Each director shall at all times own, in his own name, an account in his State association having an unencumbered balance as hereinafter set forth:

(a) In a State association having assets of less than $500,000.00, an unencumbered balance of at least $200.00;

(b) In a State association having assets of $500,000.00 or more, but less than $5,000,000.00, an unencumbered balance of at least $500.00;

(c) In a State association having assets of $5,000,000.00 or more, an unencumbered balance of at least $1,000.00.

A director may pledge his account as security for a loan, but the term “unencumbered balance,” as used herein, shall mean the withdrawal value of the account, less the amount of any loan secured by said account, plus accrued interest, and the account shall not otherwise be pledged or encumbered.

In lieu of these requirements a director may hold an account upon which he shall pay at least $5.00 per month, without default, until the minimum unencumbered balance is attained, which minimum shall thereafter be maintained; provided, however, that this section shall not disqualify any director of a State association which issues installment shares exclusively and where the unencumbered balance of his account is reduced to less than the required minimum due to the maturity of shares; provided, however, that he resubscribes to an account upon which payments of at least $5.00 per month are made, without default, until the minimum required unencumbered balance is again attained. If any director shall fail for more than 3 months to maintain the minimum requirements of his account, his office shall thereupon automatically become vacated and he shall not become eligible to such office again until after the expiration of his then existing term of office.

L.1963, c. 144, s. 68.