Section 286.5-161 - Expense fund created - Amount - Repayment(1) The incorporators, in addition to their subscriptions to savings accounts, shall create an expense fund in an amount not less than one-half (1/2) of the minimum amount of savings account subscriptions required to be paid in under this subtitle, from which expense fund the expense of organizing the association and its operating expenses may be paid until such time as its income is sufficient to pay its operating expenses in addition to such dividends as may be declared and paid or credited to its savings account holders from its income. The incorporators and others shall not constitute a liability of the association except as hereinafter provided.(2) Contributions made by the incorporators and others to the expense fund may be repaid pro rata to the contributors from the net income of the association after provisions for statutory reserves and declaration of dividends of not less than two percent (2%) on savings accounts. In case of the liquidation of an association before contributions to the expense fund have been repaid, any contributions to the expense fund remaining unexpended, after the payment of expenses of liquidation, all creditors, and the withdrawal value of all savings accounts, shall be repaid to the contributors pro rata. The books of the association shall reflect the expense fund. Contributors to the expense fund shall be paid dividends on the amounts paid in by them and for such purpose such contributions shall in all respects be considered as savings accounts of the association.Effective:6/18/1964
Created 1964 Ky. Acts ch. 138, sec. 3 (6) and (7), effective6/18/1964.