Capital increase by existing shareholders

(1) On the basis of the report produced under section 90 (Powers and duties of the statutory administrator) and with the approval of the Central Bank, the statutory administrator may take the following action to increase the licensee’s capital through the issuance of new shares– (a) determine from the licensee’s balance sheet the amount of additional capital needed to bring the licensee’s capital into compliance with all capital requirements; and (b) notify existing shareholders of the amount of additional capital needed to bring the licensee’s capital into compliance with all and allow such shareholders to subscribe and purchase additional shares, by submitting binding commitments equal to the full amount of 160 additional capital needed, within five business days of such notification. (2) Existing shareholders of a licensee in statutory administration shall have no preemptive or other rights to purchase additional shares issued except as provided in this section.