§ 3-305. Reduction of capital

Latest version.

   (a) Limitations on reduction. -- A reduction of the outstanding capital stock of a commercial bank:

   (1) Is not valid unless approved by the Commissioner; and

   (2) May not be made to an amount that is less than that required in § 3-209(b) of this title.

(b) Basis of Commissioner's approval. -- The Commissioner shall base approval on a finding that the assets of the commercial bank remaining after the proposed reduction of its capital stock will be sufficient to pay all of the claims of existing creditors.

HISTORY: An. Code 1957, art. 11, § 68; 1980, ch. 33, § 2; 1981, ch. 617; 1995, ch. 593; 1996, ch. 326, § 2.

                    
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