reglab/statecodes huggingface dataset:
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-12 - Membership in Federal Deposit Insurance Corporation, Etc.

Section 5-5A-12
Membership in federal deposit insurance corporation, etc.
All banks now or hereafter operating under the laws of this state shall be members of the Federal Deposit Insurance Corporation or such other agency as may be created to insure the deposits of such bank.
(Acts 1980, No. 80-658, §5-5-12.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-13 - Filing Fee; Other Fees.

Section 5-5A-13
Filing fee; other fees.
(a) The Banking Board shall from time to time fix the amount of the fee for filing an application for a new bank, and for:
(1) Establishment of a branch of an existing bank;
(2) Conversion of a national bank to a state bank;
(3) A merger of two or more existing banks;
(4) Establishment and operation of any facility authorized under the provisions of Sections 5-2A-7 and 5-2A-8;
(5) Acquisition of a majority of voting stock of a bank;
(6) Any examination necessitated by the foregoing; and
(7) Other actions that require the approval of the superintendent or the Banking Board.
(b) All such fees shall be paid into the special fund set up by the State Treasurer pursuant to Section 5-2A-20.
(Acts 1980, No. 80-658, §5-5-13.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-14 - Capital - Minimum Amount Required for Incorporation of Bank.

Section 5-5A-14
Capital - Minimum amount required for incorporation of bank.
(a) No bank hereafter organized under the laws of Alabama shall have total initial capital accounts actually paid in of less than $800,000.00.
(b) The superintendent may require a higher amount of capital accounts and where the bank will have no significance except as a means of acquiring the assets or the voting shares of an existing bank, the superintendent may require a lesser amount of capital accounts.
(Acts 1980, No. 80-658, §5-5-14.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-15 - Capital - Increase or Decrease.

Section 5-5A-15
Capital - Increase or decrease.
Any bank shall with the consent of the superintendent have power and authority to increase or decrease its authorized capital in the manner provided for a corporation under the business corporation laws of this state.
(Acts 1980, No. 80-658, §5-5-15.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-16 - Issuance of Capital Notes and Debentures.

Section 5-5A-16
Issuance of capital notes and debentures.
No bank shall issue capital notes or capital debentures except with the prior written approval of the superintendent under such conditions as he may impose.
(Acts 1980, No. 80-658, §5-5-16.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-17 - Amendment of Certificate of Incorporation; Approval of Amended Certificate of Incorporation.

Section 5-5A-17
Amendment of certificate of incorporation; approval of amended certificate of incorporation.
A bank may amend its certificate of incorporation in the manner provided by the laws governing business corporations. No proposed amendment of a certificate of incorporation of a bank is valid unless approved in writing by the superintendent and may not be recorded unless such written approval accompanies the proposed amendment.
(Acts 1980, No. 80-658, §5-5-17.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-18 - Powers of Banks Generally.

Section 5-5A-18
Powers of banks generally.
Corporations formed for the purpose of doing business as a bank may:
(1) Discount bills, notes or other evidences of debt;
(2) Receive and pay out deposits, with or without interest, pay checks, and impose charges for any services;
(3) Receive on special deposit money, bullion or foreign coins or bonds or other securities;
(4) Buy and sell foreign and domestic exchanges, gold and silver bullion or foreign coins, bonds, bills of exchange, notes and other negotiable paper;
(5) Lend money on personal security or upon pledges of bonds, stocks or other negotiable securities;
(6) Take and receive security by mortgage, security agreement or otherwise on property, real and personal;
(7) Become trustees for any purpose and be appointed and act as executors, administrators, guardians, receivers, or fiduciaries upon receiving the prior written approval of the superintendent under Section 5-11A-1;
(8) Lease real and personal property upon specific request of a customer, provided such banks must comply with any applicable Alabama laws regulating leasing real property or improvements thereon to others;
(9) Perform computer, management, and travel agency services for others;
(10) Subscribe to the capital stock and become a member of the Federal Reserve System and comply with rules and regulations thereof;
(11) Accept deposits and payments on loans and other obligations as agent for other banks located in this state that are subsidiaries of the same bank holding company. If banks located in this state are affiliates, they may accept deposits and payments on loans and other obligations as agent for each other. Banks acting as agents for other banks under this subsection shall not be deemed branch offices of the banks for which they act. As used in this subsection, banks are "affiliates" if the same person or persons directly or indirectly own or control either a majority of the voting shares or more than 50 percent of the number of shares entitled to elect the directors of both banks; and
(12) Do any business and exercise any powers incident to the business of banks.
(Acts 1980, No. 80-658, §5-5-18; Acts 1990, No. 90-217, p. 253.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-19 - Reserves.

