SB426 Summary

• Establishes regulatory framework for bank holding companies, defined as entities organized under Alabama or other U.S. state laws that directly own a majority of voting securities of an Alabama state bank.

• Makes examination reports and records of banking board meetings relating to bank holding companies confidential and protected from subpoena except by grand jury.

• Extends the superintendent's authority to examine bank holding companies, impose civil money penalties (up to $1,000 per day, maximum $100,000 aggregate), and remove officers or directors for unsafe and unsound conduct.

• Requires persons acquiring control of voting shares through inheritance to notify the superintendent within 60 days, submit a business plan within 90 days, and obtain superintendent approval for any changes during the first three years.

• Amends bank incorporation requirements to mandate a minimum of five directors with a majority being outside directors, and specifies required officer positions (chair, CEO, chief financial/operations officer, chief lending officer).