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- Alaska Statutes.
- Title 6. Banks and Financial Institutions
- Chapter 5. Alaska Banking Code
- Section 305. Capital Structure.
previous: Section 301
. Applicability of Corporations Code.
next: Section 307
. Capital Notes or Debentures.
AS 06.05.305. Capital Structure.
- (a) A corporation may not commence and operate a banking business in the state in a community with a population of 35,000
or more unless the corporation has paid-in capital in an amount acceptable to the department, but not less than
$2,000,000, and paid-in surplus equal to 20 percent of paid-in capital. A corporation may not commence and operate as a
bank in the state in a community with a population less than 35,000 unless the corporation has paid-in capital in an
amount acceptable to the department, but not less than $1,000,000, and paid-in surplus equal to 20 percent of paid-in
capital. A bank may not operate any branches unless it has an aggregate paid-in capital and paid-in surplus in amounts
acceptable to the department.
- (b) The capital of a state bank may not be reduced to an amount less than is required by the department for capital under
(a) of this section. A reduction of capital or the liability of the shareholders is not valid until it is approved by
- (c) If a state bank fails to maintain its total capital accounts and loan loss reserves in an amount equal to the assets
classified as substandard by the Federal Deposit Insurance Corporation or by the state in the bank's latest report of
examination, the department shall consider the failure as endangering the safety of depositors and may direct the
bank's directors to increase the capital accounts in an amount sufficient to cover substandard assets.
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