Section 384:14-a Capital Debentures.
Notwithstanding other provisions of this title, or of its charter, any mutual savings bank, guaranty savings bank, building and loan association or trust company, for the purpose of strengthening its financial condition and on vote of its trustees or directors may receive contributions to its capital funds and in consideration therefor may issue capital debentures to any individual, corporation, bank or association of banks. Any such institution desiring to issue capital debentures shall submit a written proposal to the commissioner specifying the following: (1) the principal amount of capital debentures which it proposes to issue, (2) the terms and conditions of said debentures including interest rate and retirement provisions, (3) the name of any mutual savings bank, guaranty savings bank, building and loan association or trust company proposing to purchase capital debentures and the principal amount of debentures which it proposes to purchase, and (4) its reasons for issuing such debentures. If in the opinion of the commissioner the proposed issuance of debentures will improve the financial condition of the institution, he shall approve the same and said debentures shall be considered as legal investments for the purchasing institutions named in the plan and for other such institutions with the approval of the commissioner. No such institution shall invest in capital debentures except with the approval of the commissioner. Capital debentures may only be retired from earnings unless otherwise authorized by the commissioner.
Source. 1959, 109:1, eff. May 20, 1959.