Michigan Laws 487.3413 – Transactions relating to capital stock of corporation; authorization; purchase and sale of securities and stock; loan or discount; purchase or holding of own stock
Current as of: 2024 | Check for updates
|
Other versions
(1) A savings bank shall not engage in any transaction with respect to shares of the capital stock of any corporation unless specifically authorized by this act or by the commissioner under section 401 or 410.
(2) A savings bank may purchase and sell securities and stock upon the order of and for the account of a customer without recourse.
Terms Used In Michigan Laws 487.3413
- Bank: means a state banking corporation organized or reorganized under the provisions of the banking code of 1999, 1999 PA 276, MCL 487. See Michigan Laws 487.3102
- Capital: means the stated par value of issued and outstanding unimpaired common stock and the stated par value of issued and outstanding unimpaired preferred stock. See Michigan Laws 487.3102
- Commissioner: means the commissioner of the office of financial and insurance services. See Michigan Laws 487.3102
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC
- Savings bank: means a state banking corporation organized or reorganized under this act. See Michigan Laws 487.3103
(3) A savings bank shall not make any loan or discount on the security of the shares of its own capital stock, unless the security is necessary to prevent loss upon a debt previously contracted in good faith.
(4) A savings bank may purchase or hold shares of its own stock if any of the following apply:
(a) The savings bank is holding shares previously purchased until disposed of in compliance with an existing stock option plan.
(b) The purchase or holding of the shares is necessary to prevent loss upon a debt previously contracted in good faith.
(c) The commissioner gives written approval to the savings bank to purchase or hold shares for its own account.