§ 23-38-217 - Losses -- Reduction of liability to members.
23-38-217. Losses -- Reduction of liability to members.
(a) Whenever the losses of any building and loan association, resulting from depreciation in value of its securities or otherwise, exceed its contingent reserve fund, undivided profits, and current earnings so that the estimated value of its assets is less than the total amount due its members, the Securities Commissioner shall order a reduction of its liability to its members in a manner which distributes the loss equitably among the members.
(b) If, thereafter, the association shall realize from the assets a greater amount than was fixed in the order of reduction, the excess shall be divided among members whose credits were so reduced, but to the extent of the reduction only.