Sec. A-1. 9-B MRSA §232, as amended by PL 1997, c. 182, Pt. C, §§1 to 7, is further amended by amending the headnote to read:
§232. Removal or prohibition of officer or director
Sec. A-2. 9-B MRSA §232, first ¶, as amended by PL 1997, c. 182, Pt. C, §1, is further amended to read:
The superintendent may remove any officer or director of a financial institution organized pursuant to this Title or any officer of a branch of an out-of-state financial institution authorized to do business in this State or any officer or director of a financial institution holding company, in accordance with the procedures and subject to the conditions and limitations set forth in this section. The superintendent may prohibit an officer or director of a financial institution, financial institution holding company or branch of an out-of-state financial institution from participating in any manner in the conduct of the affairs of a financial institution, financial institution holding company or branch of an out-of-state financial institution if the superintendent determines that such action is necessary for the protection of the public, the financial institution, financial institution holding company or
out-of-state financial institution or the interests of the institution's depositors or creditors.
Sec. A-3. 9-B MRSA §232, sub-§1, ¶¶B to D, as amended by PL 1997, c. 182, Pt. C, §2, are further amended to read:
B. By reason of the violation, practice or breach of fiduciary duty described in paragraph A:
(1) The financial institution or financial institution holding company has suffered or will probably suffer financial loss or other damage;
(2) The interests of the financial institution's depositors or creditors or the public have been or could be prejudiced; or
(3) The officer or director has received financial gain or other benefit by reason of the violation, practice or breach of fiduciary duty;
C. The violation, practice or breach of fiduciary duty described in paragraph A involves personal dishonesty on the part of the officer or director or demonstrates willful or continuing disregard by the officer or director for the safety or soundness of the financial institution or financial institution holding company; and
D. In the opinion of the superintendent, that officer or director has evidenced personal dishonesty and unfitness to continue as an officer or director of the financial institution or financial institution holding company by conduct with respect to another business entity that resulted, or is likely to result, in substantial financial loss or other damage.; and
Sec. A-4. 9-B MRSA §232, sub-§1, ¶E is enacted to read:
E. The officer or director has been removed or prohibited from participation in any manner in the conduct of the affairs of the financial institution by the appropriate federal banking agency.
Sec. A-5. 9-B MRSA §232, sub-§8 is enacted to read:
8. Prohibition on participation in banking industry. An officer or director may be prohibited from participating in the banking industry in accordance with the following.
A. Any officer or director who, pursuant to an order issued under this section, has been removed from office in a financial institution, out-of-state financial institution or financial institution holding company or prohibited from participating in the conduct of the affairs of a financial institution, out-of-state financial institution, or financial institution holding company may not, while such order is in effect, continue or commence to hold any office, or participate in any manner in the conduct of the affairs of any financial institution, out-of-state financial institution or financial institution holding company.
B. If, on or after the date an order is issued under this section that removes from office an officer or director or prohibits an officer or director from participating in the conduct of the affairs of any financial institution, out-of-state financial institution or financial institution holding company, the order is modified, terminated or set aside in accordance with subsection 6, then the prohibition imposed in paragraph A must be similarly modified, terminated or set aside.
Sec. A-6. 9-B MRSA §468, sub-§1, ¶C is enacted to read:
C. "Affiliate" has the same meaning as given in section 131, subsection 1-A, except that a subsidiary of a financial institution is not an affiliate of that financial institution.
Sec. A-7. 9-B MRSA §468, sub-§6, as enacted by PL 1997, c. 398, Pt. I, §40, is amended to read:
6. Rulemaking. The superintendent may, by rule or order, define or further define terms used in this section and establish limits, requirements or exceptions to this section other than those specified in this section, if the superintendent determines such action is necessary for the protection of depositors or the public and is consistent with the purposes of this section. For institutions organized pursuant to Part 12, the superintendent may, by rule or order, define or further define the terms used in this section and establish limits, requirements or exceptions to this section other than those specified in this section, if the superintendent determines that such action is consistent with the powers and limitations accorded institutions organized pursuant to Part 12. Rules adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter II-A.
Sec. A-8. 9-B MRSA §1224, sub-§6, as enacted by PL 1997, c. 398, Pt. J, §2, is amended to read:
6. Provisions inapplicable. The following provisions of this Title are inapplicable to merchant banks: sections 223, 316-A, 439-A, 445, 446-A and 465-A and chapters 33, 37 and 42. The limitations on the holding of equity securities and the purchase of speculative securities, equities and venture capital
investments contained in section 419, subsection 1 are also inapplicable to merchant banks.
| Revisor of Statutes Homepage | Subject Index | Search | Laws of Maine | Maine Legislature |
