17-5421. Guarantee stock; issuance and sale, limitations.
17-5421
17-5421. Guarantee stock; issuance and sale, limitations.
Guarantee stock, which shall be considered a secondary reserve out of
which losses shall be paid after all other available reserves have been
exhausted, may be issued, subject to the approval of the commissioner,
upon compliance with conditions set forth in K.S.A. 17-5421 to
17-5427, and amendments thereto. Such
guarantee stock
shall be personal property in the hands of the owners thereof, and shall
be of one class only, with a par value not in excess of $100 per share. In the
event of reduction
of capital, fractional shares may be issued. All shareholders in such
class shall be treated mutually alike in all respects. In the event of
liquidation or dissolution of an association which has issued guarantee
stock, such guarantee stock may not be withdrawn until after all
liabilities of the association have been satisfied in full, including
the withdrawal value of all other types or classes of shares. No
guarantee stock shall be issued for a consideration other than cash or
for a price less than the par value thereof, except that stock dividends
may be declared out of otherwise unallocated surplus, unallocated
reserves, or undivided profits and with the consent of the commissioner,
and guarantee stock may be issued for a consideration other than cash in
connection with mergers, consolidations or transfers.
History: L. 1955, ch. 141, § 3;
L. 1988, ch. 98, § 1; March 3.