Salisbury Bancorp, the holding company for Salisbury Bank and Trust Company, has received preliminary approval from the US Treasury to participate in the Treasury’s capital purchase programme in the amount of $8.82 million.
If the company participates in the Treasury’s capital purchase programme (CPP), it will issue to the U.S. Treasury preferred stock and warrants to purchase common stock.
If the company determines to participate in the Treasury’s CPP, it will be necessary to hold a meeting of shareholders to consider approval of an amendment to the company’s certificate of incorporation to authorise shares of preferred stock.
Salisbury Bancorp said that there can be no assurance that the company will participate in the Treasury’s CPP or if it does, the amount of its participation.
The U.S. Treasury recently created the capital purchase programme (CPP) which is part of the troubled assets relief programme to encourage qualifying U.S. financial institutions to increase the flow of financing to businesses and consumers, thereby restoring liquidity and stability to the U.S. financial system. Companies participating in the programme must adopt the Treasury Department’s standards for executive compensation and corporate governance, for the period during which Treasury holds equity issued under this programme. These standards generally apply to the chief executive officer, chief financial officer and the next three most highly compensated executive officers. The approval is subject to certain conditions and the execution of definitive agreements.
