§ 5-6A-20 — Declaration of Illegal Dividends, Discounts of Notes, Etc

Alabama § 5-6A-20

• Jurisdiction: Alabama
• Title 5: Banks and Financial Institutions
• Ch. 6A: Directors, Officers, and Employees
• Art. 2: Prohibited Acts

Text

Any director of a bank who knowingly concurs in any vote or act of the directors of such bank by which it is intended to pay a cash dividend except from the undivided profits arising from the business of the bank in violation of Section 5-5A-21, or to make or approve a loan with the stock of the lending bank as security therefor; to divide, withdraw or in any manner pay to the stockholders or any of them any part of the capital of the bank, or to purchase or reduce such capital, except in pursuance of law; or to discount or receive any note or other evidence of debt in payment of any installment of purchase price of capital actually called in and required to be paid, or with intention to provide the means of making such payment; or to receive or discount any note or other evidence of debt with the intent to enable any stockholder to withdraw any part of the money paid in by him on his stock; or to apply any portion of the funds of such corporation except as allowed by law, directly or indirectly, to the purchase of shares of its stock, is guilty of a misdemeanor.

Legislative History

(Acts 1980, No. 80-658, §5-6-20.)