Louisiana Revised Statutes 6:218 – Expenses of organization and financing
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Terms Used In Louisiana Revised Statutes 6:218
- Capital: means the sum of capital stock, surplus, and undivided profits or, as to mutual state banks, as defined by La. See Louisiana Revised Statutes 6:201
- Shares: means the units into which the stockholders' rights to participate in the control of the state bank, in its profits, or in the distribution of corporate assets are divided. See Louisiana Revised Statutes 6:201
- Surplus: means sums contributed by stockholders in excess of the par value of shares outstanding plus any amounts transferred from undivided profits pursuant to action by the board of directors. See Louisiana Revised Statutes 6:201
- Undivided profits: means paid-in or accumulated net income less distributions to stockholders and transfers to capital stock or surplus. See Louisiana Revised Statutes 6:201
The charges and expenses of organization of a state bank and the expenses of and compensation for the sale and underwriting of its shares may not be paid or allowed by the state bank out of the consideration received by it in payment for its shares to the extent that such payment constitutes the bank’s capital stock. This restriction does not prohibit the payment, with approval of the commissioner, of reasonable charges and expenses out of surplus or undivided profits.
Acts 1984, No. 719, §1, eff. Jan. 1, 1985.