(205 ILCS 5/14.1) (from Ch. 17, par. 321.1)
Sec. 14.1. Quasi-Reorganization of Capital Upon a Change in Control. For the purposes of declaring dividends pursuant to Section 14(8)(b) of this Act, if a bank:
(1) incurs a change in ownership of more than 50% of its voting stock; and
(2) has a deficit in its net profits then on hand at the time of such change in ownership; and
(3) receives the prior written approval of the Commissioner; such bank may restate its asset and liability accounts to fair value for the purpose of reorganizing the capital accounts of the bank so that net profits then on hand are restated to zero; provided that in no event may total capital be increased as a result of a capital reorganization made pursuant to this Section.
(Source: P.A. 87-841.)
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Last modified: February 18, 2015