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Can you summarize 5 ALCA Chapter 6A?
BANKS AND FINANCIAL INSTITUTIONS. > DIRECTORS, OFFICERS, AND EMPLOYEES.
Short Summary
This legal document, part of the Code of Alabama, governs the meetings of board of directors and the requirement of bonds for officers and employees of banks. It specifies that every director of a bank must take and subscribe an oath within 30 days after their election, pledging to diligently and honestly perform their duties, comply with the banking law, and be the owner of the required shares of stock. The oath must be filed with the Superintendent of Banks. Failure to take the oath results in the director’s position being declared vacant. Additionally, at least 75 percent of the directors must be citizens of the United States, and every director must be the owner and holder of shares of stock in the bank. Directors must hold the shares in their own name, unpledged and unencumbered, except for statutory liens. Convicted felons or individuals involved in crimes of moral turpitude are prohibited from serving as directors. At least 51 percent of the directors must be residents of the state. Violation of any provision in this section can result in removal from office by the board of directors or the superintendent. The document also outlines the requirements for regular board meetings, the authority to call meetings, and the determination of bond amounts for officers and employees. Bonds must be obtained from individuals handling money, checks, securities, or other valuable papers, and the bonding company must be authorized in the state and approved by the board of directors. The superintendent or the board of directors may require an increase in bond amount or additional bond and securities for better protection of the bank and its depositors. The provided legal document content pertains to the prohibited acts by directors, officers, and employees of banks and financial institutions in the state of Alabama. The document specifies various actions that are considered illegal and punishable under the law. These prohibited acts include making false entries or omitting material entries in the bank’s books and accounts with the intent to defraud, obtaining funds from the bank as a borrower without complying with the required procedures, misrepresenting the bank’s capital or publishing false reports of its financial condition, overdrawn accounts with the bank, unauthorized possession of the bank’s property, concealing loan or discount transactions from the directors or committee, and using funds for unauthorized purposes. The document does not provide any exemptions or exceptions to these prohibited acts. However, the penalties for non-compliance or violation of these provisions are not specified. It is important for directors, officers, and employees of banks to adhere to these regulations to avoid potential legal consequences.
Whom does it apply to?
Directors, officers, and employees of banks
What does it govern?
Meetings of board of directors, requirement of bonds for officers and employees of banks
What are exemptions?
No exemptions or exceptions are mentioned.
What are the Penalties?
Penalties for non-compliance or violation of these provisions are not specified.
Jurisdiction
Alabama