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Can you summarize AKST 06.05.235?
Reserves, Loans, Investments, Bank Service Corporations, Practices, and Services. > Bank holding companies.
Short Summary
This section of the Alaska Banking Code governs the ownership, control, and holding of voting securities or other capital stock of state banks or domestic bank holding companies. It prohibits any person from owning, controlling, or holding with power to vote 25 percent or more of a class of voting securities or other capital stock of such banks or holding companies, except in certain circumstances. These circumstances include accepting shares of stock in payment of indebtedness owing to a creditor, but any shares exceeding 25 percent must be promptly disposed of under the supervision of the department. Domestic bank holding companies that maintain their principal office and place of business in the state and conduct their principal operations in the state are allowed to acquire and own voting securities or other capital stock of banks or bank holding companies. However, they must obtain a permit from the department before acquiring a bank or bank holding company. The department will consider the benefits to the public, the preservation of a competitive banking industry, and the maintenance of a safe and sound bank industry when issuing the permit. Certain exemptions apply, such as persons acquiring or holding securities for underwriting purposes, state agencies, trustees or agents of an independent federal financial regulatory agency, and persons under a plan of financial restructuring approved by the department. Trust companies engaged in the business of banking are considered state banks for the purpose of this section. The section also references other implemented regulations and statutes related to bank holding companies.
Whom does it apply to?
Persons who own, control, or hold with power to vote 25 percent or more of a class of voting securities or other capital stock of state banks or domestic bank holding companies subject to regulation under this chapter
What does it govern?
Ownership, control, and holding of voting securities or other capital stock of state banks or domestic bank holding companies
What are exemptions?
1) Persons acquiring or holding voting securities or other capital stock of a bank or bank holding company only for a reasonable period of time in connection with the underwriting of securities; 2) State agencies; 3) Trustees or agents of an independent federal financial regulatory agency; 4) Persons under a plan of financial restructuring approved by the department to prevent the failure of a state bank
What are the Penalties?
Not specified
Jurisdiction
Alaska