New Jersey § 17:9a-131
Full text of New Jersey New Jersey Statutes § 17:9a-131, with citation guidance and answers to common questions.
§ 17:9a-131.
No capital notes shall be issued unless they and any agreement to which they are subject
are approved by the commissioner. Such capital notes and such agreements may contain such provisions, not inconsistent
with the provisions of this act, as are customarily made in connection with similar
evidences of indebtedness issued by corporations other than banks, including, but
not limited to, provisions respecting maturities, interest rates, conversion ratios,
rates of amortization of principal, prepayment privileges, reserves, sinking funds,
and the like, except that no capital notes shall be issued which provide for conversion
at a rate per share less than the par value of the shares issued on such conversion. Unless special cause is shown to the satisfaction of the commissioner, (a) no capital
note shall be issued by a bank at a time when the principal amount owing on all outstanding
capital notes of the bank exceeds 50% of the bank's capital funds, or if such issue
would cause such amount to exceed 50% of the bank's capital funds; and (b) no payment
shall be made on account of the principal of any such note otherwise than as provided
in such note or in any agreement to which such note is subject; and (c) no capital
notes shall mature in more than 25 years from their dates. The commissioner may withhold his approval of any capital notes containing provisions
which, in his opinion, are prejudicial to the interests of the bank's depositors or
other creditors, or are inconsistent with sound financing or with the maintenance
by the bank of a sound capital structure.
Frequently Asked Questions About New Jersey § 17:9a-131
What does New Jersey Statutes § 17:9a-131 cover?
Section 17:9a-131 is part of the New Jersey Statutes, the codified statutory law of New Jersey. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite New Jersey § 17:9a-131?
A common citation format is "New Jersey Statutes § 17:9a-131" (New Jersey). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of New Jersey law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the New Jersey official source linked on this page or consult a licensed New Jersey attorney.
How does New Jersey § 17:9a-131 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in New Jersey can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in New Jersey.