§ 1263.23. Excess stock.
113 words·~1 min read·
/us/cfr/t12/s§ 1263.23·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Sale of excess stock. Subject to the restriction in paragraph
(b)of this section, a member may purchase excess stock as long as the purchase is approved by the member's Bank and is permitted by the laws under which the member operates.
(b)Restriction. Any Bank with excess stock greater than one percent of its total assets shall not declare or pay any dividends in the form of additional shares of Bank stock or otherwise issue any excess stock. A Bank shall not issue excess stock, as a dividend or otherwise, if after the issuance, the outstanding excess stock at the Bank would be greater than one percent of its total assets.