§ 23-47-102 — Acquisition and disposition of own stock

(a) No state bank shall be the purchaser or holder of its own capital stock, unless such security or purchase shall be necessary to prevent loss upon a debt previously contracted in good faith. (b) Stock so purchased or acquired shall be sold or disposed of as expeditiously as possible within twenty-four (24) months of its purchase or acquisition. After the expiration of twenty-four (24) months, any such stock shall not be considered as part of the assets of the state bank. (c) This section does not apply to: (1) The payment by a state bank of the value of shares held by shareholders dissenting from any proposed merger, consolidation, purchase or assumption, or other reorganization involving a plan of exchange of any of the stock of the state bank, who perfect their statutory rights as dissenting shareholders; or (2) The repurchase by a state bank of its shares of capital stock if the state bank is required to file reports under section 13 or section 15(d) of the Securities Exchange Act of 1934, 15 U.S.C. § 78a et seq., as it existed on January 1, 2017, or has a class of equity securities registered under section 12(b) or section 12(g) of the Securities Exchange Act of 1934, 15 U.S.C. § 78a et seq., as it existed on January 1, 2017, when the terms of the repurchase, or any repurchase plan or program, has been approved by the Bank Commissioner.

Legislative History

Amended by Act 2017, No. 548,§ 1, eff. 3/21/2017. Acts 1997, No. 89, § 1.