§57 Increase of Capital by Provision in Articles of Association

Summary

A national banking association can raise its capital if shareholders who own two-thirds of the stock vote for it and the Comptroller of the Currency approves. The whole amount must be paid in before the increase is valid. A notarized notice signed by the president, vice president, or cashier must be sent to the Comptroller, and the Comptroller must issue a certificate stating the amount, that he approves it, and that it is paid in. The bank can instead increase capital by a stock dividend with the same two-thirds vote and Comptroller approval, but only if the bank’s surplus, after the increase, is at least 20 percent of the new capital. A notarized certificate signed by the president, vice president, or cashier must be sent to the Comptroller and his certificate obtained.