Section 3-305 – Reduction of Capital
(a) A reduction of the outstanding capital stock of a commercial bank: (1) Is not valid unless approved by the Commissioner; and (2) May not be made to an amount that is less than that required in § 3-209(b) of this title. (b) The Commissioner shall base approval on a finding that the assets of the commercial bank remaining […]
Section 3-306 – Maintenance of Surplus; Losses
(a) If the surplus of a commercial bank at any time is less than 100 percent of its capital stock, then, until the surplus is 100 percent of the capital stock, the commercial bank: (1) Shall transfer to its surplus annually at least 10 percent of its net earnings; and (2) May not declare or pay any cash […]
Section 3-307 – Cash Dividends
(a) The board of directors of a commercial bank may declare a cash dividend only from the following, after providing for due or accrued expenses, losses, interest, and taxes: (1) Its undivided profits; or (2) With the prior approval of the Commissioner, its surplus in excess of 100 percent of its required capital stock. (b) If any stockholder receives […]
Section 3-308 – Stock Dividends
(a) The board of directors of a commercial bank may not declare a stock dividend unless its surplus, after the increase in capital stock, is equal to at least 20 percent of the outstanding capital stock as increased. (b) If the surplus of the commercial bank, after the increase in capital stock, is less than 100 percent […]
Section 3-309 – Stock Ledger
(a) (1) Each commercial bank shall keep a stock ledger, which shall contain the name and address of each stockholder and the number of shares of stock that the stockholder holds. (2) In any proceeding, the stock ledger is presumptive evidence of the facts stated in it. (b) (1) Any stockholder, director, or officer of a commercial bank may inspect […]
Section 3-310 – Annual Meeting of Stockholders
(a) The annual meeting of the stockholders of a commercial bank shall be held at the time and place that the bylaws provide. (b) (1) In addition to any other required notice, at least one notice of the annual meeting shall be published at least 10 days before the meeting in a newspaper published or circulated in the […]
Section 3-311 – Oath of Stockholder Before Voting
(a) On demand of a stockholder, a person may not vote any share of capital stock that, on the stock ledger of a commercial bank, appears to have been transferred within the preceding year, unless the person takes an oath as provided in this section. (b) The challenged voter shall take an oath, before the judges of […]
Section 3-312 – Debt Instruments
(a) If the Commissioner approves, a commercial bank may issue and sell debt instruments that are repayable on the terms and bear the rate of interest, if any, stated in the instruments. (b) The issuance of a debt instrument does not impair the capital stock of a commercial bank if the amount of the debt instrument is […]
Section 3-314 – Approval of Commissioner of Certain Stock Transactions
(a) (1) In this section the following words have the meanings indicated. (2) “Bank holding company” has the meaning stated in the Federal Bank Holding Company Act of 1956. (3) “Stock acquisition” means: (i) An acquisition of the outstanding voting stock of a commercial bank or bank holding company in this State, if the acquisition will affect the power to […]
Section 3-315 – Loans Secured by Stock
(a) Except as provided in subsection (b) of this section, the chief executive officer of a commercial bank shall report to the Commissioner as soon as the officer becomes aware that any person has applied for or has received a loan from the commercial bank that is to be secured by 25 percent or more of […]