0N-18-3 Liability of banking corporation shareholders and stockholders--Exemption under federal la...
Liability of banking corporation shareholders and stockholders--Exemption under
The shareholders or stockholders of any banking corporation shall be held
individually responsible and liable for all contracts, debts and engagements of such corporation
to the extent of the amount of their stock therein, at the par value thereof, in addition to the
amount invested in such shares or stock and such individual liability shall continue for one year
after any transfer or sale of stock by any stockholder or stockholders. Provided that if the
shareholders and stockholders of any national banking corporation shall be exempt from liability
by federal law then and in that event the liability upon shareholders and stockholders of state
banking corporations herein imposed shall not be operative in the event that such state banking
corporation has membership in the federal deposit insurance corporation.
History: Amendment proposed by SL 1935, ch 140, approved Nov., 1936.