CHAPTER 82
S.P. 196 - L.D. 587
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 9-B MRSA §131, sub-§32, as repealed and replaced by PL 1975, c. 666, §4, is amended to read:
32. Savings account. "Savings account" or "savings deposit" means a deposit or account in a financial institution in which the depositor is not required by the deposit contract, but may at any time be required by the financial institution, to give notice in writing of an intended withdrawal not less than 30 7 days before such withdrawal is made and which that is not payable on a specified date or at the expiration of a specified time after the date of deposit.
Sec. 2. 9-B MRSA §131, sub-§37, as amended by PL 1997, c. 398, Pt. A, §26, is further amended to read:
37. Service corporation. "Service corporation" means a corporation, limited liability company or limited partnership substantially all the activities of which consist of originating, purchasing, selling and servicing loans and participation interests therein; or clerical, bookkeeping, accounting and statistical or similar functions related to a financial institution or real estate activities; or management, personnel, marketing or investment counseling related to a financial institution or real estate activities; or establishing or operating one or more satellite facilities; or any activity authorized by the superintendent by rule or order that has been authorized under federal law for service corporations owned or controlled by national banks, federally chartered savings and loan associations, federally chartered savings banks or federally chartered credit unions. The purpose of authorizing any such activity is to maintain competitive equality between federally chartered and state-chartered institutions.
Sec. 3. 9-B MRSA §231, sub-§1, ¶B, as repealed and replaced by PL 1995, c. 628, §16, is amended to read:
B. The superintendent may restrict the withdrawal of funds from one or more financial institutions in an order issued under paragraph A if, in the opinion of the superintendent, extraordinary circumstances make such action necessary and appropriate for the protection of depositors, shareholders investors or the public.
Sec. 4. 9-B MRSA §231, sub-§3, ¶A, as enacted by PL 1975, c. 500, §1, is amended to read:
A. Whenever, in the opinion of the superintendent, the violation or practice set forth in subsection 1 requires immediate action for the protection of depositors or shareholders investors, or where such the violation or practice, or the continuation thereof, is likely to cause insolvency or substantial dissipation of the assets or earnings of the institution, the superintendent may issue orders pursuant to subsection 1, which shall become effective upon service thereof, without prior notice or hearing.
Sec. 5. 9-B MRSA §312, sub-§5, ¶D, as enacted by PL 1997, c. 398, Pt. C, §7, is amended to read:
D. All initial and subsequent capital contributions must be in the form of cash, unless otherwise approved by the superintendent.
Sec. 6. 9-B MRSA §342, sub-§1, ¶H is enacted to read:
H. Upon approval of the superintendent and evidence that the converting institution has complied with all applicable state and federal laws, rules and regulations, the superintendent shall issue to the resulting institution a certificate specifying the name of the converting institution and shall file a copy of the certificate with the Secretary of State. This certificate, once filed, is conclusive evidence of the conversion and of the correctness of all proceedings relating to the conversion in all courts and places. Unless a later date is specified in the certificate, the conversion is effective upon issuance of the certificate.
Sec. 7. 9-B MRSA §342, sub-§2, ¶E is enacted to read:
E. Upon approval of the superintendent and evidence that the converting institution has complied with all applicable state and federal laws, rules and regulations, the superintendent shall issue to the resulting institution a certificate specifying the name of the converting institution and shall file a copy of the certificate with the Secretary of State. This certificate, once filed, is conclusive evidence of the conversion and of the correctness of all proceedings related to the conversion in all courts and places. Unless a later date is specified in the certificate, the conversion is effective upon issuance of the certificate.
Sec. 8. 9-B MRSA §412-A, sub-§3, as enacted by PL 1997, c. 398, Pt. I, §3, is repealed.
Sec. 9. 9-B MRSA §412-A, sub-§3-A is enacted to read:
3-A. Approval. Any issuance considered as capital under subsection 1 or under rules adopted under subsection 1 must be submitted to the superintendent for the superintendent's approval at least 10 days prior to issuance and include any documentation the superintendent considers necessary.
