§ 19-2-10 - Amendment of agreement to form.
SECTION 19-2-10
§ 19-2-10 Amendment of agreement to form.– (a) Subject to the approval of the director or the director's designee, anyfinancial institution or credit union may amend its agreement to form.
(b) If the amendment increases the capital stock of a stockfinancial institution, the certificate of the general treasurer that thefinancial institution has paid into the treasury for the use of the state a sumequal to one tenth of one percent (.1%) of the increase shall be presented tothe secretary of state; provided, however, that no share or shares of anyincrease of stock shall be issued by any financial institution until the parvalue of the stock has been actually paid in cash.
(c) The director or the director's designee may permit anystock financial institution to transfer to its capital account, from anysurplus accounts that are not set aside as security for any class ofdepositors, an amount that will leave, after the transfer, a surplus inaddition to any amount set aside as special security of at least one hundredpercent (100%) of the total capital stock. The director may authorize thefinancial institution to issue further shares of stock for the transferredamount whenever the director or the director's designee is satisfied that theentire capital stock when added to and the remaining surplus represent assetsof equivalent value properly invested for banking purposes; and provided, also,that nothing in this section shall be construed to affect in any way any rightwith respect to the determination of the amount and issue of capital stockconferred upon any existing financial institution by its act of formation orany amendment or addition to its act of formation, except that no capital stockshall be issued until the par value of the stock has been actually paid incash, and until the director or the director's designee certifies this, andprovided further that no amendment, change, or alteration shall contain anyprovision that could not lawfully be contained in an original agreement to formunder this title filed at the time of applying for amendment.
(d) Upon the issuance of the duplicate certified by thesecretary of state, the agreement to form shall be amended accordingly.