[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC51b]
TITLE 12--BANKS AND BANKING
CHAPTER 2--NATIONAL BANKS
SUBCHAPTER II--CAPITAL, STOCK, AND STOCKHOLDERS
Sec. 51b. Dividends, voting, and retirement of preferred stock;
individual liability
(a) Notwithstanding any other provision of law, whether relating to
restriction upon the payment of dividends upon capital stock or
otherwise, the holders of such preferred stock shall be entitled to
receive such cumulative dividends and shall have such voting and
conversion rights and such control of management, and such stock shall
be subject to retirement in such manner and upon such conditions, as may
be provided in the articles of association with the approval of the
Comptroller of the Currency. The holders of such preferred stock shall
not be held individually responsible as such holders for any debts,
contracts, or engagements of such association, and shall not be liable
for assessments to restore impairments in the capital of such
association as now provided by law with reference to holders of common
stock.
(b) No dividends shall be declared or paid on common stock until the
cumulative dividends on the preferred stock shall have been paid in
full; and, if the association is placed in voluntary liquidation or a
conservator or a receiver is appointed therefor, no payments shall be
made to the holders of the common stock until the holders of the
preferred stock shall have been paid in full the par value of such stock
plus all accumulated dividends.
(Mar. 9, 1933, ch. 1, title III, Sec. 302, 48 Stat. 5; June 15, 1933,
ch. 79, 48 Stat. 148; Pub. L. 96-221, title VII, Sec. 702, Mar. 31,
1980, 94 Stat. 186.)
Amendments
1980--Subsec. (a). Pub. L. 96-221 struck out limitation on payment
of cumulative dividends at a rate not exceeding 6 per centum per annum.
1933--Subsec. (a). Act June 15, 1933, struck out former subsec. (a)
and inserted a new subsec. (a) which incorporated all former provisions
and inserted ``Notwithstanding any other provision of law, whether
relating to restriction upon the payment of dividends upon capital stock
or otherwise'' and ``and conversion rights,'' in first sente
