2013 New York Consolidated Laws
BNK - Banking
Article 8 - (317 - 330) SAFE DEPOSIT COMPANIES.
323 - Assessment of stockholders to make good impairment of capital; sale of stock.

 
    § 323.  Assessment of stockholders to make good impairment of capital;
  sale of stock.
    Whenever the superintendent shall have made requisition upon any  safe
  deposit  company  pursuant  to  the  provisions  of  article two of this
  chapter to make good the amount of an impairment  of  its  capital,  the
  directors  of  the safe deposit company shall immediately give notice of
  such requisition to each stockholder of the  amount  of  the  assessment
  which  he  must pay for the purpose of making good such deficiency, by a
  written or printed notice mailed to such stockholder  at  his  place  of
  residence,  or  served  personally  upon  him.  If any stockholder shall
  refuse or neglect to pay the assessment specified in such notice  within
  sixty  days  from  the  date thereof, the directors of such safe deposit
  company shall have the right to sell to the  highest  bidder  at  public
  auction  the  stock of such stockholder, after giving previous notice of
  such sale once a week for two successive weeks in a newspaper of general
  circulation in the county  where  the  principal  office  of  such  safe
  deposit  company  is located; or such stock may be sold at private sale,
  and without such published notice, provided, however, that before making
  a private sale thereof an offer in writing to purchase such stock  shall
  first be obtained, and a copy thereof served upon the owner of record of
  the  stock  sought  to be sold either personally or by mailing a copy of
  such offer to such owner at  his  place  of  residence  or  the  address
  furnished  by  him to the safe deposit company; and if, after service of
  such offer, such owner  shall  still  refuse  or  neglect  to  pay  such
  assessment  within two weeks from the time of service of such offer, the
  said directors may accept such offer and sell such stock to  the  person
  or persons making such offer, or to any other person or persons making a
  larger  offer  than  the  amount  named  in  the offer submitted to such
  stockholder; but said stock shall in no event be sold for a smaller  sum
  than  the amount of the assessment called for and the necessary costs of
  sale. Out of the avails of the stock sold the directors  shall  pay  the
  necessary  costs  of  sale  and  the amount of the assessment called for
  thereon. The balance, if any, shall be paid to  the  person  or  persons
  whose stock has been thus sold. A sale of stock as herein provided shall
  effect  an  absolute  cancellation  of  the  outstanding  certificate or
  certificates evidencing the stock so sold, and  shall  render  the  same
  null  and  void and a new certificate or certificates shall be issued to
  the purchaser or purchasers of said stock.