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§ 1003. Prohibition of promoters’ fees

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 7 P.S. Banks and BankingEffective: November 22, 2000

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: November 22, 2000
7 P.S. § 1003
§ 1003. Prohibition of promoters’ fees
Currentness
(a) Prohibited fees--An institution shall not pay any fee, compensation or commission for promotion in connection with its organization or apply any money received on account of shares or subscriptions for shares to promoters' fees for obtaining subscriptions, selling shares or other services in connection with its organization, except legal fees and other usual and ordinary expenses, including reasonable brokers' fees, commissions and underwriting costs, necessary for its organization.
(b) Affidavit of incorporators--A majority of the incorporators shall file with the department at the time of filing of the articles an affidavit:
(i) setting forth all expenses incurred or to be incurred in connection with the organization of the institution, subscriptions for its shares and sale of its shares, and
(ii) stating that no fee, compensation or commission prohibited by subsection (a) of this section has been paid or incurred.
(c) Disapproval of articles--In the event of a violation of this section the department may disapprove the articles on account of such violation.

Credits

1965, Nov. 30, P.L. 847, No. 356, § 1003. Amended 2000, Nov. 22, P.L. 660, No. 89, § 11, imd. effective.
7 P.S. § 1003, PA ST 7 P.S. § 1003
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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