1. (a) The board of directors of an association formed under this chapter may authorize the purchase of the association's capital stock at the book value conclusively determined by the board and pay cash for the stock within one year thereafter if:

   1. (1) the liabilities of the association are less than 50 percent of its assets; and
   2. (2) the directors determined that the stock may be purchased without impairment of the association's financial condition.
2. (b) The board of directors in its discretion may retire pro rata stock held by a member or group of members whose loans have been paid in whole or part.

Acts 1981, 67th Leg., p. 1122, ch. 388, Sec. 1, eff. Sept. 1, 1981.