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Can you summarize NCGS Chapter 53C, Article 10?
Regulation of Banks > Bank Holding Companies.
Short Summary
The first legal document governs control transactions involving holding companies formed under the laws of North Carolina and having a bank as a subsidiary. It requires prior approval from the Commissioner for control transactions, with certain exempted transactions. The document outlines the process for filing notices or applications for approval, the appointment of an agent for service of process, and the Commissioner’s authority to object to control transactions. The second legal document pertains to the approval process for combinations involving holding companies of banks in North Carolina. It requires holding companies seeking approval for a combination to file an application with the Commissioner, who examines the proposed combination to ensure the interests of customers and communities served by the banks would not be adversely affected. The Commissioner must issue an order approving or denying the proposed combination within 60 days. The third legal document grants the Commissioner the authority to issue a cease and desist order if a holding company or its nonbank affiliate violates banking laws. Failure to comply with the Commissioner’s order may result in a civil money penalty. The document also outlines reporting requirements and fees for holding companies of banks. No specific exemptions or penalties are mentioned for the approval process for combinations involving holding companies of banks.
Whom does it apply to?
Persons engaging in control transactions involving holding companies formed under the laws of North Carolina and having a bank as a subsidiary, holding companies seeking approval for combinations, holding companies and their nonbank affiliates
What does it govern?
Control transactions involving holding companies formed under the laws of North Carolina and having a bank as a subsidiary, approval process for combinations involving holding companies of banks in North Carolina, regulation of Bank Holding Companies under the North Carolina General Statutes
What are exemptions?
Acquisitions of control over voting securities by a person who has previously engaged in a control transaction with the holding company, acquisitions by operation of law or inheritance, bona fide gifts, transactions exempted by the Commissioner, acquisitions exempted under the Bank Holding Company Act, acquisitions subject to approval under the Bank Holding Company Act (for control transactions), no specific exemptions mentioned for approval process for combinations
What are the Penalties?
No specific penalties mentioned for control transactions and approval process for combinations, a civil money penalty of twenty thousand dollars ($20,000) for each day a holding company remains in violation of a cease and desist order issued by the Commissioner
Jurisdiction
North Carolina