§ 19-2-10. Amendment of agreement to form.
(a) Subject to the approval of the director, or the director's designee, any financial
institution or credit union may amend its agreement to form.
(b) If the amendment increases the capital stock of a stock financial institution, the
certificate of the general treasurer that the financial institution has paid into
the treasury for the use of the state a sum equal to one tenth of one percent (.1%)
of the increase shall be presented to the secretary of state; provided, however, that
no share or shares of any increase of stock shall be issued by any financial institu
Free access — add to your briefcase to read the full text and ask questions with AI
§ 19-2-10. Amendment of agreement to form.
(a) Subject to the approval of the director, or the director's designee, any financial
institution or credit union may amend its agreement to form.
(b) If the amendment increases the capital stock of a stock financial institution, the
certificate of the general treasurer that the financial institution has paid into
the treasury for the use of the state a sum equal to one tenth of one percent (.1%)
of the increase shall be presented to the secretary of state; provided, however, that
no share or shares of any increase of stock shall be issued by any financial institution
until the par value of the stock has been actually paid in cash.
(c) The director, or the director's designee, may permit any stock financial institution
to transfer to its capital account, from any surplus accounts that are not set aside
as security for any class of depositors, an amount that will leave, after the transfer,
a surplus in addition to any amount set aside as special security of at least one
hundred percent (100%) of the total capital stock. The director may authorize the
financial institution to issue further shares of stock for the transferred amount
whenever the director, or the director's designee, is satisfied that the entire capital
stock when added to and the remaining surplus represent assets of equivalent value
properly invested for banking purposes; and provided, also, that nothing in this section
shall be construed to affect, in any way, any right with respect to the determination
of the amount and issue of capital stock conferred upon any existing financial institution
by its act of formation or any amendment or addition to its act of formation, except
that no capital stock shall be issued until the par value of the stock has been actually
paid in cash, and until the director, or the director's designee, certifies this;
and provided further that no amendment, change, or alteration shall contain any provision
that could not lawfully be contained in an original agreement to form under this title
filed at the time of applying for amendment.
(d) Upon the issuance of the duplicate certified by the secretary of state, the agreement
to form shall be amended accordingly.