S 1177 Session 111 (1995-1996)
S 1177 General Bill, By McConnell, S. Boan, Courson, Drummond, Land, Leatherman,
Martin, Moore, O'Dell, Peeler, L.E. Richter, Setzler and J.V. Smith
Similar(H 4675, H 4790)
A Bill to amend Title 34, Code of Laws of South Carolina, 1976, relating to
banking and financial institutions, by adding Chapter 25 so as to enact the
"South Carolina Banking and Branching Efficiency Act of 1996" which provides
the procedures and conditions under which acquisitions of South Carolina banks
and South Carolina bank holding companies may be effected, under which South
Carolina banks may enter into interstate merger transactions with out-of-state
banks, under which the out-of-state banks resulting from such transactions may
operate and maintain branches in this State, and under which South Carolina
state banks may operate branches outside this State; and to repeal Chapter 24
of Title 34, relating to South Carolina Bank Holding Company Act.
02/27/96 Senate Introduced and read first time SJ-7
02/27/96 Senate Referred to Committee on Banking and Insurance SJ-7
A BILL
TO AMEND TITLE 34, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO BANKING AND FINANCIAL
INSTITUTIONS, BY ADDING CHAPTER 25 SO AS TO ENACT
THE "SOUTH CAROLINA BANKING AND BRANCHING
EFFICIENCY ACT OF 1996" WHICH PROVIDES THE
PROCEDURES AND CONDITIONS UNDER WHICH
ACQUISITIONS OF SOUTH CAROLINA BANKS AND SOUTH
CAROLINA BANK HOLDING COMPANIES MAY BE
EFFECTED, UNDER WHICH SOUTH CAROLINA BANKS
MAY ENTER INTO INTERSTATE MERGER TRANSACTIONS
WITH OUT-OF-STATE BANKS, UNDER WHICH THE
OUT-OF-STATE BANKS RESULTING FROM SUCH
TRANSACTIONS MAY OPERATE AND MAINTAIN
BRANCHES IN THIS STATE, AND UNDER WHICH SOUTH
CAROLINA STATE BANKS MAY OPERATE BRANCHES
OUTSIDE THIS STATE; AND TO REPEAL CHAPTER 24 OF
TITLE 34, RELATING TO SOUTH CAROLINA BANK
HOLDING COMPANY ACT.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. This act may be cited the "South Carolina
Banking and Branching Efficiency Act of 1996".
SECTION 2. Title 34 of the 1976 Code is amended by adding:
"CHAPTER 25
South Carolina Banking and Branching
Efficiency Act of 1996
Article 1
Acquisitions of Banks by Bank Holding
Companies
Section 34-25-10. For purposes of this article:
(1) `Acquire' means:
(a) for a company to merge or consolidate with a bank
holding company;
(b) for a company to assume direct or indirect ownership or
control of:
(i) more than twenty-five percent of any class of voting
shares of a bank holding company or a bank, if the acquiring
company was not a bank holding company prior to such acquisition;
(ii) more than five percent of any class of voting shares of
a bank holding company or a bank, if the acquiring company was a
bank holding company prior to such acquisition;
(iii) all or substantially all of the assets of a bank holding
company or a bank; or
(c) for a company to take any other action that results in the
direct or indirect acquisition of control by such company of a bank
holding company or a bank.
(2) `Affiliate' has the meaning set forth in Section 2(k) of the
Bank Holding Company Act.
(3) `Bank' has the meaning set forth in Section 2(c) of the Bank
Holding Company Act.
(4) `Bank holding company':
(a) has the meaning set forth in Section 2(a) of the Bank
Holding Company Act; and
(b) unless the context requires otherwise, includes a South
Carolina bank holding company and an out-of-state bank holding
company.
(5) `Bank Holding Company Act' means the federal Bank
Holding Company Act of 1956, as amended.
(6) `Bank supervisory agency' means any of the following:
(a) any agency of another state with primary responsibility
for chartering and supervising banks; and
(b) the Office of the Comptroller of the Currency, the Federal
Deposit Insurance Corporation, the Board of Governors of the
Federal Reserve System, and any successor to these agencies.
