Sec. A-1. 9-B MRSA §131, sub-§19-A is enacted to read:
19-A. Foreign bank. "Foreign bank" means any company organized under the laws of a foreign country, a territory of the United States, Puerto Rico, Guam, American Samoa or the Virgin Islands that engages directly in the banking business. "Foreign bank" includes foreign commercial banks, foreign merchant banks and other foreign institutions that engage in usual banking activities in connection with the banking business in the countries where the foreign institutions are organized or operating.
Sec. A-2. 9-B MRSA §316, sub-§1, ¶B, as enacted by PL 1975, c. 500, §1, is amended to read:
B. At least 2/3 of the directors provided for shall must be residents of this State and any director removing himself from leaving this State shall must immediately be replaced if such removal results in a reduction of the number of resident directors below 2/3. The superintendent may approve in writing, upon application by an institution and for good cause shown, a lower proportion of directors who must be residents of this State.
Sec. A-3. 9-B MRSA §316, sub-§1, ¶F, as amended by PL 1985, c. 642, §1, is further amended to read:
F. The board of directors, by a majority vote of the directors then in office, may appoint from the full board of directors an executive committee of not less than 5 members, 2/3 of whom shall must be residents of this State and may delegate to the committee the powers of the directors in regard to the ordinary operations of the business of the institution. The superintendent may approve in writing, upon application by an institution and for good cause shown, a lower proportion of executive committee members who must be residents of this State.
Sec. A-4. 9-B MRSA §1011, sub-§3, as enacted by PL 1975, c. 500, §1, is amended to read:
3. Company. "Company" means a corporation, partnership, business trust, association or similar organization organized under the laws of the United States, any political subdivisions of the United States or a country other than the United States.
Sec. A-5. 9-B MRSA §1011, sub-§10, as enacted by PL 1985, c. 642, §4, is amended to read:
10. Person. "Person" means an individual or individuals acting in concert, including individuals who are citizens of one or more countries, and any colonies, dependencies or possessions of those countries, other than the United States.
Sec. A-6. 9-B MRSA §1011, sub-§13 is enacted to read:
13. Foreign bank holding company. "Foreign bank holding company" means any company that controls, directly or indirectly, a foreign bank.
Sec. A-7. 9-B MRSA §1013, sub-§1, ¶B, as repealed and replaced by PL 1989, c. 16, §1, is amended to read:
B. Acquisition of more than 5% of the voting shares of a Maine financial institution or any financial institution or financial institution holding company controlling, directly or indirectly, a Maine financial institution, by a financial institution or, financial institution holding company, foreign bank or foreign bank holding company; or
Sec. A-8. 9-B MRSA §1013, sub-§1, ¶C, as amended by PL 1995, c. 628, §30, is further amended to read:
C. Acquisition of more than 5% of the voting shares of a financial institution, whose home state is not this State, or a foreign bank by a Maine financial institution or a Maine financial institution holding company.
Sec. A-9. 9-B MRSA §1013, sub-§3, as amended by PL 1995, c. 628, §32, is further amended to read:
3. Requirements for acquisition or establishment. A financial institution holding company, foreign bank or foreign bank holding company may establish, acquire or maintain control of a Maine financial institution or Maine financial institution holding company with prior approval of the superintendent, subject to the following conditions.
A. The Maine financial institution or Maine financial institution holding company to be established or acquired shall enter into an agreement with the superintendent to provide reports and permit examination of its records to the extent considered necessary by the superintendent to ensure compliance with this section and other relevant provisions of this Title and any rules adopted under this Title. If the financial institution to be established or acquired is federally chartered, the agreement may provide that compliance examination information must be provided by the federal agency responsible for supervision of that financial institution. The superintendent may specify the information that requires verification, and must be provided a report of that status of compliance by the federal agency.
B. A Maine financial institution or Maine financial institution holding company, control of which is to be acquired or held, must have, on the date of acquisition or establishment, and shall maintain a minimum equity capital that the superintendent determines acceptable given the market area to be served and the general plan of business of the Maine financial institution or Maine financial institution holding company. Equity capital must be maintained consistent with sound banking practices.
