REDEMPTION OF SAVINGS ACCOUNT

(a) An association may redeem in the manner the board determines all or part of its savings accounts if the association: (1) redeems the accounts on a dividend date; (2) not later than the 31st day before the redemption date, gives notice of the redemption by certified mail to each affected account holder at the holder's last address as recorded on the books of the association; and (3) not later than the redemption date, sets aside the amount necessary for the redemption and keeps the amount available for redemption. (b) The redemption price of a savings account is the withdrawal value of the account. (c) All rights, including the accrual of earnings, that relate to a deposit account called for redemption, other than the right of the account holder of record to receive the redemption price, terminate as of the redemption date. (d) An association may not redeem any of its savings accounts if the association: (1) is subject to supervisory control, a conservatorship, or a receivership action under Chapter 66, unless the commissioner directs the redemption; or (2) has applications for withdrawal that have been on file for more than 30 days and have not been paid.