California Financial Code

§ 5622

FIN § 5622 Effective Sep 26, 1987Div. 2 · Ch. 2 · Art. 4

Statute text

Capital stock of a stock association shall be issued pursuant to the following requirements:

(a)Except for stock issued pursuant to a stock dividend, stock split, reverse stock split, reclassification of outstanding stock into stock of another class, exchange of outstanding stock for stock of another class or other change affecting outstanding stock or an employee stock option plan or a plan of merger, consolidation, conversion from a mutual to a stock association, or other type of reorganization that has been approved by the commissioner, the consideration for the issuance of capital stock shall be money paid, debts or securities canceled or tangible or intangible property actually received either by the association or by a wholly owned subsidiary. The par value or stated value of stock shall be maintained as the permanent capital of the association and any additional amount paid in shall be credited to paid-in surplus.

(b)The aggregate par value or stated value of all outstanding shares of capital stock shall be the permanent capital of the association and except as otherwise specifically provided by this division, capital stock shall not be retired until final liquidation of the association.

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Legislative history

Amended by Stats. 1987, Ch. 1162, Sec. 6. Effective September 26, 1987.