§ 53-42.1. Change in bank control or management.
§53‑42.1. Change in bank control or management.
(a) (1) Noperson shall acquire voting stock of any bank or bank holding company, asdefined in section 2 of the Bank Holding Company Act of 1956 as amended, whichwill result in a change in the control of the bank or bank holding companyunless the Commissioner of Banks shall have approved the proposed acquisition.
(2) Written applicationfor the proposed change in control of a bank or bank holding company must befiled with the Commissioner of Banks in such form as he may prescribe andcontain such information as he may require at least 60 days prior to effectivedate of the proposed acquisition. The Commissioner of Banks shall approve theproposed change of control, unless upon examination and investigation he findsthat
a. The character,competence, general fitness, experience or integrity of any acquiring person orof any of the proposed management personnel shows that it would not be in theinterest of the depositors of the bank, or in the interest of the public topermit such person to control the bank or bank holding company; or
b. The financialcondition of any acquiring person is such as might jeopardize the financialstability of the bank or bank holding company or prejudice the interests of thedepositors of the bank.
Allinformation contained in any application or report filed under this section andall information produced by examination and investigation of any application orreport by the Commissioner of Banks shall be confidential and not available forpublic inspection.
(3) The provisions ofthis subsection shall not apply to the following transactions:
a. The acquisition ofbank shares or assets which is subject to approval under section 3 of the BankHolding Company Act as amended (12 U.S.C. 1842);
b. The acquisition ofshares of a bank holding company as defined by section 2 of the Bank HoldingCompany Act as amended (12 U.S.C. 1841) which bank holding company has anational bank as its principal banking subsidiary;
c. The acquisition ofshares in connection with securing, collecting, or satisfying a debt previouslycontracted in good faith;
d. The acquisition ofshares by will or through intestate succession; and
e. The acquisition ofshares by gift, unless such gift is made for the purpose of circumventing thissection.
Inthe event of an acquisition of shares which is exempted by c, d, or e above,the person acquiring the shares shall report the transaction to theCommissioner of Banks within 30 days after the acquisition. The report shall containsuch information and be in such form as the Commissioner shall request andprescribe.
(4) As used in thissection the following terms shall have the following meanings:
a. "Control"means the possession, directly or indirectly, of the power to direct or causethe direction of the management and policy of the bank or bank holding company,or ownership of as much as ten percent (10%) of the outstanding voting stock ina bank or bank holding company; and
b. "Person"means an individual or a corporation, partnership, trust, association, jointventure, pool, syndicate, sole proprietorship, unincorporated organization orany other form of entity not specifically listed herein.
(b) Whenever a loan orloans are made by a bank, which loan or loans are, or are to be, secured by tenpercent (10%) or more of the voting stock of a bank, the president or otherchief executive officer of the bank which makes the loan or loans shall reportsuch fact to the Commissioner of Banks within 24 hours after obtaining knowledgeof such loan or loans, except when the borrower has been the owner of record ofthe stock for a period of one year or more, or the stock is of a newlyorganized bank prior to its opening. The report shall show the identity ofborrower, the name of the bank issuing the stock securing the loan, the numberof shares securing the loan and the amount of the loan or loans, and thisreport shall be in addition to any report that may be required pursuant toother provisions of law.
(c) Repealed by SessionLaws 1981, c. 671, s. 6.
(d) Each bank shallreport to the Commissioner of Banks within 24 hours any changes in chiefexecutive officers or directors, including in its report a statement of thepast and current business and professional affiliations of new chief executiveofficers or directors. (1967, c. 789, s. 5; 1981, c. 671, ss. 3‑6.)