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Pennsylvania Statutes Title 7 P.S. Banks and Banking § 1003. Prohibition of promoters’ fees

Current as of January 01, 2022 | Updated by FindLaw Staff

(a) Prohibited fees--An institution shall not pay any fee, compensation or commission for promotion in connection with its organization or apply any money received on account of shares or subscriptions for shares to promoters' fees for obtaining subscriptions, selling shares or other services in connection with its organization, except legal fees and other usual and ordinary expenses, including reasonable brokers' fees, commissions and underwriting costs, necessary for its organization.

(b) Affidavit of incorporators--A majority of the incorporators shall file with the department at the time of filing of the articles an affidavit:

(i) setting forth all expenses incurred or to be incurred in connection with the organization of the institution, subscriptions for its shares and sale of its shares, and

(ii) stating that no fee, compensation or commission prohibited by subsection (a) of this section has been paid or incurred.

(c) Disapproval of articles--In the event of a violation of this section the department may disapprove the articles on account of such violation.

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Cite this article: FindLaw.com - Pennsylvania Statutes Title 7 P.S. Banks and Banking § 1003. Prohibition of promoters’ fees - last updated January 01, 2022 | https://codes.findlaw.com/pa/title-7-ps-banks-and-banking/pa-st-sect-7-1003/

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