Section 5-5A-19
Reserves.
(a) A bank which is not a member of the Federal Reserve System shall maintain at all times a reserve fund in an amount fixed by resolution of the Banking Board. The amount of the required reserve for each day shall be computed on the basis of average daily deposits covering such biweekly or shorter periods as shall be fixed by resolution of the Banking Board. This reserve shall consist of cash on hand and demand deposits due from other banks.
(b) A bank shall give written notice to the superintendent, in the manner prescribed by the superintendent for such notice, of any deficiency in the amount or form of the reserve fund required by this section within three business days after the close of any scheduled averaging period during which deficiency occurs. Such bank shall pay to the superintendent a fee because of this deficiency which shall be fixed by the Banking Board. All such fees shall be paid into the special fund set up by the State Treasurer pursuant to Section 5-2A-20.
(c) A bank which is a member of the Federal Reserve System shall maintain at all times a reserve fund in accordance with the requirements applicable to a member bank under the laws of the United States.
(Acts 1980, No. 80-658, p. 1259, §5-5-19; Acts 1981, No. 81-687, p. 1158.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-20 - Branch Banks; Commercial Affiliates.

Section 5-5A-20
Branch banks; commercial affiliates.
(a) Alabama banks may establish a branch or office for the transaction of the banking business within the State of Alabama upon prior approval of the superintendent. Alabama banks may establish a branch or office for the transaction of a banking business in any state other than Alabama, any territory of the United States, or in any foreign country in accordance with the provisions of federal law, the laws of the other state, territory, or foreign country and upon the prior approval of the superintendent.
(b) All laws or parts of laws, whether general, local, or general laws of local applications, which conflict with this section are hereby repealed to the extent of such conflict.
(c) Neither an Alabama bank nor an out-of-state bank may establish or maintain a branch or office for the transaction of the banking business in Alabama on the premises of a commercial affiliate of the bank. For purposes of this section, commercial affiliate is an affiliate of the bank as set forth in subsection (k) of Section 2 of the Bank Holding Company Act which engages in commerce. An entity engages in commerce when 15 percent or more of its revenue is derived from activities other than those in which a bank holding company, or its subsidiaries, may engage. Premises of the commercial affiliate are any physical locations where the commercial affiliate directly or indirectly maintains ownership or conducts business.
(Acts 1980, No. 80-658, p. 1259, §5-5-20; Acts 1983, 1st Ex. Sess., No. 83-73, p. 76; Acts 1985, No. 85-364, p. 307; Acts 1995, No. 95-115, p. 134, §72; Act 2007-224, p. 284, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-21 - Surplus; Restriction on Dividends.

Section 5-5A-21
Surplus; restriction on dividends.
Every bank shall transfer to surplus each year at least 10 percent of its net earnings until the surplus of such bank shall be equal to at least 20 percent of its capital, and it shall be unlawful for such bank to declare or pay a dividend in excess of 90 percent of the net earnings of such bank until the surplus of such bank shall be equal to at least 20 percent of capital.
Thereafter the prior written approval of the superintendent shall be required if the total of all dividends declared by the bank in any calendar year shall exceed the total of its net earnings of that year combined with its retained net earnings of the preceding two years, less any required transfers to surplus. No dividends, withdrawals or transfers may be made from the bank's surplus without the prior written approval of the superintendent.
For the purpose of this section the term "net earnings" shall mean the remainder of all earnings from current operations plus actual recoveries on loans and investments and other assets, after deducting from the total thereof all current operating expenses, actual losses, accrued dividends on preferred stock, if any, and all federal, state and local taxes.
(Acts 1980, No. 80-658, §5-5-21.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-23 - Investments and Loans With Respect to Housing.

