Home Table of Contents

§ 1010. Certificate of authorization to do business

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 7 P.S. Banks and BankingEffective: December 24, 2012

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 7 P.S. Banks and Banking (Refs & Annos)
Banking Code of 1965 (Refs & Annos)
Chapter 10. Incorporation (Refs & Annos)
Effective: December 24, 2012
7 P.S. § 1010
§ 1010. Certificate of authorization to do business
Currentness
(a) Until receipt of a certificate of authorization issued by the department, an institution shall not accept deposits, incur indebtedness or transact any business except such business as is incident to its organization or to the obtaining of subscriptions and payment for its shares and other securities--subject to the penalty provisions of this act.
(b) The department shall issue to an institution a certificate of authorization to do business when:
(i) except in the case of a mutual savings bank, capital of the institution shall have been fully paid in, in an amount specified by the department and, in addition, there shall have been paid in:
(A) surplus in an amount not less than fifty percent of the capital paid in,
(B) an expense fund in an amount fixed by the department at not less than five percent of the capital paid in, and
(C) the proceeds of capital securities, if any, which were considered part of the capital structure of the institution by the department under section 1007(a)(vi)1 in giving its approval of the proposed institution;
(ii) an expense fund, in the case of a mutual savings bank, shall have been paid in, in an amount fixed by the department, subject to reimbursement to the contributors thereof only out of earnings after the mutual savings bank has accumulated out of earnings an expense fund at least equal to the amount of the original expense fund and surplus in an amount at least equal to the amount of such expense fund;
(iii) a majority of the directors or trustees have taken the oath or affirmation required by section 1406;2
(iv) the by-laws of the institution have been filed with the department;
(v) the institution has been organized and is ready to begin the business for which it was incorporated;
(vi) all conditions imposed by the department in giving its approval of the proposed institution under section 1007 have been satisfied; and
(vii) the department has received an affidavit signed by the cashier or treasurer and by at least a majority of the directors or trustees of the institution to the effect that all of the foregoing requirements of this subsection have been satisfied.

Credits

1965, Nov. 30, P.L. 847, No. 356, § 1010. Amended 1982, April 8, P.L. 262, No. 79, § 13, imd. effective; 2012, Oct. 24, P.L. 1336, No. 170, § 36, effective in 60 days [Dec. 24, 2012].

Footnotes

1
7 P.S. § 1007.
2
7 P.S. § 1406.
7 P.S. § 1010, PA ST 7 P.S. § 1010
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
End of Document