State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-2

Article 2.


§ 53‑2.  Howincorporated.

Any number of persons, notless than five, who may be desirous of forming a company and engaging in thebusiness of establishing, maintaining, and operating banks of discount anddeposit to be known as commercial banks, shall be incorporated in the mannerfollowing and in no other way; that is to say, such persons shall, by acertificate of incorporation under their hands and seals set forth:

(1)        The name of thecorporation; no name shall be used already in use by another existingcorporation organized under the laws of this State or of the Congress, or sonearly similar thereto as to lead to uncertainty or confusion.

(2)        The location of itsprincipal office in this State.

(3)        Whether it will dotrust business as well as the business of a commercial bank.

(4)        The amount of itsauthorized common capital stock, the number of shares into which it is divided,the par value of each share; and the amount of common capital stock with whichit will commence business. The amount of capital required to charter a bankshall be determined as herein set forth by the Commissioner of Banks who shallgive due consideration to (i) the population of the proposed bank's trade area,(ii) the total deposits of those depository financial institutions alreadyoperating in the proposed bank's trade area, (iii) the economic conditions andoutlook within the proposed bank's trade area, (iv) the business experience andreputation of the proposed bank's management, (v) the business experience andreputation of the proposed bank's incorporators and proposed directors, (vi)the type and nature of business activities proposed to be engaged in, and (vii)the proposed bank's projected deposit growth and profitability. Except asotherwise provided, the amount of common capital stock required to charter abank shall not be less than two million dollars ($2,000,000); provided,however, such amount of capital may be increased or decreased in the discretionof the Commissioner of Banks who, after considering the above enumeratedcriteria, determines that a greater capital requirement is necessary or that asmaller capital requirement will provide a sufficient capital base. In additionto the required capital, every bank shall have a paid in surplus of at leastfifty percent (50%) of its common capital stock. The capital and paid insurplus required to charter a bank shall be exclusive of any organizationalexpenses. This subdivision shall not apply to banks organized and doingbusiness prior to its adoption or amendment; provided, however, the BankingCommission is hereby authorized and directed to adopt rules to keep anyoriginal required minimum capital funds intact to the end that they remain inand with the bank as a protection for depositors.

(5)        The names and post‑officeaddresses of subscribers for stock, and the number of shares subscribed byeach; the aggregate of such subscriptions shall be the amount of the capitalwith which the company will commence business.

(6)        Period, if any,limited for the duration of the company. (1921, c. 4, s. 2; C.S., s. 217(a); 1927, c. 47, s. 2;1929, c. 72, s. 1; 1947, c. 781; 1953, c. 1209, s. 3; 1963, c. 793, s. 2; 1967,c. 789, s. 1; 1985, c. 677, s. 4; 1989, c. 187, s. 2; c. 770, s. 42; 1989 (Reg.Sess., 1990), c. 1024, s. 44; 2001‑263, s. 2.)