Section 3-305 - Reduction of capital. - Maryland Statutes

§ 3-305. Reduction of capital.
 

(a)  Limitations on reduction.- A reduction of the outstanding capital stock of a commercial bank: 

(1) Is not valid unless approved by the Commissioner; and 

(2) May not be made to an amount that is less than that required in § 3-209 (b) of this title. 

(b)  Basis of Commissioner's approval.- The Commissioner shall base approval on a finding that the assets of the commercial bank remaining after the proposed reduction of its capital stock will be sufficient to pay all of the claims of existing creditors. 
 

[An. Code 1957, art. 11, § 68; 1980, ch. 33, § 2; 1981, ch. 617; 1995, ch. 593; 1996, ch. 326, § 2.]