Laws: Cases and Codes : U.S. Code : Title 12 : Section 618


   
U.S. Code as of: 01/19/04
Section 618. Capital stock; amount; when paid in

      No corporation shall be organized under the provisions of this
    subchapter with a capital stock of less than $2,000,000,
    one-quarter of which must be paid in before the corporation may be
    authorized to begin business, and the remainder of the capital
    stock of such corporation shall be paid in installments of at least
    10 per centum on the whole amount to which the corporation shall be
    limited as frequently as one installment at the end of each
    succeeding two months from the time of the commencement of its
    business operations until the whole of the capital stock shall be
    paid in: Provided, however, That whenever $2,000,000 of the capital
    stock of any corporation is paid in the remainder of the
    corporation's capital stock or any unpaid part of such remainder
    may, with the consent of the Board of Governors of the Federal
    Reserve System and subject to such regulations and conditions as it
    may prescribe, be paid in upon call from the board of directors;
    such unpaid subscriptions, however, to be included in the maximum
    of 10 per centum of the national bank's capital and surplus which a
    national bank is permitted under the provisions of this Act to hold
    in stock of corporations engaged in business of the kind described
    in this subchapter and subchapter I of this chapter. The capital
    stock of any such corporation may be increased at any time, with
    the approval of the Board of Governors of the Federal Reserve
    System, by a vote of two-thirds of its shareholders or by unanimous
    consent in writing of the shareholders without a meeting and
    without a formal vote, but any such increase of capital shall be
    fully paid in within ninety days after such approval; and may be
    reduced in like manner, provided that in no event shall it be less
    than $2,000,000. No corporation, except as herein provided, shall
    during the time it shall continue its operations, withdraw or
    permit to be withdrawn, either in the form of dividends or
    otherwise, any portion of its capital. Any national bank may invest
    in the stock of any corporation organized under this subchapter.
    The aggregate amount of stock held by any national bank in all
    corporations engaged in business of the kind described in this
    subchapter or subchapter I of this chapter shall not exceed an
    amount equal to 10 percent of the capital and surplus of such bank
    unless the Board determines that the investment of an additional
    amount by the bank would not be unsafe or unsound and, in any case,
    shall not exceed an amount equal to 20 percent of the capital and
    surplus of such bank.



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