N.Y. Banking Law Section 114
Assessment of stockholders to make good impairment of capital stock

  • sale of stock

Whenever the superintendent shall have made requisition upon any bank or trust company pursuant to the provisions of article 2 (Department of Financial Services)article two of this chapter to make good the amount of an impairment of its capital stock, the directors of the bank or trust company shall immediately give notice of such requisition to each stockholder and of the amount of the assessment which he must pay for the purpose of making good such deficiency, by a written or printed notice mailed to such stockholder at his last address appearing upon the records of the bank or trust company, or served personally upon him. If any stockholder shall refuse or neglect to pay the assessment specified in such notice within sixty days from the date thereof, the directors of such bank or trust company shall have the right to sell to the highest bidder at public auction the stock of such stockholder, after giving previous notice of such sale once a week for two successive weeks in a newspaper of general circulation in the county where the principal office of such bank or trust company is located; or such stock may be sold at private sale, and without such published notice, provided, however, that before making a private sale thereof an offer in writing to purchase such stock shall first be obtained, and a copy thereof served upon the owner of record of the stock sought to be sold either personally or by mailing a copy of such offer to such owner at his last address appearing upon the records of the bank or trust company; and if, after service of such offer, such owner shall still refuse or neglect to pay such assessment within two weeks from the time of service of such offer, the said directors may accept such offer and sell such stock to the person or persons making such offer, or to any other person or persons making a larger offer than the amount named in the offer submitted to such stockholder; but said stock shall in no event be sold for a smaller sum than the amount of the assessment called for and the necessary costs of sale. Out of the avails of the stock sold the directors shall pay the necessary costs of sale and the amount of the assessment called for thereon. The balance, if any, shall be paid to the person or persons whose stock has been thus sold. A sale of stock as herein provided shall effect an absolute cancellation of the outstanding certificate or certificates evidencing the stock so sold, and shall render the same null and void and a new certificate or certificates shall be issued to the purchaser or purchasers of said stock.

Source: Section 114 — Assessment of stockholders to make good impairment of capital stock; sale of stock, https://www.­nysenate.­gov/legislation/laws/BNK/114 (updated Sep. 22, 2014; accessed Jun. 15, 2024).

94
Change from bank to trust company
96
General powers
96‑A
Servicing of mortgages by banks
96‑B
Payroll payment by banks or trust companies
96‑C
Power to act as trustee under self-employed retirement trust or individual retirement trust
96‑D
Banking development districts
97
Power to purchase securities and stocks
98
Power to take and hold real estate
98‑A
Club accounts
100
Fiduciary powers
100‑A
Fiduciary capacities
100‑B
Investments as fiduciary
100‑C
Common trust funds
100‑D
Foreign common trust funds
101
Additional powers of certain trust companies
102
Powers of specially chartered trust companies
102‑A
Limited liability trust companies
103
Restrictions on loans, purchases of securities and total liabilities to bank or trust company of any one person
104
Entries in books
105
Branch offices
105‑A
Electronic facilities
105‑B
Trust offices
106
Deposits by banks and trust companies with other banking corporations and private bankers
107
Reserves against deposits
107‑A
Security for public deposits
108
Rates of interest
108‑A
Acceptance of United States currency
109
Closing of books
110
Surplus fund
111
Profits
112
Dividends
113
Change of location
114
Assessment of stockholders to make good impairment of capital stock
121
Reports to directors
122
Examinations of banks and trust companies by directors
123
Reports of directors’ examinations
124
Communications from department of financial services to be submitted to directors and noted in minutes
125
Reports to superintendent
128
Preservation of books and records
129
Requirement of notice on withdrawal of certain time deposits
129‑A
Requirement of written notification
130
Restrictions on officers, directors and employees
131
Prohibitions against encroachments upon certain powers of banks and trust companies
132
Use of sign, or words, indicating bank or trust company by unauthorized persons prohibited
133
Use of banking institution name
134
Repayment of deposits standing in the names of minors, trustees or joint depositors
136
Change of national banking association into state bank by conversion or merger
136‑A
Purchase of assets of national banking association by bank or trust company
136‑B
Approval of superintendent
136‑C
Effect of merger or conversion of national banking association into state bank
137
Change of state bank into national banking association by conversion, merger or consolidation
138
Foreign branches
139
Saving clause
140‑A
Stock option plans

Accessed:
Jun. 15, 2024

Last modified:
Sep. 22, 2014

§ 114’s source at nysenate​.gov

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