17:9A-131.26 - Sale of convertible capital notes - New Jersey Statutes

17:9A-131.26.  Sale of convertible capital notes
    No bank shall issue its convertible capital notes to others than the holders  of its common stock until after it has offered such notes to such holders for  purchase by each of them in an amount sufficient to give effect to such  stockholder's right to participate ratably in an increase in the bank's common  stock as provided by section 99 of the act to which this act is a supplement.   Capital notes not purchased by stockholders in the exercise of the right  conferred by this section may be sold by the bank to such persons, who may but  need not be stockholders, as shall be determined by the board of directors, at  a price not less than that paid by stockholders of the bank in the exercise of  their rights under this section.

     L.1966, c. 272, s. 7.