South Carolina § 34-13-140 Restrictions on loan on or purchase of bank's own stock.

South Carolina Statutes

§ 34-13-140 — Restrictions on loan on or purchase of bank's own stock.

South Carolina·Title 34 BANKING, FINANCIAL INSTITUTIONS AND MONEY·Ch. 13 BANK LOANS AND INVESTMENTS

(A)It is unlawful for any banking institution to make any loan or discount on the security of the shares of its own capital stock or to be the 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, unless the purchase is approved by the board, or except as permitted in subsection (B).

(B)Subject to the approval of the board, a South Carolina state-chartered banking association may acquire its own outstanding shares and hold them as treasury stock in the same manner as a corporation pursuant to Title 33.

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(A) It is unlawful for any banking institution to make any loan or discount on the security of the shares of its own capital stock or to be the 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, unless the purchase is approved by the board, or except as permitted in subsection (B). (B) Subject to the approval of the board, a South Carolina state-chartered banking association may acquire its own outstanding shares and hold them as treasury stock in the same manner as a corporation pursuant to Title 33.

South Carolina § 34-13-140 (Restrictions on loan on or purchase of bank's own stock.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

HISTORY: 1962 Code SECTION 8-235; 1952 Code SECTION 8-235; 1942 Code SECTION 7860; 1932 Code SECTION 7873; 1930 (36) 1093; 2021 Act No. 30 (S.467), SECTION 13, eff May 6, 2021. Effect of Amendment 2021 Act No. 30, SECTION 13, inserted the (A) designator; in (A), substituted "It is unlawful" for "It shall be unlawful", "banking institution" for "banking association", and "is necessary" for "shall be necessary", and inserted ", unless the purchase is approved by the board, or except as permitted in subsection (B)"; and added (B).