Alabama § 5-5A-27 Loans Secured by Own Stock; Purchase of Own Stock; Ownership of Capital Stock of Other Banks

Alabama Statutes

§ 5-5A-27 — Loans Secured by Own Stock; Purchase of Own Stock; Ownership of Capital Stock of Other Banks

Alabama § 5-5A-27

Title 5Banks and Financial Institutions

Ch. 5AOrganization and Operation of Banks

This text of Alabama § 5-5A-27 (Loans Secured by Own Stock; Purchase of Own Stock; Ownership of Capital Stock of Other Banks) is published on Counsel Stack Legal Research, covering Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ala. Code § 5-5A-27 (2026).

Text

No bank shall make a loan taking its own stock as security therefor or directly or indirectly purchase shares of its own stock, except in pursuance of provisions of law for reducing its capital stock. No bank shall subscribe for or own capital stock in any other bank except in the usual course of business in payment of an indebtedness or in order to prevent a loss on a debt owing to it and the bank must sell said stock within one year from the time the same is acquired unless this time period is extended by the superintendent; provided, however, that nothing in this section shall prohibit the ownership by any bank of any stock in another bank acquired prior to May 28, 1980.

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No bank shall make a loan taking its own stock as security therefor or directly or indirectly purchase shares of its own stock, except in pursuance of provisions of law for reducing its capital stock. No bank shall subscribe for or own capital stock in any other bank except in the usual course of business in payment of an indebtedness or in order to prevent a loss on a debt owing to it and the bank must sell said stock within one year from the time the same is acquired unless this time period is extended by the superintendent; provided, however, that nothing in this section shall prohibit the ownership by any bank of any stock in another bank acquired prior to May 28, 1980.