Section 5-5A-23
Investments and loans with respect to housing.
(a) Banks, insurance companies and savings and loan associations are authorized:
(1) To make such loans and advances of credit and purchases of obligations representing loans and advances of credit as are eligible for insurance and to obtain such insurance; and
(2) To make such loans secured by real property or leasehold as the Federal Housing Administrator insures or makes a commitment to insure and to obtain such insurance.
(b) It shall be lawful for banks, insurance companies or savings and loan associations to purchase, invest in and dispose of bonds or notes secured by mortgages issued by the Federal Housing Administrator and in securities issued by national mortgage associations.
(c) No law of this state requiring security upon which loans or investments may be made, or prescribing or limiting interest rates upon loans or investments, or prescribing or limiting the period for which loans or investments may be made shall be deemed to apply to loans or investments made pursuant to the foregoing paragraph.
(d) Any bank or trust company purchasing, investing in or otherwise holding in any fiduciary capacity for the benefit of any ward or other beneficiary any mortgage loan insured by the Federal Housing Administrator shall be entitled to receive and retain for its own individual or corporate account any service charge allowed by said administrator on account of the servicing of the insured mortgage loan. Such service charge shall be considered as a reimbursement to such fiduciary for the additional expense of handling for the mortgagor and the Federal Housing Administrator monthly collections on such mortgage loan and payments of taxes, insurance and other charges on the property securing such loan as such administrator and regulations may require.
(e) Wherever, by statute of this state, collateral is required as security for the deposit of public or other funds, or deposits are required to be made with any public official or department, or an investment of capital or surplus or a reserve or other fund is required to be maintained, consisting of designated securities, notes and bonds insured by the Federal Housing Administrator and debentures issued by the Federal Housing Administrator and obligations of national mortgage associations shall be acceptable at face value for such purposes.
(Acts 1980, No. 80-658, §5-5-23.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-25 - Acceptance of Drafts or Bills of Exchange Arising From Transactions Involving Shipment of Goods - Authority.

Section 5-5A-25
Acceptance of drafts or bills of exchange arising from transactions involving shipment of goods - Authority.
Any bank in Alabama may accept drafts or bills of exchange drawn upon it, having not more than six months' sight to run, exclusive of days of grace, which grew out of transactions involving the importation or exportation of goods or which grew out of transactions involving the domestic shipment of goods, if shipping documents conveying or securing title are attached at the time of acceptance or which are secured at the time of acceptance by a warehouse receipt or other such document conveying or securing title covering readily marketable staples. The bank shall keep a careful record of all such acceptances and show the same as a liability on its general books.
(Acts 1980, No. 80-658, §5-5-25.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-26 - Acceptance of Drafts or Bills of Exchange Arising From Transactions Involving Shipment of Goods - Limitations.

Section 5-5A-26
Acceptance of drafts or bills of exchange arising from transactions involving shipment of goods - Limitations.
No bank shall accept, whether in a foreign or domestic transaction, for any one person, company, firm or corporation, to an amount equal at any time in the aggregate to more than 10 percent of its paid up and unimpaired capital and surplus, unless the bank is secured either by attached documents or by some other actual security growing out of the same transaction as the acceptance, and no bank shall accept such bills to an amount equal at any time in the aggregate to more than one half of its paid up and unimpaired capital stock and surplus. Banks which are members of the Federal Reserve System may accept such bills to an amount not exceeding at any time in the aggregate 100 percent of their paid up and unimpaired capital and surplus, but the aggregate of acceptances growing out of domestic transactions shall in no event exceed 50 percent of such capital and surplus.
(Acts 1980, No. 80-658, §5-5-26.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-27 - Loans Secured by Own Stock; Purchase of Own Stock; Ownership of Capital Stock of Other Banks.

Section 5-5A-27
Loans secured by own stock; purchase of own stock; ownership of capital stock of other banks.
No bank shall make a loan taking its own stock as security therefor or directly or indirectly purchase shares of its own stock, except in pursuance of provisions of law for reducing its capital stock. No bank shall subscribe for or own capital stock in any other bank except in the usual course of business in payment of an indebtedness or in order to prevent a loss on a debt owing to it and the bank must sell said stock within one year from the time the same is acquired unless this time period is extended by the superintendent; provided, however, that nothing in this section shall prohibit the ownership by any bank of any stock in another bank acquired prior to May 28, 1980.
(Acts 1980, No. 80-658, §5-5-27.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-28 - Pledge of Assets.

Section 5-5A-28
Pledge of assets.
No bank may pledge assets as security for deposits, except any bank is authorized to pledge acceptable assets as security for deposits of trust funds deposited by its trust department and of public funds, heretofore or hereafter deposited, by the United States or any agency or governmental instrumentality of the United States or by a state or any political subdivision of a state or any agency or other governmental instrumentality of such subdivision, including any county, municipal corporation, county, city, or other public board of education, including any custodian or treasurer of county, city, or other public school funds, any improvement authority heretofore or hereafter incorporated or any public corporation, including each board, authority, or district heretofore or hereafter organized or created in a state pursuant to authorization or determination by any municipality or municipalities or by any county or counties or the governing body of any one or more thereof. For purposes of this section, banks may only pledge assets to secure deposits of Alabama public entities that are defined as covered public entities or covered public officials under Section 41-14A-2. The word "deposits," as used in this section, means deposits of all kinds, including, without limiting the generality of the foregoing, deposits in savings accounts, deposits in checking accounts, deposits in special trust funds, demand deposits, special deposits, time deposits on which interest is to be paid, and deposits for which a bank has issued its certificates of deposit.
(Acts 1980, No. 80-658, p. 1259, §5-5-28; Acts 1988, No. 88-260, p. 401; Act 2007-224, p. 284, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-29 - Security Not Required When Deposits Insured.

