§ 53-117. Appointment by Commissioner of Banks; examination of banks.
Article9.
Bank Examiners.
§ 53‑117. Appointmentby Commissioner of Banks; examination of banks.
(a) The Commissioner ofBanks, for the purpose of carrying out the provisions of this Chapter, shallappoint from time to time such State bank examiners, assistant State bankexaminers, clerks and stenographers as may be necessary to examine the affairsof every bank doing business under this Chapter as often as the Commissioner ofBanks shall deem necessary, and at least once every year; but the Commissionermay extend this period to 18 months when, in his opinion, an emergencycondition exists that necessitates such action. The Commissioner of Banks may,at any time, remove any person appointed by him under this Chapter.
(b) The State BankingCommission shall adopt rules and regulations to implement the provisions ofthis Chapter, prescribing the nature and scope of examination of banks.
(c) The Commissioner ofBanks is authorized to accept, in his discretion, as a part of a bankexamination, reports on audits conducted in accordance with generally acceptedauditing standards by independent accountants, when such reports contain anopinion by the independent accountant on the fairness of presentation of thefinancial statements and present information required by the rules andregulations of the State Banking Commission. No report of an audit of any bankshall be acceptable under this subsection if such audit was made by a person,firm or corporation who is a director, officer or employee of a bank or has a financialinterest, other than as a depositor or obligor upon a fully collateralizedloan, in the bank which is the subject of the audit.
(d) In the case of abank which is a member of the Federal Reserve System or in the case of a bankwhose deposits are insured by the Federal Deposit Insurance Corporation, theCommissioner of Banks is authorized to accept, in his discretion, as a part ofthe examinations prescribed in subsection (b) of this section, examinations andreports made pursuant to the Federal Reserve Act or the Federal DepositInsurance Corporation Act. (1921, c. 4, s. 72; C.S., s. 223(a); 1931, c. 243, s.5; 1967, c. 789, s. 17; 1977, c. 684, s. 1; 1977, 2nd Sess., c. 1181, s. 1.)