9-1101a. Issuance of capital notes or debentures, when; limitations.
9-1101a
9-1101a. Issuance of capital notes or debentures,
when; limitations.
In accordance with normal business considerations and upon approval of
stockholders owning 2/3 of the voting stock of the
bank, the bank may issue convertible or nonconvertible capital notes or
debentures in such amounts and under such terms and conditions as shall be
approved by the state bank
commissioner, except that the principal amount of capital
notes or debentures outstanding at any time shall not exceed an amount
equal to 100% of the bank's paid-in
capital stock plus 50% of the amount of its
unimpaired surplus fund. Capital notes or debentures which are by their terms
expressly subordinated to the prior payment in full of all deposit liabilities
of the bank shall be considered as part of the unimpaired capital funds of the
bank for purpose of the computation of the bank's loan limit.
History: L. 1965, ch. 83, § 1;
L. 2001, ch. 87, § 6; July 1.