N.D. Cent. Code § 6-03-21
This is the official text of N.D. Cent. Code § 6-03-21, part of North Dakota’s Cent. Code — part of the compiled statutory law of North Dakota, published by the state as "Cent. Code." Browse the sections below, each linked to its official government source.
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6-03-21. Impairment of capital - Dividends stopped - Action by board - Restoration
Official statutory text
6-03-21. Impairment of capital - Dividends stopped - Action by board - Restoration
Whenever the capital of any state banking association becomes impaired or the capital
stock reduced below the amount required by this title or by the articles of incorporation, no
dividend may be declared nor distribution of profits made thereafter while any debts of the
association remain unsatisfied, nor until the impairment or deficiency is made good. Whenever it
appears that the capital of any state banking association has become impaired or its capital
stock reduced, the commissioner shall report the same to the state banking board immediately.
The commissioner thereupon shall issue and enforce the necessary order restraining the
declaring of dividends and requiring that the impairment or deficiency be made good. The
impairment or deficiency must be made good within sixty days thereafter, or the commissioner,
upon the order or direction of the state banking board, may take charge of the state banking
association and proceed to liquidate the association as in case of insolvency.
Whenever the capital of any state banking association becomes impaired or the capital
stock reduced below the amount required by this title or by the articles of incorporation, no
dividend may be declared nor distribution of profits made thereafter while any debts of the
association remain unsatisfied, nor until the impairment or deficiency is made good. Whenever it
appears that the capital of any state banking association has become impaired or its capital
stock reduced, the commissioner shall report the same to the state banking board immediately.
The commissioner thereupon shall issue and enforce the necessary order restraining the
declaring of dividends and requiring that the impairment or deficiency be made good. The
impairment or deficiency must be made good within sixty days thereafter, or the commissioner,
upon the order or direction of the state banking board, may take charge of the state banking
association and proceed to liquidate the association as in case of insolvency.
Status: in_force · Read it on the official government site
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