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PUBLIC LAWS OF MAINE
First Regular Session of the 121st

CHAPTER 322
S.P. 512 - L.D. 1534

An Act To Amend the Maine Banking Laws

Be it enacted by the People of the State of Maine as follows:

     Sec. 1. 9-B MRSA §131, sub-§3, as amended by PL 1997, c. 398, Pt. A, §1, is further amended to read:

     3. Branch. "Branch" means any office of a financial institution, including a credit union, where the business of banking is conducted other than the institution's main office. A branch includes an office or vehicle that is not permanent and that is capable of being moved or transferred from one location to another.

     Sec. 2. 9-B MRSA §131, sub-§17, as amended by PL 1997, c. 398, Pt. A, §8, is further amended to read:

     17. Financial institution. "Financial institution" means a universal bank or limited purpose bank organized under the provisions of this Title, and a trust company, nondepository trust company, savings bank, industrial bank or savings and loan association organized under the prior laws of this State. As the term "financial institution" is used in Parts 1 and 2 and in chapter 46, it includes credit unions organized pursuant to the laws of this State. When the term "financial institution" is used in Parts 1 and 2 and sections 422-A, 427, 428, 429 and chapter 46, the term also includes a credit union organized pursuant to the laws of this State.

     Sec. 3. 9-B MRSA §131, sub-§23-A, as enacted by PL 1997, c. 398, Pt. A, §13, is amended to read:

     23-A. Investor. "Investor" means any person who has an ownership interest in a financial institution and is entitled to vote under the institution's organizational documents. "Investor" does not include a member of a credit union organized pursuant to the laws of this State.

     Sec. 4. 9-B MRSA §131, sub-§35, as amended by PL 1999, c. 229, §1, is further amended to read:

     35. Satellite facility. "Satellite facility" means any facility, automated device or electronic terminal established by a financial institution authorized to do business in this State or a credit union authorized to do business in this State at which an existing financial institution or credit union customer may initiate banking transactions, including, but not limited to, cash deposits to and withdrawals from that customer's account, cash advances on a preauthorized credit line, transfers between deposit or share accounts or payment transfers from the customer's account to accounts of other financial institution or credit union customers. Such a facility is not permanently staffed and is not part of a main office or branch office of a financial institution or credit union. Such a facility may be part of an electronic funds transfer system. Satellite facilities include facilities engaged in soliciting, receiving or accepting money or its equivalent on deposit from new and existing customers. The term "satellite facility" "Satellite facility" does not include a cash dispensing machine that, operating in conjunction with a processor and network, allows a customer to debit an account in exchange for dispensing cash and that may allow a customer to effectuate transfers between the customer's accounts in the same financial institution or credit union, a point-of-sale terminal, a night depository or an office or facility engaged solely in the solicitation and origination of loans.

     Sec. 5. 9-B MRSA §131, sub-§37-A is enacted to read:

     37-A. Share account. "Share account" means a share or deposit account at a credit union held by or offered to a member or potential member. "Share account" includes, but is not limited to, accounts such as share, share draft and term share accounts. "Share account" also includes a share or deposit account held by or offered to a nonmember in a community development credit union.

     Sec. 6. 9-B MRSA §214, sub-§2, as amended by PL 1993, c. 538, §1, is further amended to read:

     2. Assessment on financial institutions.

 

     Period ending

     Assessment date

     Quarterly

     March 31st
June 30th
September 30th
December 31st

     May 1st
August 1st
November 1st
February 1st

     Semiannually

     June 30th
December 31st

     August 1st
February 1st

     Sec. 7. 9-B MRSA §214, sub-§2-B, as amended by PL 2001, c. 211, §3, is further amended to read:

     2-B. Assessment on nondepository trust companies. Nondepository trust companies that are not affiliated with a financial institution shall pay an annual assessment at the annual rate of not less than $2,000 or an amount determined by the superintendent of at least 6¢ for every $10,000 of fiduciary assets under its management, custody or care. The superintendent may further define by rule fiduciary assets under management, custody or care or change the minimum assessment whenever economic conditions warrant such a change. Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter II-A 2-A. These assessments must be paid annually by February 15th of each year on fiduciary assets outstanding December 31st of the prior year in accordance with subsection 2, paragraph B.

