H. B. 4249
(By Delegates Ron Thompson, Frich, Hrutkay,
Perry and H. White, Marshall, Iaquinta,
Beach, Hamilton and G. White)
[Introduced January 30, 2006; referred to the
Committee on Banking and Insurance then the Judiciary.]
A BILL to amend and reenact §31A-4-3 of the Code of West Virginia,
1931, as amended, relating to the authorization of state
banking institutions 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; one class 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) above, 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 class shares of
one or more 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.
NOTE: The purpose of this bill is to authorize state banking
institutions to issue more than one class of stock.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.