Texas Finance Code 92.208 – Common Stock
Current as of: 2024 | Check for updates
|
Other versions
(a) A savings bank may not issue common stock before the common stock is fully paid for in cash.
(b) A savings bank may not make a loan against the shares of its outstanding common stock.
Terms Used In Texas Finance Code 92.208
- 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.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) A savings bank may not purchase, directly or indirectly, its own issued common stock, except under a stock repurchase plan approved in advance by the commissioner.
(d) A savings bank may not retire or redeem common stock until:
(1) all liabilities of the savings bank are satisfied, including all amounts due to holders of deposit accounts, unless:
(A) prior written permission is obtained from the commissioner; and
(B) the retirement or redemption is authorized by a majority vote of the savings bank’s shareholders at an annual meeting or a special meeting called for that purpose;
(2) the basis of the retirement or redemption is approved by the commissioner; and
(3) the savings bank files written consent of the Federal Deposit Insurance Corporation with the commissioner.
(e) Subsections (b) and (c) apply to the securities of the savings bank’s holding company and affiliates.