§ 23-38-203 - Guaranty associations -- Stock, dividends, etc.
23-38-203. Guaranty associations -- Stock, dividends, etc.
(a) Any association with guaranty permanent capital may issue to its members, or to nonmembers, other classes of investment certificates, or savings certificates or pass books, and shall specify on all of the other classes of certificates or pass books the fixed, definite rate of interest thereon.
(b) The associations may contract to mature their loans on a definite contract basis without reference to the maturity of shares.
(c) Associations having guaranty permanent capital, after setting aside from the earnings a sum sufficient to pay, credit, or reserve to all other classes of investment certificates, savings certificates, and pass-books the accrued interest or dividend thereon, and those further sums which this act may provide for the contingent reserve fund, and to pay all other past due liabilities, may then distribute the balance of any distributable surplus profits as a dividend to the guaranty permanent shares.
(d) (1) The amount of guaranty permanent stock authorized to be issued by every guaranty plan association shall be not less than one hundred fifty thousand dollars ($150,000), of which not less than twenty-five thousand dollars ($25,000) shall be paid in cash before the association begins operation. The amount of the paid-in guaranty permanent shares shall at all times be not less than five percent (5%) of the total liabilities of the association until the entire authorized guaranty permanent capital has been paid in, and the full amount of one hundred fifty thousand dollars ($150,000) permanent or guaranty capital shall thereafter be maintained.
(2) However, associations domiciled in towns of not more than one thousand five hundred (1,500) population and confining their operations to the town and the vicinity within five (5) miles thereof may begin operation with a guaranty capital subscribed and paid in cash of not less than ten thousand dollars ($10,000).