South Dakota § 51A-3-17 Preferred stock, capital notes, and debentures outstanding--Restrictions on dividends.

South Dakota Statutes

§ 51A-3-17 — Preferred stock, capital notes, and debentures outstanding--Restrictions on dividends.

South Dakota·Title 51A BANKS AND BANKING·Ch. 51A-2 ORGANIZATION, APPLICATIONS, AND CAPITAL STRUCTURE OF BANKING CORPORATIONS

No dividends may be declared or paid on the capital stock of any bank which has outstanding capital notes or debentures, or if preferred stock has been issued without prior written approval of the director unless:

(1)In the case of an issue of capital notes or debentures, the surplus and undivided profits of such bank equal such issue, the retirement requirements and interest on the issue have been paid; or (2) In the case of an issue of preferred stock, all the terms of issue shall have been satisfied.

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No dividends may be declared or paid on the capital stock of any bank which has outstanding capital notes or debentures, or if preferred stock has been issued without prior written approval of the director unless: (1) In the case of an issue of capital notes or debentures, the surplus and undivided profits of such bank equal such issue, the retirement requirements and interest on the issue have been paid; or (2) In the case of an issue of preferred stock, all the terms of issue shall have been satisfied.

South Dakota § 51A-3-17 (Preferred stock, capital notes, and debentures outstanding--Restrictions on dividends.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

SL 1933 (SS), ch 1, § 4; SL 1935, ch 61, § 2; SDC 1939, § 6.0409; SL 1943, ch 16; SL 1955, ch 10; SDCL, §§ 51-4-12, 51-4-24; SL 1969, ch 11, § 3.6; SDCL, § 51-17-7; SL 1988, ch 377, § 59; SDCL, § 51-17-20.2.