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or which, by this part or other applicable regulation or by applicable statute, is required to be included therein.

(3) Subject to the provisions of this section, a certificate under this section shall be in such form as is determined by the board of directors of the association.

(g) Transfer or withdrawal. A savings deposit evidenced by a certificate as set forth in this section shall not be subject to check or to withdrawal or transfer on negotiable or transferable order or authorization to the association, but indorsement of such certificate which is physically on such certificate (including an allonge), whether such indorsement is to order or to bearer or otherwise, shall not, so far as such indorsement relates to such certificate or part thereof or to not more of such savings deposit than is evidenced by such certificate, be deemed to be such a check or negotiable or transferable order or authorization, and such indorsement is hereby permitted.

(h) Voting and membership. (1) Except as provided in paragraph (h) (2) of this section, holders of such savings deposits or of such certificates shall not, by reason of being such holders, be members of the association or have voting rights.

(2) If such certificate (i) is originally issued in registered form and is not by its terms or otherwise exchangeable immediately or otherwise into a form in which it would not be in registered form and (ii) contains a statement that the provisions of the association's charter with respect to membership and voting are applicable to such certificate, the provisions of paragraph numbered 4 of the association's charter with respect to membership and voting shall as to such certificate be applicable in the same manner and to the same extent as if such certificate were included in the term "savings accounts" as used in said paragraph numbered 4. For purposes of this paragraph (h), a certificate shall be deemed to be in registered form if it is in a form which is a registered form within the meaning of the term “registered form" as used in section 8-102 of the Uniform Commercial Code or in a form that would be such a registered

form except that as to interest or part of e interest it is not such a registered form.

(1) Ancillary provisions. (1) The term "savings accounts representing share interest in the association” in $ 545.24 shall with respect to savings deposits authorized by this section or by $ 545.1-4

be applicable in the same manner and to the same extent that it would be applicable if such savings deposits were such savings accounts.

(2) Nothing in this section shall prevent holders referred to in paragraph (h) (1) of this section from being insured members within the meaning of title IV of the National Housing Act or regulations relating to insurance under said title.

(j) Filing. Prior to issuing a certificate under this section, an association shall file with the Federal Savings and Loan Insurance Corporation a copy of the form of certificate which it proposes to issue, together with an opinion of its legal counsel that the form of the certificate complies with the requirements of applicable law and regulations and the association's charter. Such filing shall be made by delivering a copy of such form and opinion to a Supervisory Agent (the President or any other officer or employee of the Federal Home Loan Bank of the district in which the home office of the association is located who is designated as an agent of the Federal Savings and Loan Insurance Corporation by or under $ 501.10 or $ 501.11 of this chapter) and an additional copy to the Director, Ofice of Industry Development, 320 First Street, N.W., Washington, D.C. 20552. The association shall refrain from issuing such certificate for the shorter period of 30 days from the date such form was filed with the Federal Savings and Loan Insurance Corporation in accordance with the provisions of this paragraph (j) or the date such association receives appropriate written advice that such Corporation has no objection to the use of such form by such association. The association shall not issue, or continue to issue, under this section, any form of certificate as to which form such Corporation has advised such institution in writing that such Corporation objects to the use of such form of certificate.

(k) Relationship to other provisions. (1) The provisions of $ 545.2, § 545.4, $ 545.4-1, and $ 545.4-2 shall not be applicable to or with respect to a savings deposit which is in conformity with this section.

(2) Paragraph (d) of $ 545.1 shall be applicable to a savings deposit which is in conformity with this section, except that the period referred to in paragraph (d) (2) shall be deemed to commence on the date of the expiration of the fixed term of such deposit.

39-057—7521

(3) The provisions of $ 545.7 shall be accounts; and has prescribed for use by applicable with respect to a savings de all Federal associations that have Chez. posit which is in conformity with the ter N or Charter K (rev.) forms of cer. provisions of this section, and for pur tificates evidencing owership of savings poses of this paragraph the term “with accounts. Illustrative copies of these drawal amount” as used in said $ 545.7 forms may be obtained from the Federal shall include so much of any discount on Home Loan Bank Board, Washington such savings deposit as would be shown D.C., or from any Federal home loan by a straight-line calculation to have bank.) Any Federal association that accumulated thereon plus any accrued has a Charter E may, until otherwise or accumulated interest on such savings provided by the Board, continue to be deposit which is unpaid. The term "re the forms of share certificates being isdemption, repurchase, or acceleration by sued by such association as of the effecthe association” as used in paragraph tive date hereof: Provided, That no such (d) (2) of this section shall not include form is in conflict with any express setoff, counterclaim, or recoupment, or provision of such association's charter ar realization by foreclosure or otherwise bylaws. upon a lien or pledge held by the asso (c) Ownership of record. A Federal ciation or payment by the association of association may treat the holder of surplus remaining upon such realization. record of a savings account as the owner

