ENGROSSED
Senate Bill No. 242
(By Senators Minard, Jenkins and McCabe)
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[Introduced January 23, 2006; referred to the Committee
on Banking and Insurance.]
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A BILL to amend and reenact §31A-4-3 of the Code of West Virginia,
1931, as amended, relating to the authority of a state banking
institution to issue more than one class of stock.
Be it enacted by the Legislature of West Virginia:
That §31A-4-3 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 4. BANKING INSTITUTIONS AND SERVICES GENERALLY.
§31A-4-3. Minimum capital stock; classes of stock; par value;
capitalization of surplus.
(a) No banking institution may hereafter be incorporated
unless it shall have bona fide subscribed capital stock and capital
surplus equal to at least four million dollars. The West Virginia
Board of Banking and Financial Institutions shall require capital
in excess of four million dollars if, in its judgment, economic conditions or the operating environment of the proposed banking
institution make such a requirement necessary.
(b) Notwithstanding any provision of subsection (a) of this
section, the Commissioner or the West Virginia Board of Banking and
Financial Institutions may approve the incorporation of a bank
newly organized solely for the purpose of facilitating the
acquisition of another bank if the proposed newly organized bank
has a bona fide subscribed capital stock and capital surplus of at
least sixty thousand dollars.
(c) Banking institutions shall issue but one shares of one or
more class classes of stock and the shares shall have a nominal or
par value of not less than one dollar nor more than one hundred
dollars each and, as to each banking institution, each share shall
be equal in all respects with any other share within each class of
stock.
(d) Any banking institution may change the par value of its
shares when and to the extent that any such action may be
authorized in writing by the commissioner.