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Can you summarize KSST Chapter 9, Article 9?
BANKS AND BANKING; TRUST COMPANIES > BANKING CODE; CAPITAL STOCK AND STRUCTURE
Short Summary
The provided legal document content pertains to the capital stock and structure of stock banks and trust companies in Kansas. It outlines various provisions related to dividends, issuance and retirement of preferred stock, impairment of capital stock, reduction of capital stock, sale of stock belonging to delinquent stockholders, and transfer of stock. The directors of stock banks or trust companies can declare cash dividends only from undivided profits, and before paying dividends, they must ensure that the surplus fund equals or exceeds the capital stock account. If the surplus fund is less than the capital stock account, a portion of the net profits must be transferred to the surplus fund. Asset dividends, other than cash dividends, require prior approval from the commissioner. Preferred stockholders are not liable for assessments to restore any impairment in the capital stock, and no dividends can be declared or paid on common stock until all cumulative dividends on preferred stock have been paid. In case of dissolution or liquidation, preferred stockholders must be paid in full before any payments are made to common stockholders. Losses in excess of undivided profits can be charged to the surplus fund, and stock banks or trust companies can declare stock dividends from the surplus fund with the commissioner’s approval. The sale of stock belonging to delinquent stockholders can be conducted publicly or privately, and any excess funds from the sale are paid to the delinquent stockholder, unless they are indebted to the bank or trust company. Impaired capital stock must be restored within 90 days, and an assessment can be levied on common stockholders. The capital stock of stock banks or trust companies can be increased, and a verified statement must be provided to the commissioner. Reduction of capital stock requires prior approval from the commissioner and must meet certain criteria. Stock transfers are subject to bylaws and restrictions, and reporting requirements to the commissioner exist for certain stock transfers. These documents apply to directors, stockholders, and banks or trust companies involved in the capital stock and structure of stock banks and trust companies in Kansas.
Whom does it apply to?
Directors, stockholders, and banks or trust companies
What does it govern?
Capital stock and structure of stock banks and trust companies
What are exemptions?
No specific exemptions are mentioned in these documents.
What are the Penalties?
No specific penalties are mentioned in these documents.
Jurisdiction
Kansas