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Can you summarize 6 LARS Chapter 6, Part II?
BANK STRUCTURE > BANK HOLDING COMPANIES
Short Summary
The provided legal document governs bank holding companies in Louisiana. It declares the state’s policy to encourage effective competition among banking institutions by permitting bank holding companies to own or control one or more banking institutions in Louisiana. The document defines a bank holding company as any company that directly or indirectly owns, controls, or has the power to vote 25% or more of any class of voting shares of a bank. It also includes companies that control the election of a majority of directors of a bank or have trustees holding 25% or more of the voting shares of a bank or bank holding company for the benefit of its shareholders. The document provides exemptions for certain ownership or control of shares acquired in specific circumstances, such as underwriting of securities, proxy solicitation, securing or collecting a debt, or fiduciary capacity. Bank holding companies or subsidiaries engaged as general insurance agents or brokers on January 1, 1984, are allowed to continue such activities. The document prohibits bank holding companies or their subsidiaries from opening any new banks without proper authorization until July 1, 1989. It also restricts bank holding companies, subsidiaries, or their employees from engaging in any insurance activity, except for authorized insurance activities as specified in R.S. 6:242. The document outlines penalties for non-compliance, including fines for bank holding companies or subsidiaries that willfully violate any provision of this Chapter or any regulation or order issued by the commissioner of financial institutions. Individuals who willfully participate in a violation may also face fines or imprisonment. The document also specifies the powers and responsibilities of the commissioner of financial institutions in administering and regulating bank holding companies in Louisiana.
Whom does it apply to?
Bank holding companies, subsidiaries, directors, and shareholders of banks
What does it govern?
Bank holding companies in Louisiana
What are exemptions?
Exemptions are provided for certain ownership or control of shares acquired in specific circumstances, such as underwriting of securities, proxy solicitation, securing or collecting a debt, or fiduciary capacity. Bank holding companies or subsidiaries engaged as general insurance agents or brokers on January 1, 1984, are allowed to continue such activities.
What are the Penalties?
A bank holding company or subsidiary that willfully violates any provision of this Chapter or any regulation or order issued by the commissioner of financial institutions may be fined not less than $500 nor more than $1,000 for each day during which the violation continues. An individual who willfully participates in a violation of any provision of this Chapter may be fined not less than $1,000 nor more than $5,000 or imprisoned not more than one year, or both.
Jurisdiction
Louisiana