9-904. Reduction of capital stock, when.
9-904
9-904. Reduction of capital stock, when.
(a) The capital stock of any bank or trust company may be reduced to the
minimum provided by
law for a new bank or trust company by resolution adopted by the
stockholders representing 2/3 of the voting stock of such bank or trust
company, except that no such
reduction shall become effective until the commissioner approves
the same.
(b) With prior approval of the state bank
commissioner, a bank or trust company may reduce
its capital stock below the minimum amount allowed by subsection (a) by
transferring capital stock to its surplus fund. No such reduction shall be
approved unless the state bank commissioner finds:
(1) The proposed reduction is necessary to provide greater operational
flexibility to an adequately capitalized, well-managed institution;
(2) the proposed reduction does not result in or is not in furtherance of a
reduction in the institution's capital to an amount below 8% of total deposits
for a bank or below $250,000 for a trust company;
(3) the proposed reduction is not intended to delay, prevent or be in lieu
of capital stock impairment or a stockholder's assessment pursuant to K.S.A.
9-906 and amendments thereto; and
(4) the proposed reduction poses no significant risk to the financial
stability, safety or soundness of the institution.
(c) After the commissioner has approved such
reduction a certificate signed by the
president and cashier of the bank or trust company setting forth the result of
such reduction of its
capital stock, the names of its stockholders and the amount of stock held
by each, shall be filed with the secretary of state and a duplicate shall be
filed with the commissioner.
(d) Whenever the capital stock of
any bank or trust company shall be reduced as herein provided, every
stockholder, owner or
holder of any stock certificate shall surrender the same for cancellation
and shall be entitled to receive a new certificate for such person's
proportion of the new stock. No dividends shall be paid to any such
stockholder until the old certificate is surrendered.
History: L. 1947, ch. 102, § 17; L. 1989, ch. 48, § 18;
L. 1996, ch. 175, § 12;
L. 2001, ch. 87, § 2; July 1.