(4) Acceptance of savings deposits for all purposes without being affected under any one of $ 545.1-2, $ 545.1-4, and by any notice to the contrary unless such $ 545.1-5 shall not debar a Federal as Federal association has acknowledged in sociation from concurrently accepting writing notice of a pledge of such savings savings deposits under the authority of account. The receipt or acquittance of either or both of the other two of said any member, including a minor person sections.

or a married woman, who holds & savings (5) The payment of a savings deposit account shall be a valid and sufficient which is in conformity with the provi release and discharge of the Association sions of this section shall not be subject for any payment to such person on any to any right of the association to re savings account. Savings accounts of a quire advance notice.

Federal association shall be transfer. (39 FR 22135, June 20, 1974, as amended at able only upon the books of the associa39 FR 29340, Aug. 15, 1974; 39 FR 41516, tion and upon proper application by the Nov. 29, 1974)

transferee and the acceptance of the $ 545.2 Evidence of ownership.

transferee as a member upon terms ap(a) Signature card. In connection

proved by the board of directors, with the issuance of a savings account a

(d) Duplicate account books and cerFederal association shall obtain a card

tificates. Upon filing with a Federal ascontaining the signature of the owner

sociation by the holder of record as of such account or his duly authorized shown by the books of the association, representative and shall preserve such or by his legal representative, of an signature card in the records of the asso affidavit to the effect that the certificate ciation.

or account book evidencing his savings (b) Account books and certificates. A account with the association has been Federal association that has Charter N lost or destroyed, and that such certifior Charter K (rev.) shall issue to each cate or account book has not been holder of its savings accounts an account pledged or assigned in whole or in part, book, or a separate certificate, evidencing such Federal association shall issue & the ownership of the account and the new certificate or account book evidencinterest of the holder thereof in the cap ing such savings account in the name ital of such Federal association; except of the holder of record: Provided, That as hereinafter provided, each such cer the board of directors shall, if in its tificate shall be in form prescribed by judgment it is necessary, require a bond the Board. (The Board has prescribed in an amount suficient to indemnify the for use by all Federal associations that

association against any loss which might have Charter K, forms of certificates result from the issuance of such new evidencing the ownership of savings certificate or account book. share accounts, short-term savings (23 F.R. 9898, Dec. 23, 1958, as amended * share accounts, and investment share 28 F.R. 4176, Apr. 27, 1963)

&

3 545.2-1 Bonus on savings accounts.

(a) Creation of bonus plan. The members of Federal association which has a charter not inconsistent with the provisions of this section may, by bylaw provision, obligate the association to pay a bonus for regular payments on savings accounts. Thereafter, any member of such association desiring a bonus shall agree to make regular monthly payments of a specified amount on a savings account until the withdrawal value thereof is equal to at least 200 times the agreed monthly payment, and if the agreed monthly payments are made each and every month thereafter until the withdrawal value of such savings account is equal to at least 200 times the agreed monthly payment, without a delay of more than 60 days in the payment of any monthly payment and without any prepayment of more than 12 months, and if within such period no application has been made for withdrawal of any part of such savings account, the bonus shall be payable on the date on which the withdrawal value of such savings account equals or exceeds 200 times the agreed monthly payment. The bonus rate on such savings account shall be 1 percent per annum and the amount of the bonus shall be determined as follows:

Divide the dollar amount of each semiannual distribution of earnings on such savings account by a figure equal to the annual rate of each such semiannual distribution; and the amount of the bonus shall be the sum of the quotients obtained: Provided, however, That if a member who has agreed to make regular monthly payments on a savings account under this plan shall apply for the withdrawal of such account in part or in full, or shall fail to meet any of the other terms of the bonus agreement after such account shall have reached (1) at least

50, but less than 100, times the agreed : monthly payment on such account in accordance with the terms of the agreement, such member shall be entitled to receive, in addition to the withdrawal value of such account, a bonus equivalent to 25 percent of the amount of the reserve for bonus which is, at the time of such withdrawal, properly allocable to such account; (2) at least 100, but less than 150 times the agreed monthly payment, 50 percent of such amount; and

(3) at least 150, but less than 200, times = the agreed monthly payment, 75 percent

of such amount.

