Sec 6-322. Interstate acquisitions; approval of superintendent; exception

A. Except as otherwise expressly permitted by federal law, an out-of-state financial institution shall not acquire an in-state financial institution unless the superintendent has approved the acquisition. The superintendent shall not approve an acquisition unless the superintendent has determined that deposits held in this state will be insured by the federal deposit insurance corporation when business in this state is commenced.

B. For those out-of-state financial institutions required to obtain approval from the superintendent as prescribed by subsection A, the acquiring financial institution shall submit to the superintendent a written application for approval in the form the superintendent prescribes. The acquiring financial institution shall accompany the application with such information, data and records as the superintendent may require in order to make the determination. In an interstate transaction, the superintendent may accept an application that is in the form and manner prescribed by the state or federal agency that is the primary regulator of the applicant and that is supplemented as necessary to allow the superintendent to determine whether to deny or approve the application. The superintendent shall adopt rules prescribing the form and the information, data or records that the superintendent requires. In evaluating applications for acquisition pursuant to subsection F, the superintendent may give consideration to the potential impact of the acquisition on the financial stability of the acquiring institution.

C. A newly established in-state financial institution created for the purpose of acquiring all or substantially all the assets of a former in-state financial institution from an out-of-state financial institution shall not constitute a de novo entry if the acquisition by the newly established in-state financial institution is completed within ninety days of the date on which the out-of-state financial institution acquired all or substantially all of the assets of the former in-state financial institution.

D. In the case of an out-of-state financial institution that is not required to obtain the approval of the superintendent, the out-of-state financial institution shall give written notice of the acquisition to the superintendent ten days before the effective date of the acquisition, unless a shorter time is prescribed by federal law.

E. From and after August 31, 2001, an out-of-state financial institution may acquire a branch of an in-state financial institution for operation as a branch without acquiring the entire in-state financial institution or its permit. A branch of an in-state financial institution is not eligible to be acquired unless it has been in continuous operation five or more years.

F. Notwithstanding subsection E, an out-of-state financial institution may acquire a branch of an in-state financial institution without acquiring the entire institution if all of the following apply:

1. The financial institution proposed to be acquired is in danger of being placed in receivership.

2. The acquisition is necessary to protect the financial interests of the in-state financial institution's depositors and creditors.

3. The terms of the acquisition are acceptable to the relevant federal agency.

4. The superintendent approves the acquisition pursuant to this section in writing.