§ 59. — Reduction of capital by vote of shareholders.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC59]
TITLE 12--BANKS AND BANKING
CHAPTER 2--NATIONAL BANKS
SUBCHAPTER II--CAPITAL, STOCK, AND STOCKHOLDERS
Sec. 59. Reduction of capital by vote of shareholders
Any association formed under title 62 of the Revised Statutes may,
by the vote of shareholders owning two-thirds of its capital stock,
reduce its capital to any sum not below the amount required by title 62
of the Revised Statutes to authorize the formation of associations; but
no such reduction shall be allowable which will reduce the capital of
the association below the amount required for its outstanding
circulation, nor shall any reduction be made until the amount of the
proposed reduction has been reported to the Comptroller of the Currency
and such reduction has been approved by said Comptroller of the Currency
and no shareholder shall be entitled to any distribution of cash or
other assets by reason of any reduction of the common capital of any
association unless such distribution shall have been approved by the
Comptroller of the Currency and by the affirmative vote of at least two-
thirds of the shares of each class of stock outstanding, voting as
classes.
(R.S. Sec. 5143; Dec. 23, 1913, ch. 6, Sec. 28, 38 Stat. 274; Aug. 23,
1935, ch. 614, title III, Sec. 334, 49 Stat. 720.)
References in Text
Title 62 of the Revised Statutes, referred to in text, was in the
original ``this Title'' meaning title LXII of the Revised Statutes,
consisting of R.S. Secs. 5133 to 5244, which are classified to sections
21, 22 to 24a, 25a, 26, 27, 29, 35 to 37, 39, 43, 52, 53, 55 to 57, 59
to 62, 66, 71, 72 to 76, 81, 83 to 86, 90, 91, 93, 93a, 94, 141 to 144,
161, 164, 181, 182, 192 to 194, 196, 215c, 481 to 485, 501, 541, 548,
and 582 of this title. See, also, sections 8, 333, 334, 475, 656, 709,
1004, and 1005 of Title 18, Crimes and Criminal Procedure. For complete
classification of R.S. Secs. 5133 to 5244 to the Code, see Tables.
Codification
R.S. Sec. 5143 derived from act June 3, 1864, ch. 106, Sec. 13, 13
Stat. 103, which was the National Bank Act. See section 38 of this
title.
Amendments
1935--Act Aug. 23, 1935, substituted ``and no shareholder shall be
entitled to any distribution of cash or other assets by reason of any
reduction of the common capital of any association unless such
distribution shall have been approved by the Comptroller of the Currency
and by the affirmative vote of at least two-thirds of the shares of each
class of stock outstanding, voting as classes'' for ``and by the Federal
Reserve Board or by the organization committee pending the organization
of the Federal Reserve Board''.
Exception as to Transfer of Functions
Functions vested by any provision of law in Comptroller of the
Currency, referred to in this section, not included in transfer of
functions to Secretary of the Treasury, see note set out under section 1
of this title.
Section Referred to in Other Sections
This section is referred to in section 56 of this title.
