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Can you summarize ALCA 5-3A-1?
Examination of Banks. > Required times; items to be examined; applicability to bank holding companies and affiliates.
Short Summary
This section of the Code of Alabama governs the examinations of banks. It defines a bank holding company as a holding company that directly owns a majority of the voting securities of an Alabama state bank. Every bank other than national banks is subject to the supervision and inspection of the superintendent. The superintendent is required to visit and examine every bank organized under the laws of Alabama at least once in each eighteen-month period. The examination of banks is conducted at irregular intervals. The superintendent is also authorized to examine the affairs of bank holding companies, subsidiaries, affiliates, and bank service companies, except for national banks and their subsidiaries or affiliates. The purpose of these examinations is to assess the conditions, resources, management, investments, and compliance with laws and regulations of the entities being examined. The term ‘affiliate’ is defined to include corporations, business trusts, associations, or other entities that meet certain ownership or control criteria. No specific penalties are mentioned in this section.
Whom does it apply to?
Bank holding companies, banks other than national banks, subsidiaries or other affiliates of bank holding companies
What does it govern?
Examinations of Banks
What are exemptions?
National banks and subsidiaries or other affiliates of national banks
What are the Penalties?
No specific penalties mentioned
Jurisdiction
Alabama