New York Laws
Article 3 - Banks and Trust Companies
114 - Assessment of Stockholders to Make Good Impairment of Capital Stock; Sale of Stock.

§ 114. Assessment of stockholders to make good impairment of capital
stock; sale of stock.

Whenever the superintendent shall have made requisition upon any bank
or trust company pursuant to the provisions of article two of this
chapter to make good the amount of an impairment of its capital stock,
the directors of the bank or trust company shall immediately give notice
of such requisition to each stockholder and of the amount of the
assessment which he must pay for the purpose of making good such
deficiency, by a written or printed notice mailed to such stockholder at
his last address appearing upon the records of the bank or trust
company, or served personally upon him. If any stockholder shall refuse
or neglect to pay the assessment specified in such notice within sixty
days from the date thereof, the directors of such bank or trust company
shall have the right to sell to the highest bidder at public auction the
stock of such stockholder, after giving previous notice of such sale
once a week for two successive weeks in a newspaper of general
circulation in the county where the principal office of such bank or
trust company is located; or such stock may be sold at private sale, and
without such published notice, provided, however, that before making a
private sale thereof an offer in writing to purchase such stock shall
first be obtained, and a copy thereof served upon the owner of record of
the stock sought to be sold either personally or by mailing a copy of
such offer to such owner at his last address appearing upon the records
of the bank or trust company; and if, after service of such offer, such
owner shall still refuse or neglect to pay such assessment within two
weeks from the time of service of such offer, the said directors may
accept such offer and sell such stock to the person or persons making
such offer, or to any other person or persons making a larger offer than
the amount named in the offer submitted to such stockholder; but said
stock shall in no event be sold for a smaller sum than the amount of the
assessment called for and the necessary costs of sale. Out of the
avails of the stock sold the directors shall pay the necessary costs of
sale and the amount of the assessment called for thereon. The balance,
if any, shall be paid to the person or persons whose stock has been thus
sold. A sale of stock as herein provided shall effect an absolute
cancellation of the outstanding certificate or certificates evidencing
the stock so sold, and shall render the same null and void and a new
certificate or certificates shall be issued to the purchaser or
purchasers of said stock.

Structure New York Laws