§ 28-2-17-23 — Authorized activities; acquisition of additional branches; investigation; provisions and fees

Indiana § 28-2-17-23

• Jurisdiction: Indiana
• Art. 2: BANKS
• Ch. 17: Interstate Bank Mergers

Text

(a) An out-of-state state bank that establishes
and maintains one (1) or more branches in Indiana under this chapter
may conduct at the branch or branches only those activities that are
expressly authorized under the laws of Indiana for Indiana state banks.
(b) An Indiana state bank may conduct any activities at any branch
located outside Indiana that are permissible for a bank organized or
reorganized by the host state in which the branch is located. However,
if Indiana law specifically prohibits an activity that is permitted by the
host state, the department may by order waive the prohibition if the
department determines that the involvement of out-of-state branches of
Indiana state banks in the particular activities conducted in the host
state would not threaten the safety or soundness of banks. This section
does not authorize a bank located in Indiana to engage in an activity in
Indiana that has been waived under this provision.
(c) An out-of-state bank that has acquired a branch in Indiana under
this chapter may establish or acquire additional branches in Indiana to
the same extent that any Indiana bank may establish or acquire a
branch in Indiana under applicable federal and Indiana law.
(d) With the prior approval of the department, an Indiana state bank
that has acquired a branch or branches in a state other than Indiana
through an interstate merger transaction may establish or acquire
additional branches in the host state to the same extent that a host state
state bank may establish or acquire a branch in the host state under the
applicable host state law and federal law. An Indiana state bank
desiring to establish one (1) or more branches under this section must
file a written application with the director. The application must be in
the form and must contain the information prescribed by the director.
The department may approve or disapprove the application. Before the
department approves the application, the bank must demonstrate to the
satisfaction of the department that:
(1) the applicant state bank will have adequate capital, sound
management, and adequate future earnings prospects after the
establishment of the branch; and
(2) the establishment of the proposed branch will not violate the
laws of the host state.
(e) The investigation of the department relative to any application
as required by this section shall be conducted without a public hearing.
(f) The branch or branches of an out-of-state bank that are
established and maintained in Indiana under this chapter shall be
subject to the provisions and fees of IC 24-4.5 to the same extent as a
bank located in Indiana.

Legislative History

As added by P.L.171-1996, SEC.36. Amended by P.L.192-1997, SEC.8.