NAC662.030. Long-term capital notes or debentures: Consideration of application.

The Administrator of Financial Institutions will not consider a bank’s application for or approve the issuance of its long-term capital notes or debentures unless:

     1. The bylaws or articles of incorporation of the bank grant authority to its board of directors to issue the capital notes or debentures; or

     2. The holders of two-thirds of the bank’s capital stock have approved such an issuance at a stockholders’ meeting. Before such a meeting, the bank shall mail or deliver to each stockholder a notice containing a statement that the proposal will be submitted at the meeting and a copy of the proposed debenture or agreement.

     [Banking Div., Long-term Capital Notes or Debentures Rule No. 1 subsec. 3, eff. 12-14-78]—(NAC A by Admstr. of Financial Institutions, eff. 6-29-84)