HB574 Alabama 2010 Session

Summary

Primary Sponsor

Mike Hill

Republican

Session

Regular Session 2010

Title

Banks, holding companies, certain transactions not subject to review by Superintendent of Banks, superintendent authorized to declare a bank in default or misconduct, receivers, superintendent approval required prior to company acquiring a bank holding company or state bank, Secs. 5-5A-44, 5-8A-20, 5-8A-24, 5-13B-4 am'd.

Summary

HB574 would change Alabama banking law by adjusting review rules for certain holding company transactions, expanding regulator powers over defaults and receiverships, and tightening acquisition approvals for Alabama banks.

What This Bill Does

It creates an exemption to require less supervision for holding companies that have not previously owned an FDIC-insured bank for some transactions. It gives the Superintendent authority to declare a bank in default or misconduct if it looks like the bank may suspend paying its obligations. It allows a non-FDIC receiver to obtain an ex parte order confirming appointment from the receivership court. It requires prior approval from the Superintendent before acquiring an Alabama bank holding company or an Alabama state bank, with listed exceptions and a 15-day notice rule for certain exempt transactions.

Who It Affects

• Holding companies that have not previously owned an FDIC-insured bank, as some of their transactions would no longer require Superintendent review.
• Alabama banks, their stockholders, depositors, and potential receivers, due to new default/misconduct powers, potential receiverships, and the acquisition approval process.

Key Provisions

• Exemption from Superintendent review for holding company transactions by holding companies that previously have not owned an FDIC-insured bank (modifies 5-5A-44).
• Superintendent may declare a bank in default or misconduct if it appears the bank may suspend payment (modifies 5-8A-20).
• If a receiver is not the FDIC, the receiver shall apply for and be entitled to an ex parte order confirming appointment from the receivership court (modifies 5-8A-24).
• Prohibits acquiring an Alabama bank holding company or Alabama state bank without prior approval of the Superintendent, with exceptions detailed in 5-5A-44, 5-8A-20, 5-8A-24, and 5-13B-4 (modifies 5-13B-4).
• Acquisition applications must include detailed information on acquirers, finances, plans, sources of funds, and related arrangements, and the Superintendent may require additional information; information is confidential but may be disclosed for enforcement (modifies 5-5A-44).
• If an exemption from approval is used, parties must give at least 15 days' notice to the Superintendent before the effective date (modifies 5-13B-4).

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Banks and Banking