Montana Attorney General Opinion 16-62

Opinion No. 62. Banks and Banking-Preferred Stock, Classes of. HELD: A state bank may issue preferred stock of two different classes, one subordinate to the other, subject to the approval of the super- intendent of banks as provided in Section 3 of Chapter 15, Laws of the Extraordinary SeSSion, 1933-34. March 16, 1935. Hon. Frank H. Johnson Superintendent of Banks The Capitol You have requested my opmlOn as to whether a state bank may issue preferred stock in different and sep- 58 OPINIONS OF THE ATTORNEY GENERAL arate series. for example. an issue of $20.000 into two series to be known as Series "A." $10.000 and Series "B." $10.000. the second series to be subordinated to the first series but both to be preferred stocks. Chapter 15. Laws of 1933-34. Ex- traordinary Session. authorizes the issuance of non-assessable preferred stock. The only statutory restriction we find upon the issuance of such preferred stock is found in Section 3 of said chapter. as follows: "Such preferred stock may be issued and sold upon such terms and conditions as may be approved by the Superin- tendent of Banks. or as may be re- quired for the purchase of such stock by the Reconstruction Finance Cor- poration or other agency or quasi- agency of the Federal government." Since the issuance of preferred stock has been expressly authorized without other statutory restriction. it is my opinion that a state bank may issue the two series of preferred stock as above described. subject. however. to the approval of the su- perintendent of banks or as provided in said Section 3.