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12 U.S.C. § 59 — Reduction of capital

submitted 113 years ago by Pub. L. 109-351 to r/title-12-BANKS-AND-BANKING · 92 words · no verdicts yet

in plain englishAI-generated · not legal advice

A national bank can reduce its capital with Comptroller of the Currency approval. Shareholders owning two-thirds of the stock must vote yes. As part of that plan, the bank can also distribute cash or assets to shareholders. That distribution needs a separate two-thirds vote from each class of stock.

(a) In general. A national banking association can reduce the amount of its capital, but only if the Comptroller of the Currency approves, and shareholders owning two-thirds or more of all the capital stock, combined, vote to approve it. (b) Shareholder distributions authorized. As part of that approved capital-reduction plan, the bank can give shareholders cash or other assets. This distribution needs its own vote: shareholders owning at least two-thirds of each class of the bank's outstanding stock must approve it, with each class of stock voting separately.
the actual law source: uscode.house.gov ↗public domain
(a) In general

Subject to the approval of the Comptroller of the Currency, a national banking association may, by a vote of shareholders owning, in the aggregate, two-thirds of its capital stock, reduce its capital.

(b) Shareholder distributions authorized

As part of its capital reduction plan approved in accordance with subsection (a), and with the affirmative vote of shareholders owning at least two thirds of the shares of each class of its stock outstanding (each voting as a class), a national banking association may distribute cash or other assets to its shareholders.

Source credit: (R.S. § 5143; Dec. 23, 1913, ch. 6, § 28, 38 Stat. 274; Aug. 23, 1935, ch. 614, title III, § 334, 49 Stat. 720; Pub. L. 109–351, title III, § 304, Oct. 13, 2006, 120 Stat. 1970.)

history & why it existsrecord from the source credit
  • 1913Enacted · Act of Dec. 23, 1913, ch. 6 · 38 Stat. 274
  • 1935Amended · Act of Aug. 23, 1935, ch. 614 · 49 Stat. 720
  • 2006Amended · Pub. L. 109-351 · 120 Stat. 1970

A history note hasn’t been published yet. The record shows enactment by Pub. L. 109-351 on 1913-12-23.

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