Distribution of Earnings

PURPOSE: This rule authorizes associations to determine the time for distribution and the rate of earnings to be paid on savings accounts. (1) An association may distribute, calculate, determine and pay earnings upon any savings account on any basis available to a federal association. (2) Time of Distribution. An association may distribute earnings on savings accounts or designated classes thereof, as provided in its charter and bylaws and the terms of the account. (3) Withdrawal of Interest. An association, after adoption by its board of directors of a resolution so providing and while such resolution remains in effect, may permit a depositor to withdraw interest credited to a time certificate of deposit or account during any term at any time during such term without penalty. If, however, the deposit or account is renewed automatically and the rate of interest paid or the maturity period of the renewal term is different, interest in the account at the commencement of the renewal term shall be treated as principal and only interest for the renewal term may be paid any time without penalty during such term. (4) Grace Period With Respect to Withdrawals. An association may compute earnings on amounts withdrawn from its insured accounts having an indefinite term during the last ten (10) business days of any period for which earnings are distributable as if the withdrawal had been made immediately after the close of that period. AUTHORITY: section 369.299, RSMo 1994.* This rule originally filed as 4 CSR 26010.010. This rule previously filed as 4 CSR 140-22.010. Original rule filed Sept. 28, 1971, effective Oct. 8, 1971. Amended: Filed Oct. 15, 1980, effective Jan. 12, 1981. Rescinded and readopted: Filed Nov. 4, 1986, effective Jan. 30, 1987. Changed to 4 CSR 140-22.010, effective July 6, 1994. Moved to 20 CSR 1140-22.010, effective Aug. 28, 2006. *Original authority: 369.299, RSMo 1971, amended 1994.