Statutory Minimum Capital and Surplus Requirements Industry UCAA

Treasury stock is previously outstanding stock bought back from stockholders by the issuing company. Capital Stock Sale Proceeds means the aggregate cash proceeds received by the Company from the issuance or sale by the Company of its Capital Stock after the Issue Date, net of attorneys’ fees, accountants’ fees, underwriters’ or placement agents’ fees, discounts or commissions and brokerage, consultant and other fees actually incurred in connection with such issuance or sale and net of taxes paid or payable as a result thereof. Capital stock tax means a tax measured in any way by the capital of a corporation considered in its entirety.

The OCC further expressly reserves the authority to impose more stringent conditions than those set forth in paragraphs and of this section to exclude any component of tier 1 or tier 2 capital, in whole or in part, as part of a national bank’s capital and surplus for any purpose. A part of a firm’s surplus comes from an increase in retained earnings. These might include increasing the value of fixed assets, the sale of stock at a premium, or the lowering of the par value on common stock. These other sources are often called “capital surplus” and are placed on the balance sheet. The shares of a corporation shall be represented by certificates, provided that the board of directors of the corporation may provide by resolution or resolutions that some or all of any or all classes or series of its stock shall be uncertificated shares. Any such resolution shall not apply to shares represented by a certificate until such certificate is surrendered to the corporation.

Company

Any premium received over the par value is credited to capital surplus. Some other scenarios for triggering a capital surplus include when the Government donates a piece of land to the company. A contributed surplus is the excess amount of capital from the issuance of shares above par value, which is recorded in the Shareholders’ Equity account. Retained https://kelleysbookkeeping.com/ earnings are the remaining profits after dividends are paid to shareholders. – The term “time deposits” means all deposits, the payment of which cannot be legally required within 30 days. – The term “net earnings” means the excess of the gross earnings of any bank over the expenses and losses chargeable against such earnings during any dividend period.

• “Capital” includes the aggregate of outstanding capital stock and preferred stock.
• If the certificate of incorporation reserves to the stockholders the right to determine the consideration for the issue of any shares, the stockholders shall, unless the certificate requires a greater vote, do so by a vote of a majority of the outstanding stock entitled to vote thereon.
• “Converting bank” means a State bank converting to become a national bank, or a national bank converting to become a State bank.
• “Insured savings association in recovery” means an insured savings association that is not an eligible depository institution and that does not meet the minimum capital requirements applicable with respect to the insured savings association.
• In case there shall be no such surplus, out of its net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year.
• The chart below identifies the minimum capital and surplus requirement for each Uniform State.

Every sale, transfer, encumbrance or pledge of shares as a security interest, or other hypothecation, of a company’s voting stock and every sale, transfer, encumbrance or pledge of shares, or other hypothecation, of more than 10 percent of a company’s issued nonvoting stock must be acquiesced in by the Commissioner before such sale, transfer, encumbrance or pledge, or other hypothecation, becomes effective. “Insured savings association in recovery” means an insured savings association that is not an eligible depository institution and that does not meet the minimum capital requirements applicable with respect to the insured savings association. “Insured savings association” means any federal savings association chartered under Section 5 of the federal Home Owners’ Loan Act and any State savings association chartered under the Illinois Savings and Loan Act of 1985 or a predecessor Illinois statute, the deposits of which are insured by the Federal Deposit Insurance Corporation. The term also includes a savings bank organized or operating under the Savings Bank Act. “Director” means a member of the board of directors of a bank. In the case of a manager-managed limited liability company, however, “director” means a manager of the bank and, in the case of a member-managed limited liability company, “director” means a member of the bank.

CHAPTER 1. General Corporation Law

Thereupon the court shall make an order requiring the corporation to show cause at a time and place therein designated, why it should not issue new uncertificated shares or a new certificate of stock in place of the one described in the complaint. A copy of the complaint and order shall be served upon the corporation at least 5 days before the time designated in the order. The minimum consideration to be received for the shares of stock of the corporation to be issued upon exercise of such rights or options shall be no less than the amount set forth in § 153 of this title. Treasury shares may be disposed of by the corporation in the same manner that shares of stock are issued pursuant to § 152 of this title, or may be disposed of for such consideration as determined by the stockholders if the certificate of incorporation so provides.

If you have questions for the Agency that issued the current document please contact the agency directly. Capital surplus can also result from the proceeds of stock bought back and then resold and from donated stock. Common Unit means a Limited Partner Interest having the rights and obligations specified with respect to Common Units in this Agreement. The term “Common Unit” does not include a Subordinated Unit prior to its conversion into a Common Unit pursuant to the terms hereof. Common Units means common units representing limited partner interests in the Partnership.

Share premium reserve account

This premium is then credited to the share premium account of the company. Buyback Of Own SharesShare buyback refers to the repurchase of the company’s own outstanding shares from the open market using the accumulated funds of the company to decrease the outstanding shares in the company’s balance sheet. This is done either to increase the value Capital Stock And Surplus Definition of the existing shares or to prevent various shareholders from controlling the company. “Impaired capital and surplus” or similar language relating to impairment of capital or surplus, means that a financial institution has less than the minimum amount of capital and surplus required under this chapter for that type of financial institution.