MARVIN MANDEL, Governor

1775

PERCENT OF THE CAPITAL STOCK OF THE STATE BANK. THE
UNENCUMBERED CAPITAL STOCK WHICH THE DIRECTOR OWNS SHALL
BE IN THE MINIMUM AMOUNT OF:

(I)   $250, IF THE STATE BANK HAS $50,000 OR
LESS IN CAPITAL STOCK; OR

(II)    $500, IF THE STATE BANK HAS MORE THAN
$50,000 IN CAPITAL STOCK,

(3) TO DETERMINE THE AMOUNT OF CAPITAL STOCK
OWNED BY A DIRECTOR:

(I)    ONLY THE PAR OR STATED VALUE OF COMMON
AND PREFERRED STOCK MAY BE CONSIDERED; AND

(II)   DEBT INSTRUMENTS OF THE STATE BANK OR
CORPORATION MAY NOT BE CONSIDERED.

(C)   OATH OF OFFICE.

EACH DIRECTOR SHALL TAKE AN OATH THAT HE:

(1)    WILL PERFORM DILIGENTLY AND HONESTLY THE
DUTIES OF HIS OFFICE;

(2)   WILL NOT VIOLATE KNOWINGLY OR PERMIT
KNOWINGLY A VIOLATION OF ANY PROVISION OF THIS SUBTITLE;
AND

(3)   OWNS IN GOOD FAITH THE AMOUNT OF CAPITAL
STOCK REQUIRED UNDER SUBSECTION (B) OF THIS SECTION.

(D)   TENURE.

A DIRECTOR HOLDS OFFICE FOR ONE YEAR AND UNTIL HIS
SUCCESSOR IS ELECTED AND QUALIFIES.

(E)   ELECTIONS.

(1)   THE STOCKHOLDERS SHALL ELECT THE INITIAL
DIRECTORS AT A MEETING HELD BEFORE THE STATE BANK IS
AUTHORIZED TO COMMENCE BUSINESS. THE STOCKHOLDERS
SUBSEQUENTLY SHALL ELECT DIRECTORS ANNUALLY AT THE ANNUAL
MEETING OF STOCKHOLDERS.

(2)   IF THE ELECTION OF THE BOARD OF DIRECTORS
IS NOT HELD AT THE ANNUAL MEETING, AN ELECTION MAY BE
HELD AT A SUBSEQUENT MEETING CALLED FOR THAT PURPOSE.
NOTICE OF THE SUBSEQUENT MEETING SHALL BE GIVEN AS THE
BYLAWS PROVIDE.

(F)   VACANCY.