(7) `Board' means the State Board of Financial Institutions.
(8) `Branch' means any office at which a bank accepts deposits.
The term `branch' does not include, however, the following:
(a) unmanned automatic teller or loan machines, point of sale
terminals, or other similar unmanned electronic banking facilities;
(b) offices located outside the United States; or
(c) loan production offices, representative offices, or other
offices at which deposits are not accepted.
(9) `Company' has the meaning set forth in Section 2(b) of the
Bank Holding Company Act, and includes a bank holding company.
(10) `Control' means and shall be construed consistently with the
provisions of Section 2(a) of the Bank Holding Company Act.
(11) `Deposit' has the meaning set forth in 12 U.S.C. Section
1813(1).
(12) `Depository institution' means any institution included for
any purpose within the definitions of `insured depository institution'
as set forth in 12 U.S.C. Section 1813(c)(2) and (3).
(13) `Home state regulator' means, with respect to an out-of-state
bank holding company, the bank supervisory agency of the state in
which such company maintains its principal place of business.
(14) `South Carolina bank' means a bank that is:
(a) organized under Section 34-1-70; or
(b) organized under federal law and having its principal place
of business in this State.
(15) `South Carolina state bank' means a bank chartered under
the laws of South Carolina.
(16) `South Carolina bank holding company' means a bank
holding company that:
(a) had its principal place of business in this State on July 1,
1966, or the date on which it became a bank holding company,
whichever is later; and
(b) is not controlled by a bank holding company other than a
South Carolina bank holding company.
(17) `Out-of-state bank holding company' means a bank holding
company that is not a South Carolina bank holding company.
(18) `Principal place of business' of a bank holding company
means the state in which the total deposits of its bank subsidiaries
were the greatest on the later of July 1, 1966, or the date on which
such company became a bank holding company.
(19) `State' means any state, territory, or other possession of the
United States, including the District of Columbia.
(20) `Subsidiary' has the meaning set forth in Section 2(d) of the
Bank Holding Company Act.
Section 34-25-20. This article sets forth the conditions under
which a company may acquire a South Carolina bank or a South
Carolina bank holding company. This article is intended not to
discriminate against out-of-state holding companies in any manner
that would violate Section 3(d) of the Bank Holding Company Act,
as amended by Section 101 of the Riegle-Neal Interstate Banking
and Branching Efficiency Act of 1994, Pub. L.No. 103-328.
Section 34-25-30. (a) Except as otherwise expressly permitted
by federal law, no company may acquire a South Carolina bank
holding company or a South Carolina state bank without the prior
approval of the board.
(b) The prohibition in subsection (a) shall not apply where the
acquisition is made:
(1) solely for the purpose of facilitating an acquisition
otherwise permitted under this article;
(2) in a transaction arranged by the board or another bank
supervisory agency to prevent the insolvency or closing of the
acquired bank;
(3) in a transaction in which a bank forms its own bank
holding company, if the ownership rights of the former bank
shareholders are substantially similar to those of the shareholders of
the new bank holding company;
(4) in a transaction in which a bank sells stock to a company
organized for the purpose of acquiring such bank, if the acquiring
company is not, and is not expected to become, a subsidiary of any
other company; or
(5) in a transaction in which a newly organized bank sells
stock to an existing bank holding company that has at least one
subsidiary that is a South Carolina bank.
(c) In a transaction for which the board's approval is not
required under this section, the parties shall give written notice to
the board at least fifteen days before the effective date of the
acquisition, unless a shorter period of notice is required under
applicable federal law.
Section 34-25-40. (a) A company that proposes to make an
acquisition under this article shall:
(1) file with the board a copy of the notice or application that
such company has filed with the responsible federal bank
supervisory agency, together with such additional information as the
board may prescribe; and
(2) pay to the board the application fee, if any, prescribed by
the board.
