32-3-702. Makeup of regular reserve. (1) Immediately before the payment of each dividend, the gross earnings of the credit union shall be determined. From this amount, there shall be set aside sums as a regular reserve for contingencies in accordance with the following schedule:
     (a) 10% of gross income until the regular reserve equals 5% of the total of outstanding loans and risk assets; then
     (b) 7% of gross income until the regular reserve equals 6% of the total of outstanding loans and risk assets; then
     (c) 5% of gross income until the regular reserve equals 7% of the total of outstanding loans and risk assets.
     (2) Whenever the regular reserve falls below 7%, 6%, or 5% of the total outstanding loans and risk assets, as the case may be, it shall be replenished by regular contributions in such amounts as are needed to maintain the reserve goals of 5%, 6%, or 7%.
     (3) Any entrance fees, charges, and transfer fees shall, after payment of organization expense, be added to the regular reserve.

     History: En. 14-660 by Sec. 60, Ch. 38, L. 1975; R.C.M. 1947, 14-660.