SB385 Summary

• Expands state banking superintendent approval requirements to acquisitions of 25 percent or more of voting securities in a state bank, aligning with existing federal law requirements.

• Requires filing applications with the State Banking Department superintendent and obtaining prior approval when acquiring 10 percent of voting securities under certain conditions (when no other person will own a majority).

• Establishes comprehensive application requirements including identity of acquiring parties, financial statements for five prior fiscal years, acquisition terms, funding sources, management plans, and information on any persons soliciting stockholder votes.

• Superintendent must approve or deny applications within 60 days of receiving completed applications, with an additional 30-day extension if requesting supplemental information.

• Superintendent may deny applications if acquisition would jeopardize bank financial stability, involve persons of questionable competence or integrity, substantially reduce competition, or adversely affect community needs.