§ 18137 Capital Stock Reduction Prohibition

• •Companies that lend money must keep a minimum amount of money.
• •They can't give back money to owners if it leaves them with too little.
• •They also can't do this if they still owe money to others.

A small bank wants to give back some of its money to its owners.

The bank can't do this if it would leave them with less money than the law says they must keep, or less than what they owe to people who lent them money.