Section 1105 - Capital securitiesNotes, debentures and other obligations issued by an institution shall be deemed "capital securities" for the purpose of this act if they:
(a) Are subordinated in right of payment, in the event of insolvency or liquidation of the institution, to the prior payment of all deposits of the institution and of all claims of other creditors of the institution except the holders of securities on a parity therewith and the holders of securities expressly subordinated thereto,(b) Are authorized by the same votes of directors and shareholders as those required for authorization of an increase in capital stock of the institution,(c) Contain provisions for amortization, serial maturities, transfers to a sinking fund, allocation of reserves or such other provisions as the department may require, and(d) Are approved by the department prior to the issue thereof.1965, Nov. 30, P.L. 847, No. 356, § 1105. Amended 1977, July 25, P.L. 101, No. 37, § 7, imd. effective.