     Sec. 8. 9-B MRSA §214, sub-§2-C, as enacted by PL 2001, c. 211, §4, is amended to read:

     2-C. Assessment on uninsured bank or merchant bank. If an uninsured bank or merchant bank predominately engages in the business of a nondepository trust company, then the uninsured bank or merchant bank shall pay an annual assessment as prescribed in subsection 2-B. Otherwise, an uninsured bank or merchant bank shall pay an annual assessment as prescribed in subsection 2.

     Sec. 9. 9-B MRSA §214, sub-§4, as enacted by PL 1975, c. 500, §1, is amended to read:

     4. Penalty. Any financial institution which shall fail that fails to make such the payments required under this section within the time specified shall be is subject to a penalty of not more than $100 $500 per day for each day it is in violation of this section, which penalty, together with the amount due under foregoing the provisions of this section, may be recovered in a civil action in the name of the State.

     Sec. 10. 9-B MRSA §225, sub-§1, as enacted by PL 1975, c. 500, §1, is amended to read:

     1. Superintendent's authority. All records of financial institutions authorized to do business in this State and of federally-chartered financial institutions credit unions authorized to do business in this State, insofar as this section does not contravene paramount Federal federal law, shall must be retained for such minimum periods as the superintendent may prescribe.

     Sec. 11. 9-B MRSA §228, sub-§1, as enacted by PL 1975, c. 500, §1, is amended to read:

     1. Requirement. If, in the opinion of the superintendent, any financial institution authorized to do business in this State or credit union authorized to do business in this State, or its the officers, corporators, directors, employees or agents have of any financial institution authorized to do business in this State or credit union authorized to do business in this State, has persistently violated any provision of this Title or regulation promulgated thereunder rule adopted under this Title, the superintendent shall forthwith report the same violation, with such any remarks as he deems the superintendent determines appropriate, to the Attorney General who may forthwith institute a prosecution therefor of the violation on behalf of the State.

     Sec. 12. 9-B MRSA §241, sub-§7, as repealed and replaced by PL 1997, c. 660, Pt. D, §2, is amended to read:

     7. Restrictions on use of names of Maine financial institutions on credit cards. A credit card may be titled and may have the name of a financial institution authorized to do business in this State or credit union authorized to do business in this State on the card if:

     Sec. 13. 9-B MRSA §244, as enacted by PL 1975, c. 500, §1, is amended to read:

§244. Exemption

     Any A financial institution authorized to do business in this State or credit union authorized to do business in this State subject to the provisions of this chapter shall be is exempt from the provisions of Title 5, chapter 10.

     Sec. 14. 9-B MRSA §361, as amended by PL 1997, c. 398, Pt. H, §1, is further amended to read:

§361. Applicability of chapter

     The Notwithstanding any other provisions of law, the provisions of this chapter apply to and supersede any other provision of law governing conservation, liquidation and insolvency of financial institutions organized under the laws of this State.

     Sec. 15. 9-B MRSA §427, sub-§14 is enacted to read:

     14. Applicability. This section applies to financial institutions authorized to do business in this State and credit unions authorized to do business in this State.

     Sec. 16. 9-B MRSA §824, as enacted by PL 1975, c. 500, §1, is amended to read:

§824.   Participation in electronic funds transfer system

     1. Authorization. A credit union, with the prior written approval of the superintendent, may issue to its members cards or other devices permitting such to its members that permit the members to gain access to or participate in an established electronic funds transfer system.

     2. Limitations. The use of such cards or other devices pursuant to subsection 1 by the members of the credit union shall be subject to the conditions and limitations set forth in section 853 and 857.

     Sec. 17. 9-B MRSA §826, as amended by PL 1983, c. 373, §2, is repealed and the following enacted in its place:

§826. Offices and satellite facilities

     A credit union may establish, relocate, close and operate a branch or satellite facility in accordance with chapter 33, except that the limitation of section 337, subsection 2 does not apply. The limits of section 863 apply to credit union investment in real estate for office facilities. The establishment, relocation or closing of a branch or facility must meet the needs and convenience of the credit union's members.

