362.125. Capital notes--denominations--rate of interest--maturity--impairment of capital--certain obligations to be prior claim.

MISSOURI STATUTES AND CODES

362.125. Capital notes--denominations--rate of interest--maturity--impairment of capital--certain obligations to be prior claim.

Capital notes--denominations--rate of interest--maturity--impairmentof capital--certain obligations to be prior claim.

362.125. 1. The capital notes shall be in suchdenominations and the holders thereof shall be entitled to suchannual return thereon as the board of directors of the bank ortrust company may determine, subject to the approval of thedirector of finance. The capital notes shall provide that theymay be retired at such time or times and in such manner as may befixed by the board of directors of the bank or trust company, butin no event later than twenty years after the date of theirauthorization; provided, however, that no bank or trust companyshall retire the capital notes if by the retirement an impairmentof its capital will be created.

2. If at the time of the issuance of the capital notes thereexists an impairment of the capital of the bank or trust companyissuing the same, and if the impairment of capital exists byreason of the fact, as determined by the director of finance,that certain assets of the bank or trust company are of doubtfulvalue, are uncollectible, or are otherwise objectionable, theseassets or portions thereof so determined to be of doubtful value,uncollectible or otherwise objectionable may, upon issuance ofthe capital notes, be set apart from the other assets of the bankor trust company and shall thereafter be held by it in trust forthe purpose of selling, enforcing, collecting or adjusting thesame for the use and benefit of the holders of the capital notes,and, if the assets shall be so set apart, all amounts realizedfrom the sale, enforcement, collection or adjustment of any ofthe assets shall be applied to the ratable retirement of thecapital notes and income thereon as provided in section 362.135.

3. If an impairment of capital exists in whole or in part byreason of the fact, as determined by the director of finance,that certain assets of the bank or trust company have depreciatedin value, in that event the bank or trust company may issue tothe holders of the capital notes a right of participation to suchextent as may be agreed upon in any increase in the value of theassets.

4. The capital notes shall at the time of their issuance be,and shall at all times thereafter remain, subordinate in rank andsubject to the prior payment of all of the debts and obligationsof the bank or trust company except certificates of indebtednessheretofore issued, and the bank or trust company may, for thesecurity and protection of the holders of the capital notes,agree upon such restriction upon the distribution or payment ofdividends on its capital stock as the board of directors maydecide; provided, however, that, subject to the provisions ofsection 362.315, relating to banks and trust companies, thecapital notes and accrued return thereon may be retired in wholeor in part, with the written approval of the director of finance.