§ 53-42. Impairment of capital; assessments, etc. - North Carolina Statutes

§53‑42.  Impairment of capital; assessments, etc.

The Commissioner of Banksshall notify every bank whose capital shall have become impaired from losses orany other cause, and the surplus and undivided profits of such bank areinsufficient to make good such impairment, to make the impairment good within60 days of such notice by an assessment upon the stockholders thereof, and itshall be the duty of the officers and directors of the bank receiving suchnotice to immediately call a special meeting of the stockholders for thepurpose of making an assessment upon its stockholders sufficient to cover theimpairment of the capital, payable in cash, at which meeting such assessmentshall be made: Provided, that such bank may reduce its capital to the extent ofthe impairment, as provided in G.S. 53‑11. If any stockholder of suchbank neglects or refuses to pay such assessment as herein provided, it shall bethe duty of the board of directors to cause a sufficient amount of the capitalstock of such stockholder or stockholders to be sold at public auction, upon 30days' notice given by posting such notice of sale in the office of the bank andby publishing such notice in a newspaper in the county where the bank islocated, and if none therein, a newspaper having general circulation in thecounty in which the bank is located, to make good the deficiency, and thebalance, if any, shall be returned to the delinquent shareholder orshareholders. If any such bank shall fail to cause to be paid in suchdeficiency in its capital stock for three months after receiving such noticefrom the Commissioner of Banks, the Commissioner of Banks may forthwith takepossession of the property and business of such bank until its affairs befinally liquidated as provided by law. A sale of stock, as provided in thissection, shall effect an absolute cancellation of the outstanding certificateor certificates evidencing the stock so sold, and shall make the certificatenull and void, and a new certificate shall be issued by the bank to thepurchaser of such stock. (Ex. Sess. 1921, c. 56, s. 3; C.S., s. 219(f); 1925,c. 117; 1931, c. 243, s. 5; 1959, c. 157; 1995, c. 129, s. 8.)