Pennsylvania Statutes Title 7 P.S. Banks and Banking § 1303. Distributions of shares of institution

(a) Authorized distributions--The board of directors of an institution may distribute pro rata to holders of any class of its shares from time to time treasury shares and authorized but unissued shares of the institution, subject to the restrictions of this act and to the restrictions, if any, in its articles.

(b) Capital and surplus requirements--No distribution may be made in authorized but unissued shares of the institution unless:

(c) When shareholder approval required--No distribution of shares of any class may be made to holders of shares of any other class unless the articles so provide or unless such distribution is authorized by the affirmative vote or written consent of the holders of a majority of the outstanding shares of the class in which the distribution is made.

(d) Cash in lieu of fractional shares--In lieu of issuing fractional shares in any distribution authorized by this section, the institution may pay in cash the fair value thereof, as determined by the board of directors, to shareholders entitled thereto.