New Jersey Code § 17:9A-211

Liability secured by own stock
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17:9A-211. Liability secured by own stock
No bank shall permit the incurring of any liability to it on the security of shares of its own capital stock; but a bank may take shares of its own capital stock as security or additional security for a debt previously contracted in good faith.
L.1948, c. 67, p. 349, s. 211.

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