New Jersey § 17:12b-68

§ 17:12b-68.

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.