The savings liability of an association shall consist only of the aggregate amount of its savings accounts, plus interest earned or credited to the accounts, less redemption and withdrawal payments.
Savings OperationsSavings Liability
Section § 6600
This law section defines the savings liability for an association. It states that an association's savings liability includes the total amount of all savings accounts with the earned or credited interest and subtracts any amounts paid out for redemption and withdrawals.
savings liability association savings aggregate amount
Section § 6601
This law allows account holders to add money to their savings accounts whenever they choose, in whatever amounts they choose, unless the association or other state or federal laws say otherwise.
Except as limited by the association from time to time or by state or federal law or regulations, account holders may make additions to their savings accounts in amounts and at times they elect.
savings account additions account holder rights deposit flexibility
Section § 6602
You can open a savings account either with cash or with certain types of property, as long as the property is something the financial institution is allowed to invest in. If there's no fraud involved, the value of the property used is final as determined by the institution's board of directors.
Savings accounts may be opened for cash or, subject to any limitations or restrictions in regulations issued by the commissioner, for property in which the association is authorized to invest. In the absence of fraud in the transaction, the value of the property taken in payment, as determined by the board of directors, shall be conclusive.
savings account cash deposits property deposits
Section § 6603
This law means that if you're a member of a mutual association and you have a savings account there, you won't have to pay for any losses the association experiences. Your savings account can't be touched to cover these losses, and you're not responsible for paying any missed payments on your account.
No member of a mutual association is responsible for any losses of the association, no savings account is subject to assessment, and no savings account holder is liable for any unpaid installments on the account.
mutual association member liability association losses