Section 5-5A-29
Security not required when deposits insured.
Notwithstanding any provision of law of this state or of any political subdivision of the state or any agency or governmental instrumentality of such subdivision requiring security for deposits in the form of collateral, surety bond or in any other form, security for such deposits shall not be required to the extent said deposits are insured by the Federal Deposit Insurance Corporation or any successor thereto.
(Acts 1980, No. 80-658, §5-5-29.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-30 - Transactions of Business on Legal Holidays; Use of Automated Teller Machine or Other Instrumentality, Transaction Fees, Disclosure; Limitation on Contractual Fee Restrictions, Intent of Limitation, Applicability.

Section 5-5A-30
Transactions of business on legal holidays; use of automated teller machine or other instrumentality, transaction fees, disclosure; limitation on contractual fee restrictions, intent of limitation, applicability.
(a) Any bank may lawfully receive deposits or paychecks or sight drafts and transact any other business on any legal holiday, excepting Sunday, in the same manner and way that it is authorized to do on any legal banking day.
(b) Nothing in this section, nor any other law of this state, shall be construed to prohibit a bank the use of an automated teller machine, or other instrumentality as authorized by Section 5-2A-7 and Section 5-2A-8, 24 hours each day of the week including Sunday, and the use of the machine or other instrumentality by any bank is hereby authorized, provided the machine or other instrumentality and the use thereof is first approved by the appropriate bank regulatory authority, if the approval is required. A bank owning or operating a machine or other instrumentality may charge a transaction fee to the person using the machine or other instrumentality. The transaction fee shall be disclosed: (i) on a sign posted on the machine or other instrumentality or at a location in view of a person while viewing the machine or other instrumentality; or (ii) electronically during the course of the transaction in a manner that permits a person to cancel the transaction without incurring the transaction fee.
(c) No contract with a bank organized under the laws of this state or a national bank located in this state permitting the use of any automated teller machine or other instrumentality owned or operated by a bank by customers of any other financial institution shall prohibit, limit, or restrict the right of the bank to charge any fees not prohibited to the bank by law or require a bank to limit or waive its rights under this chapter.
(d) The amendments to subsection (b) made by Acts 1994, No. 94-104 shall be cumulative with, declare, and clarify existing law. The transaction fee shall be in addition to any fees and charges to which a bank and its customer may agree from time to time with regard to the use of any automated teller machine or other instrumentality.
(e) Subsection (c) shall apply to all contracts permitting the use of automated teller machines or other instrumentalities by customers of another financial institution irrespective of whether the contract was entered into before or after February 18, 1994.
(Acts 1980, No. 80-658, p. 1259, §5-5-30; Acts 1994, No. 94-104, p. 114, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-31 - Liability for Transactions on Legal Holidays.

Section 5-5A-31
Liability for transactions on legal holidays.
A bank shall be liable for and chargeable with deposits received and other business transacted on a legal holiday the same as if such deposit were received or business transacted on a legal banking day and shall have the same protection for payment of checks or sight drafts and business on a holiday that it would have if such payments were made and such transactions had on a legal banking day.
(Acts 1980, No. 80-658, §5-5-31.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-32 - Closing of Banks, etc., Permitted on One Business Day of Each Week.

Section 5-5A-32
Closing of banks, etc., permitted on one business day of each week.
(a) Any bank or any branch or branches thereof may close on any one business day of each week and shall have this right even though there shall fall in such week a holiday as established in Section 1-3-8. If the superintendent should determine that an emergency should exist, he may authorize any bank or any branch or branches thereof to close on one or more business days.
(b) Any such day upon which such bank or any branch or branches thereof may elect to close shall with respect to such institution be deemed a holiday for all purposes and not a business day. All acts omitted or done by such bank or any branch or branches thereof upon any such day shall have the same consequence and effect as if omitted or done upon the next succeeding business day, and any act authorized, required or permitted to be performed at or with respect to any such bank or any branch or branches thereof on the days so fixed may be performed on the next succeeding business day, and no liability or loss of rights of any kind shall result from such delay to any person or to any bank, or any branch or branches thereof.
(Acts 1980, No. 80-658, §5-5-32.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-33 - Bank to Pay Checks Drawn on It at Par.

