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Can you summarize 81 MSCO Chapter 3?
Banks and Financial Institutions > Incorporation and Organization of Banks
Short Summary
This legal document, Mississippi Code 1972, governs the incorporation and organization of banks in the state of Mississippi. It mandates that every banking corporation organized under the laws of the state must include the words ‘bank’ or ‘banking’ in its name. However, corporations organized after the enactment of this law are prohibited from including certain words such as ‘banker,’ ‘bankers,’ ‘banking,’ or ’trust company’ in their name, unless their charter expressly limits them to the banking or trust business. The document also states that corporations conducting commercial banking, savings bank, trust company, or trust powers business, or a combination thereof, are subject to supervision by the department of bank supervision and the state comptroller. Additionally, they are required to pay assessments for the maintenance of the department. The document provides references to related laws and definitions for further clarification. Every banking corporation must have at least five directors. Before conducting any business, the entire capital stock of the banking corporation must be paid in full in cash, unless otherwise provided. With the approval of the state comptroller, a banking corporation can authorize an increase in its capital stock in the category of authorized but unissued capital stock. The increase can be made with or without preemptive rights, but the total authorized amount of such capital stock cannot exceed 15% of the issued and outstanding capital stock entitled to vote on the amendment. The authorized but unissued capital stock can be issued as stock dividends or for other purposes approved by the stockholders, the board of directors, and the state comptroller. No specific penalties for non-compliance or violation of the document’s provisions are mentioned in the provided content.
Whom does it apply to?
Banks, trust companies, corporations, eligible banks
What does it govern?
Incorporation and organization of banks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned in the provided content.
Jurisdiction
Mississippi