(b) To the extent consistent with the effective discharge of the
board's responsibilities, the forms established under this article for
application and reporting shall conform to those established by the
Board of Governors of the Federal Reserve System under the Bank
Holding Company Act.
(c) In connection with an application received under this article,
the board shall:
(1) require that prior notice of the application be published
once in a daily newspaper of general circulation in South Carolina
and provide an opportunity for public comment; and
(2) make the application available for public inspection to the
extent required or permitted under applicable state or federal law.
(d) If the applicant is an out-of-state bank holding company that
is not incorporated under the laws of this State, it shall submit with
the application proof that the applicant has complied with applicable
requirements of Section 33-15-101(a), or if not subject to Section
33-15-101(a), has appointed an agent for service of process in the
State of South Carolina.
Section 34-25-50. (a) The board, if the surviving bank or bank
holding company is to remain a state bank or a state bank holding
company, shall consider whether the acquisition may:
(1) be detrimental to the safety and soundness of the South
Carolina state bank or the South Carolina bank holding company to
be acquired; or
(2) have a significant adverse effect on the convenience and
needs of the community or communities in this State that are served
by the South Carolina state bank or the South Carolina bank
holding company to be acquired.
(b) Except as otherwise expressly provided in this section, the
board shall not approve an acquisition under this article if upon
consummation of the transaction the applicant, including any
depository institution affiliated with the applicant, would control
thirty percent or more of the total amount of deposits held by
depository institutions in this State.
(c) The board by regulation may promulgate a procedure
whereby the limitation on control of deposits set forth in subsection
(b) of this section may be waived for good cause shown.
(d) The board shall not approve an application for an acquisition
under this article unless the South Carolina bank to be acquired, or
all South Carolina bank subsidiaries of the bank holding company
to be acquired, has as of the proposed date of acquisition been in
existence and in continuous operation for more than five years.
Section 34-25-60. (a) The board shall decide whether to
approve an acquisition under this article within sixty days after
receipt of a completed application. However, if the board requests
additional information from the applicant following receipt of a
completed application, the time limit for decision by the board shall
be the later of:
(1) the date set forth in this subsection (a); or
(2) thirty days after the board's receipt of the requested
additional information.
(b) The board in its discretion may hold a public hearing in
connection with an application if a significant issue of law or fact
has been raised with respect to the proposed acquisition.
(c) If the board holds a public hearing within ninety days after
receipt of an application, the time limit specified in subsection (a)
shall be extended to thirty days after the conclusion of the public
hearing.
(d) An application shall be deemed approved if the board takes
no action on the application within the time limits specified in this
section.
Section 34-25-70. (a) To the extent specified by the board by
regulation, order or written request, each bank holding company
that directly or indirectly controls a South Carolina state bank or a
South Carolina bank holding company, shall submit to the board:
(1) one or more copies of each financial report filed by such
company with any bank supervisory agency (except for any report
the disclosure of which would be prohibited by applicable federal or
state law), within fifteen days after the filing thereof with such
agency; and
(2) an annual report, not later than April fifteenth of each
year, specifying for each bank and branch in the state controlled by
the bank holding company:
(i) the location;
(ii) the amount of deposits held as of the end of the
preceding calendar year; and
(iii) the amount of loans made during the preceding
calendar year to individuals and entities with addresses in this State.
(b) At the request of the board, to the extent permitted by
applicable state or federal law, each bank holding company that
controls a South Carolina state bank or a South Carolina bank
holding company shall provide to the board copies of the reports of
examination of such company or any such South Carolina state
bank or South Carolina bank holding company.
(c) The board may examine a South Carolina bank holding
company whenever the board has reason to believe that such
company is not being operated in compliance with the laws of this
State or in accordance with safe and sounding banking practices.
Section 34-25-80. (a) Any South Carolina state bank, upon
compliance with the requirements of this section, may agree to
receive deposits, renew time deposits, close loans, service loans,
receive payments on loans and other obligations, and perform such
other services as may receive with the prior approval of the board,
as an agent for an affiliated depository institution.
