§ 6-03-33 — Loans on shares prohibited - Disposal of stock acquired

No association or banking institution may make any loan or discount on the security of the
shares of its own stock or of the stock of any holding company which controls the association or
banking institution, nor be a purchaser or holder of any such shares, unless such security or
purchase is necessary to prevent loss upon a debt previously contracted in good faith. Stock so
acquired must be sold or disposed of at public or private sale within thirty days after it is
acquired, and if not sold within such time, it must be canceled and deducted from the capital
stock of the association, banking institution, or holding company, and the association, banking
institution, or holding company shall notify the commissioner in writing of such cancellation. For
the purpose of this section, "control" means ownership, or control directly, indirectly, or through
the actions of one or more persons of the power to vote twenty-five percent or more of any class
of voting securities of the association or banking institution, of the power to control in any
manner the election of a majority of the directors of the association or banking institution, or to
direct the management or policies of the association or banking institution.