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Can you summarize 5 ALCA Chapter 13B, Article 1?
INTERSTATE AND INTERNATIONAL BANK ACQUISITIONS, MERGERS AND BRANCHING. > Acquisitions of Banks by Bank Holding Companies.
Short Summary
These legal documents govern the acquisitions of banks by bank holding companies in the state of Alabama. They require prior approval from the superintendent for any acquisition of an Alabama bank holding company or an Alabama state bank. Exemptions to this requirement include acquisitions arranged to prevent insolvency or closing of the acquired bank, or acquisitions where a bank forms its own bank holding company and ownership rights are substantially similar to the new bank holding company’s shareholders. Additionally, no Alabama bank holding company can acquire an out-of-state bank or bank holding company without prior approval from the superintendent. The superintendent considers factors such as safety and soundness, competition reduction, and impact on the convenience and needs of the community when deciding whether to approve an application for a proposed acquisition. The documents also outline the procedures for applications, including filing requirements, application fees, and public notice. The superintendent has the authority to examine an Alabama bank holding company if there are reasons to believe non-compliance with state laws or safe and sound banking practices. These documents do not specify any specific penalties for non-compliance or violations.
Whom does it apply to?
Bank holding companies, Alabama state banks, Alabama bank holding companies, out-of-state banks, out-of-state bank holding companies
What does it govern?
Acquisitions of banks by bank holding companies
What are exemptions?
Acquisitions arranged by the superintendent or another bank supervisory agency to prevent insolvency or closing of the acquired bank, acquisitions where a bank forms its own bank holding company and ownership rights are substantially similar to the new bank holding company's shareholders
What are the Penalties?
No specific penalties mentioned
Jurisdiction
Alabama