§ 28-2-14-12 — Bank or bank holding companies; application for acquisition; investigation; hearing; approval or disapproval

Indiana § 28-2-14-12

• Jurisdiction: Indiana
• Art. 2: BANKS
• Ch. 14: Indiana Bank Holding Companies

Text

(a) If a company or bank holding company
desires to acquire a bank or a bank holding company under this
chapter, the company or bank holding company must file an application
for approval of the acquisition with the department on forms prescribed
by the department. Upon receipt of an application under this section,
the department may:
(1) accept the application for processing;
(2) request additional information to complete the application; or
(3) return the application if it is substantially incomplete.
The department shall take one (1) of those actions within ten (10)
business days after receiving the application. Upon acceptance of an
application for processing, the department shall notify the applicant
and the bank or bank holding company proposed to be acquired of its
acceptance of the application. The applicant shall publish notice of the
acceptance of the application in a newspaper of general circulation in
each county in which is located the principal office or a branch of the
bank proposed to be acquired or a bank subsidiary of the bank holding
company proposed to be acquired.
(b) Upon acceptance of an application for processing, the
department shall conduct an investigation, to the extent the department
considers necessary, into the condition of the applicant and the bank or
bank holding company proposed to be acquired. The director may
require additional information from the applicant and may hold public
hearings with respect to the proposed acquisition. The department may
require the applicant to produce any additional information the
department considers necessary for the hearing. The department shall
commence any public hearing held under this section not less than
thirty (30) days and not more than sixty (60) days after the department's
acceptance of an application for processing. The hearing shall be held
at a place, date, and time specified by the department. The department
may assign the task of conducting the hearing to a member or employee
of the department. If the department decides to hold a public hearing
under this section, the department shall notify the applicant no later
than thirty (30) days after the department's acceptance of an application
for processing and at least twenty (20) days before the hearing. The
director also shall send written notice to the principal office of the bank
proposed to be acquired, or to the principal office of each bank
subsidiary of the bank holding company proposed to be acquired, at
least twenty (20) days before the hearing and shall require the applicant
to publish notice of the hearing at least twenty (20) days before the
hearing in a newspaper of general circulation in each county in which
is located the principal office or a branch of:
(1) the bank; or
(2) a bank subsidiary of the bank holding company;
proposed to be acquired. The shareholders of the bank or bank holding
company proposed to be acquired and the shareholders of the applicant
may appear and offer evidence at the hearing. At least ten (10) days
before the hearing, a person desiring to appear and offer testimony
must give the department written notice of the person's intent to testify.
The applicant shall pay all expenses of publication, court reporter fees,
department expenses, appropriate department per diem expense, and
hearing room fees, as determined by the department.
(c) The department shall either approve or disapprove the proposed
acquisition within:
(1) sixty (60) days after the acceptance of an application for
processing, if the department elects not to hold a public hearing;
or
(2) thirty (30) days after any public hearing held with respect to
the proposed acquisition, if the department elects to hold a public
hearing.
The department may extend the period for consideration of the
application, upon written notice to the applicant, if the department
determines that further information from the applicant is necessary for
a decision or that any material information submitted is substantially
inaccurate. However, an extension may not exceed an additional thirty
(30) days.
(d) The department may not authorize an acquisition under this
chapter unless the provisions of this chapter have been met.
(e) In deciding whether to approve an acquisition under this chapter,
the department shall consider the following factors:
(1) Whether the banks already controlled by the applicant are
operated in a safe, sound, and prudent manner.
(2) Whether the financial condition of the applicant or any of its
affiliates will jeopardize the financial stability of the bank or bank
holding company proposed to be acquired.
(3) Whether the proposed merger or acquisition will result in a
bank that has inadequate capital, unsatisfactory management, or
poor earnings prospects.
(4) Whether banks already controlled by the applicant have
provided adequate and appropriate services, including services
contemplated by the Community Reinvestment Act of 1977 (12
U.S.C. 2901 et seq.), to the communities in which they are
located.
(5) Whether the applicant proposes to provide adequate and
appropriate services, including services contemplated by the
Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.),
in the communities served by the bank or bank holding company
proposed to be acquired.
(6) Whether the management or other principals of the applicant
are qualified by character and financial responsibility to control
and operate in a legal and proper manner the bank or bank
holding company proposed to be acquired.
(7) Whether the interest of the depositors and creditors and the
interest of the public generally will be jeopardized by the
proposed acquisition.
(8) Whether the applicant furnishes all the information the
department requires in reaching its decision.
(9) If the department holds a hearing under section 13 of this
chapter, the finding required by section 14 of this chapter.

Legislative History

As added by P.L.265-1985, SEC.4. Amended by P.L.36-1987, SEC.12; P.L.33-1991, SEC.31; P.L.14-1992, SEC.109; P.L.122-1994, SEC.90.