§ 6-220. Impairment of capital - Assessments - Limitations.

A.  Commissioner may direct assessment - Procedure.  The Commissioner may order a bank or trust company to levy an assessment in a designated amount upon the holders of record of common stock to remedy an impairment of capital.  Upon receipt of an order to levy an assessment, the directors shall, within three (3) business days, cause to be sent to all holders of common stock, at their addresses on the books of the bank or trust company, a notice of the amount of the assessment, a copy of the order of the Commissioner and a copy of this subsection.  If an assessment is not paid within thirty (30) days after the notice is mailed, the bank or trust company shall offer the shares of the defaulting shareholders for sale at public auction at a price which shall not be less than the amount of the assessment and the cost of the sale.  Any excess shall be paid to the prior owners.  The method of collection provided herein shall be the sole method of collecting assessments.

B.  Limitation of bank operations where capital impaired.  Whenever the capital or reserve of any bank shall be impaired, the Commissioner may order it to make no new loans or discounts except upon sight bills of exchange drawn against actually existing values.

Added by Laws 1965, c. 161, § 220.  Amended by Laws 1984, c. 133, § 3, eff. Oct. 1, 1984.