§ 6:121 — Regulatory powers; promulgation of rules and regulations

§121. Regulatory powers; promulgation of rules and regulations
A. The commissioner shall have in addition to those powers
specifically enumerated in this Title any power necessary and appropriate to
perform his duties under this Title as well as any power necessary and
appropriate to prevent or terminate any condition which he may reasonably
deem to create an emergency relative to a particular financial institution or
financial institutions in general. Such power may include, but shall not be
limited to, the granting of temporary lending authority to a financial institution,
taking into account that institution's current net operating income and whether
it has such negative undivided profits that might render the bank unable to
make a loan as provided in R.S. 6:415(A)(1), (2), or (3) or to make a purchase
or sell as provided in R.S. 6:303(A) and (B). In granting such temporary
lending authority, the amount of which shall be at the discretion of the
commissioner, the commissioner shall be guided by safety and soundness of
the financial institution.
B.(1) The commissioner shall have the power to enact and promulgate
rules and regulations as may be necessary or appropriate to implement the
provisions of this Title. The commissioner in making rules and regulations
pursuant to this power shall consider among other matters the impact any such
rule or regulation will have on the dual banking system as well as the impact
any such rule or regulation will have on the public interest in the business of
banking. The commissioner may also consider the regulations of the
Comptroller of the Currency, the Federal Reserve Board, the Federal Deposit
Insurance Corporation, and the Office of Thrift Supervision to allow financial
institutions organized under the laws of this state to offer services consistent
with services offered by financial institutions organized under the laws of the
United States.
(2) Notwithstanding any other provision of this Title, the commissioner
shall not authorize any bank, bank holding company, subsidiary, or employee
thereof to engage in any insurance activity except an insurance activity
authorized by R.S. 6:242. However, any bank which was engaged as a general
insurance agent or broker on January 1, 1984, may continue to be so engaged.
(3) The commissioner of financial institutions shall make a report to
the legislature no later than March first of each year indicating what actions
have been taken by financial institutions in this state to assist economically
disadvantaged urban and rural communities, minorities, and small businesses.
(4) The commissioner of financial institutions may promulgate such
rules as are necessary to carry out the regulatory function of this office,
including but not limited to the organization, administration, and supervision
of mutual state banks as defined by R.S. 6:2(10).
C. All regulations enacted and promulgated under this Section shall be
subject to the provisions of R.S. 49:951, 953, 956, and 961, and prior to the
promulgation of any such rule or regulation, the commissioner shall give each
financial institution organized under this Title affected by the rule or
regulation written notification of the content of such rule or regulation and the
date and time of any public hearing held pursuant to the above Sections. The
commissioner shall provide notice at least ten days prior to the adoption of
such rule or regulation, but the failure of a particular financial institution to
receive notice thereof shall not affect the validity of such rule or regulation.

Legislative History

Acts 1984, No. 719, §1, eff. Jan. 1, 1985; Acts 1988, No. 935, §1, eff. July 26, 1988; Acts 1989, No. 130, §1, eff. June 22, 1989; Acts 1990, No. 611, §1, eff. July 19, 1990; Acts 1993, No. 851, §1; Acts 1995, No. 681, §1; Acts 1997, No. 929, §1; Acts 1997, No. 1475, §1, eff. July 15, 1997.