C. A financial institution holding company, foreign bank or foreign bank holding company may not consolidate or merge with or acquire all or part of a Maine financial institution or Maine financial institution holding company if, as the result of the consolidation, acquisition or merger, the financial institution holding company, foreign bank or foreign bank holding company would hold or control more than 30% of the total amount of deposits of financial institutions authorized to do business in this State; except, upon consideration of the decision-making criteria found in section 253, the superintendent may waive the 30% deposit concentration limits on a case-by-case basis. In calculating the amount of deposits that a financial institution holding company, foreign bank or foreign bank holding company may hold or control under this section, credit union shares are added to the amount of deposits of financial institutions authorized to do business in this State. However, the 30% deposit concentration limit does not apply to credit unions authorized to do business in this State.
Sec. A-10. 9-B MRSA §1015, sub-§1, ¶B, as repealed and replaced by PL 1989, c. 16, §3, is amended to read:
B. Acquisitions by a financial institution or, financial institution holding company, foreign bank or foreign bank holding company of interests in a Maine financial institution or any financial institution or financial institution holding company controlling, directly or indirectly, a Maine financial institution in excess of 5% of the voting shares of such financial institution or financial institution holding company;
Sec. A-11. 9-B MRSA §1015, sub-§1, ¶¶C and E, as enacted by PL 1975, c. 500, §1, are amended to read:
C. Acquisition or establishment by a Maine financial institution holding company of a financial institution outside of the State of Maine, including a foreign bank, in excess of 5% of the voting shares of such institution;
E. Authority for any financial institution holding company, foreign bank or foreign bank holding company controlling a Maine financial institution to engage in a closely-related activity in Maine, or acquisition or establishment of a subsidiary in Maine to engage in a closely-related activity.
Sec. A-12. 9-B MRSA §1015, sub-§2, as amended by PL 1995, c. 628, §34, is further amended to read:
2. Criteria for approval. Applications for approvals required in subsection 1 must be filed pursuant to procedures established by the superintendent. Action on those applications must be taken in accordance with the requirements of section 252 and is subject to the standards set forth in section 253. In addition, applications for approvals required in subsection 1 by foreign banks are subject to the following additional criteria:
A. The foreign bank or foreign bank holding company engages in the banking business outside of the United States and is subject to comprehensive supervision or regulation on a consolidated basis by the appropriate authorities in its home country, or the superintendent finds that the appropriate authorities in the home country of the foreign bank are actively working to establish arrangements for the consolidated supervision of such bank; and
B. Whether the foreign bank or foreign bank holding company has provided the superintendent with adequate assurances that it will make available to the superintendent such information on the operations or activities of the foreign bank, foreign bank holding company and any affiliate of the foreign bank or foreign bank holding company that the superintendent considers necessary to determine and enforce compliance with this Title and other applicable state law.
Sec. A-13. 9-B MRSA §§1016 and 1017, as enacted by PL 1975, c. 500, §1, are amended to read:
§1016. Reports and examinations
The superintendent may require any financial institution holding company that controls a Maine financial institution to furnish such reports as he deems the superintendent considers appropriate to the proper supervision of such companies. Unless the superintendent determines otherwise, reports prepared for Federal authorities or, in the case of a foreign bank or foreign bank holding company, reports prepared for the home country regulatory authorities and translated to English may be submitted by such holding company in satisfaction of the requirements of this section. If such information and reports are inadequate in his the superintendent's judgment for that purpose, the superintendent may examine such financial institution holding company and any subsidiary doing business in Maine. Section 214 shall apply applies with respect to any such examination.
§1017. Conformity with Federal procedures
To the maximum extent consistent with the effective discharge of the superintendent's responsibilities, the forms established under this chapter for registration, applications and reports shall must conform with those established under either the Bank Holding Company Act of 1956 or sectin section 408 of the National Housing Act, or the federal International Banking Act of 1978 and regulations promulgated under the federal International Banking Act of 1978.
Sec. A-14. 9-B MRSA §1019, sub-§2, as amended by PL 1985, c. 642, §9, is further amended to read:
2. Penalties. Any person or company violating any provision of this chapter, or any regulation promulgated thereunder, shall be is subject to a penalty of not more than $1,000 per day for each day the violation continues, to be recovered in a civil action in the name of the State.
Any company or Maine financial institution violating section 1013, subsection 3 or 4, or any regulation promulgated under that section, shall be is subject to a penalty of not more than $1,000 a day for each day the violation continues. The superintendent shall report the violation forthwith, with such remarks as he deems the superintendent determines appropriate, to the Attorney General, who may forthwith institute a civil action therefor on behalf of the State.
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