Delaware General Assembly


CHAPTER 149 - BANKS

AN ACT IN RELATION TO CAPITAL NOTES AND DEBENTURES OF BANKS AND TRUST COMPANIES AND AUTHORIZING THEIR ISSUE AND SALE.

Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met (two-thirds of all the members elected to each House concurring therein):

Section 1. With the approval of the State Bank Commissioner any bank or trust company in this State may at any time through action of its Board of Directors and without requiring any action of its stockholders issue and sell its capital notes or debentures. Such capital notes or debentures shall be subordinate and subject to the claims of depositors and may be subordinated and subjected to the claims of other creditors.

The term "capital" as used in the laws of this State relating to banking shall be construed to embrace the amount of outstanding capital notes and debentures legally issued by any bank or trust company in this State and sold by it to the Reconstruction Finance Corporation. The capital stock 'of any such bank or trust company may be deemed to be unimpaired when the amount of such capital notes and debentures as represented by cash or sound assets exceeds the impairment as found by the State Bank Commissioner. Before any such capital notes or debentures are retired or paid by the bank or trust company any existing deficiency of its capital (disregarding the notes or debentures to be retired) must be paid in cash, to the end that the sound capital assets shall at least equal the capital stock of the bank or trust company.

Such capital notes or debentures shall in no case be subject to any assessment. The holders of such capital notes or debentures shall not be held individually responsible as such holders for any debts, contracts, or engagements of such bank or trust company and shall not be held liable for assessments to restore impairments in the capital of such institution.

Section 2. All laws or parts of laws in conflict herewith are hereby repealed.


Approved April 1, 1935.