(b) A South Carolina state bank that proposes to enter into an
agency agreement under this section shall file with the board, at
least fifteen days before the effective date of the agreement, a
notice of intention to enter into an agency agreement with an
affiliated depository institution.
(c) If any proposed service is not specifically designated in
subsection (a) of this section, and has not previously been approved
in a regulation promulgated by the board, the board shall decide
whether to approve the offering of such service within thirty days
after receipt of the notice required by subsection (b). However, if
the board requests additional information after reviewing such
notice, the time limit for the board's decision shall be thirty days
after receiving such additional information. In deciding whether to
approve, either by regulation or order, any proposed service that is
not specifically designated in subsection (a), the board shall
consider whether such service would be consistent with applicable
federal and state law and the safety and soundness of the principal
and agent institutions. The board shall give appropriate notice to
the public of each approval, by regulation or order, of any proposed
service pursuant to this subsection (c).
(d) Any proposed service subject to subsection (c) shall be
deemed approved if the board takes no action on the notice required
by subsection (b) within the time limits specified in subsection (c).
(e) A South Carolina state bank may not under an agency
agreement:
(1) conduct any activity as an agent that it would be
prohibited from conducting as a principal under applicable state or
federal law; or
(2) have an agent conduct any activity that the bank as
principal would be prohibited from conducting under applicable
state or federal law.
(f) The board may order a South Carolina state bank or any
other depository institution subject to the board's enforcement
powers to cease acting as an agent or principal under any agency
agreement with an affiliated depository institution that the board
finds to be inconsistent with safe and sound banking practices.
(g) Notwithstanding any other provision of the state law, a
South Carolina state bank acting as an agent for an affiliated
depository institution in accordance with this section shall not be
considered to be a branch of that institution or agent for service of
process as to that institution.
Section 34-25-90. The board may enforce the provisions of this
article by any appropriate action in the courts of this State,
including an action for injunctive relief, provided, that the board
promptly shall give notice to the home state regulator of any
enforcement action initiated against an out-of-state bank holding
company and, to the extent practicable, shall consult and cooperate
with the home state regulator in pursuing and resolving said
enforcement action.
Section 34-25-100. In order to carry out the purposes of this
article, the board may:
(a) promulgate regulations in accordance with the
Administrative Procedures Act;
(b) enter into cooperative, coordinating or information-sharing
agreements with any other bank supervisory agency or any
organization affiliated with or representing one or more bank
supervisory agencies;
(c) accept any report of examination or investigation by another
bank supervisory agency having concurrent jurisdiction over a
South Carolina state bank or a bank holding company that controls
a South Carolina state bank in lieu of conducting the board's own
examination or investigation of such bank holding company or
bank;
(d) enter into contracts with any bank supervisory agency
having concurrent jurisdiction over a South Carolina state bank or a
bank holding company that controls a South Carolina state bank to
engage the services of such agency's examiners at a reasonable rate
of compensation, or to provide the services of the board's
examiners to such agency at a reasonable rate of compensation;
provided, that any such contract shall be deemed a sole source
contract.
(e) enter into joint examinations or joint enforcement actions
with any other bank supervisory agency having concurrent
jurisdiction over any South Carolina state bank or any bank holding
company that controls a South Carolina state bank; provided, that
the board may take any such action independently (except with
respect to the examination of an out-of-state bank holding company)
if the board determines that such action is necessary to carry out its
responsibilities under this article or to enforce compliance with the
laws of this State; and provided further, that in the case of an
out-of-state bank holding company, the board shall recognize the
exclusive authority of the home state regulator over corporate
governance matters and the primary responsibility of the home state
regulator with respect to safety and soundness matters; and
(f) assess supervisory and examination fees that shall be
payable by South Carolina banks and South Carolina bank holding
companies in connection with the board's performance of its duties
under this article and in accordance with regulations promulgated
by the board. Such fees may be shared with other bank supervisory
agencies or any organizations affiliated with or representing one or
more bank supervisory agencies in accordance with agreements
between them and the board.
