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Can you summarize 6 LARS Chapter 6?
Banks and Banking > BANK STRUCTURE
Short Summary
This legal document governs the establishment and closure of branch offices by banks, savings banks, and savings and loan associations in Louisiana. It requires banks to obtain a certificate of authority from the commissioner before opening a branch office. The document outlines the criteria for granting a certificate of authority, including the financial history and condition of the applicant, capital structure, management, and community needs. It also allows banks to acquire a business engaging in banking powers and operate it as a branch with the approval of the certificate of authority. The document prohibits the lease of a branch office without provisions for compliance with R.S. 6:507. Additionally, the document provides guidelines for the closure of branch offices, requiring banks to submit a written notice to the commissioner at least ninety days prior to the closure date. The notice must include detailed reasons for the closure and evidence of notification to the appropriate federal banking agency. The bank must also post a notice in the branch office at least thirty days prior to the closure date, informing customers of the closure and, if applicable, the transfer location. The commissioner has the authority to waive the closure notification and transfer requirements in case of an emergency. Overall, this document ensures proper regulation and oversight of branch offices by banks and savings banks in Louisiana.
Whom does it apply to?
Banks, savings banks, savings and loan associations
What does it govern?
Establishment and closure of branch offices by banks, savings banks, and savings and loan associations
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
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.
Jurisdiction
Louisiana