(a) A state trust company may not reduce or increase its outstanding capital through dividend, redemption, issuance of shares or participation shares, or otherwise, without the prior approval of the commissioner, except as permitted by this section or rules adopted under this article.
(b) Unless otherwise restricted by rules or regulations, prior approval is not required for an increase in capital accomplished through:
(1) Issuance of shares of common stock or their equivalent in participation shares for cash;
(2) Declaration and payment of pro rata share dividends as defined in the Mississippi Business Corporation Act; or
(3) Adoption by the board of a resolution directing that all or part of undivided profits be transferred to capital.
(c) Prior approval is not required for a decrease in surplus caused by incurred losses in excess of undivided profits.
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