§ 9-B §464 — Loans on shares of stock

Maine § 9-B §464

• Jurisdiction: Maine
• Title 9-B: FINANCIAL INSTITUTIONS
• Part 4: POWERS AND DUTIES OF FINANCIAL INSTITUTIONS
• Ch. 46: PROHIBITIONS

Text

1.
Prohibition.
A financial institution shall not make loans or discounts on the security of the shares of its own capital stock or the capital stock of its parent holding company or its subsidiaries, if any, nor shall an institution be the purchaser or holder of any such shares unless necessary to prevent loss upon a debt previously contracted for in good faith, and all stock so acquired shall be disposed of at public or private sale within one year after its acquisition, in accordance with such requirements as the superintendent deems appropriate.
2.
Extension of time for disposition of shares.
The time for disposition of shares acquired in subsection 1 may be extended by the superintendent for good cause shown, upon application in writing to the superintendent.
3.
Purchase of own shares.
Nothing in this section shall be construed as prohibiting an institution, with the prior written approval of the superintendent, from:

Legislative History

PL 1975, c. 500, §1 (NEW). PL 1977, c. 152, §4 (AMD). PL 1977, c. 564, §48 (AMD).