§ 23-48-325 — Banker's banks

(a) Any state bank may purchase, for its own account, shares of a bank or bank holding company if: (1) The stock of the bank or bank holding company whose shares are being purchased is owned exclusively by financial institutions; and (2) The bank or bank holding company whose shares are being purchased and all subsidiaries thereof are engaged exclusively in providing services for financial institutions, their parent holding companies, subsidiaries thereof, and the officers, directors, and employees of each. (b) (1) In no event shall the total amount of stock held by a bank in any bank or bank holding company described in subsection (a) of this section exceed at any time ten percent (10%) of the holding bank's capital base. (2) In no event shall the purchase of that stock result in the purchasing bank's acquiring more than five percent (5%) of any class of voting securities of the bank or bank holding company whose shares are purchased. (c) The Bank Commissioner is authorized to receive applications, hold hearings on the applications, and, with the approval of the State Banking Board, issue charters for a banker's bank. (d) Any banker's bank chartered under this section must have its deposits insured by the Federal Deposit Insurance Corporation.

Legislative History

Acts 1997, No. 89, § 1.