§ 5.67 Fractional shares.
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Title 12 CFR: Banks and Banking › Chapter I: COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY › Part 5: RULES, POLICIES, AND PROCEDURES FOR CORPORATE ACTIVITIES › Subpart E: Payment of Dividends by National Banks › § 5.67: § 5.67 Fractional shares.
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A national bank issuing additional stock may adopt arrangements to preclude the issuance of fractional shares. The bank may remit the cash equivalent of the fraction not being issued to those to whom fractional shares would otherwise be issued. The cash equivalent is based on the market value of the stock, if there is an established and active market in the national bank's stock. In the absence of such a market, the cash equivalent is based on a reliable and disinterested determination as to the fair market value of the stock if such stock is available. The bank may propose an alternate method in the application for the stock issuance filed with the OCC.
[85 FR 80470, Dec. 11, 2020]
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