Sec. 10. 9-B MRSA §445, sub-§1, as amended by PL 1997, c. 22, §12, is further amended to read:
1. Authorization. A financial institution may establish, acquire or invest in the capital stock equity interest, obligations or other securities of a service corporation, as defined in section 131, or otherwise participate in or utilize the service of such a corporation. A service corporation may be owned by one or more institutions engaged in the business of banking.
Sec. 11. 9-B MRSA §864, sub-§2, ¶A, as enacted by PL 1993, c. 99, §2, is amended to read:
A. The service corporation is structured as either a corporation or limited partnership, in order to limit the credit union's exposure to loss; and
Sec. 12. 9-B MRSA §882, as amended by PL 1997, c. 108, §14, is repealed and the following enacted in its place:
§882. Use of term "credit union"
1. Use of term authorized. A person, if duly authorized under the laws of this State, another state or the United States to conduct the business of banking as a credit union, may use as a part of the name or title under which it conducts business in this State the term "credit union." The superintendent may require the filing of supporting documentation relating to this paragraph in the form and manner and containing any information the superintendent may prescribe.
2. Use of term prohibited. Except as provided in subsection 1, a person may not use the term "credit union" as part of the name or title under which business is conducted or as a designation of such a business without prior written approval of the superintendent. In determining whether to grant written permission, the superintendent shall consider whether the business to be conducted is similar to the business of banking and whether using those terms or any derivatives of those terms could be deceptive or otherwise injurious to public interest.
3. Violation; penalty. A person who violates any provision of this section is subject to a civil penalty of not more than $10,000 for each violation.
4. Exception. This section does not prohibit the use of any name by a person who received written permission from the superintendent to use the name prior to the effective date of this section.
Sec. 13. 9-B MRSA §1019-A, sub-§§1 and 2, as enacted by PL 1991, c. 386, §27, are amended to read:
1. Issuance of stock, capital notes or debentures. The issuance of preferred stock equity interest, capital notes or debentures with an original maturity of 3 years or greater. Notice must be provided at least 10 days prior to issuance and must contain a copy of any United States Securities and Exchange Commission filings, private placement memoranda or other documents describing the proposed issue to potential investors; and
2. Purchase of own capital stock. The purchase of shares of any type of its own capital stock equity interest. Notice must contain such information as required by the superintendent.; and
Sec. 14. 9-B MRSA §1019-A, sub-§3 is enacted to read:
3. Exception requiring approval. The issuance of equity interest or capital notes by a Maine financial institution holding company that is not required to file notice with the United States Securities and Exchange Commission. Issuance under this subsection also requires prior approval of the superintendent. A Maine financial institution holding company may not purchase or redeem its equity interests without the superintendent's prior written approval if the gross consideration for purchase or redemption, when aggregated with the net consideration paid by the company for all such purchases or redemptions during the preceding 12 months, is equal to 10% or more of the company's consolidated net worth.
Sec. 15. 9-B MRSA §1215, 2nd ¶, as enacted by PL 1997, c. 398, Pt. J, §2, is amended to read:
If the holding company is not deemed to be a financial institution holding company under chapter 101 by virtue of controlling financial institutions other than nondepository trust companies, the superintendent may examine the holding company, including its subsidiaries and affiliates, to the extent necessary to determine the soundness and viability of the nondepository trust company.
Sec. 16. 9-B MRSA §1226, 2nd ¶, as enacted by PL 1997, c. 398, Pt. J, §2, is amended to read:
If the holding company is not deemed to be a financial institution holding company under chapter 101 by virtue of controlling financial institutions other than a merchant bank, the superintendent may examine the holding company, including its subsidiaries and affiliates, to the extent necessary to determine the soundness and viability of the merchant bank.
Effective September 17, 2005.
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