17:12B-248 - Capital stock and surplus
17:12B-248.Ā Capital stock and surplus
In the case of an application for the incorporation of a capital stock association, the proceeds from the sale of the capital stock having par value shall be set apart to the extent of the par value and shall be maintained as the stated capital of the association.Ā The proceeds from the sale of capital stock without par value shall be set apart to the extent provided in the certificate of incorporation as approved by the commissioner and shall be maintained as the stated capital of the association.Ā No loan shall be made by a capital stock association secured in any manner by its stock.
The commissioner shall determine the minimum amount to be set apart from theĀ proceeds of stock to be subscribed and maintained as the stated capital of theĀ capital stock association, with provision made for full payment therefor inĀ cash.Ā In addition, a capital surplus account shall be established for suchĀ association in an amount satisfactory to the commissioner, provided however,Ā that in no event shall the aggregate of stated capital and capital surplus beĀ less than $500,000.00.Ā Such stated capital and capital surplus shall not beĀ available for dividends or other distributions to stockholders, except uponĀ prior written authorization of the commissioner or in the event of dissolutionĀ and final liquidation, provided, however, that the board of such association,Ā by appropriate action, may apply all or any part of capital surplus to theĀ reduction or write-off of any deficit arising from losses or diminution inĀ value of its assets, or may transfer to or designate as part of the accountsĀ authorized or required by paragraphs (a), (b) and (c) of section 128 (C.Ā 17:12B-128) of this act, all or any part of any capital surplus.
All shares of capital stock shall be transferable by the holders thereof inĀ accordance with the bylaws of such association.
L.1974, c. 137, s. 19, eff. Oct. 23, 1974.
Ā
In the case of an application for the incorporation of a capital stock association, the proceeds from the sale of the capital stock having par value shall be set apart to the extent of the par value and shall be maintained as the stated capital of the association.Ā The proceeds from the sale of capital stock without par value shall be set apart to the extent provided in the certificate of incorporation as approved by the commissioner and shall be maintained as the stated capital of the association.Ā No loan shall be made by a capital stock association secured in any manner by its stock.
The commissioner shall determine the minimum amount to be set apart from theĀ proceeds of stock to be subscribed and maintained as the stated capital of theĀ capital stock association, with provision made for full payment therefor inĀ cash.Ā In addition, a capital surplus account shall be established for suchĀ association in an amount satisfactory to the commissioner, provided however,Ā that in no event shall the aggregate of stated capital and capital surplus beĀ less than $500,000.00.Ā Such stated capital and capital surplus shall not beĀ available for dividends or other distributions to stockholders, except uponĀ prior written authorization of the commissioner or in the event of dissolutionĀ and final liquidation, provided, however, that the board of such association,Ā by appropriate action, may apply all or any part of capital surplus to theĀ reduction or write-off of any deficit arising from losses or diminution inĀ value of its assets, or may transfer to or designate as part of the accountsĀ authorized or required by paragraphs (a), (b) and (c) of section 128 (C.Ā 17:12B-128) of this act, all or any part of any capital surplus.
All shares of capital stock shall be transferable by the holders thereof inĀ accordance with the bylaws of such association.
L.1974, c. 137, s. 19, eff. Oct. 23, 1974.
Ā