HARRY HUGHES, Governor 1107
(A) NET WORTH.
(1) FOR THE PURPOSES OF THIS SECTION, "NET WORTH"
INCLUDES:
(I) CAPITAL STOCK;
(II) PAID-IN CAPITAL OR PAID-IN SURPLUS;
(III) RETAINED INCOME, RETAINED EARNINGS,
EARNED SURPLUS, AND UNDIVIDED PROFITS;
(IV) SUBORDINATED DEBT AS DEFINED BY THE
DIVISION DIRECTOR;
(V) PREFERRED STOCK AS DEFINED BY THE DIVISION
DIRECTOR; AND
(VI) OTHER ITEMS OR AMOUNTS AS DEFINED AND
DEEMED APPROPRIATE BY THE DIRECTOR TO ACHIEVE REGULATORY
OBJECTIVES.
(2) IN THIS SECTION, QUALIFYING AMOUNTS SHALL BE
DETERMINED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES OR ACCOUNTING PRACTICES DETERMINED BY THE DIVISION
DIRECTOR TO BE APPROPRIATE TO ACHIEVE REGULATORY OBJECTIVES AND
TO ASSURE THAT THE INTERESTS OF DEPOSITORS, MEMBERS,
STOCKHOLDERS, AND THE PUBLIC ARE PROTECTED.
(B) MINIMUM REQUIRED AMOUNT.
(1) THE MINIMUM NET WORTH REQUIREMENT SHALL BE:
(I) AN AMOUNT EQUAL TO AT LEAST 5 PERCENT OF
LIABILITIES AS DEFINED UNDER GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES, OR ACCOUNTING PRACTICES DETERMINED BY THE DIVISION
DIRECTOR TO BE APPROPRIATE TO ACHIEVE REGULATORY OBJECTIVES,
EXCLUDING THAT PORTION OF SUBORDINATED DEBT INCLUDED IN NET WORTH
UNDER SUBSECTION (A) OF THIS SECTION, PLUS;
(II) ANY ADDITIONAL AMOUNTS DEEMED NECESSARY BY
THE DIVISION DIRECTOR TO ASSURE THAT THE INTERESTS OF DEPOSITORS,
MEMBERS, STOCKHOLDERS, AND THE PUBLIC ARE PROTECTED.
(2) BEGINNING ON JUNE 1, 1986, FOR THOSE
ASSOCIATIONS THAT DO NOT MEET THE REQUIREMENTS OF PARAGRAPH (1)
OF THIS SUBSECTION AND, ON THAT DATE, ARE OTHERWISE IN COMPLIANCE
WITH THE RESERVES REQUIREMENTS OF §§ 9-219 AND 9-324 OF THIS
TITLE ON MAY 31, 1986, REGULATORY NET WORTH MUST BE INCREASED SO
THAT THE REQUIREMENTS OF PARAGRAPH (1) OF THIS SUBSECTION ARE
SATISFIED BY JULY 1, 1989.
(C) STOCK DIVIDENDS.
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