§ 19-2-9 - Payment for stock in cash – Certificate authorizing transaction of business.
SECTION 19-2-9
§ 19-2-9 Payment for stock in cash –Certificate authorizing transaction of business. – (a) The financial institution, if a stock financial institution, shall notissue any shares of stock until the par value of the shares has been actuallypaid in cash, free and clear of all encumbrances. When the whole capital stockhas been issued, a complete list of the stockholders, with the name, residence,and post office address of each and the number of shares held by each, shall befiled with the director or the director's designee which list shall be verifiedunder oath by two (2) of the principal officers of the financial institution.
(b) Upon receipt of the statement in the case of stockfinancial institutions, the director or his or her designee shall cause anexamination to be made. If, after the examination, it appears that the wholecapital stock has been paid in cash for stock financial institutions and thatall requirements of law have been complied with, the director or the director'sdesignee shall issue a certificate authorizing this financial institution tobegin transaction of business, and then the subscribers, and their associates,successors, and assigns, shall be authorized to transact business as anorganized financial institution, with all of the powers, rights, andprivileges, and subject to the liabilities, duties, and restrictions imposed bylaw, and the records of the first meeting of the subscribers to the agreementto form shall become and be taken as the records of the first meeting of thefinancial institution. It shall be unlawful for any of these financialinstitutions to begin the transaction of business until this certificate hasbeen granted.
(c) The financial institution shall in no way be obligated,directly or indirectly, for any indebtedness related to the shareholders'acquisition of capital stock.