Whereas, The deferred operation of this act would tend to defeat its purpose, which is to immediately permit banks, in conjunction with their authority to convert to stock form, to repurchase stocks previously issued, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.
Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
Chapter 167E of the General Laws is hereby amended by striking out section 13, as appearing in the 1986 Official Edition, and inserting in place thereof the following section:-
Section 13. No such bank shall directly or indirectly make a loan or discount on the security of the shares of its own capital stock or on the security of the shares of capital stock of any company, fifty per cent or more of the assets of which consists of capital stock of such corporation, unless such security shall be necessary to prevent loss upon a debt previously contracted in good faith. Any officer or employee of a bank who knowingly violates any provision of this section shall be punished by a fine of not more than five thousand dollars or by imprisonment for not more than one year, or both.