§ 53-17.1. Supervisory acquisition of State association. - North Carolina Statutes

§ 53‑17.1.  Supervisoryacquisition of State association.

(a)        A commercial bankmay be chartered under the supervisory provisions provided in this section andmay enter into and consummate the purchase and assumption transactioncontemplated by subdivision (1) of this subsection if:

(1)        The commercial bankproposes to purchase all or substantially all of the book assets and to assumeall or substantially all of the book liabilities of an eligible Stateassociation; and

(2)        The Commissioner ofBanks approves such chartering and such purchase and assumption pursuant tosubsection (c) of this section.

(b)        A Stateassociation, as defined in G.S. 54B‑4, is an eligible State associationif it is insured by a mutual deposit guaranty association, as defined in Article12, Chapter 54B of the General Statutes, which will provide financialassistance for a transaction authorized by this section, and if theCommissioner of Banks has found, pursuant to G.S. 54B‑44, that such Stateassociation is unable to operate in a safe and sound manner.

(c)        The Commissioner ofBanks shall approve the chartering of a commercial bank, and the purchase andretention by such commercial bank of all or substantially all of the bookassets and the assumption by such commercial bank of all or substantially allof the book liabilities, of an eligible State association, pursuant to thissection if:

(1)        Such commercial banksatisfies the requirements of G.S. 53‑4; and

(2)        The chartering andsuch purchase and assumption will promote the public interest.

(d)        Notwithstanding anyregulatory or statutory requirement or provision to the contrary, chartering ofa commercial bank, the acquisition by such bank of the assets and assumption ofthe liabilities of an eligible State association and actions taken by theCommissioner of Banks pursuant to this section, are not subject to any noticeor public hearing requirements, nor to the provisions of Chapter 150B of theGeneral Statutes or any other administrative procedure requirements underChapter 53 or Chapter 54B of the General Statutes, or otherwise, other than asstated in this section.

(e)        Notwithstanding anyother provision of the General Statutes of this State, any bank holdingcompany, as defined in G.S. 53‑210(4), may acquire a commercial bankchartered pursuant to this section, and a bank holding company which hasacquired, directly or indirectly, such a commercial bank may acquire a NorthCarolina bank or a North Carolina bank holding company, each as defined in G.S.53‑210, on the same terms and conditions, and subject to the sameregulatory requirements, as a North Carolina bank or North Carolina bankholding company could acquire a North Carolina bank holding company or a NorthCarolina bank. A purpose of this section is to remove the limitation imposed bySection 3(d) of the Bank Holding Company Act of 1956, as amended (12 U.S.C. §1842(d)) on bank holding company acquisitions only to the extent of the limitedsupervisory circumstances provided for herein.

(f)         A bank holdingcompany which acquires a commercial bank chartered pursuant to this section,and such commercial bank, shall be deemed to be a North Carolina bank holdingcompany and a North Carolina bank, respectively, as defined in, and for allpurposes of G.S. 53‑210.

(g)        Notwithstanding anyregulatory or statutory requirement or provision to the contrary, a commercialbank chartered pursuant to this section shall, except as provided in thissection, be a "bank" for all purposes of Chapter 53 of the GeneralStatutes.

(h)        A commercial bankthat is chartered pursuant to this section shall not receive any deposits, orconduct any other transactions with the public, until it has purchased theassets and assumed the liabilities of an eligible State association ascontemplated by this section, and has received the certificate of authorityprovided for in G.S. 53‑8.

(i)         No commercial bankmay be chartered under this section, and no purchase and assumption may beconsummated in reliance upon the authority provided in this section, afterSeptember 30, 1986. (1985 (Reg. Sess., 1986), c. 948, s. 1; 2001‑193, s. 2.)