51A-3-20. Recovery of dividends paid when capital impaired.
105 words·~1 min read·
/sd/title-51/chapter-51-3/51a-3-20·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Dividends paid to any stockholder of a bank, which shall in any way impair or diminish the capital, may be recovered from any stockholder receiving the same unless the capital impairment be subsequently made good. The directors of any bank, who pay a dividend when the bank is insolvent or in danger of insolvency, or when there are not sufficient net profits available, or when the bank is subject to an order pursuant to § 51A-2-26 prohibiting the payment of dividends, shall be jointly and severally liable to the creditors of the bank in existence at that time in double the amount of such dividend.