Section 5-5A-33
Bank to pay checks drawn on it at par.
Any bank shall pay all checks drawn on it and transmitted in a cash letter at par and shall make no charge for the payment of such checks the first time presented to it for payment.
(Acts 1980, No. 80-658, §5-5-33.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-35 - Agreements Between Principal and Sureties on Bond for Deposit of Money and Assets in Bank, Etc.

Section 5-5A-35
Agreements between principal and sureties on bond for deposit of money and assets in bank, etc.
It shall be lawful for any party of whom a bond, undertaking or other obligation is required to agree with his surety or sureties for the deposit of any or all money and assets for which he and his surety or sureties are or may be held responsible with a bank, or with other depository approved by the court or a judge thereof, if such deposit is otherwise proper, for the safekeeping thereof, and in such manner as to prevent the withdrawal of such money or assets or any part thereof, without the written consent of such surety or sureties, or an order of court or a judge thereof made on such notice to such surety or sureties as such court or judge may direct; provided, however, that such agreement shall not in any manner release from or change the liability of the principal or sureties as established by the terms of the bond.
(Acts 1980, No. 80-658, §5-5-35.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-36 - Notice Upon Maturity of Certificate of Deposit Issued for More Than 90 Days.

Section 5-5A-36
Notice upon maturity of certificate of deposit issued for more than 90 days.
In the case of certificates of deposit issued for more than 90 days which are automatically renewable, a bank shall send within a reasonable period, but in no event less than five days before the next maturity, a written notice to the last known address of record.
(Acts 1980, No. 80-658, §5-5-36.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-37 - Rights of Minors.

Section 5-5A-37
Rights of minors.
A minor may make, in her or his own name, a deposit in any bank, and such deposit may be general or special, and shall be paid only to such minor, or upon his or her order, and not to the parents or guardians of such minor, and such payment shall be valid as against the minor child, his or her parents or guardian.
(Acts 1980, No. 80-658, §5-5-37.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-38 - Disposition of Small Deposits of Deceased Person - to Whom Payable; When Bond Required.

Section 5-5A-38
Disposition of small deposits of deceased person - To whom payable; when bond required.
Whenever a person shall die leaving deposits in a bank not exceeding $5,000.00 in the aggregate, the bank may in its discretion discharge itself from liability thereafter by paying the deposits to the surviving spouse of the deceased or, if there is none, to the adult children and to the person having the actual custody and control of the minor child or children of the deceased; provided, that such person, if not the legal guardian, shall execute to the probate judge of the county where the principal office of the bank is located a bond in the penal sum of double the amount of the portion of such deposit he receives for the faithful accounting of the money so received, which shall be approved by said probate judge; or, if there is no surviving spouse or child or children, to the person or persons who, under the laws of Alabama, are the next of kin and inherit the personal property of the deceased. The bank shall be fully protected by requiring an affidavit by some reputable citizen as to the facts specified.
(Acts 1980, No. 80-658, §5-5-38.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-39 - Disposition of Small Deposits of Deceased Person - Time for Payment; When Payment Prohibited.

Section 5-5A-39
Disposition of small deposits of deceased person - Time for payment; when payment prohibited.
No payment shall be made pursuant to Section 5-5A-38 by the bank before the lapse of 60 days from the date of the death of the deceased, and no payment shall be made by the bank under this section if letters testamentary or of administration have been issued to a personal representative or a proceeding is pending in the court in this state which would have jurisdiction of the administration of the estate. The bank shall be fully protected by requiring an affidavit by some reputable citizen as to the facts specified.
(Acts 1980, No. 80-658, §5-5-39.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-40 - Disposition of Deposit in Trust for Another Upon Death of Trustee.

Section 5-5A-40
Disposition of deposit in trust for another upon death of trustee.
Whenever any deposit shall be made in any bank by any person in trust for another and no other or further notice of the existence and terms of a legal and valid trust shall have been given in writing to and received by the bank, in the event of the death of the trustee, such deposit or any part thereof, together with any interest thereon, may be paid to the person for whom said deposit was made, whether a minor or adult, and the receipt or acquittance of such person shall fully relieve and release said bank from all liability.
(Acts 1980, No. 80-658, §5-5-40.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-41 - Payment of Deposits Made in Names of Two Persons Upon Death of One; More Than Two Persons With Provision for Survivorship.

