Code of Alabama - Title 5: Banks and Financial Institutions - Chapter 5A - Organization and Operation of Banks

• Section 5-5A-1 Procedure for incorporation - Application for permit
  (a) The proposed incorporators of a bank shall execute and acknowledge an application for a permit in writing in the form prescribed by the superintendent...
• Section 5-5A-2 Procedure for incorporation - Notice of intention to incorporate
  Before a bank can become incorporated under the laws of Alabama, a notice of intention to organize such bank shall be published once a week...
• Section 5-5A-3 Procedure for incorporation - Affidavit of proposed incorporators; affidavit of proposed stockholders; submission of proposed certificate of incorporation; disclosure to stockholders
  After the notice of intention to incorporate has been published, the parties named as proposed incorporators in the published notice of the proposed corporation shall...
• Section 5-5A-4 Procedure for incorporation - Investigation as to fitness of stockholders and executive officers and necessity for banks
  The superintendent shall ascertain whether the character and general fitness of the persons named as proposed incorporators, proposed stockholders and proposed executive officers in the...
• Section 5-5A-5 Procedure for incorporation - Filing of objections to incorporation of proposed bank; investigation of objections
  Any bank doing business in the community or any reputable citizen in the community may file with the superintendent an objection to the incorporation of...
• Section 5-5A-6 Procedure for incorporation - Certificate of Superintendent of Banks authorizing filing of certificate of incorporation
  If the superintendent shall be satisfied from his investigation that the character and general fitness of the persons named as stockholders and executive officers are...
• Section 5-5A-7 Procedure for incorporation - Filing and recordation of certificate of incorporation
  The official or officials designated by the business corporation laws to file certificates of incorporation shall, upon the certificate of incorporation being duly signed by...
• Section 5-5A-8 Procedure for incorporation - Refusal to permit incorporation; appeal from refusal to Banking Board
  If the superintendent is of the opinion from his investigation that the character and general fitness of the persons named as stockholders or executive officers...
• Section 5-5A-9 Procedure for incorporation - Judicial review
  Nothing in this chapter shall be construed to prevent the Circuit Court of Montgomery County, as provided by law, from reviewing and reversing either the...
• Section 5-5A-10 Permit to transact business - Required
  No bank shall engage in the banking business until it shall have received from the superintendent a permit to transact a banking business. Any person...
• Section 5-5A-11 Permit to transact business - Examination; issuance and recordation of permit
  The superintendent shall, before issuing his permit to any bank to commence business under the application provided for in Section 5-5A-1, examine or cause an...
• Section 5-5A-12 Membership in federal deposit insurance corporation, etc
  All banks now or hereafter operating under the laws of this state shall be members of the Federal Deposit Insurance Corporation or such other agency...
• Section 5-5A-13 Filing fee; other fees
  (a) The Banking Board shall from time to time fix the amount of the fee for filing an application for a new bank, and for:...
• Section 5-5A-14 Capital - Minimum amount required for incorporation of bank
  (a) No bank hereafter organized under the laws of Alabama shall have total initial capital accounts actually paid in of less than $800,000.00. (b) The...
• Section 5-5A-15 Capital - Increase or decrease
  Any bank shall with the consent of the superintendent have power and authority to increase or decrease its authorized capital in the manner provided for...
• Section 5-5A-16 Issuance of capital notes and debentures
  No bank shall issue capital notes or capital debentures except with the prior written approval of the superintendent under such conditions as he may impose.
• Section 5-5A-17 Amendment of certificate of incorporation; approval of amended certificate of incorporation
  A bank may amend its certificate of incorporation in the manner provided by the laws governing business corporations. No proposed amendment of a certificate of...
• Section 5-5A-18 Powers of banks generally
  Corporations formed for the purpose of doing business as a bank may: (1) Discount bills, notes or other evidences of debt; (2) Receive and pay...
• Section 5-5A-18.1 Banks and trust companies to have power of federally chartered or regulated financial institution
  In addition to all other rights and powers provided under this title, banks and trust companies chartered by this state and supervised by the superintendent...
• Section 5-5A-19 Reserves
  (a) A bank which is not a member of the Federal Reserve System shall maintain at all times a reserve fund in an amount fixed...
• Section 5-5A-20 Branch banks; commercial affiliates
  (a) Alabama banks may establish a branch or office for the transaction of the banking business within the State of Alabama upon prior approval of...
• Section 5-5A-21 Surplus; restriction on dividends
  Every bank shall transfer to surplus each year at least 10 percent of its net earnings until the surplus of such bank shall be equal...
• Section 5-5A-22 Limits of indebtedness
  (a) No bank shall make a loan to any one person which, when combined with all other loans to such person, would cause total loans...