Article 3
Branching and Bank Mergers
Section 34-25-210. It is the intent of this article to permit
interstate branching by merger under Section 102 of the Riegle-Neal
Interstate Banking and Branching Efficiency Act of 1994, Public
Law No. 103-328, in accordance with the provisions set forth in
this article.
Section 34-25-220. For purposes of this article:
(1) `Bank' has the meaning set forth in 12 U.S.C. Section 1813.
However, the term `bank' shall not include any `foreign bank' as
defined in 12 U.S.C. Section 3101(7), except that this term shall
include any foreign bank organized under the laws of a territory of
the United States, Puerto Rico, Guam, American Samoa or the
Virgin Islands, the deposits of which are insured by the Federal
Deposit Insurance Corporation.
(2) `Bank holding company' has the meaning set forth in 12
U.S.C. Section 1841 (a)(1).
(3) `Bank supervisory agency' means:
(a) any agency of another state with primary responsibility
for chartering and supervising banks; and
(b) the Office of the Comptroller of the Currency, the Federal
Deposit Insurance Corporation, the Board of Governors of the
Federal Reserve System, and any successor to these agencies.
(4) `Branch' means any office at which a bank accepts deposits.
The term `branch' does not include, however, the following:
(a) unmanned automatic teller or loan machines, point of sale
terminals, or other similar unmanned electronic banking facilities;
(b) offices located outside the United States; or
(c) loan production offices, representative offices, or other
offices at which deposits are not accepted.
(5) `Board' means the Board of Financial Institutions.
(6) `Control' means and shall be construed consistently with the
provisions of 12 U.S.C. Section 1841 (a)(2).
(7) `Deposit' has the meaning set forth in 12 U.S.C. Section
1813(1).
(8) `Home state' means:
(a) with respect to a state bank, the state by which the bank
is chartered;
(b) with respect to a national bank, the state in which the
main office of the bank is located;
(c) with respect to a foreign bank, the state determined to be
the home state of such foreign bank under 12 U.S.C. Section
3103(c).
(9) `Home state regulator' means, with respect to an out-of-state
bank, the bank supervisory agency of the state in which such bank
is chartered.
(10) `Host state' means a state, other than the home state of a
bank, in which the bank maintains, or seeks to establish and
maintain a branch.
(11) `Insured depository institution' has the meaning set forth in
12 U.S.C. Section 1813(h).
(12) `Interstate merger transaction' means:
(a) the merger or consolidation of banks with different home
states, and the conversion of branches of any bank involved in the
merger or consolidation into branches of the resulting bank; or
(b) the purchase of all or substantially all of the assets
(including all or substantially all of the branches) of a bank whose
home state is different from the home state of the acquiring bank.
(13) `Out-of-state bank' means a bank whose home state is a
state other than South Carolina.
(14) `Out-of-state state bank' means a bank chartered under the
laws of any state other than South Carolina.
(15) `Resulting bank' means a bank that has resulted from an
interstate merger transaction under this article.
(16) `State' means any state of the United States, the District of
Columbia, any territory of the United States, Puerto Rico, Guam,
American Samoa, the Trust Territory of the Pacific Islands, the
Virgin Islands, and the Northern Mariana Islands.
(17) `South Carolina bank' means a bank whose home state is
South Carolina.
(18) `South Carolina state bank' means a bank chartered under
the laws of South Carolina.
Section 34-25-230. With the prior approval of the board, a South
Carolina state bank may establish, maintain, and operate one or
more branches in a state other than South Carolina pursuant to an
interstate merger transaction in which the South Carolina state bank
is the resulting bank. Not later than the date on which the required
application for the interstate merger transaction is filed with the
responsible federal bank supervisory agency, the applicant South
Carolina state bank shall file an application on a form prescribed by
the board and pay the fee prescribed by the board. The applicant
also shall comply with the applicable provisions of the South
Carolina Business Corporation Act of 1988. If the board finds that
(i) the proposed transaction will not be detrimental to the safety and
soundness of the applicant or the resulting bank, (ii) any new
officers and directors of the resulting bank are qualified by
character, experience, and financial responsibility to direct and
manage the resulting bank, and (iii) the proposed merger is
consistent with the convenience and needs of the communities to be
served by the resulting bank in this State and is otherwise in the
public interest, it shall approve the interstate merger transaction and
the operation of branches outside of South Carolina by the South
Carolina state bank. Such an interstate merger transaction may be
consummated only after the applicant has received the board's
written approval.
