8-117 Conditional bank charter; application; contents; hearing; notice; expenses; conversion to full bank charter; extension; written request; notice of expiration. - Nebraska Statutes

8-117. Conditional bank charter; application;contents; hearing; notice; expenses; conversion to full bank charter; extension;written request; notice of expiration.(1)(a) The director may grant approval for a conditionalbank charter which may remain inactive for an initial period of up to eighteenmonths.(b) The purpose for whicha conditional bank charter may be granted is limited to the acquisition orpotential acquisition of a financial institution which (i) is located in thisstate or which has a branch in this state and (ii) has been determined tobe troubled or failing by its primary state or federal regulator.(2) A person or personsorganizing for and desiring to obtain a conditional bank charter shall make,under oath, and transmit to the department an application prescribed by thedepartment, to include, but not be limited to:(a) The name of the proposed bank;(b) A draft copy ofthe articles of incorporation of the proposed bank;(c) The names, addresses, financialcondition, and business history of the proposed stockholders, officers, anddirectors of the proposed bank;(d) The sources and amounts of capital that wouldbe available to the proposed bank; and(e) A preliminary business plan describing the operationsof the proposed bank.(3)Upon receipt of a substantially completed application for a conditional bankcharter and payment of the fee required by section 8-602, the director may,in his or her discretion, hold a public hearing on the application. If a hearingis to be held, notice of the filing of the application and the date of hearingthereon shall be published by the department for three weeks in a minimumof two newspapers with general circulation in Nebraska. The newspapers shallbe selected at the director's discretion, except that the director shall considerthe county or counties of residence of the proposed members of the board ofdirectors of the proposed conditional bank charter in making such selection.The date for hearing the application shall be not less than thirty days afterthe last publication of notice of hearing. Notice shall also be sent by first-classmail to the main office of all financial institutions doing business in thestate. Electronic mail may be used if a financial institution agrees in advanceto receive such notice by electronic mail.(4) If the director determines that a hearing on theapplication for a conditional bank charter is not necessary, then the departmentshall publish a notice of the proposed application in a minimum of two newspapersof general circulation in Nebraska. The newspapers shall be selected in accordancewith subsection (3) of this section. The department shall send notice of theapplication by first-class mail to the main office of all financial institutionsdoing business in the state. Electronic mail may be used if a financial institutionagrees in advance to receive such notice by electronic mail. If the directorreceives a substantive objection to the application within fifteen days afterthe publication or notice, whichever occurs last, a hearing shall be scheduledon the application.(5)The expense of any publication and mailing required by this section shallbe paid by the applicant.(6) If the department upon investigation and afterany public hearing on the application is satisfied that (a) the stockholders,officers, and directors of the proposed corporation applying for such conditionalbank charter are parties of integrity and responsibility, (b) the applicanthas sufficient sources and amounts of capital available to the proposed bank,and (c) the applicant has a business plan describing the operations of theproposed bank that indicates the proposed bank has a reasonable probabilityof usefulness and success, the department shall, upon the payment of any requiredfees and costs, grant a conditional bank charter effective for a period notto exceed eighteen months from the date of issuance.(7) A conditional bank chartermay be converted to a full bank charter upon proof satisfactory to the departmentthat:(a)The financial institution to be acquired is in a troubled or failing statusas required by subsection (1) of this section;(b) The requirements of section 8-110 have been met;(c)The requirements of section 8-702 have been met;(d) Capital stock and surplusin amounts determined pursuant to section 8-116 have been paid in;(e) The fees requiredby section 8-602 have been paid to the department; and(f) Any other conditionsimposed by the director have been complied with.(8) A conditional bank chartermay be extended for successive periods of one year if the holder of the charterfiles a written request for an extension of such charter at least ninety daysprior to the expiration date of such charter. Such request shall be accompaniedby (a) any information deemed necessary by the department to assure itselfthat the requirements of subsection (6) of this section continue to be metand (b) the fee required by section 8-602.(9) The department shall issue a notice of expirationof a conditional bank charter if eighteen months have passed since the issuanceof such charter and the holder of such charter (a) has not converted to afull bank charter pursuant to subsection (7) of this section, (b) has notmade a request for an extension pursuant to subsection (8) of this section,or (c) has made a request for an extension pursuant to subsection (8) of thissection which was not approved by the department. SourceLaws 2010, LB891, § 2.Effective Date: March 4, 2010