3/29/01...0474s

26june01...1696CofC

2001 SESSION

01-0644

09/01

HOUSE BILL 238

COMMITTEE: Commerce

ANALYSIS

This bill removes the requirement that a New Hampshire bank age for at least 5 years before it may be acquired by and merged into an out-of-state bank and converted to a branch of that bank.

The bill also makes certain other changes in the laws regarding interstate bank acquisitions, mergers, and branching.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

3/29/01...0474s

26june01...1696CofC

01-0644

09/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand One

Be it Enacted by the Senate and House of Representatives in General Court convened:

269:1 Interstate Acquisition of Bank by Bank Holding Company; 5-Year Aging Requirement Removed. Amend RSA 384:58, II to read as follows:

II. An out-of-state bank holding company may directly or indirectly acquire a New Hampshire bank [or], a national bank, or a federal savings bank having its principal place of business in New Hampshire [which has been in existence for at least 5 years. The 5-year aging requirement of this paragraph shall not apply to a New Hampshire bank which was incorporated pursuant to RSA 386-A or RSA 392 prior to September 29, 1995]. An out-of-state bank holding company may also organize, and be the sole incorporator of, a New Hampshire bank which is chartered under applicable New Hampshire law. No acquisition of an existing bank shall be permitted which will result in a violation of the deposit limitation contained in RSA 384-B. The authority granted by this section shall be available to the out-of-state bank holding company only if a New Hampshire bank holding company may acquire or organize a bank in the state in which the principal place of business of the out-of-state bank holding company is located under [the authority of that state's laws substantially to the same extent and in the same manner as the out-of-state bank holding company is permitted to do so in this section] conditions no more restrictive than those imposed by the laws of this state as determined by the bank commissioner.

269:2 Interstate Bank Merger; 5-Year Aging Requirement Removed. Amend RSA 384:59, I to read as follows:

I. Unless otherwise provided in this paragraph, a New Hampshire bank [or], a national bank, or a federal savings bank having its principal place of business in New Hampshire may merge with any out-of-state bank in accordance with applicable laws and regulations of New Hampshire and any other applicable state and federal authority. [If the resulting bank is an out-of-state bank,] A merger pursuant to this section shall be permitted only if the New Hampshire bank may merge with a state or national bank or federal savings bank [or national bank] having its principal place of business in [New Hampshire shall be required to be in existence for at least 5 years in order to be eligible to merge. The 5-year aging requirement of this paragraph shall not apply to a New Hampshire bank which was incorporated pursuant to RSA 386-A or RSA 392 prior to September 29, 1995.] the state in which the principal place of business of the out-of-state bank is located, under conditions no more restrictive than those imposed by the laws of this state as determined by the bank commissioner. No merger shall be permitted which will result in a violation of the deposit limitation contained in RSA 384-B.

269:3 Interstate Bank Merger. Amend RSA 384:59, V to read as follows:

V. If the resulting bank is an out-of-state bank, it shall have all the powers held by the bank with which it merged under applicable New Hampshire laws and regulations, subject to the duties and restrictions thereof. The branch or branches located in New Hampshire of an out-of-state bank, other than a national bank or federal savings association, shall be regulated by the bank commissioner as if such branch or branches comprised a New Hampshire bank. Any out-of-state bank having a branch or branches located in New Hampshire shall comply with applicable New Hampshire laws and regulations in the conduct of its banking business in New Hampshire. No branch of an out-of-state bank shall be permitted to engage in any activity not permissible for a New Hampshire bank. [No out-of-state bank shall be permitted to establish a new branch or acquire a branch from another bank in New Hampshire unless such out-of-state bank has previously merged with a New Hampshire bank or a national bank having its principal place of business in New Hampshire.] Notwithstanding the foregoing, if the out-of-state bank is a national bank or a federal savings association, it shall comply with New Hampshire law to the maximum extent allowed under federal law.

269:4 Interstate Establishment or Acquisition of Branches by a New Hampshire Bank. Amend RSA 384:60, II to read as follows:

II. An out-of-state bank may establish one or more new branches in New Hampshire or may acquire one or more branches from a New Hampshire bank or a national bank or federal savings bank having its principal place of business in New Hampshire. The out-of-state bank shall be required to follow all procedures and to obtain all approvals necessary to establish or acquire the branch or branches under RSA 384-B and any applicable rules adopted by the bank commissioner consistent therewith. The authority granted by this section shall be available to the out-of-state bank only if a New Hampshire bank may establish or acquire one or more branches in the state in which the principal place of business of the out-of-state bank is located under [the authority of that state's laws substantially to the same extent and in the same manner as the out-of-state bank is permitted to do so in this section] conditions no more restrictive than those imposed by the laws of this state as determined by the bank commissioner. No branch may be established or acquired if it will result in a violation of the deposit limitation contained in RSA 384-B. The out-of-state bank shall file with the bank commissioner a copy of each application or notice filed with federal or other state regulatory authorities relating to the establishment or acquisition of a branch or branches at the same time such application or notice is filed with such federal or other state regulatory authorities. The out-of-state bank shall have all the powers held by a New Hampshire bank with respect to the operation of the branch or branches located in New Hampshire under applicable New Hampshire laws and regulations, subject to the duties and restrictions thereof. The branch or branches located in New Hampshire of an out-of-state bank, other than a national bank or federal savings association, shall be regulated by the bank commissioner as if such branch or branches comprised a New Hampshire bank. Any out-of-state bank having a branch or branches located in New Hampshire shall comply with applicable New Hampshire laws and regulations in the conduct of its banking business in New Hampshire. No branch of an out-of-state bank shall be permitted to engage in any activity not permissible for a New Hampshire bank. Notwithstanding the foregoing, if the out-of-state bank is a national bank or a federal savings association, it shall comply with New Hampshire law to the maximum extent allowed under federal law.

269:5 Effective Date. This act shall take effect January 1, 2002.

(Approved: July 16, 2001)

(Effective Date: January 1, 2002)