1. A. A board member, when initially elected, shall take an oath that:

   1. (1) he will, so far as the duty devolves upon him, diligently and honestly administer the affairs of the bank and will not knowingly violate or willingly permit to be violated any of the provisions of the Banking Act; and
   2. (2) he is the owner, in good faith and in his own right or jointly with his spouse, of the number of shares of stock required by law standing in his name on the books of the corporation and that the stock is not hypothecated or in any way pledged as security for any loan or debt.
2. B. The oath, subscribed by the board member making it and certified by the notary public before whom it was taken, shall be immediately transmitted to the director of the division and shall be filed and preserved in his office.

History: 1953 Comp., § 48-2-10, enacted by Laws 1975, ch. 330, § 1; 1977, ch. 245, § 19; 1995, ch. 190, § 13.

ANNOTATIONS

The 1995 amendment, effective June 16, 1995, substituted the introductory sentence in Subsection A for "A director, when selected, shall take an oath that", substituted "the" for "such" preceding "bank" in Paragraph (1) of Subsection A, substituted "stock" for "same" preceding "is not hypothecated" in Paragraph (2) of Subsection A, and substituted "The oath, subscribed by the board member" for "Such oath, subscribed by the director" and "director of the division" for "director of the financial institutions division" in Subsection B.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 10 Am. Jur. 2d Banks §§ 78, 79, 221.

Liability, under National Banking Act (12 USCS § 93), of national bank directors for retaliation against office or employee who discloses or refuses to commit banking irregularity, 101 A.L.R. Fed. 377.

9 C.J.S. Banks and Banking § 103.