SB495 Alabama 2010 Session

Updated Jul 26, 2021

Senate Bill

Enacted

Current Status

Regular Session 2010

Session

Sponsor

Summary

Primary Sponsor: Bobby Denton
Democrat
Session: Regular Session 2010
Title: Banking Department, regulation of banks, removal of officers, prohibition of certain persons participating in affairs of a bank, review of applications for change of control, quorum of Banking Board, acquisition of out-of-state banks, Secs. 5-2A-12, 5-3A-6, 5-5A-44, 5-8A-20, 5-8A-24, 5-13B-3, 5-13B-4, 5-13B-5, 5-13B-6 am'd.
Description: Existing law provides certain procedures for the acquisition of a majority share of a bank and for the course of action that the Superintendent of Banking must take as to the default or misconduct of a bank or an officer or director of a bank.
This bill would specify that the Banking Board may direct the superintendent to order the removal of an officer of a bank or to issue civil money penalties.
This bill would further allow the Banking Department to remove and prohibit a person who caused a bank to suffer substantial financial loss from participating in the affairs of any Alabama state bank or a holding company that controls an Alabama state bank regardless of whether the person is still employed by a state chartered bank.
This bill would remove the exemption from the requirement of prior approval by the Superintendent of Banking for transactions requiring the prior approval of the Board of Governors of the Federal Reserve System under the Bank Holding Company Act of 1956. The bill would also allow the superintendent more time to review an application under this section.
This bill would provide that, for certain purposes, a quorum of the Banking Board shall be a majority of those present and entitled to vote.
This bill would eliminate the requirement for the FDIC to apply for an order confirming appointment as the receiver of a bank from the receivership court when the FDIC is appointed receiver of the bank.
This bill would further provide the conditions under which an Alabama bank holding company may acquire an out-of-state bank or a bank holding company.
Subjects: Banks and Banking