Official Code of Georgia Annotated

Title 7. BANKING AND FINANCE · Chapter 1. FINANCIAL INSTITUTIONS · Article 2. BANKS AND TRUST COMPANIES · Part 8. INCORPORATION OF BANKS AND TRUST COMPANIES

7-1-391. Prohibition of promoters’ fees.

Active

Current through: Including Acts of the 2025 Regular Session of the General Assembly.

(a)
A bank or trust company shall not pay any fee, compensation, or commission for promotion in connection with its organization or apply any money received on account of shares or subscriptions, selling shares, or other services in connection with its organization, except legal fees, commissions or fees to disinterested third parties for sale of bank stock to others, and other usual and ordinary expenses necessary for its organization.#
(b)
In the event of a violation of this Code section the department may disapprove the articles on account of such violation.#

The notes below are printed with the section but are not enacted law (O.C.G.A. § 1-1-1(c)). They are shown apart from the text.

History

Code 1933, § 41A-1802, enacted by Ga. L. 1974, p. 705, § 1; Ga. L. 1999, p. 674, § 7; Ga. L. 2024, p. 354, § 1-2/HB 876, effective July 1, 2024.

Amendments

The 2024 amendment, effective July 1, 2024, deleted former subsection (b), which read: “A majority of incorporators shall file with the department at the time of filing of the articles an affidavit: “(1) Setting forth all expenses incurred or to be incurred in connection with the organization of the bank or trust company, subscription for its shares, and sale of its shares; and “(2) Stating that no fee, compensation, or commission prohibited by subsection (a) of this Code section has been paid or incurred.” and redesignated former subsection (c) as present subsection (b).

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Current through: Including Acts of the 2025 Regular Session of the General Assembly.

Text read from t7-t8-(v5)-2024-pdf.pdf, Volume V5, 2024 edition, page 224; merge action: carried; file SHA-256 5c69f28428d8.

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