9-1101a.   Issuance of capital notes or debentures,when; limitations.In accordance with normal business considerations and upon approval ofstockholders owning 2/3 of the voting stock of thebank, the bank may issue convertible or nonconvertible capital notes ordebentures in such amounts and under such terms and conditions as shall beapproved by the state bankcommissioner, except that the principal amount of capitalnotes or debentures outstanding at any time shall not exceed an amountequal to 100% of the bank's paid-incapital stock plus 50% of the amount of itsunimpaired surplus fund. Capital notes or debentures which are by their termsexpressly subordinated to the prior payment in full of all deposit liabilitiesof the bank shall be considered as part of the unimpaired capital funds of thebank for purpose of the computation of the bank's loan limit.

      History:   L. 1965, ch. 83, § 1;L. 2001, ch. 87, § 6; July 1.