2005 Minnesota Statutes

     48.605 State banks, employee stock option and stock 
  purchase plans. 

    Subdivision 1.    Authority and terms.  Any state bank may grant 
 options to 
 purchase, sell, or enter into agreements to sell shares of its 
 capital stock to its employees, for a consideration of not less 
 than 100 percent of the fair market value of the shares on the 
 date the option is granted or, if pursuant to a stock purchase 
 plan, 85 percent of the fair market value on the date the 
 purchase price is fixed, pursuant to the terms of an employee 
 restricted stock option plan or employee stock purchase plan 
 which has been adopted by the board of directors of the bank and 
 approved by the holders of at least three-fourths of the 
 outstanding shares of the bank entitled to vote and by the 
 commissioner of commerce.  Stock options issued hereunder shall 
 not extend beyond a period of ten years from date of issuance 
 and shall otherwise qualify as restricted stock options under 
 the Internal Revenue Code, and acts amendatory thereof. 

    Subd. 2.    Exercise or purchase.  Employee stock options and 
 stock purchase 
 agreements may provide that options may be exercisable or that 
 shares may be purchased on any business day.  

    Subd. 3.    Capital stock increase.  Any state bank to carry out 
 the provisions of 
 this section, may increase its capital stock as provided by law 
 and upon approval of the commissioner of commerce as provided by 
 Minnesota Statutes 1961, section 48.04, except that the 
 provisions of said section requiring the entire new capital to 
 be immediately paid in cash shall not apply.  Notwithstanding 
 any law to the contrary the bank may hold such authorized but 
 unissued new capital stock but only for the purpose of disposing 
 of the same by the issuing of shares to its employees as 
 authorized by this section.  All proceeds from the issuance and 
 sale of such shares shall be paid into the capital and surplus 
 of the bank.  Stock and options issued pursuant to this section 
 shall not increase the capital or surplus of the bank until the 
 stock is paid for in full in cash and certified to the 
 commissioner.  

    HIST: 1965 c 369 s 1; 1969 c 6 s 8; 1983 c 216 art 1 s 14; 
 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s 92