(b) Existing bonus rights. The holder of a savings account of a Federal association which has a Charter K and which amends such charter by the adoption of Charter N shall, upon the exchange of such savings account for å savings account issued under Charter N, have the rights and privileges, and be subject to the duties and liabilities, provided in this section, as if originally created under the provisions hereof: Provided, That the savings account so exchanged entitled the holder thereof, at the time of such exchange, to an interest in any reserve for bonus created under the provisions of such Charter K.

(c) Bonus operations. A Federal association that has & Charter not inconsistent with the provisions of this section may credit to the accounts of all members holding bonus accounts in good standing, that amount in the bonus reserve to which they would be entitled if their bonus accounts were withdrawn at the time of such credit, and may transfer to surplus or to other reserves any other amounts in any Reserve for Bonus, and further bonus earnings shall be credited to the accounts of the members thereto entitled.

(d) Abolition of bonus plan. The bonus plan provided by this section is abolished except as to accounts opened prior to January 15, 1968. (23 F.R. 9899, Dec. 23, 1958, as amended at 32 F.R. 17926, Dec. 15, 1967) $ 545.2–2 48-to-96-month bonus plan.

(a) Offering the plan. A Federal assoclation may offer the bonus plan under this section by a resolution of its board of directors if the plan is consistent with its charter, and a Federal association shall offer the bonus plan under this section if its bylaws include the provisions of paragraph (f) of $ 544.6 of this chapter.

(b) Qualification for bonus. An account qualifies under this section if:

(1) At the time the account is opened, the member gives to the association & signed statement of intention to make regular monthly payments of a specified amount to the account;

(2) The member opens the account by making the first monthly payment;

(3) The member makes the regular monthly payments without delay of more than 90 days as to any such payment; and

(4) No withdrawals have been made from the account.

(c) Bonus rate. The Association's by resolution, with respect to accounta board of directors shall determine a not opened on or before the date of such bonus rate not in excess of 1 percent resolution: per annum, subject to the following (1) Terminate the plan under the provisions:

section if the association's bylaws do not (1) A reduction in the bonus rate shall include the provisions of paragraph (1) not apply to accounts which were opened of g 544.6; or prior to the effective date of the (2) Fix either or both a minimum ang reduction;

maximum amount of regular monthly (2) An increased bonus rate shall ap payments. ply to all accounts which qualify under (g) Certificate. The association she this section from the effective date of the issue, to each member who opens e increase; and

account pursuant to this section, a cez(3) A change in the bonus rate may tificate attached to or incorporated in become effective only at the beginning of an account book and containing the fola future distribution period.

lowing language: (4) A bonus rate may not be fixed

This certifies that (namo of member which, when added to other earnings at

holds a 48-to-96-Month Bonus Plan Account the time such rate is fixed, would cause which is subject to the provisions of $54574 any applicable regulatory maximum of the rules and regulations for the Federal rate of return to be exceeded.

Savings and Loan Systom. (5) For any distribution period in

(h) Existing bonus rights. A Federal which other earnings on the account,

association which, prior to January 15, when added to the bonus, would cause

1968, has outstanding bonus agreement any applicable regulatory maximum rate

shall continue to respect the provisions of return to be exceeded, the bonus rate

thereof and distributo bonus payments shall be reduced to such rate as will cause

thereunder. On or after such date, no total earnings on the account to equal

Federal association shall make any bonu the applicable regulatory maximum rate

agreement other than as provided in this of return.

section or in paragraph (b) of $ 545.3. (d) Bonus earnings. (1) A bonus is

(32 FR. 17926, Doc. 15, 1967, as amended # earned on and shall be credited together

33 F.R. 360, Jan. 10, 1968] with all other earnings, to accounts which qualify under this section:

$ 545.3 Bonus on monthly-payment and (1) At one-half of the bonus rate for

fixed-balance accounts. distribution periods which begin during (a) Monthly-payment accounts. The the 48-month period from the date the board of directors of a Federal assoaccount is opened, but no bonus for the ciation which has & charter in a form first 12 months of such period shall be which is not inconsistent with the proearned or credited until the end of the visions of this section and which bu distribution period in which the expi bylaws that include the provisions of ration of such first 12-month period $ 544.6(e) of this chapter may determine occurs; and

that, in addition to other earnings dis(1) At the full bonus rate for dis tributed on savings accounts, such assotribution periods which begin 48 months ciation shall distribute a bonus to the or more from the date the account is holder of each savings account who opened, but no bonus is earned for any makes regular, equal, monthly pay distribution period which begins 96 ments for a period of not less than 36 months or more from such date.