Section 5-5A-41
Payment of deposits made in names of two persons upon death of one; more than two persons with provision for survivorship.
(a) Any deposit heretofore or hereafter made in any bank in the names of two or more persons payable to any of such persons, upon the death of either of said persons, may be paid by the bank to the survivors jointly, irrespective of whether or not:
(1) The form of the deposit or deposit contract contains any provision for survivorship;
(2) The funds deposited were the property of only one said person;
(3) There was at the time of making such deposit any intention on the part of the person making such deposit to vest the other with a present interest therein;
(4) Only one of said persons during their joint lives had the right to withdraw such deposit;
(5) There was any delivery of any bank book, account book, savings account book, certificate of deposit or other writing by the person making such deposit to the other of such persons; or
(6) Any other circumstances.
The bank in which such deposit is made may pay such deposit, or any part thereof or interest thereon, to either of said persons, or if one is dead, to the surviving of them, and such payment shall fully release and discharge the bank from all liability for any payment so made.
(b) The provisions of this section shall apply to savings accounts, checking accounts and certificates of deposit and shall also apply to any deposit made in the names of more than two persons where there is an express written provision for survivorship in the deposit contract.
(c) Nothing contained in this section shall be construed to prohibit the person making such deposit from withdrawing or collecting the same during his lifetime; nor shall anything contained in this section prohibit any person or persons making a deposit in the names of more than one person from providing for disposition of such deposit and interest thereon in a manner different from that provided above in this section, provided such different manner of disposition is expressly provided for in writing in the deposit contract.
(Acts 1980, No. 80-658, §5-5-41.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-42 - Adverse Claims to Deposits.

Section 5-5A-42
Adverse claims to deposits.
Notice to any bank of an adverse claim to a deposit standing on its books to the credit of any person shall not be effectual to cause said bank to recognize said adverse claimant unless said adverse claimant shall also either procure a restraining order, injunction or other appropriate process against said bank from a court of competent jurisdiction in a civil action therein instituted by such claimant wherein the person to whose credit the deposit stands is made a party and served with summons or shall execute to said bank in form and with sureties acceptable to it, a bond indemnifying said bank from any and all liability, loss, damage, costs and expenses for and on account of the payment or recognition of such adverse claim or the dishonor of or failure to pay the check or failure to comply with other order of the person to whose credit the deposit stands on the books of said bank; provided, that this section shall not apply in any instance where the person to whose credit the deposit stands is a fiduciary for such adverse claimant and the facts constituting such relationship, as well as the facts showing reasonable cause of belief on the part of the said claimant that the said fiduciary is about to misappropriate said deposit, are made to appear by the affidavit of such claimant.
(Acts 1980, No. 80-658, §5-5-42.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-43 - Disclosure of Customer Financial Records.

Section 5-5A-43
Disclosure of customer financial records.
A bank shall disclose financial records of its customers pursuant to a lawful subpoena, summons, warrant or court order issued by or at the request of any state agency, political subdivision, instrumentality, or officer or employee thereof and served upon the bank. No bank, director, officer, employee or agent thereof shall be held civilly or criminally responsible for disclosure of financial records pursuant to a subpoena, summons, warrant or court order which on its face appears to have been issued upon lawful authority.
(Acts 1980, No. 80-658, §5-5-43.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-45 - Initiation of Run on Banks, Etc.

Section 5-5A-45
Initiation of run on banks, etc.
Any person or persons whose business it is, either as individuals, agents or officers of banks, to receive checks, drafts and demands, when the same are not entitled to days of grace, upon any bank, and who receives the same, for collection and retains the same for an unreasonable time, without making known to the drawee bank that such collections and demands are held for collection, in order to accumulate a large amount for the purpose of starting what is commonly called a "run" on such bank, or for the purpose of embarrassing such drawee bank shall be guilty of a misdemeanor.
(Acts 1980, No. 80-658, §5-5-45.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-46 - False, etc., Statements, etc., Affecting Financial Standing of Bank.

Section 5-5A-46
False, etc., statements, etc., affecting financial standing of bank.
Any person who shall willfully and maliciously make, circulate or transmit to another or others any false, libelous or slanderous statement, rumor or suggestion written, printed or by word of mouth which is directly or by inference derogatory to the financial condition, or affects the solvency or financial standing of any bank, or who shall counsel, aid, procure or induce another to start, transmit or circulate any such statement or rumor shall be guilty of a misdemeanor.
(Acts 1980, No. 80-658, §5-5-46.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 5A - Organization and Operation of Banks. › Section 5-5A-47 - Liability of Directors or Officers; Enforcement Powers of Superintendent.