Section 34-25-240. (a) One or more South Carolina banks may
enter into an interstate merger transaction with one or more
out-of-state banks under this article, and an out-of-state bank
resulting from such transaction may maintain and operate the
branches in South Carolina of a South Carolina bank that
participated in such transaction, provided that the conditions and
filing requirements of this article are met.
(b) Except as otherwise expressly provided in this subsection
(b), an interstate merger transaction shall not be permitted under
this article if, upon consummation of such transaction, the resulting
bank (including all insured depository institutions that would be
`affiliates' as defined in 12 U.S.C. Section 1841(k) of the resulting
bank) would control thirty percent or more of the total amount of
deposits held by all insured depository institutions in this State.
The board by regulation may promulgate a procedure whereby the
foregoing limitation on control of deposits may be waived for good
cause shown. This subsection shall not apply with respect to any
interstate merger transaction involving only affiliated banks.
(c) An interstate merger transaction resulting in the acquisition
by an out-of-state bank of a South Carolina bank, or all or
substantially all of the branches of a South Carolina bank, shall not
be permitted under this article unless such South Carolina bank
shall have been in continuous operation, on the date of such
acquisition, for a period of at least five years.
Section 34-25-250. Any out-of-state bank that will be the
resulting bank pursuant to an interstate merger transaction involving
a South Carolina state bank shall notify the board of the proposed
merger not later than the date on which it files an application for an
interstate merger transaction with the responsible federal bank
supervisory agency, and shall submit a copy of that application to
the board and pay the filing fee, if any, required by the board. Any
South Carolina state bank which is a party to such interstate merger
transaction shall comply with the South Carolina Business
Corporation Act of 1988, and with other applicable state and federal
laws. Any out-of-state bank which shall be the resulting bank in
such an interstate merger transaction shall provide satisfactory
evidence to the board of compliance with applicable requirements
of Section 33-15-101.
Section 34-25-260. An interstate merger transaction prior to June
1, 1997, involving a South Carolina bank shall not be
consummated, and any out-of-state bank resulting from such a
merger shall not operate any branch in South Carolina, unless the
board first (i) finds that the laws of the home state of each
out-of-state bank involved in the interstate merger transaction
permits South Carolina state banks, under substantially the same
terms and conditions as are set forth in this article, to acquire banks
and establish and maintain branches in that state by means of
interstate merger transactions, (ii) concludes that the resulting
out-of-state bank has complied with all applicable requirements of
South Carolina law and has agreed in writing to comply with the
laws of this State applicable to its operation of branches in South
Carolina, and (iii) certifies to the federal bank supervisory agency
having authority to approve the interstate merger transaction that the
conditions and requirements of this article have been met.
Section 34-25-270. (a) An out-of-state state bank which
establishes and maintains one or more branches in South Carolina
under this article may conduct any activities at such branch or
branches that are authorized under the laws of this State for South
Carolina state banks.
(b) A South Carolina state bank may conduct any activities at
any branch outside South Carolina that are permissible for a bank
chartered by the host state where the branch is located.
(c) An out-of-state bank that has established or acquired a
branch in South Carolina under this article may establish or acquire
additional branches in South Carolina to the same extent that any
South Carolina bank may establish or acquire a branch in South
Carolina under state law.
Section 34-25-280. (a) To the extent consistent with subsection
(c) of this section, the board may make such examinations of any
branch established and maintained in this State pursuant to this
article by an out-of-state state bank as the board may deem
necessary to determine whether the branch is being operated in
compliance with the laws of this State and in accordance with safe
and sound banking practices. (b) The board may prescribe
requirements for periodic reports regarding any out-of-state bank
that operates a branch in South Carolina pursuant to this article.
