Georgia Code
Part 8 - Incorporation of Banks and Trust Companies
§ 7-1-398. Liability for Premature Business

Incorporators and other persons who organize a bank or trust company which transacts business before its capital stock and paid-in capital have been paid in shall be jointly and severally liable to depositors and other creditors to make good the amounts not paid in by subscribers or otherwise deficient. Such liability shall be deemed as an asset of the bank or trust company and may be enforced by it, its successors or assignees, or by a shareholder suing derivatively, or by a receiver appointed under this chapter.
History. Ga. L. 1919, p. 135, art. 18, § 6; Code 1933, § 13-1906; Code 1933, § 41A-1809, enacted by Ga. L. 1974, p. 705, § 1; Ga. L. 2019, p. 828, § 8/HB 185.
The 2019 amendment, effective July 1, 2019, substituted “capital stock and paid-in capital” for “capital stock, paid-in capital, and expense fund as required by Code Section 7-1-396” in the first sentence of this Code section.

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