H. B. 4249


(By Delegates Ron Thompson, Frich, Hrutkay,
Perry and H. White, Marshall, Iaquinta,

Beach, Hamilton and G. White)


[Introduced January 30, 2006; referred to the

Committee on Banking and Insurance then the Judiciary.]



A BILL to amend and reenact §31A-4-3 of the Code of West Virginia, 1931, as amended, relating to the authorization of state banking institutions to issue more than one class of stock.

Be it enacted by the Legislature of West Virginia:

That §31A-4-3 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:

ARTICLE 4. BANKING INSTITUTIONS AND SERVICES GENERALLY.
§31A-4-3. Minimum capital stock; one class of stock; par value; capitalization of surplus.

(a) No banking institution may hereafter be incorporated unless it shall have bona fide subscribed capital stock and capital surplus equal to at least four million dollars. The West Virginia Board of Banking and Financial Institutions shall require capital in excess of four million dollars if, in its judgment, economic conditions or the operating environment of the proposed banking institution, make such a requirement necessary.
(b) Notwithstanding any provision of subsection (a) above, the commissioner or the West Virginia Board of Banking and Financial Institutions may approve the incorporation of a bank newly organized solely for the purpose of facilitating the acquisition of another bank if the proposed newly organized bank has a bona fide subscribed capital stock and capital surplus of at least sixty thousand dollars.
(c) Banking institutions shall issue but one class shares of one or more classes of stock and the shares shall have a nominal or par value of not less than one dollar nor more than one hundred dollars each, and as to each banking institution each share shall be equal in all respects with any other share within each class of stock.
(d) Any banking institution may change the par value of its shares, when and to the extent that any such action may be authorized in writing by the commissioner.



NOTE: The purpose of this bill is to authorize state banking institutions to issue more than one class of stock.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.