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Can you summarize 5 ALCA Chapter 3A?
BANKS AND FINANCIAL INSTITUTIONS. > EXAMINATIONS OF BANKS; REPORTS OF BANKS.
Short Summary
The provided legal document governs the examinations of banks and the reporting requirements for banks in Alabama. Banks are required to submit a semiannual report to the superintendent, providing detailed information about their resources and liabilities. The report must be transmitted to the superintendent within 30 days of receiving a request and published in a newspaper in the bank’s city or town. The superintendent will compare the published report with the sworn report filed by the bank. Failure to publish the report or transmit it within the specified timeframe will result in penalties. The superintendent may also call for a special report from any bank if deemed necessary. If discrepancies are found between the published and sworn reports, the superintendent may require republication or publish a correct report at the bank’s expense. Banks are also required to make at least two reports each year, verified by the oath or affirmation of bank officials. The legal document also addresses the confidentiality of examination reports and records, perjury for false reports, and the prohibition of offering or receiving anything of value between bank employees and employees of the State Banking Department. The superintendent and examiners have the authority to administer oaths, examine individuals, and compel the production of records. The document also outlines the expenses associated with special examinations and the superintendent’s power to examine agencies of foreign banks. The disclosure of information obtained by the superintendent and examiners is restricted, except as authorized by law. The document also allows the superintendent to accept examinations conducted by federal bank regulatory agencies. Overall, the document provides the framework for examinations, reporting, and enforcement in relation to banks and bank holding companies in Alabama.
Whom does it apply to?
Banks, bank holding companies, affiliates of banks, employees of banks, employees of the State Banking Department
What does it govern?
Examinations of banks and reports of banks
What are exemptions?
Expenses associated with social occasions provided to State Banking Department employees are not considered a thing of value and are not prohibited. The superintendent or a State Banking Department employee can own a certificate of deposit in a state bank, but no preferential rate shall be granted. The production of records and documents or testimony required by the superintendent does not waive any attorney-client privilege or other privilege.
What are the Penalties?
Failure to transmit the report within 30 days incurs a penalty of $100.00 per day. Violation of the confidentiality provisions is considered a Class A misdemeanor.
Jurisdiction
Alabama