SB 168: "An Act relating to financial institutions."
00SENATE BILL NO. 168 01 "An Act relating to financial institutions." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 06.05 is amended by adding a new section to read: 04 Sec. 06.05.277. PROVIDING SERVICES AS AGENT. (a) If a state bank 05 complies with this section and if the department approves the provision of the services 06 under this section, the state bank may agree to provide banking services as an agent 07 for a depository institution. 08 (b) A state bank that proposes to enter into an agency agreement under this 09 section shall file with the department at least 60 days before the effective date of the 10 agreement a request that the department approve the provision of the banking service. 11 The request must include a 12 (1) notice of intention to enter into an agency agreement with a 13 depository institution; 14 (2) description of the services proposed to be provided under the
01 agency agreement; and 02 (3) copy of the agency agreement. 03 (c) Except as provided by (d) of this section, the commissioner shall decide 04 whether to approve a request submitted under (b) of this section and shall issue a 05 decision within 60 days after receipt of the request. The department may ask for 06 additional information after reviewing a request received under (b) of this section. If 07 the department asks for additional information, the 60 days is calculated from the date 08 the department receives the additional information. 09 (d) When making its decision under (c) of this section, the department may 10 consider the safety and soundness of the particular state bank and depository institution 11 and whether providing the service is consistent with applicable federal and state law 12 and with safe and sound banking practices. 13 (e) Before approval under (c) or (f) of this section, the department shall give 14 appropriate notice to the public of each request submitted to the department under (b) 15 of this section. 16 (f) If the department does not take action on a request submitted under (b) of 17 this section within the time limit established in (c) of this section, the request is 18 considered to have been approved by the department. 19 (g) Notwithstanding the other provisions of this section, a state bank may not, 20 under an agency agreement, provide by itself through an agent an activity that the state 21 bank may not conduct under applicable state and federal law. 22 (h) The department may order a state bank or another depository institution 23 subject to this title to cease acting as an agent or principal under an agency agreement 24 subject to this section if the department determines that the activity is inconsistent with 25 safe and sound banking practices. 26 * Sec. 2. AS 06.05 is amended by adding a new section to read: 27 Sec. 06.05.532. CONCENTRATION OF DEPOSITS. (a) Unless expressly 28 otherwise allowed under this title, an acquisition, a merger, or an ownership transaction 29 is not permitted between a depository institution in this state and a depository 30 institution in another state, if upon consummation of the acquisition, merger, or 31 transaction the resulting depository institution, whether organized under state or federal
01 law, controls 50 or more percent of the total amount of the deposits held by all 02 depository institutions in this state. 03 (b) The department may by regulation adopt a procedure that allows the 04 department to waive the restriction in (a) of this section if the department finds that 05 the purposes of this title will be fulfilled and the acquisition, merger, or transaction is 06 in the public interest. 07 * Sec. 3. AS 06.05.540 is amended by adding a new paragraph to read: 08 (28) "depository institution" means a financial institution whose 09 deposits are insured by an agency of the federal government; in this paragraph, 10 "financial institution" includes institutions from outside the state that are not subject 11 to the regulation of the department under this title. 12 * Sec. 4. AS 06.05.565 is amended by adding new subsections to read: 13 (e) The department may require periodic reports from an out-of-state 14 depository institution that maintains a branch in this state and from a bank holding 15 company that controls the out-of-state depository institution. The reports shall be 16 made under oath and filed as frequently as required by the department. The reports 17 must contain the information and detail that the department determines to be 18 appropriate to assure continuing compliance of the out-of-state depository institution 19 with the provisions of this title. 20 (f) The department may enter into cooperative, coordinating, or information-sharing agreements with other 21 depository institution supervisory agencies or with an 22 organization affiliated with or representing depository institution supervisory agencies, 23 to handle the periodic examination or other supervision of a depository institution 24 branch that is located in this state and owned by a depository institution organized in 25 another state, or of a depository institution branch that is located in a host state and 26 owned by a depository institution organized in this state. Under the agreements, the 27 department may accept reports of examination and reports of investigation instead of 28 conducting the department's own examinations or investigations. The department may 29 enter into joint enforcement action agreements with other depository institution 30 supervisory agencies having concurrent jurisdiction over a depository institution branch 31 that is located in this state and owned by a depository institution organized in another
01 state, or over a depository institution branch that is located in a host state and owned 02 by a depository institution organized in this state. Notwithstanding the existence of 03 an agreement under this subsection, the department may at any time make an 04 examination or take supervisory or enforcement action independently if the department 05 determines that the examination or action is necessary or appropriate to carry out the 06 department's responsibilities under this title or to ensure compliance with the laws of 07 this state. In this subsection, "host state" means a state, other than the state where the 08 depository institution is organized, in which a depository institution maintains, or seeks 09 to establish and maintain, a branch.