§ 3-302. Preferred stock
West's Annotated Code of MarylandFinancial Institutions
MD Code, Financial Institutions, § 3-302
§ 3-302. Preferred stock
(a) If the Commissioner approves, a commercial bank may issue preferred stock, in the amount and with the par value that the Commissioner approves, as provided in this section.
(b) Unless otherwise provided by law, preferred stock issued under this section is not valid until the commercial bank receives the purchase price in an amount that equals at least par value.
(c) If the Commissioner approves, preferred stock may be convertible into common stock on the terms and conditions that the charter provides. However, preferred stock is not convertible:
(d)(1) The holder of preferred stock is entitled to cumulative dividends at a rate not exceeding six percent a year of its par value.
(e) Each holder of preferred stock has the voting rights that the charter provides and the Commissioner approves.
(f)(1) A commercial bank may retire preferred stock in the manner and on the terms and conditions that the charter provides and the Commissioner approves.
(g) If a commercial bank dissolves voluntarily or a receiver is appointed for it, the holders of its common stock may not be paid until the holders of its preferred stock are paid, for each of their shares:
Credits
Added by Acts 1980, c. 33, § 2, eff. July 1, 1980. Amended by Acts 1980, c. 807, § 1; Acts 1996, c. 326, § 2, eff. July 1, 1996.
MD Code, Financial Institutions, § 3-302, MD FIN INST § 3-302
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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