Texas Finance Code - Section 32.103. Change In Outstanding Capital And Surplus
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Texas Lawyer > Finance Code > Texas Finance Code - Section 32.103. Change In Outstanding Capital And Surplus
§ 32.103. CHANGE IN OUTSTANDING CAPITAL AND SURPLUS. (a)
A state bank may not reduce or increase its outstanding capital and
surplus through dividend, redemption, issuance of shares or
participation shares, or otherwise, without the prior written
approval of the banking commissioner, except as permitted by this
section or rules adopted under this subtitle.
(b) Unless restricted by rule, prior written approval is not
required for an increase in capital and surplus accomplished
through:
(1) issuance of shares of common stock or their
equivalent in participation shares for cash;
(2) declaration and payment of pro rata share
dividends as defined by the Texas Business Corporation Act; or
(3) adoption by the board of a resolution directing
that all or part of undivided profits be transferred to capital or
surplus.
(c) Prior approval is not required for a decrease in capital
or surplus caused by losses in excess of undivided profits.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
Section: 32.007 32.008 32.009 32.010 32.011 32.101 32.102 32.103 32.104 32.201 32.202 32.203 32.204 32.301 32.302
Last modified: August 10, 2007
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