At any time funds are on hand for the purpose, an association shall have the right to redeem by lot or otherwise, as the board of directors may determine, all or any part of any of its savings accounts on an interest date by giving 30 days’ notice by registered mail addressed to each affected account holder at the holder’s last address as recorded on the books of the association.
Savings OperationsRedemption
Section § 7150
This law allows an association to pay back, or redeem, some or all of its savings accounts whenever it has the funds available to do so. This redemption can be done randomly or in another way decided by the board of directors. The association must give account holders a 30-day notice about the redemption, which will be sent via registered mail to the last known address of each account holder.
redeem savings accounts association funds redemption savings account payout
Section § 7151
This law states that a financial association cannot buy back or redeem any of its savings accounts if it is financially unstable and has requests from people to withdraw money that are more than 14 days old and haven't been paid, unless they get permission from the commissioner first.
Except with the prior consent of the commissioner, no association shall redeem any of its savings accounts when the association is in an impaired condition and when it has applications for withdrawal that have been on file more than 14 days and have not been reached for payment.
financial association redeem savings accounts impaired condition
Section § 7152
If you need to redeem (or cash out) your savings account, you'll get the full value of your account as determined by bank management. However, this amount cannot be less than what you would get if you simply withdrew your money.
The redemption price of savings accounts redeemed shall be the full value of the account redeemed, as determined by the board of directors, but in no event shall the redemption price be less than the withdrawal value.
redemption price savings accounts account value
Section § 7153
This law states that if a notice for redeeming an account has been given and the necessary funds are set aside and available by the redemption date, interest on those accounts stops on the specified date. After the redemption date, all rights related to those accounts end, except the right to receive the redemption price without interest.
If the notice of redemption under Section 7150 has been given, and if on or before the redemption date the funds necessary for the redemption have been set aside and continue to be available for the redemption, interest upon the accounts called for redemption shall cease to accrue from and after the interest date specified as the redemption date and all rights with respect to those accounts shall terminate after the redemption date, except only as to any right of the account holder of record to receive the redemption price without interest.
notice of redemption redemption date funds necessary for redemption
Section § 7154
This law says that when savings account certificates are called for redemption, they need to be submitted for payment within the time specified by another law related to unclaimed funds. If the certificates aren't submitted in time, the funds will go to the state under the rules of the Unclaimed Property Law.
(a)CA Financial Code § 7154(a) All certificates of ownership evidencing former savings accounts that have been called for redemption must be tendered for payment within the time limit specified in subdivision (b) of Section 1513 of the Code of Civil Procedure for escheat of unclaimed funds.
(b)CA Financial Code § 7154(b) Savings accounts that are not tendered for payment as set forth in this section shall escheat to the state as provided in the Unclaimed Property Law, Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure.
certificates of ownership savings accounts redemption
