Section 3-304 - Loans on and Acquisitions of Own Stock Prohibited

(a) Except as necessary to prevent a loss on a loan previously made in good faith, a commercial bank may not: (1) Make any loan secured by any of its outstanding capital stock; or (2) Buy or hold any of its outstanding capital stock. (b) If a commercial bank buys or holds any of its outstanding capital stock, the commercial bank shall sell the stock at public or private sale within: (1) 1 year after the date of acquisition; or (2) Any longer period that the Commissioner authorizes.