17-5421.   Guarantee stock; issuance and sale, limitations.Guarantee stock, which shall be considered a secondary reserve out ofwhich losses shall be paid after all other available reserves have beenexhausted, may be issued, subject to the approval of the commissioner,upon compliance with conditions set forth in K.S.A. 17-5421 to17-5427, and amendments thereto. Suchguarantee stockshall be personal property in the hands of the owners thereof, and shallbe of one class only, with a par value not in excess of $100 per share. In theevent of reductionof capital, fractional shares may be issued. All shareholders in suchclass shall be treated mutually alike in all respects. In the event ofliquidation or dissolution of an association which has issued guaranteestock, such guarantee stock may not be withdrawn until after allliabilities of the association have been satisfied in full, includingthe withdrawal value of all other types or classes of shares. Noguarantee stock shall be issued for a consideration other than cash orfor a price less than the par value thereof, except that stock dividendsmay be declared out of otherwise unallocated surplus, unallocatedreserves, or undivided profits and with the consent of the commissioner,and guarantee stock may be issued for a consideration other than cash inconnection with mergers, consolidations or transfers.

      History:   L. 1955, ch. 141, § 3;L. 1988, ch. 98, § 1; March 3.