The required reports shall be provided by such bank or by the bank
supervisory agency having primary responsibility for such bank.
Any reporting requirements prescribed by the board under this
subsection (b) shall be (i) consistent with the reporting requirements
applicable to South Carolina state banks and (ii) appropriate for the
purpose of enabling the board to carry out its responsibilities under
this article.
(c) The board may enter into cooperative, coordinating, and
information-sharing agreements with any other bank supervisory
agencies or any organization affiliated with or representing one or
more bank supervisory agencies with respect to the periodic
examination or other supervision of any branch in South Carolina
of an out-of-state state bank, or any branch of a South Carolina
state bank in any host state, and the board may accept such parties'
reports of examination and reports of investigation in lieu of
conducting its own examinations or investigations.
(d) The board may enter into contracts with any bank
supervisory agency that has concurrent jurisdiction over a South
Carolina state bank or an out-of-state state bank operating a branch
in this State pursuant to this article to engage the services of such
agency's examiners at a reasonable rate of compensation, or to
provide the services of the board's examiners to such agency at a
reasonable rate of compensation. Any such contract shall be
deemed a sole source contract.
(e) The board may enter into joint examinations or joint
enforcement actions with other bank supervisory agencies having
concurrent jurisdiction over any branch in South Carolina of an
out-of-state state bank or any branch of a South Carolina state bank
in any host state; provided, that the board at any time may take
such actions independently if the board deems such actions to be
necessary or appropriate to carry out its responsibilities under this
article or to ensure compliance with the laws of this State; and
provided, further, that, in the case of an out-of-state state bank, the
board shall recognize the exclusive authority of the home state
regulator over corporate governance matters and the primary
responsibility of the home state regulator with respect to safety and
soundness matters.
(f) Each out-of-state state bank that maintains one or more
branches in this State may be assessed and, if assessed, shall pay
supervisory and examination fees in accordance with the laws of
this State and regulations of the board. Such fees may be shared
with other bank supervisory agencies or any organization affiliated
with or representing one or more bank supervisory agencies in
accordance with agreements between such parties and the board.
Section 34-25-290. If the board determines that a branch
maintained by an out-of-state state bank in this State is being
operated in violation of any provision of the laws of this State, or
that such branch is being operated in an unsafe and unsound
manner, the board shall have the authority to take all such
enforcement actions as it would be empowered to take if the branch
were a South Carolina state bank; provided, that the board promptly
shall give notice to the home state regulator of each enforcement
action taken against an out-of-state state bank and, to the extent
practicable, shall consult and cooperate with the home state
regulator in pursuing and resolving the enforcement action.
Section 34-25-300. The board may promulgate such regulations
as it determines to be necessary or appropriate in order to
implement the provisions of this article.
Section 34-25-310. Each out-of-state state bank that has
established and maintains a branch in this State pursuant to this
article, shall give at least thirty days' prior written notice (or, in the
case of an emergency transaction, such shorter notice as is
consistent with applicable state or federal law) to the board of any
merger, consolidation, or other transaction that would cause a
change of control with respect to such bank or any bank holding
company that controls such bank, with the result that an application
would be required to be filed pursuant to the federal Change in
Bank Control Act of 1978, as amended, or the federal Bank
Holding Company Act of 1956, as amended, or any successor
statutes thereto."
SECTION 3. Chapter 24 of Title 34 of the 1976 Code is
repealed.
SECTION 4. If any provision of Chapter 25 of Title 34 of the
1976 Code or the application of such provision is found by any
court of competent jurisdiction in the United States to be invalid as
to any bank, bank holding company, or other person or
circumstances, or to be superseded by federal law, the remaining
provisions hereof shall not be affected and shall continue to apply
to any bank, bank holding company, or other person or
circumstance.
SECTION 5. This act takes effect on July 1, 1996.
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