§ 1130 Bank Shareholder Distribution Exemption

This law says that the rules in this article do NOT apply to any money given to a bank's shareholders when the bank is being closed down or liquidated.

Key Takeaways

•The article's rules are skipped for shareholder payouts when a bank is being wound up, dissolved, or liquidated.
•It only matters for banks that are ending their business, not for normal operations.
•This exemption was added to the law in 2012.

Example

A bank is being shut down and its assets are sold. The owners (shareholders) receive a payout from the remaining money.

Even though there are usually rules about how payouts are handled, this law says those rules don't count for the shareholders' payout in this bank closure.

This article does not apply to any distribution made to the shareholders of a bank in any proceeding to wind up and dissolve or to liquidate such bank. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

This law says that the rules in this article do NOT apply to any money given to a bank's shareholders when the bank is being closed down or liquidated.

Key Takeaways

•The article's rules are skipped for shareholder payouts when a bank is being wound up, dissolved, or liquidated.
•It only matters for banks that are ending their business, not for normal operations.
•This exemption was added to the law in 2012.

Example

A bank is being shut down and its assets are sold. The owners (shareholders) receive a payout from the remaining money.

Even though there are usually rules about how payouts are handled, this law says those rules don't count for the shareholders' payout in this bank closure.

Key Takeaways

Example

Key Terms

References

§ 1130 Bank Shareholder Distribution Exemption

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References