proportionate reduction in benefits under the certificate.

The society may specify the manner of the election and which alternative is to be presumed if no election is made.

IC 27-11-6-7

As added by P.L. 262-1985, SEC.1.