32-2-232. Organization of mutual associations. The incorporators of a mutual association shall appoint one of their number as presiding officer of the incorporators, and the presiding officer shall procure from a surety company or other surety acceptable to the department a surety bond in an amount no less than the sum of the amount subscribed by the incorporators and the amount of the expense fund described in 32-2-233. The bond must name the department as obligee and must be delivered to the department. The bond must ensure the safekeeping of the funds described and their delivery to the association after the issuance of a certificate of incorporation and after bonding of the officers of the corporation. In the event of failure to complete organization, the bond must ensure the return of the amounts collected to the respective subscribers or their assigns, less reasonable expenses, which must be deducted from the expense fund. The incorporators, before a certificate of incorporation is issued, shall pay to the presiding officer in cash, labor, or services actually performed an aggregate amount of at least $500,000, including that part of the original subscription paid by the presiding officer, as subscriptions to the savings accounts of the proposed association.

     History: En. Sec. 27, Ch. 5, L. 1983; amd. Sec. 1032, Ch. 56, L. 2009.