Section 5-5A-1 Procedure for incorporation – Application for permit. (a) The proposed incorporators of a bank shall execute and acknowledge an application for a permit in writing in the form prescribed by the superintendent and shall file the same in the office of the State Banking Department, which application shall be signed by all of […]
Section 5-5A-10 Permit to transact business – Required. No bank shall engage in the banking business until it shall have received from the superintendent a permit to transact a banking business. Any person who shall hereafter transact any business as an officer or agent of any bank hereafter incorporated, before such bank is authorized to […]
Section 5-5A-11 Permit to transact business – Examination; issuance and recordation of permit. The superintendent shall, before issuing his permit to any bank to commence business under the application provided for in Section 5-5A-1, examine or cause an examination to be made in order to ascertain whether the requisite capital of such bank has been […]
Section 5-5A-12 Membership in federal deposit insurance corporation, etc. All banks now or hereafter operating under the laws of this state shall be members of the Federal Deposit Insurance Corporation or such other agency as may be created to insure the deposits of such bank. (Acts 1980, No. 80-658, §5-5-12.)
Section 5-5A-13 Filing fee; other fees. (a) The Banking Board shall from time to time fix the amount of the fee for filing an application for a new bank, and for: (1) Establishment of a branch of an existing bank; (2) Conversion of a national bank to a state bank; (3) A merger of two […]
Section 5-5A-14 Capital – Minimum amount required for incorporation of bank. (a) No bank hereafter organized under the laws of Alabama shall have total initial capital accounts actually paid in of less than $800,000.00. (b) The superintendent may require a higher amount of capital accounts and where the bank will have no significance except as […]
Section 5-5A-15 Capital – Increase or decrease. Any bank shall with the consent of the superintendent have power and authority to increase or decrease its authorized capital in the manner provided for a corporation under the business corporation laws of this state. (Acts 1980, No. 80-658, §5-5-15.)
Section 5-5A-16 Issuance of capital notes and debentures. No bank shall issue capital notes or capital debentures except with the prior written approval of the superintendent under such conditions as he may impose. (Acts 1980, No. 80-658, §5-5-16.)
Section 5-5A-17 Amendment of certificate of incorporation; approval of amended certificate of incorporation. A bank may amend its certificate of incorporation in the manner provided by the laws governing business corporations. No proposed amendment of a certificate of incorporation of a bank is valid unless approved in writing by the superintendent and may not be […]
Section 5-5A-18 Powers of banks generally. Corporations formed for the purpose of doing business as a bank may: (1) Discount bills, notes or other evidences of debt; (2) Receive and pay out deposits, with or without interest, pay checks, and impose charges for any services; (3) Receive on special deposit money, bullion or foreign coins […]
Section 5-5A-18.1 Banks and trust companies to have power of federally chartered or regulated financial institution. In addition to all other rights and powers provided under this title, banks and trust companies chartered by this state and supervised by the superintendent and banks or trust companies chartered by any other state which are doing business […]
Section 5-5A-19 Reserves. (a) A bank which is not a member of the Federal Reserve System shall maintain at all times a reserve fund in an amount fixed by resolution of the Banking Board. The amount of the required reserve for each day shall be computed on the basis of average daily deposits covering such […]
Section 5-5A-2 Procedure for incorporation – Notice of intention to incorporate. Before a bank can become incorporated under the laws of Alabama, a notice of intention to organize such bank shall be published once a week for three successive weeks in the newspaper designated by the superintendent. Such notice shall specify the names of the […]
Section 5-5A-20 Branch banks; commercial affiliates. (a) Alabama banks may establish a branch or office for the transaction of the banking business within the State of Alabama upon prior approval of the superintendent. Alabama banks may establish a branch or office for the transaction of a banking business in any state other than Alabama, any […]
Section 5-5A-21 Surplus; restriction on dividends. Every bank shall transfer to surplus each year at least 10 percent of its net earnings until the surplus of such bank shall be equal to at least 20 percent of its capital, and it shall be unlawful for such bank to declare or pay a dividend in excess […]
Section 5-5A-22 Limits of indebtedness. (a) No bank shall make a loan to any one person which, when combined with all other loans to such person, would cause total loans to that person to exceed: (1) Ten percent of the capital accounts of the bank, if such loans are not secured, or (2) Twenty percent […]
Section 5-5A-23 Investments and loans with respect to housing. (a) Banks, insurance companies and savings and loan associations are authorized: (1) To make such loans and advances of credit and purchases of obligations representing loans and advances of credit as are eligible for insurance and to obtain such insurance; and (2) To make such loans […]
Section 5-5A-25 Acceptance of drafts or bills of exchange arising from transactions involving shipment of goods – Authority. Any bank in Alabama may accept drafts or bills of exchange drawn upon it, having not more than six months’ sight to run, exclusive of days of grace, which grew out of transactions involving the importation or […]
Section 5-5A-26 Acceptance of drafts or bills of exchange arising from transactions involving shipment of goods – Limitations. No bank shall accept, whether in a foreign or domestic transaction, for any one person, company, firm or corporation, to an amount equal at any time in the aggregate to more than 10 percent of its paid […]
Section 5-5A-27 Loans secured by own stock; purchase of own stock; ownership of capital stock of other banks. No bank shall make a loan taking its own stock as security therefor or directly or indirectly purchase shares of its own stock, except in pursuance of provisions of law for reducing its capital stock. No bank […]
