9-903.   Transfer of stock; report to commissioner.The shares of stock of any bank or trust company shall be deemed personalproperty andshall be transferred on the books of the bank or trust company in suchmanner as the bylawsthereof may direct. No transfer of stock shall be valid against theissuing bank or trust company so long as the registered owner thereofshall be liable asprincipal debtor, surety or otherwise to the bank or trust company on amatured, charged off or forgiven obligation, nor shall any dividend,interest or profit be paid onsuch stock so long as theregistered owner thereof is indebted to the bank or trust company on amatured, charged off or forgiven obligation,but all such dividends or profits shall be retained by the bank or trustcompany and appliedto the discharge of any such obligations. No stock shall betransferred on the books of any bank or trust company when the bankor trust company is in a failingcondition, or when its capital stock is impaired, except upon approval ofthe commissioner. Whenever a transfer of shares of stock of any bank ortrust company occurswhich results in direct or indirect ownership by a stockholder or anaffiliated group of stockholders of 10% or more of theoutstanding stock of the bank or trust company, and whenever additionalshares of stock of the bank or trust company are transferred to suchstockholder or affiliated group of stockholders, the president or other chiefexecutive officer of the bankor trust company shall report such transfer to the commissioner within 10 daysaftertransfer of the shares of stock on the books of the bank or trust company.

      History:   L. 1947, ch. 102, § 16; L. 1975, ch. 44, § 8;L. 1988, ch. 59, § 1; L. 1989, ch. 48, § 17;L. 1996, ch. 175, § 11; Apr. 25.