9-903. Transfer of stock; report to commissioner.
9-903
9-903. Transfer of stock; report to commissioner.
The shares of stock of any bank or trust company shall be deemed personal
property and
shall be transferred on the books of the bank or trust company in such
manner as the bylaws
thereof may direct. No transfer of stock shall be valid against the
issuing bank or trust company so long as the registered owner thereof
shall be liable as
principal debtor, surety or otherwise to the bank or trust company on a
matured, charged off or forgiven obligation, nor shall any dividend,
interest or profit be paid on
such stock so long as the
registered owner thereof is indebted to the bank or trust company on a
matured, charged off or forgiven obligation,
but all such dividends or profits shall be retained by the bank or trust
company and applied
to the discharge of any such obligations. No stock shall be
transferred on the books of any bank or trust company when the bank
or trust company is in a failing
condition, or when its capital stock is impaired, except upon approval of
the commissioner. Whenever a transfer of shares of stock of any bank or
trust company occurs
which results in direct or indirect ownership by a stockholder or an
affiliated group of stockholders of 10% or more of the
outstanding stock of the bank or trust company, and whenever additional
shares of stock of the bank or trust company are transferred to such
stockholder or affiliated group of stockholders, the president or other chief
executive officer of the bank
or trust company shall report such transfer to the commissioner within 10 days
after
transfer 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.