LD 949
pg. 13
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LR 444
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less than required under subsection 2 without the superintendent's
approval.

 
4.__Noncompliance.__If a nondepository trust company fails to
maintain the minimum required asset pledge, the superintendent
may determine that the nondepository trust company does not meet
the capital requirements under section 412-A and any rules
adopted pursuant to section 412-A.

 
5.__Rulemaking.__The superintendent may adopt rules to
implement this section.__Rules adopted pursuant to this
subsection are routine technical rules as defined in Title 5,
chapter 375, subchapter 2-A.

 
Sec. 13. 9-B MRSA §1223-A is enacted to read:

 
§1223-A.__Asset pledge

 
1.__Pledge requirement.__The superintendent may require a
merchant bank to pledge readily marketable assets to the
superintendent if the superintendent believes that the action is
necessary for the protection of the public.__The pledged assets
must be United States dollar denominated, investment grade and
subject to the prior written approval of the superintendent.__The
pledged assets must be held on deposit or in safekeeping by an
FDIC-insured depository institution approved by the
superintendent.__The pledged assets may be released to the
superintendent only upon certification that a receiver or
conservator of the merchant bank has been appointed.__The asset
pledge requirement may be lifted by the superintendent if the
superintendent determines that the condition of the merchant bank
so warrants that action.

 
2.__Amount of pledge.__The aggregate amount of pledged assets
is determined by the superintendent but may not exceed the
greater of $1,000,000 or 50% of the minimum required capital of
the merchant bank at the time the asset pledge is imposed.

 
3.__Pledge agreement.__The asset pledge must be maintained
pursuant to an asset pledge agreement in the form and containing
any limitations and conditions the superintendent requires.__As
long as the merchant bank continues business in the ordinary
course, the merchant bank may be permitted to collect income on
the pledged assets and examine and exchange those assets.__The
aggregate amount of assets pledged may not be less than required
under subsection 2 without the superintendent's approval.

 
4.__Noncompliance.__If a merchant bank fails to maintain the
minimum required asset pledge, the superintendent may determine
that the merchant bank does not meet the capital requirements


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