H*4790 Session 111 (1995-1996)
H*4790(Rat #0354, Act #0310 of 1996) General Bill, By
House Labor, Commerce and Industry
Similar(S 1177, H 4675)
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; to provide penalties for
certain violations; and to repeal Chapter 24 of Title 34, relating to South
Carolina Bank Holding Company Act.
03/20/96 House Introduced, read first time, placed on calendar
without reference HJ-61
03/27/96 House Read second time HJ-129
03/28/96 House Read third time and sent to Senate HJ-16
04/02/96 Senate Introduced, read first time, placed on calendar
without reference SJ-18
04/03/96 Senate Read second time SJ-14
04/04/96 Senate Read third time and enrolled SJ-23
04/30/96 Ratified R 354
05/07/96 Became law without Governor's signature
05/07/96 Effective date 07/01/96
05/07/96 See act for exception to or explanation of
effective date
05/16/96 Copies available
05/16/96 Act No. 310
(A310, R354, H4790)
AN ACT 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; TO
PROVIDE PENALTIES FOR CERTAIN VIOLATIONS; 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:
Citation
SECTION 1. This act may be cited the "South Carolina Banking
and Branching Efficiency Act of 1996".
South Carolina Bank and Branching Efficiency Act
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; or
(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.
(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) 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.
(b) The board by regulation may promulgate a procedure whereby the
limitation on control of deposits set forth in subsection (a) of this section
may be waived for good cause shown.
(c) 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; provided, however, that
this prohibition shall not apply to an acquisition 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.
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 sound 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. (a) 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.
(b) Any company which knowingly violates any provision of this
chapter, or any regulation or order issued by the board pursuant to this
chapter is guilty of a misdemeanor and, upon conviction, must be fined
not more than one hundred dollars for each day during which the
violation continues. Any individual who wilfully participates in a
violation of this chapter, or any regulation, or order of the board issued
pursuant to this chapter is guilty of a misdemeanor and, upon conviction,
must be fined not more than five thousand dollars. Any officer, director,
agent, or employee of a bank holding company or subsidiary of it who
makes any false entry in any book, report, record, or statement of the
company or subsidiary with the intent to deceive, or who, with like intent
wilfully omits to make a true entry of any material pertaining to the
business of the company or subsidiary in any book, report, record, or
statement of the company or subsidiary, made or kept by him or under
his direction, is guilty of a misdemeanor and, upon conviction, must be
fined not more than ten thousand dollars or imprisoned not more than
one year, or both.
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 involving two or more banks both having
offices in this State 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."
Repeal
SECTION 3. Chapter 24 of Title 34 of the 1976 Code is repealed.
Severability
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.
Time effective
SECTION 5. This act takes effect on July 1, 1996. Any notice or
application pending before the Board of Financial Institutions as of the
effective date of this act, shall be governed by the law prior to the
effective date of this act unless the applicant notifies the Board of
Financial Institutions within thirty days of the effective date of this act
that the applicant elects for the application to be governed by the law as
of the effective date of this act, which law shall apply from date of
receipt of this notice by the Board of Financial Institutions.
Became law without the signature of the Governor -- 5/7/96. |