§ 53-1. "Bank," "surplus," "undivided profits," and other words defined.
Chapter 53.
Banks.
Article 1.
Definitions.
§ 53‑1. "Bank," "surplus," "undivided profits," and otherwords defined.
Except as otherwisespecifically provided in this Chapter, the following definitions shall beapplied to the terms used in this Chapter:
(1) Bank. The term"bank" shall be construed to mean any corporation, other than savingsand loan associations, savings banks, industrial banks, and credit unions,receiving, soliciting or accepting money or its equivalent on deposit as abusiness.
(1a) Branch. The term"branch" means an office of any bank in which deposits are received,monies are paid, and loans are made. Any of the functions or servicesauthorized to be engaged in by a bank may be carried out in a branch.
(2) Demand Deposits. The term "demand deposits" means all deposits, the payment of whichcan be legally required within 30 days.
(3) Insolvency. Theterm "insolvency" means:
a. When a bank cannotmeet its deposit liabilities as they become due in the regular course ofbusiness;
b. When the actual cashmarket value of its assets is insufficient to pay its liabilities to depositorsand other creditors;
c. When its reserveshall fall under the amount required by this Chapter, and it shall fail to makegood such reserve within 30 days after being required to do so by theCommissioner of Banks; or
d. Whenever theundivided profits and surplus shall be inadequate to cover losses of the bank,whereby an impairment of the capital stock is created.
(3a) Limited ServiceFacility. The term "limited service facility" means an office of abank in which deposits are received, monies are paid, or other duties andfunctions of a teller are performed. Loan applications shall be taken in alimited service facility but notes may not be executed nor loan proceedsdisbursed in a limited service facility.
(4) Net Earnings. Theterm "net earnings" means the excess of the gross earnings of anybank over the expenses and losses chargeable against such earnings during anydividend period.
(5) Practical Banker. The term "practical banker" means an officer or employee of a bankactively engaged in performing duties in managing or supervising or assistingin managing or supervising the conducting of a banking business, including anysuch banker who is in a retired status from such duties.
(6) Surplus. The term"surplus" means a fund created pursuant to the provisions of thisChapter by a bank from payments by stockholders or from its net earnings orundivided profits which, to the amount specified and by any additions theretoset apart and designated as such, is not available for the payment ofdividends, and cannot be used for the payment of expenses or losses so long assuch bank has undivided profits.
(7) Time Deposits. Theterm "time deposits" means all deposits, the payment of which cannotbe legally required within 30 days.
(8) Undivided Profits. The term "undivided profits" means the credit balance of the profitand loss account of any bank.
(9) Unimpaired CapitalFund. The term "unimpaired capital fund" means the total of theamount of unimpaired common stock, preferred stock, surplus, undivided profits,reserve for contingencies and other capital reserves (excluding accrueddividends on preferred stock and limited life preferred stock), mandatoryconvertible instruments, allowance for possible loan losses, and the amount ofcapital debentures or notes, convertible or otherwise, having an averageoriginal maturity of at least seven years, which have been specificallydesignated as part of the bank's unimpaired capital fund by resolution dulyadopted by the board of directors of the bank; provided, that upon payment ofsuch capital debentures or notes or upon accumulation of funds in a sinkingfund for amortization of such debentures or notes, unimpaired capital fundshall be reduced by the amount of such payment or accumulation. The terms andconditions of any issue of or prepayment of capital debentures or notes musthave the prior written approval of the Commissioner of Banks affirming that inhis opinion such issue or prepayment is in the best interest of the depositors,creditors and stockholders of the bank. (1921, c. 4, s. 1; C.S. s. 216(a); 1927, c. 47, s. 1;1931, c. 243, s. 5; 1945, c. 743, s. 1; 1967, c. 789, s. 21; 1979, c. 483, s.2; 1983, c. 214, s. 1; 1985, c. 677, s. 3; 1989, c. 187, s. 1; 1995, c. 129, s.1; 2001‑263, s. 6.)