§ 11-103-202 — Inadequacy of capital - assessments

(1) If the banking board
has reason to believe that the capital of any bank is inadequate under the rules of
the banking board, the banking board may ascertain the facts and furnish the bank
with a copy of its determination. If the banking board determines an inadequacy of
capital based upon such determination, the commissioner, with the approval of the
banking board, may direct the state bank to levy an assessment in a designated
amount upon the holders of record of common stock to remedy an inadequacy of
capital. Upon receipt of an order to levy an assessment, the directors shall cause to
be sent to all holders of common stock, at their addresses, a copy of the order and a
copy of this subsection (1). If an assessment is not paid within the time prescribed in
the order or such shorter period as the directors decide, but not less than thirty
days, the state bank may, within sixty days thereafter as the banking board may
prescribe in its order, offer the shares of the defaulting stockholders for sale at
public auction or private sale at a price that shall not be less than the amount of the
assessment and the cost of the sale. Any excess shall be paid to the prior owners.
Except under circumstances where section 11-103-203 applies, the method of
collection provided in this section shall be the sole method of collecting
assessments. If an assessment is not paid within ninety days after the date of the
order to levy or at such other date as may be specified in the order, but in no event
less than thirty days, the commissioner may, with the approval of the banking
board, proceed pursuant to part 8 of this article; however, for good cause shown to
the banking board by the affected bank, the banking board may extend the ninety-day limit.

(2) If the banking board determines that the capital or reserves of any bank
are inadequate, the banking board may order the bank not to make new loans or
discounts.

Legislative History

Source: L. 2003: Entire article added with relocations, p. 1082, � 3, effective July 1.