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Can you summarize GACO 7-1-608?
Bank Branches, Offices, Facilities, and Holding Companies > Bank holding companies Lawful and unlawful acquisitions, formations, and mergers; waivers.
Short Summary
This legal document governs the acquisition, formation, and merger activities of bank holding companies. It prohibits bank holding companies from acquiring direct or indirect ownership or control of any voting shares of a bank if it would result in owning or controlling 5 percent or more of the voting shares of the bank. Exceptions to this rule include acquisitions by purchase and by formation, acquisitions of control of a bank without controlling any other bank, acquisitions through formation of a de novo bank in Georgia with departmental and federal approvals, and mergers or consolidations of de novo banks less than three years old owned by the holding company. The document also allows for waivers of the three-year age requirement in certain cases, such as when a bank is insolvent or in an unsafe condition, or when the proposed acquisition will result in material improvement of the safety and soundness of an institution. No specific penalties are mentioned in the document.
Whom does it apply to?
Bank holding companies
What does it govern?
Bank holding companies lawful and unlawful acquisitions, formations, and mergers; waivers
What are exemptions?
Exceptions include acquisitions by purchase and by formation, acquisitions of control of a bank without controlling any other bank, acquisitions through formation of a de novo bank in Georgia with departmental and federal approvals, and mergers or consolidations of de novo banks less than three years old owned by the holding company.
What are the Penalties?
No specific penalties mentioned.
Jurisdiction
Georgia