• Section 5-5A-23 Investments and loans with respect to housing
  (a) Banks, insurance companies and savings and loan associations are authorized: (1) To make such loans and advances of credit and purchases of obligations representing...
• Section 5-5A-25 Acceptance of drafts or bills of exchange arising from transactions involving shipment of goods - Authority
  Any bank in Alabama may accept drafts or bills of exchange drawn upon it, having not more than six months' sight to run, exclusive of...
• Section 5-5A-26 Acceptance of drafts or bills of exchange arising from transactions involving shipment of goods - Limitations
  No bank shall accept, whether in a foreign or domestic transaction, for any one person, company, firm or corporation, to an amount equal at any...
• Section 5-5A-27 Loans secured by own stock; purchase of own stock; ownership of capital stock of other banks
  No bank shall make a loan taking its own stock as security therefor or directly or indirectly purchase shares of its own stock, except in...
• Section 5-5A-28 Pledge of assets
  No bank may pledge assets as security for deposits, except any bank is authorized to pledge acceptable assets as security for deposits of trust funds...
• Section 5-5A-29 Security not required when deposits insured
  Notwithstanding any provision of law of this state or of any political subdivision of the state or any agency or governmental instrumentality of such subdivision...
• Section 5-5A-30 Transactions of business on legal holidays; use of automated teller machine or other instrumentality, transaction fees, disclosure; limitation on contractual fee restrictions, intent of limitation, applicability
  (a) Any bank may lawfully receive deposits or paychecks or sight drafts and transact any other business on any legal holiday, excepting Sunday, in the...
• Section 5-5A-31 Liability for transactions on legal holidays
  A bank shall be liable for and chargeable with deposits received and other business transacted on a legal holiday the same as if such deposit...
• Section 5-5A-32 Closing of banks, etc., permitted on one business day of each week
  (a) Any bank or any branch or branches thereof may close on any one business day of each week and shall have this right even...
• Section 5-5A-33 Bank to pay checks drawn on it at par
  Any bank shall pay all checks drawn on it and transmitted in a cash letter at par and shall make no charge for the payment...
• Section 5-5A-35 Agreements between principal and sureties on bond for deposit of money and assets in bank, etc
  It shall be lawful for any party of whom a bond, undertaking or other obligation is required to agree with his surety or sureties for...
• Section 5-5A-36 Notice upon maturity of certificate of deposit issued for more than 90 days
  In the case of certificates of deposit issued for more than 90 days which are automatically renewable, a bank shall send within a reasonable period,...
• Section 5-5A-37 Rights of minors
  A minor may make, in her or his own name, a deposit in any bank, and such deposit may be general or special, and shall...
• Section 5-5A-38 Disposition of small deposits of deceased person - To whom payable; when bond required
  Whenever a person shall die leaving deposits in a bank not exceeding $5,000.00 in the aggregate, the bank may in its discretion discharge itself from...
• Section 5-5A-39 Disposition of small deposits of deceased person - Time for payment; when payment prohibited
  No payment shall be made pursuant to Section 5-5A-38 by the bank before the lapse of 60 days from the date of the death of...
• Section 5-5A-40 Disposition of deposit in trust for another upon death of trustee
  Whenever any deposit shall be made in any bank by any person in trust for another and no other or further notice of the existence...
• Section 5-5A-41 Payment of deposits made in names of two persons upon death of one; more than two persons with provision for survivorship
  (a) Any deposit heretofore or hereafter made in any bank in the names of two or more persons payable to any of such persons, upon...
• Section 5-5A-42 Adverse claims to deposits
  Notice to any bank of an adverse claim to a deposit standing on its books to the credit of any person shall not be effectual...
• Section 5-5A-43 Disclosure of customer financial records
  A bank shall disclose financial records of its customers pursuant to a lawful subpoena, summons, warrant or court order issued by or at the request...
• Section 5-5A-44 Acquisition of majority of voting shares of a bank; procedure
  (a) No person, acting directly or indirectly or through or in concert with one or more persons, may acquire control of a state bank or...
• Section 5-5A-45 Initiation of run on banks, etc
  Any person or persons whose business it is, either as individuals, agents or officers of banks, to receive checks, drafts and demands, when the same...
• Section 5-5A-46 False, etc., statements, etc., affecting financial standing of bank
  Any person who shall willfully and maliciously make, circulate or transmit to another or others any false, libelous or slanderous statement, rumor or suggestion written,...
• Section 5-5A-47 Liability of directors or officers; enforcement powers of superintendent
  If the directors or officers of any bank knowingly and willfully violate or knowingly and willfully permit any of the officers, agents, or employees of...

Last modified: May 3, 2021