§ 23-48-402 — Nonapplicability of subchapter

(a) This subchapter shall not apply to shares of any company: (1) Acquired by a bank holding company or by a bank in satisfaction of a debt previously contracted in good faith; (2) Which are held or acquired by a bank in good faith in a fiduciary capacity; or (3) Which are of the kinds and amounts eligible for investments by state banks under the provisions of § 23-47-401 . (b) (1) Notwithstanding subsection (a) of this section, a bank holding company or a state bank shall dispose of shares acquired in satisfaction of a debt previously contracted in good faith within a period of two (2) years from the date on which they were acquired. (2) (A) The Bank Commissioner is authorized upon application to extend, from time to time for up to an additional three (3) years, for not more than one (1) year at a time, the two-year period referred to in this section for disposing of any shares acquired by a bank holding company, or state bank, in the regular course of securing or collecting a debt previously contracted in good faith, if, in the commissioner's judgment, such an extension would not be detrimental to the public interest, but no extensions shall, in the aggregate, exceed three (3) years. (B) However, a bank holding company shall not be prohibited from purchasing shares from any of its banking subsidiaries, subject to the provisions of §§ 23-48-405 and 23-48-406 .

Legislative History

Acts 1997, No. 89, § 1.