months nor more than 96 months with (2) A bonus earned under this section out delay of more than 60 days in any shall be computed as of the same dates payment and without prepayment of and in the same manner as are other more than 12 payments and without earnings for distribution.

withdrawal of any part thereof or of any (3) A bonus shall not be earned un earnings credited thereon; such bonus der this section on any account which shall be computed as of the same dates earns any other bonus or a variable rate. and in the same manner as are other

(e) Prepayment of regular monthly earnings for distribution, and shall payment. The association shall not ac thereupon be credited to each such sat. cept a prepayment of a regular monthly ings account, at the rate of 44 percent payment more than 90 days in advance. per annum for each dividend perlod

(1) Options with respect to the plan. which ends after the date of the first The association's board of directors may, monthly payment on such account, to

nd including the dividend period in form prescribed pursuant to paragraph hich occurs the expiration of 36 months (b) of $ 545.2 and shall also bear on its fter the date of such first monthly pay face the words: “A bonus is distributable ment, and at the rate of 12 percent per on the amount of this certificate as pronnum thereafter, to and including the vided in, and subject to, paragraph (b) lividend period in which occurs the ex of g 545.3 of the rules and regulations for piration of the number of months stated the Federal Savings and Loan System,

the statement of intention herein for which purpose the beginning of the Efter required: Provided, That

qualifying period of

months is (1) On or before the date of such first

Each such certificate nonthly payment, the holder of such (Date) savings account shall have given to the

shall also set forth the terms of any association a signed statement of inten penalty required under subparagraph (4) cion to make payments of a specified of this paragraph. amount for a stated number of months, (3) While the bonus account certifiwhich shall be not less than 36 nor more cate remains outstanding, earnings than 96, on such savings account in ac other than the bonus shall be distribcordance with the provisions of this uted by payment in cash to the account paragraph;

holder or by crediting the bonus ac(2) After the expiration of the num count or another account at the regular ber of months stated in such statement distribution dates established for such of intention and so long thereafter as bonus accounts. The bonus on the such specified monthly payments con amount originally invested in such tinue to be so made on such savings ac bonus account shall be so distributed count, such Federal association, if its upon expiration of the qualifying period. board of directors by resolution so deter Thereafter, all earnings, including any mines, may continue, but shall not be ob bonus, on the amount in such bonus acligated to continue, to distribute such count shall be so distributed at such regbonus on such savings account;

ular distribution dates. (3) No bonus shall be distributed (4) In the event of withdrawal of all under this paragraph on any savings or any portion of any such bonus account account on which a bonus is being dis prior to the expiration of such qualifying tributed under any other provision of period, the account holder shall receive such Federal association's charter or of earnings from the date of issuance of this Part; and

such account on the amount withdrawn (4) The bonus plan provided by this at a rate not in excess of the regular rate paragraph is abolished except as to ac then being paid, and shall pay a penalty counts opened prior to January 15, 1968. in an amount not less than the lesser of

(b) Ficed-balance accounts. The (1) the earnings at such rate for 90 days board of directors of a Federal associa (3 months) on the amount withdrawn or tion which has a charter in a form not (ii) all earnings at such rate on the inconsistent with the provisions of this amount withdrawn. If any earnings have section and which has bylaws which in- been distributed to the account holder clude the provisions of paragraph (e) of prior to such withdrawal, a deduction $ 544.6 of this chapter may determine shall be made from the amount withthat, in addition to other earnings dis drawn to adjust for the penalty applitributed on savings accounts, such asso cable to such earnings. ciation shall distribute a bonus on ac (5) While such certificate remains counts of such minimum amount, not outstanding, prior to the expiration of less than $1,000, which are maintained the qualifying period, a reserve for the for such minimum qualifying period, not bonus shall be maintained and appropri. less than 3 months nor more than 36 ate credits and debits shall be made to months, as may be determined in ac such reserve at the regular distribution cordance with and subject to the pro dates for such bonus accounts. visions of this paragraph.

(6) The board of directors may fix a (1) Each such bonus account shall be bonus rate not in excess of 0.75 percent evidenced by a certificate issued in the per annum for any bonus plan offered amount originally invested in the by the association; but such board may account.

not fix any bonus rate which, when added (2) Each such certificate, whether in to the earnings otherwise distributable corporated in an account book or printed on a bonus account at the time such rato as a separate certificate, shall be in the is fixed, would cause the total rate of

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