Legislation

Search OpenLegislation Statutes
This entry was published on 2018-10-26
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
SECTION 142-A
Limitation on acquisition of newly chartered banking institutions
Banking (BNK) CHAPTER 2, ARTICLE 3-A
§ 142-a. Limitation on acquisition of newly chartered banking
institutions. 1. No bank holding company may acquire control of any
banking institution which has been chartered for less than five years
and has its principal office in a city or village with a population of
fifty thousand or less if the principal office of a bank, trust company
or national bank the principal office of which institution is located in
this state and which institution is not a subsidiary of a bank holding
company is located in such city or village; provided, however, such an
acquisition may be consummated upon the obtaining of the appropriate
supervisory approvals if: (a) application is pending for the institution
being acquired to merge with or acquire the assets of another banking
institution having its principal office in the same city or village and
chartered for over five years, or if; (b) the superintendent finds that
the banking institution being acquired was not chartered directly or
indirectly by the acquiring bank holding company, its officers,
directors or stockholders, and does not have the capacity to continue to
conduct its business independently in a fashion consistent with the
public interest and the interests of depositors, creditors, shareholders
and stockholders.

2. As used in this section, the term "control" means the possession,
directly or indirectly, of the power to direct or cause the direction of
the management and policies of a banking institution, whether through
the ownership of voting stock of such banking institution, the ownership
of voting stock of any company which possesses such power or otherwise.
Control shall be presumed to exist if any company, directly or
indirectly, owns, controls or holds with the power to vote ten per
centum or more of the voting stock of any banking institution or of any
company which owns, controls or holds with power to vote ten percent or
more of the voting stock of such banking institution, but no person
shall be deemed to control a banking institution solely by reason of his
being an officer or director of such banking institution or company. As
used in this section, the terms "bank holding company" and "banking
institution" shall have the meanings as defined in section one hundred
forty-one of this article, except that the definition of "bank holding
company" is modified to change the phrase "a banking institution"
wherever it appears therein to "two or more banking institutions" and
the definition of "banking institution" is modified to add a national
banking association, the principal office of which is located in this
state.

3. As used in this section, the term "village" shall mean either an
incorporated or unincorporated village.