ABSTRACT
If a shareholder wishes to withdraw, the association is bound to repurchase his shares for whatever amount he has paid in. But payment on demand is not required. When possible, associations try to meet withdrawal applications as they come in. But if they are presented faster than they can be met, the association is not forced to close its doors as a bank would be in similar circumstances. So long as the ultimate value of its assets exceeds the book value of its shares, the association is solvent and may continue to lend and to accept new funds from investors. When there is an accumulation of unpaid withdrawals, however, some proportion--commonly one-third-of receipts from mortgage debtors must be applied to paying off these applications in the order in which they were filed. In case the association becomes insolvent, of course, payments are stopped, since further payment to withdrawing shareholders is at the expense of those who remain.