     Sec. 18. 9-B MRSA §827, sub-§3, as enacted by PL 1995, c. 512, §1, is amended to read:

     3. Lien on shares. A credit union may impress and enforce a lien on the shares and dividends of a member to the extent of any loan made to and any dues or charges payable by that member. A credit union that has been designated a community development credit union pursuant to section 817 may impress and enforce a lien on the shares and dividends of a nonmember to the extent of any loan made to and any dues or charges payable by that nonmember.

     Sec. 19. 9-B MRSA §831, sub-§2, as amended by PL 1997, c. 108, §11, is further amended to read:

     2. Share transactions. The provisions of section sections 422-A, 427, 428 and 429 are applicable to shares or accounts in a credit union.

     Sec. 20. 9-B MRSA §832, sub-§2, as amended by PL 1979, c. 663, §54, is further amended to read:

     2. Payments to fund. Before the payment of a dividend, there shall must be set apart into the guaranty fund a percentage of the gross income of the credit union which that was accumulated during the preceding dividend period, in the following manner:

The superintendent may waive all or part of the payments required under this subsection for good cause shown by a credit union.

     Sec. 21. 9-B MRSA §832, sub-§5 is enacted to read:

     5. Rulemaking. The superintendent may adopt rules to implement this section or vary the amount of the fund required under this section. Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.

     Sec. 22. 9-B MRSA §833, sub-§1, as amended by PL 1997, c. 398, Pt. L, §8, is repealed.

     Sec. 23. 9-B MRSA §833, sub-§1-A is enacted to read:

     1-A. Time for payment of dividends; method. At such intervals as the board of directors may authorize and after provision for the guaranty fund established pursuant to section 832, the board of directors may declare a dividend to be paid at different rates on different types of shares, at different rates and maturity dates in the case of share certificates and at different rates on different types of share draft accounts. Dividends credited may be accrued on various types of shares, share certificates and share draft accounts as authorized by the board of directors.

     Sec. 24. 9-B MRSA §833, sub-§2, as enacted by PL 1975, c. 500, §1, is repealed.

     Sec. 25. 9-B MRSA §833, sub-§3-A, as enacted by PL 1981, c. 501, §36, is repealed.

     Sec. 26. 9-B MRSA §835, as enacted by PL 1975, c. 500, §1, is repealed.

     Sec. 27. 9-B MRSA §836, sub-§2, as corrected by RR 1997, c. 2, §37, is repealed.

     Sec. 28. 9-B MRSA §836, sub-§3, as enacted by PL 1975, c. 500, §1, is repealed.

     Sec. 29. 9-B MRSA §842, sub-§2, ¶B, as enacted by PL 1975, c. 500, §1, is amended to read:

     Sec. 30. 9-B MRSA §842, sub-§2, ¶H, as enacted by PL 1975, c. 500, §1, is amended to read:

     Sec. 31. 9-B MRSA §842, sub-§2, ¶J, as enacted by PL 1975, c. 500, §1, is amended to read:

     Sec. 32. 9-B MRSA §842, sub-§5, as enacted by PL 1975, c. 500, §1, is repealed.

     Sec. 33. 9-B MRSA §844, as amended by PL 2001, c. 211, §19, is further amended to read:

§844.   Supervisory committee or independent public accountant

     1. Duties of supervisory committee. The If a supervisory committee, is appointed pursuant to section 842, subsection 2, the supervisory committee shall keep informed fully and at all times as to the financial condition of the credit union, shall examine or cause to be examined carefully the cash and accounts of the credit union annually, and shall report to the board of directors its findings, together with its recommendations. The supervisory committee shall hold meetings at least once each quarter and shall keep records of the meetings. The supervisory committee shall make an annual report at the annual meeting of members of the credit union.

     1-A. Duties of independent public accountant. If the board of directors employs an independent public accountant, the annual audits must be conducted pursuant to section 453. Verification of share, deposit and loan accounts must be conducted pursuant to this section.

     2. Verification of share, deposit and loan accounts.

     3. Meetings. The supervisory committee shall hold meetings at least once each quarter, and shall keep records thereof.

     4. Annual report. The supervisory committee shall make an annual report at the annual meeting of members of the credit union.

     5. Exception. Notwithstanding the provisions of subsections 1 and 1-A, any credit union that has total assets in excess of $100,000,000 must employ an independent public accountant to conduct an annual audit of the credit union.

