H 3679 Session 110 (1993-1994)
H 3679 General Bill, By Haskins, Allison, J.J. Bailey, R.S. Corning,
H.M. Hallman, J.P. Harrelson, Harrison, Littlejohn, Quinn, Robinson, R. Smith,
D. Smith and Young-Brickell
A Bill to amend Section 34-24-50, Code of Laws of South Carolina, 1976,
relating to transactions which may not be approved by the State Board of
Financial Institutions, so as to include transactions which would result in
future economic loss to the general economy and capital resources of South
Carolina and to provide criteria which must be considered in evaluating these
transactions.
03/10/93 House Introduced and read first time HJ-5
03/10/93 House Referred to Committee on Labor, Commerce and
Industry HJ-5
03/22/94 House Tabled in committee
A BILL
TO AMEND SECTION 34-24-50, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO TRANSACTIONS WHICH MAY
NOT BE APPROVED BY THE STATE BOARD OF FINANCIAL
INSTITUTIONS, SO AS TO INCLUDE TRANSACTIONS WHICH
WOULD RESULT IN FUTURE ECONOMIC LOSS TO THE
GENERAL ECONOMY AND CAPITAL RESOURCES OF SOUTH
CAROLINA AND TO PROVIDE CRITERIA WHICH MUST BE
CONSIDERED IN EVALUATING THESE TRANSACTIONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 34-24-50(a) of the 1976 Code is amended to
read:
"(a) The board may not approve any proposed transaction set
forth in Section 34-24-30:
(1) which would result in a monopoly, or which would be
in furtherance of any combination or conspiracy to monopolize or to
attempt to monopolize the business of banking in this State; or
(2) whose effect in this State may be substantially to lessen
competition, or to tend to create a monopoly, or which
in any other manner would be in restraint of trade, unless the board finds
that the anticompetitive effects of the proposed transaction are clearly
outweighed in the public interest by the probable effect of the
transaction in meeting the convenience and needs of the community to
be served; and
(3) which would result in future economic loss to the general
economy and capital resources of South Carolina as determined by the
board after consultation with the State Budget and Control Board. In
making this determination, the board shall consider any plans submitted
by the applicant for:
(a) the location of fixed assets and operating facilities;
(b) loss or gain of employment opportunities for South
Carolina citizens;
(c) community reinvestment activities including low-to-moderate income lending policies and commitments;
(d) other economic factors as determined by the board.
The board is authorized to enter into contractual agreements with the
applicant as to future economic activities and ensure full compliance
with the provisions of such agreements; and
(3) (4) which does not meet the requirements
set forth in subsection (b) of this section, if applicable.
In every case, the board shall take into consideration the financial and
managerial resources and future prospects of the company and the banks
concerned and the convenience and needs of the communities to be
served. Whenever the transaction must be approved by one or more
regulatory agencies of the United States Government under criteria
substantially similar to the criteria in this subsection, the board shall
delay its determination until after receipt of the ruling by the applicable
federal regulatory agencies and if the proposed transaction is approved,
then the approval is conclusive on the board with respect to the criteria
unless the board finds that the determination made by the federal
regulatory agency is not supported by evidence that is substantial when
viewed in light of the whole record considered by the federal agency.
In the event If the board denies the application under
this subsection, it shall issue a ruling stating the specific reasons why it
disagrees with the approval determination made by the applicable
federal regulatory agency."
SECTION 2. This act takes effect upon approval by the Governor.
-----XX----- |