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Oklahoma Administrative Code (Last Updated: March 11, 2021) |
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TITLE 85. State Banking Department |
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Chapter 10. Supervision, Regulation and Administration of Banks, Trust Companies, and the Oklahoma Banking Code |
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Subchapter 3. Departmental Requirements |
SECTION 85:10-3-16. Issuance of debentures or capital notes
Latest version.
- (a) Section 410 of the Code provides that a bank may issue its convertible or nonconvertible debentures or notes in such amounts and under the terms and conditions as shall be prescribed and approved by the Board. Section 1001 provides that a trust company has the power to issue debentures, notes, or other evidences or debt to the extent of an amount equal to ten (10) times its capital and surplus. Notwithstanding other terms and conditions the Board may require, no approval will be granted unless:(1) The request for approval is made on the form prescribed by the Commissioner;(2) The bank shall receive approval of its primary federal regulator;(3) The amount of the issue shall exceed Twenty-five Thousand Dollars ($25,000.00);(4) The average maturity of the issue shall be no less than seven (7) years;(5) The issue by its terms expressly subordinates itself to the prior payment in full of the bank's liability to its depositors; and(6) Payment of the fee for approval in the amount set forth in Rule 85:10-3-21(g).(b) When a debenture or capital note issue is authorized by the board of directors of a bank or trust company, their resolution shall state whether the issue is to be offered at a private or public offering.If the issue will be offered through a public offering, the bank or trust company must prepare an offering circular pursuant to the terms and requirements of Board rule 85:10-13-2.