     6. Rulemaking. The superintendent may adopt rules to further define the duties of the supervisory committee. Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.

     Sec. 34. 9-B MRSA §845, sub-§1, as enacted by PL 1975, c. 500, §1, is amended to read:

     1. Powers and duties. The If a credit committee, is appointed pursuant to section 842, subsection 2, the credit committee shall:

     Sec. 35. 9-B MRSA §846, sub-§1, as amended by PL 1983, c. 51, §6, is further amended to read:

     1. Time and notice. The annual meeting of the members of a credit union shall must be held at such time and place as the board of directors may determine, but not later than 180 days after the close of the fiscal year. Special meetings may be called at any time by a majority of the directors, and shall must be called by the clerk upon written application of 10 or more members entitled to vote request of 25 members or 5% of the total members entitled to vote as of the date of request, whichever number is greater. Notwithstanding this section, the maximum number of members required to call a special meeting may not exceed 500. Notice of all meetings of the members shall must be given in the manner prescribed in the bylaws.

     Sec. 36. 9-B MRSA §851, as amended by PL 1997, c. 398, Pt. L, §9, is further amended to read:

§851. Loans in general

     1. Authorization. A credit union may make, sell, purchase, arrange, participate in, invest in and otherwise deal in loans to its members for any purpose in accordance with the provisions of this chapter.

     2. Applicability of other sections. In addition, a credit union is subject to section sections 432 relating to interest absent in writing, 433, 435 and 436.

     3. Approvals required. The credit committee provided for in section 845 shall approve all loans to members made by the credit union. In addition, the approval of the credit union's board of directors or executive committee shall be required for all loans other than personal loans to members.

     4. Written loan policy. The board of directors shall establish a written loan policy, which must be reviewed and ratified at least annually, that addresses at a minimum the following:

     Sec. 37. 9-B MRSA §852, sub-§2, as enacted by PL 1975, c. 500, §1, is repealed.

     Sec. 38. 9-B MRSA §854, sub-§3 is enacted to read:

     3. Rulemaking. The superintendent may adopt rules to administer and carry out this section, including rules to define or further define terms used in this section and to establish limits or requirements other than those specified in this section. Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.

     Sec. 39. 9-B MRSA §861, sub-§3 is enacted to read:

     3. Written investment policy. A credit union's board of directors shall establish a written investment policy, which must be reviewed and ratified at least annually, that addresses at a minimum the following:

     Sec. 40. 9-B MRSA §862, sub-§1, as amended by PL 1985, c. 533, §1, is further amended to read:

     1. Deposits in insured institutions. Deposits or share accounts in any financial institution, or shares in a credit union, provided that as long as deposits or shares in such the financial institution or credit union are insured by the Federal Deposit Insurance Corporation, the Federal Savings and Loan Insurance Corporation or the National Credit Union Administration;

     Sec. 41. 9-B MRSA §871, as amended by PL 1979, c. 429, §14, is repealed.

     Sec. 42. 9-B MRSA §§871-A and 871-B are enacted to read:

§871-A. Dissolution

     1. Voluntary dissolution. This subsection governs the voluntary dissolution of a credit union.

     2. Involuntary dissolution. This subsection governs the involuntary dissolution of a credit union.

§871-B. Applicability of chapter

     Notwithstanding any other provisions of law, the provisions of this chapter apply and supersede the provisions of laws relating to the dissolution, merger and conversion of credit unions organized under the laws of this State.

     Sec. 43. 9-B MRSA §874, as amended by PL 1985, c. 647, §10, is further amended to read:

§874. Conversion: State to federal charter

     A credit union organized under the general or special laws of this State may convert to a federally-chartered federally chartered credit union. Approval of the members of the credit union for the conversion shall must be obtained in the manner set forth in section 342, subsection 3 6. Upon obtaining such the approval, the credit union shall provide to the superintendent all necessary approvals and charters required by the National Credit Union Administration and all federal laws and regulations applicable thereto to the conversion. The superintendent shall notify the Secretary of State that the conversion has been effected. A copy of the approval or charter shall must accompany the notification.

Effective September 13, 2003, unless otherwise indicated.

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