17:9A-121. Decrease of capital stock
188 words·~1 min read·
/nj/title-17/chapter-9a/17-9a-121A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The commissioner shall not approve an amendment effecting a decrease in the capital stock if the decrease will cause the capital stock to be less than the minimum capital stock required of banks on their organization under this act as specified in section 4; except that, in the case of banks organized prior to the effective date of this act, the commissioner may approve decreases in capital stock if he shall determine that such decreases are necessary for the continuance of an established banking business, and that the continuance of such business is in the public interest, and that,
(1)if the bank is a qualified bank, the decrease will not reduce the capital stock to an amount less than $500,000.00; or
(2)if the bank is not a qualified bank, the decrease will not reduce the capital stock to an amount less than $100,000.00; but nothing in this section shall prevent a reduction in capital stock on retirement of preferred stock pursuant to any law in effect when the preferred stock was issued.
L.1948, c. 67, p. 276, s. 121. Amended by L.1965, c. 171, s. 17.