Capital stock; sale; compensation prohibited; false statement; penalties.

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8-119. Capital stock; sale; compensation prohibited; false statement; penalties.

No corporation organized for the purpose of conducting a bank under the laws of this state shall be granted the charter provided in section 8-122 until the corporation has filed with the department a statement, under oath, of the president or cashier of such corporation that no premium, bonus, commission, compensation, reward, salary, or other form of remuneration has been paid, or promised to be paid, to any person for selling the stock of such corporation. The president or cashier of any such corporation who shall be found guilty of filing a false statement under the provisions of this section is guilty of a Class I misdemeanor. If, after such charter has been delivered, the director determines, after a public hearing, that such statement is false, the department shall cancel such charter, and a receiver shall be appointed for such corporation in the manner provided for in case of a corporation which is conducting a bank in an unsafe or unauthorized manner.

Source

  • Laws 1919, c. 190, tit. V, art. XVI, § 54, p. 708;
  • C.S.1922, § 8034;
  • C.S.1929, § 8-128;
  • R.S.1943, § 8-130;
  • Laws 1963, c. 29, § 19, p. 141;
  • Laws 1967, c. 19, § 5, p. 119;
  • Laws 1973, LB 164, § 7;
  • Laws 1977, LB 40, § 41;
  • Laws 2017, LB140, § 20.

Annotations

  • This section is referred to as providing penalty of fine and imprisonment, in contrasting this section with another section of the banking act which failed to provide a penalty, and holding that the failure to provide a penalty disclosed legislative intent that statute should be directory rather than mandatory. State ex rel. Davis v. Farmers State Bank of Winside, 112 Neb. 597, 200 N.W. 173 (1924).


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