SB495 Alabama 2010 Session

Existing law provides certain procedures for the acquisition of a majority share of a bank and for the course of action that the Superintendent of Banking must take as to the default or misconduct of a bank or an officer or director of a bank

This bill would specify that the Banking Board may direct the superintendent to order the removal of an officer of a bank or to issue civil money penalties

This bill would further allow the Banking Department to remove and prohibit a person who caused a bank to suffer substantial financial loss from participating in the affairs of any Alabama state bank or a holding company that controls an Alabama state bank regardless of whether the person is still employed by a state chartered bank

This bill would remove the exemption from the requirement of prior approval by the Superintendent of Banking for transactions requiring the prior approval of the Board of Governors of the Federal Reserve System under the Bank Holding Company Act of 1956. The bill would also allow the superintendent more time to review an application under this section

This bill would provide that, for certain purposes, a quorum of the Banking Board shall be a majority of those present and entitled to vote

This bill would eliminate the requirement for the FDIC to apply for an order confirming appointment as the receiver of a bank from the receivership court when the FDIC is appointed receiver of the bank

This bill would further provide the conditions under which an Alabama bank holding company may acquire an out-of-state bank or a bank holding company

To amend Sections 5-2A-12, 5-3A-6, 5-5A-44, 5-8A-20, 5-8A-24, 5-13B-3, 5-13B-4, 5-13B-5, and 5-13B-6, Code of Alabama 1975, relating to banks; to specify that the Banking Board may order the removal of and civil penalties against a person who has caused a bank to suffer a substantial financial loss; to allow the Banking Department to remove and prohibit a person who has caused a bank to suffer a substantial financial loss from participating in the affairs of any Alabama state bank or a holding company that controls an Alabama state bank, including after the person is no longer employed by a state chartered bank; to remove the exemption from prior approval by the Superintendent of Banking for transactions requiring the prior approval of the Board of Governors of the Federal Reserve System under the Bank Holding Company Act of 1956 and to further provide for the review of applications; to provide that, for certain purposes, a quorum of the Banking Board shall be a majority of those present and entitled to vote; to remove the requirement that the Federal Deposit Insurance Corporation apply for an order confirming appointment as receiver from the receivership court; and to further provide for the conditions under which an Alabama bank holding company may acquire an out-of-state bank or a bank holding company.