§ 28-2-16-17 — Foreign bank holding company acquisition of Indiana bank or bank holding company; application; investigation; factors considered; findings; conditions and restrictions upon acquisition

Indiana § 28-2-16-17

• Jurisdiction: Indiana
• Art. 2: BANKS
• Ch. 16: Foreign Bank Holding Companies

Text

(a) If a foreign bank holding company
desires to acquire an Indiana bank or Indiana bank holding company
under this chapter, the foreign 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 the actions listed in this
subsection within ten (10) business days after receiving the application.
Within ten (10) business days after 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 accepting an application for processing under subsection
(a)(1), the department shall conduct an investigation, to the extent the
department considers necessary, into the condition of the applicant and
the Indiana bank or Indiana bank holding company proposed to be
acquired. The department may request 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 an employee of the department.
If the department decides to hold a public hearing under this section,
the department shall send written notice to 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
department shall also send written notice to the principal office of the
Indiana bank proposed to be acquired or to the principal office of each
Indiana bank subsidiary of the Indiana bank holding company proposed
to be acquired at least twenty (20) days before the hearing and shall
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 Indiana bank; or
(2) an Indiana bank subsidiary of the Indiana 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 expenses, 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
its 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 Indiana bank
or Indiana bank holding company proposed to be acquired.
(3) Whether the proposed merger or acquisition will result in an
Indiana 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 Indiana bank or Indiana 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 Indiana bank or
Indiana bank holding company proposed to be acquired.
(7) Whether the interest of the depositors and creditors of the
Indiana bank or Indiana bank holding company proposed to be
acquired 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 18 of this
chapter, the finding required by section 19 of this chapter.
(f) The department shall make any acquisition by a foreign bank
holding company subject to any conditions, restrictions, and
requirements that:
(1) would apply to the acquisition by an Indiana bank holding
company of a bank or bank holding company in the state where
the foreign bank holding company has its principal place of
business; and
(2) would not apply to the acquisition of a bank or bank holding
company in that state by a bank holding company that controls
only banks located in that state.

Legislative History

As added by P.L.279-1987, SEC.9. Amended by P.L.33-1991, SEC.43; P.L.262-1995, SEC.59; P.L.171-1996, SEC.35.