§ 54B-48.3. Acquisitions by Southern Region savings and loan holding companies and Southern Region associations.
§ 54B‑48.3. Acquisitions by Southern Region savings and loan holding companies and SouthernRegion associations.
(a) A Southern Regionsavings and loan holding company or a Southern Region association that does nothave a North Carolina association subsidiary (other than a North Carolinaassociation subsidiary that was acquired either pursuant to Section 123 of theGarn‑St. Germain Depository Institutions Act of 1982 (12 U.S.C.1730a(m)), or comparable provisions in state law, or in the regular course of securingor collecting a debt previously contracted in good faith) may acquire a NorthCarolina savings and loan holding company or a North Carolina association withthe approval of the Commissioner of Banks. The Southern Region savings and loanholding company or Southern Region association shall submit to the Commissionerof Banks an application for approval of such acquisition, which applicationshall be approved only if:
(1) The Commissioner ofBanks determines that the laws of the state in which the Southern Regionsavings and loan holding company or Southern Region association making theacquisition has its principal place of business permit North Carolina savingsand loan holding companies and North Carolina associations to acquireassociations and savings and loan holding companies in that state;
(2) The Commissioner ofBanks determines that the laws of the state in which the Southern Regionsavings and loan holding company or Southern Region association making theacquisition has its principal place of business permit such Southern Regionsavings and loan holding company or Southern Region association to be acquiredby the North Carolina savings and loan holding company or North Carolinaassociation sought to be acquired;
(3) The Commissioner ofBanks determines either that the North Carolina association sought to beacquired has been in existence and continuously operating for more than fiveyears or that all of the association subsidiaries of the North Carolina savingsand loan holding company sought to be acquired have been in existence andcontinuously operating for more than five years: Provided, that theCommissioner of Banks may approve the acquisition by a Southern Region savingsand loan holding company or Southern Region association of all or substantiallyall of the shares of an association organized solely for the purpose offacilitating the acquisition of an association that has been in existence andcontinuously operating as an association for more than five years; and
(4) The Commissioner ofBanks makes the acquisition subject to any conditions, restrictions,requirements or other limitations that would apply to the acquisition by aNorth Carolina savings and loan holding company or North Carolina associationof an association or savings and loan holding company in the state where theSouthern Region savings and loan holding company or Southern Region associationmaking the acquisition has its principal place of business but that would notapply to the acquisition of an association or savings and loan holding companyin such state by an association or a savings and loan holding company all theassociation subsidiaries of which are located in that state;
(5) With respect toacquisitions involving the merger or consolidation of two associations resultingin a Southern Region association, the application includes a business planextending for an initial period of at least three years from the date of theacquisition which shall be renewed thereafter for as long as may be required bythe Commissioner of Banks. The association may not deviate without the priorwritten approval of the Commissioner of Banks from the business plan whichshall address such matters as the Commissioner of Banks may deem appropriatefor the protection of the depositors and members of the acquired North Carolinaassociation and the general public. The business plan shall address, withoutlimitation:
a. Insurance ofdepositors' accounts.
b. Limitation ofservices and activities to those permitted under this Chapter to North Carolinaassociations.
c. Conversion ofcorporate form or other fundamental changes.
d. Closing, selling ordivesting any or all North Carolina branches.
e. Protection of thevoting rights of North Carolina members.
(b) A Southern Regionsavings and loan holding company or Southern Region association that has aNorth Carolina association subsidiary (other than a North Carolina associationsubsidiary that was acquired either pursuant to Section 123 of the Garn‑St.Germain Depository Institutions Act of 1982 (12 U.S.C. 1730a(m)), or comparableprovisions in North Carolina law, or in the regular course of securing orcollecting a debt previously contracted in good faith) may acquire any NorthCarolina association or North Carolina savings and loan holding company withthe approval of the Commissioner of Banks. The Southern Region savings and loanholding company shall submit to the Commissioner of Banks an application forapproval of such acquisition, which application shall be approved only if:
(1) The Commissioner ofBanks determines either that the North Carolina association sought to beacquired has been in existence and continuously operating for more than fiveyears or that all of the association subsidiaries of the North Carolina savingsand loan holding company sought to be acquired have been in existence andcontinuously operating for more than five years: Provided, that theCommissioner of Banks may approve the acquisition by a Southern Region savingsand loan holding company or Southern Region association of all or substantiallyall of the shares of an association organized solely for the purpose offacilitating the acquisition of an association that has been in existence andcontinuously operating as an association for more than five years; and
(2) The Commissioner ofBanks makes the acquisition subject to any conditions, restrictions,requirements or other limitations that would apply to the acquisition by theNorth Carolina savings and loan holding company or North Carolina associationof an association or savings and loan holding company in the State where theSouthern Region savings and loan holding company or Southern Region associationmaking the acquisition has its principal place of business but that would notapply to the acquisition of an association or savings and loan holding companyin such state by a savings and loan holding company all the associationsubsidiaries of which are located in that state.
(3) With respect toacquisitions involving the merger or consolidation of two associations resultingin a Southern Region association, the application includes a business planextending for an initial period of at least three years from the date of theacquisition which shall be renewed thereafter for as long as may be required bythe Commissioner of Banks. The association may not deviate without the priorwritten approval of the Commissioner of Banks from the business plan whichshall address such matters as the Commissioner of Banks may deem appropriatefor the protection of the depositors and members of the acquired North Carolinaassociation and the general public. The business plan shall address, withoutlimitation:
a. Insurance ofdepositors' accounts.
b. Limitation ofservices and activities to those permitted under this Chapter to North Carolinaassociations.
c. Conversion ofcorporate form or other fundamental changes.
d. Closing, selling ordivesting any or all North Carolina branches.
e. Protection of thevoting rights of North Carolina members.
(b1) A North Carolinasavings and loan holding company or a North Carolina association may acquireany Southern Region association or Southern Region savings and loan holdingcompany with the approval of the Commissioner of Banks. The North Carolinasavings and loan holding company or North Carolina association shall submit tothe Commissioner of Banks an application for approval of the acquisition, whichapplication shall be approved only if the application includes a business planextending for an initial period of at least three years from the date of theacquisition which shall be renewed thereafter for as long as may be required bythe Commissioner of Banks. The association may not deviate without the priorwritten approval of the Commissioner of Banks from the business plan whichshall address such matters as the Commissioner of Banks may deem appropriatefor the protection of the depositors and members of the North Carolinaassociation and the general public. The business plan shall address, withoutlimitation:
(1) Insurance ofdepositors' accounts.
(2) Conversion ofcorporate form or other fundamental changes.
(3) Closing, selling, ordivesting any or all North Carolina branches.
(c) The Commissioner ofBanks shall rule on any application submitted under this section not later than90 days following the date of submission of a complete application. If theCommissioner of Banks fails to rule on the application within the requisite 90‑dayperiod, the failure to rule shall be deemed a final decision of theCommissioner of Banks approving the application. (1983 (Reg. Sess., 1984), c.1087, s. 1; 1989 (Reg. Sess., 1990), c. 806, s. 4; 2001‑193, s. 16.)