§ 6.1-194.113. Par value of shares; payment of shares; reacquisition of shares or acceptance thereof as security; ...
A. Shares of stock issued by a state savings bank shall be paid for in full in cash at not less than their par value upon issuance or, in the case of a state savings bank then actively conducting operations, in property or services valued, with the approval of the Commission, at an amount not less than the aggregate par value of the shares issued in exchange therefor. A state savings bank may not purchase, redeem or otherwise reacquire shares of stock that it has issued and may not accept its shares of stock as security; however, such savings bank shall have the power to redeem or otherwise reacquire shares of its common or preferred stock to the same extent as commercial banks incorporated under the laws of the Commonwealth are permitted to do under this title.
B. 1. Subscriptions to the capital stock of a state savings bank shall be paid in money at not less than par. No state savings bank shall begin business until the amount specified in its certificate of authority to commence business has been received by it.
2. All money received for subscriptions to or for purchases of stock of a state savings bank before it opens for business shall be deposited in an escrow account in an insured financial institution or invested in United States government obligations, under the joint control of two organizing directors of the savings bank, both of whom shall be bonded for an amount not less than the total amount of money under their control. Such funds, together with any income thereon, less such organizational expenses as have been approved by the savings bank's board of directors, shall be remitted to the savings bank on the day it opens for business. In the event the savings bank is denied a certificate of authority or is refused insurance of accounts, or if it is otherwise determined that the savings bank will not open for business, such funds, after payment of any amount owing for expenses in connection with such attempted organization, including reasonable consulting fees, attorney's fees, salaries, filing fees and other expenses, shall be refunded to subscribers or shareholders. The directors of the savings bank, individually, jointly and severally, shall be liable for any failure of the savings bank to refund such funds to the subscribers or shareholders. This liability may be enforced by a suit in equity instituted by one or more of the subscribers or stockholders on behalf of all against the savings bank and one or more of its directors.
C. The requirement that capital stock be paid in money shall not be construed to prohibit the establishment, as otherwise authorized by law, of stock option plans and stock purchase plans, and the issuance of stock pursuant to such plans. Such plans shall be established only after the savings bank has opened for business, and such plan shall be approved by a majority vote of the institution's shareholders. In no event shall any stock option be granted at a price which is less than 100 percent of the book value per share of the stock as shown by the stock institution's last published statement prior to the granting of the option.
(1991, c. 230.)
Sections: Previous 6.1-194.106 6.1-194.107 6.1-194.108 6.1-194.109 6.1-194.110 6.1-194.111 6.1-194.112 6.1-194.113 6.1-194.114 6.1-194.115 6.1-194.116 6.1-194.117 6.1-194.118 6.1-194.119 6.1-194.120 NextLast modified: April 2, 2009