§ 19-2-9. Payment for stock in cash — Certificate authorizing transaction of business.
(a) The financial institution, if a stock financial institution, shall not issue any shares of stock until the par value of the shares has been actually paid in cash, free and clear of all encumbrances. When the whole capital stock has been issued, a complete list of the stockholders, with the name, residence, and post office address of each, and the number of shares held by each, shall be filed with the director, or the director’s designee, which list shall be verified under oath by two (2) of the principal officers of the financial institution.
(b) Upon receipt of the statement in the case of stock financial institutions, the director, or the director’s designee, shall cause an examination to be made. If, after the examination, it appears that the whole capital stock has been paid in cash for stock financial institutions and that all requirements of law have been complied with, the director, or the director’s designee, shall issue a certificate authorizing this financial institution to begin transaction of business, and then the subscribers and their associates, successors, and assigns, shall be authorized to transact business as an organized financial institution, with all of the powers, rights, and privileges, and subject to the liabilities, duties, and restrictions imposed by law, and the records of the first meeting of the subscribers to the agreement to form shall become and be taken as the records of the first meeting of the financial institution. It shall be unlawful for any of these financial institutions to begin the transaction of business until this certificate has been granted.
(c) The financial institution shall in no way be obligated, directly or indirectly, for any indebtedness related to the shareholders’ acquisition of capital stock.
History of Section.P.L. 1995, ch. 82, § 39.
Structure Rhode Island General Laws
Title 19 - Financial Institutions
Chapter 19-2 - Creation and Expansion
Section 19-2-1. - Agreement to form financial institution.
Section 19-2-2. - Contents of agreement to form.
Section 19-2-3. - Application to form financial institution — Issuance or denial of certificate.
Section 19-2-4. - Notice of subscribers’ meeting.
Section 19-2-5. - Proceedings at subscribers’ meeting.
Section 19-2-6. - Certificate of president and directors elected at first meeting.
Section 19-2-7. - Approval of certificate — Filing — Fee on capital stock.
Section 19-2-8. - Certificate of secretary of state.
Section 19-2-9. - Payment for stock in cash — Certificate authorizing transaction of business.
Section 19-2-10. - Amendment of agreement to form.
Section 19-2-11. - Establishment of branches.
Section 19-2-12. - Relocation of branches.
Section 19-2-14. - Conversion to stock form of financial institution.
Section 19-2-14.1. - Mutual holding companies.
Section 19-2-15. - Approval of amendments to bylaws required.
Section 19-2-16. - Indemnification of officers and employees for acts in course of duties.
Section 19-2-17. - Oath of director.
Section 19-2-18. - Record of meetings of boards and committees.
Section 19-2-19. - Bonds of officers and employees — Supervision by director.