Section 5-5A-47
Liability of directors or officers; enforcement powers of superintendent.
If the directors or officers of any bank knowingly and willfully violate or knowingly and willfully permit any of the officers, agents, or employees of the bank to violate any of the provisions of this title, each and every director or officer engaging in such knowing and willful violation or knowing and willful permission shall be liable in his or her personal and individual capacity for all damages which the bank or any other person shall have sustained in consequence of such violation. The superintendent may use enforcement powers granted by Section 5-2A-12 to seek restitution for or on behalf of the bank for damages resulting from such violations. Further, the superintendent shall have standing to intervene in any court action arising out of or relating to such violation in order to protect the interests of the superintendent, the bank, or its shareholders.
(Acts 1980, No. 80-658, §5-5-47; Act 2007-224, p. 284, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 6A - Directors, Officers, and Employees. › Article 1 - General Provisions. › Section 5-6A-1 - Directors of Banks to Own Stock in Bank; Citizenship and Residence of Directors.

Section 5-6A-1
Directors of banks to own stock in bank; citizenship and residence of directors.
Not less than 75 percent of the directors of a bank shall, during their whole term of service, be citizens of the United States. Every director of a bank shall be the owner and holder of shares of stock in the bank or parent bank holding company. Every director shall hold such shares in his or her own name, unpledged and unencumbered in any way except statutory lien which might attach in favor of such corporation. No person convicted of a felony or a crime involving moral turpitude shall serve as a director. At least 51 percent of the directors of every bank shall be residents of the state. Any director at any time violating any of the provisions of this section shall be removed from office by the board of directors or by the superintendent when the facts are made known to the superintendent.
(Acts 1980, No. 80-658, §5-6-1; Act 98-244, p. 403, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 6A - Directors, Officers, and Employees. › Article 1 - General Provisions. › Section 5-6A-2 - Oath of Directors.

Section 5-6A-2
Oath of directors.
Every such director shall, within 30 days after his election, take and subscribe, in duplicate, an oath that he will diligently and honestly perform his duties as such director, not knowingly violate or permit to be violated any provision of the banking law of this state and that he is the owner in good faith of the shares of stock of the bank or company required to qualify him for such office, standing in his own name on its books. A copy of such oath shall be forthwith filed with the Superintendent of Banks. No director shall perform the duties of his office until such oath is made, and in case a director fails to make such oath, his place on the board shall be declared vacant and his successor elected as prescribed by the bylaws of the bank, such successor being required to have the same qualifications and take the same oath as provided by this chapter.
(Acts 1980, No. 80-658, §5-6-2.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 6A - Directors, Officers, and Employees. › Article 1 - General Provisions. › Section 5-6A-3 - Meeting of Board of Directors; Bonds of Officers and Employees of Banks.

Section 5-6A-3
Meeting of board of directors; bonds of officers and employees of banks.
(a) The board of directors of any bank shall hold regular meetings at such time as may be fixed by the bylaws, at least once every two months, and shall at all times be subject to call by the president or by any two members of the board. Notwithstanding contrary provision in the certificate of incorporation or bylaws of a bank, meetings of the board of directors may be called by the superintendent and held at any place he requires.
(b) The board of directors, at their first meeting after election, shall fix and prescribe the amount of bond that shall be required of each officer and employee of the bank, and shall not be less than the amount that may have been fixed or that may be hereafter fixed by the superintendent for officers and employees of banks of the class to which it belongs. They shall require bonds, either individual or in blanket form, from each and every officer and employee handling money, checks, securities or other valuable papers of the bank, such bond to be made by a bonding company authorized to make such bonds in this state to be approved by the board of directors and to be in such form as may be approved by the superintendent. The superintendent or the board of directors of the bank may require an increase of the amount of such bond or other additional bond and securities, when he or they deem it necessary for the better protection of the bank and its depositors. Directors, as such, shall not be required to give bond.
(Acts 1980, No. 80-658, §5-6-3.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 6A - Directors, Officers, and Employees. › Article 2 - Prohibited Acts. › Section 5-6A-20 - Declaration of Illegal Dividends, Discounts of Notes, Etc.

Section 5-6A-20
Declaration of illegal dividends, discounts of notes, etc.
Any director of a bank who knowingly concurs in any vote or act of the directors of such bank by which it is intended to pay a cash dividend except from the undivided profits arising from the business of the bank in violation of Section 5-5A-21, or to make or approve a loan with the stock of the lending bank as security therefor; to divide, withdraw or in any manner pay to the stockholders or any of them any part of the capital of the bank, or to purchase or reduce such capital, except in pursuance of law; or to discount or receive any note or other evidence of debt in payment of any installment of purchase price of capital actually called in and required to be paid, or with intention to provide the means of making such payment; or to receive or discount any note or other evidence of debt with the intent to enable any stockholder to withdraw any part of the money paid in by him on his stock; or to apply any portion of the funds of such corporation except as allowed by law, directly or indirectly, to the purchase of shares of its stock, is guilty of a misdemeanor.
(Acts 1980, No. 80-658, §5-6-20.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 6A - Directors, Officers, and Employees. › Article 2 - Prohibited Acts. › Section 5-6A-21 - Concealment of Loans, Purchase or Sale of Security, Etc.

