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Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 362

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  362.125.  Capital notes — denominations — rate of interest — maturity — impairment of capital — certain obligations to be prior claim. — 1.  The capital notes shall be in such denominations and the holders thereof shall be entitled to such annual return thereon as the board of directors of the bank or trust company may determine, subject to the approval of the director of finance.  The capital notes shall provide that they may be retired at such time or times and in such manner as may be fixed by the board of directors of the bank or trust company, but in no event later than twenty years after the date of their authorization; provided, however, that no bank or trust company shall retire the capital notes if by the retirement an impairment of its capital will be created.

  2.  If at the time of the issuance of the capital notes there exists an impairment of the capital of the bank or trust company issuing the same, and if the impairment of capital exists by reason of the fact, as determined by the director of finance, that certain assets of the bank or trust company are of doubtful value, are uncollectible, or are otherwise objectionable, these assets or portions thereof so determined to be of doubtful value, uncollectible or otherwise objectionable may, upon issuance of the capital notes, be set apart from the other assets of the bank or trust company and shall thereafter be held by it in trust for the purpose of selling, enforcing, collecting or adjusting the same for the use and benefit of the holders of the capital notes, and, if the assets shall be so set apart, all amounts realized from the sale, enforcement, collection or adjustment of any of the assets shall be applied to the ratable retirement of the capital notes and income thereon as provided in section 362.135.

  3.  If an impairment of capital exists in whole or in part by reason of the fact, as determined by the director of finance, that certain assets of the bank or trust company have depreciated in value, in that event the bank or trust company may issue to the holders of the capital notes a right of participation to such extent as may be agreed upon in any increase in the value of the assets.

  4.  The capital notes shall at the time of their issuance be, and shall at all times thereafter remain, subordinate in rank and subject to the prior payment of all of the debts and obligations of the bank or trust company except certificates of indebtedness heretofore issued, and the bank or trust company may, for the security and protection of the holders of the capital notes, agree upon such restriction upon the distribution or payment of dividends on its capital stock as the board of directors may decide; provided, however, that, subject to the provisions of section 362.315, relating to banks and trust companies, the capital notes and accrued return thereon may be retired in whole or in part, with the written approval of the director of finance.

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(RSMo 1939 § 7907, A.L. 1967 p. 445, A.L. 1987 H.B. 426)

Prior revision: 1929 § 5313


---- end of effective   28 Aug 1987 ----

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