6.1-14 - (Repealed effective October 1, 2010) How subscriptions to stock to be paid; bank not to begin business until amounts specified in certificate of authority received; disposition of money recei
§ 6.1-14. (Repealed effective October 1, 2010) How subscriptions to stock tobe paid; bank not to begin business until amounts specified in certificate ofauthority received; disposition of money received before bank opens; stockoption plans.
Subscriptions to the capital stock of a bank shall be paid in money at notless than par. No bank shall begin business until the amounts specified inits certificate of authority to commence business have been received by it.
All money received for subscriptions to or for purchases of stock of a bankbefore it opens for business shall be deposited in an escrow account in aninsured financial institution or invested in United States governmentobligations, under the joint control of two organizing directors of the bank,both of whom shall be bonded for an amount equal to the total amount of themoney to be collected. Such funds, together with any income thereon, shall beremitted to the bank on the day it opens for business. In the event the bankis denied a certificate of authority, is refused insurance of accounts, or itotherwise is determined that the bank will not open for business, such funds,after payment of any amount owing for expenses in connection with suchattempted organization, including reasonable consulting fees, attorney'sfees, salaries, filing fees and other expenses shall be refunded tosubscribers or shareholders.
The requirement that capital stock be paid in money shall not be construed toprohibit the establishment, as otherwise authorized by law, of stock optionplans and stock purchase plans, and the issuance of stock pursuant to suchplans. Such plans shall be established only after the bank has opened forbusiness, and such plans shall be approved by a majority vote of the bank'sshareholders. In no event shall any stock option be granted at a price whichis less than 100 percent of the book value per share of the stock as shown bythe bank's last published statement prior to the granting of the option.
(Code 1950, § 6-34; 1964, c. 58; 1966, c. 584; 1980, c. 659.)