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- Alaska Statutes.
- Title 6. Banks and Financial Institutions
- Chapter 5. Alaska Banking Code
- Section 307. Capital Notes or Debentures.
previous: Section 305
. Capital Structure.
next: Section 310
. Correction of Impairment of Capital.
AS 06.05.307. Capital Notes or Debentures.
- (a) A bank organized under the laws of this state may, with the approval of stockholders owning two-thirds of the stock of
the bank entitled to vote or without this approval if authorized by its articles of incorporation, issue convertible or
nonconvertible capital notes or debentures with the written consent of the department. The principal amount of notes
and debentures outstanding at any time may not exceed 33 1/3 percent of the capital stock and surplus fund of the bank
at the date of issue. The rate and term are subject to the approval of the department but in no event may the term be
more than 20 years after the date of issue.
- (b) A bank may not retire capital notes or debentures if the retirement creates an impairment of its capital. Capital
notes and debentures are subordinated in right of payment in the event of insolvency or liquidation of the bank to the
prior payment of all deposits and all claims of other creditors except the holders of securities on a parity with the
capital notes and debentures and the holders of securities expressly subordinated to the capital notes and debentures.
- (c) Bank assets may not be pledged to secure capital notes and debentures, but the bank may, for the security and the
protection of the holders of the capital notes and debentures, agree through its board of directors to restrict the
payment of dividends.
- (d) [Repealed, Sec. 102 ch 26 SLA 1993].
- (e) [Repealed, Sec. 102 ch 26 SLA 1993].
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