§51a Preferred stock; issuance authorized

Summary

National banks may issue one or more classes of preferred stock if the Comptroller of the Currency approves the amount and par value. The bank must also get a vote from shareholders who own a majority of the stock after at least five days’ notice sent by registered or certified mail from the board. New banks that have not issued common stock do not need that notice or vote. No preferred stock is valid until its par value is paid, a notary has acknowledged notice signed by the president, vice president, or cashier and that notice is sent to the Comptroller, and the Comptroller issues a certificate saying the stock is approved and paid in. That certificate is final proof the stock was properly issued.