Section 5-6A-21
Concealment of loans, purchase or sale of security, etc.
Any officer or employee of a bank who intentionally conceals from the directors or a committee of such bank where the directors have delegated authority to a committee to pass on loans and discounts, any discount or loan made for and in behalf of the bank between the regular meetings of its board of directors or committee or the purchase or the sale of any of its securities during the same period is guilty of a misdemeanor.
(Acts 1980, No. 80-658, §5-6-21.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 6A - Directors, Officers, and Employees. › Article 2 - Prohibited Acts. › Section 5-6A-22 - Overdrawing Own Account; Receipt of Commissions, etc., to Procure Loans, Discounts, Etc.

Section 5-6A-22
Overdrawing own account; receipt of commissions, etc., to procure loans, discounts, etc.
Any officer, director, or employee of a bank who willfully and knowingly overdraws his account with such bank and thereby obtains money or funds of any such bank except as the superintendent shall allow by regulation, or asks, receives, consents or agrees to receive any commission, emolument, gratuity, or reward or any promise of any commission, emolument or reward, or any money, property or thing of value or of personal advantage in procuring or endeavoring to procure for any person, firm or corporation any loan from or the purchase or discount of any paper, note, draft, check or bill of exchange by any such bank is guilty of a misdemeanor.
(Acts 1980, No. 80-658, §5-6-22.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 6A - Directors, Officers, and Employees. › Article 2 - Prohibited Acts. › Section 5-6A-23 - Receipt or Possession of Bank Property With Intent to Defraud, Etc.

Section 5-6A-23
Receipt or possession of bank property with intent to defraud, etc.
Any director, officer or employee of a bank who knowingly receives or possesses himself of any of its property otherwise than in payment for a just demand and with intent to defraud shall be guilty of a felony.
(Acts 1980, No. 80-658, §5-6-23.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 6A - Directors, Officers, and Employees. › Article 2 - Prohibited Acts. › Section 5-6A-24 - Making of False Entries, etc., on Books and Accounts of Bank.

Section 5-6A-24
Making of false entries, etc., on books and accounts of bank.
Any director, officer or employee of a bank who with intent to defraud makes or concurs in making any false entry, or with intent to defraud omits or concurs in omitting to make any material entry on its books and accounts, shall be guilty of a felony.
(Acts 1980, No. 80-658, §5-6-24.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 6A - Directors, Officers, and Employees. › Article 2 - Prohibited Acts. › Section 5-6A-25 - Fraudulent Representation as to Capital, False Reports, etc., as to Condition of Bank, Etc.

Section 5-6A-25
Fraudulent representation as to capital, false reports, etc., as to condition of bank, etc.
Any director, officer, or employee of a bank who knowingly, by newspaper advertisement or otherwise, represents its capital to be in excess of the actual capital accounts or knowingly concurs in making or publishing any materially false written report, exhibit, or statement of its financial condition, making any material statement which is false, or refuses or intentionally neglects to make any report or statement required by Chapters 1A through 13B and Chapter 20 of this title is guilty of a felony.
(Acts 1980, No. 80-658, §5-6-25; Acts 1995, No. 95-115, p. 134, §73.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 6A - Directors, Officers, and Employees. › Article 2 - Prohibited Acts. › Section 5-6A-26 - Loans or Extension of Credit to Bank Officers and Employees.

Section 5-6A-26
Loans or extension of credit to bank officers and employees.
An officer or employee of any bank who shall in any way obtain as a borrower any of the funds of such bank without having first complied with the requirements of this section must on conviction be punished as if he had embezzled the amount borrowed.
Any loan obtained by an officer or employee of a bank must be made in accordance with a written loan policy which has been adopted by the board of directors. Such loans or extensions of credit may be made only if (i) the bank would be authorized to make such loans or extensions of credit to borrowers other than officers and employees and (ii) such loans or extensions of credit to officers and employees do not involve more than the normal risk of repayment or present other unfavorable features. All such loans, extensions of credit, or lines of credit to an officer must be reported to the board of directors at its next meeting.
(Acts 1980, No. 80-658, §5-6-26.)