Capital Structure

(a)A bank shall have such capital structure as the Board shall deem adequate but not less than the following:

(1)Capital consisting of common stock as follows: Paid-up-in-cash of not less than $500,000.

(2)Paid-in surplus amounting to not less than 40% of its capital stock.

(b)The issuance of preferred stock shall be authorized by the Board only when it appears that necessary capital cannot be obtained by the issuance of common stock. Preferred stock shall have such preferences, powers and rights as the Board may approve. It shall not be retired without the approval of the Board and the requirement of such approval shall be stated in the stock certificates, but the Board may give advance approval to sinking funds payable exclusively out of earnings available for dividends.

(c)[Repealed.]