§ 13-3-204 — Operating subsidiaries; application; fee; new activities

(a) With prior written approval of the commissioner, a
bank may purchase for its own account the stock in a corporation
to perform functions that are authorized for the bank or that
are usual or incidental to the business of banking, subject to
the following conditions:
(i) The bank shall own or control eighty percent
(80%) or more of the voting stock of the subsidiary corporation;
(ii) No officer, director or shareholder of the bank
or any person in a substantially similar controlling or
governing position of its bank holding company shall otherwise
have a direct or indirect pecuniary interest in the subsidiary
corporation;
(iii) All transactions between the bank and the
subsidiary shall be subject to any limitations and restrictions
applicable under the laws of this state and the United States;
(iv) All provisions of banking law applicable to the
operations of the bank shall apply equally to the operations of
the subsidiary;
(v) Each subsidiary shall be subject to examination
and supervision by the commissioner in the same manner and to
the same extent as the bank. If the commissioner determines the
subsidiary is violating any applicable law or that operation of
the subsidiary is adversely affecting the safety and soundness
of the bank, the commissioner may order the bank to dispose of
all or any part of the subsidiary upon such terms as the
commissioner deems appropriate or take any other appropriate
administrative action authorized in this act.
(b) The bank shall file an application for permission to
operate a subsidiary with the commissioner, together with an
application fee established by rule and regulation of the
commissioner. The fee shall be deposited as provided in W.S.
13-2-210(b) and may be expended as provided in that subsection.
The application shall include:
(i) The name and location of the subsidiary and the
date the subsidiary will commence operations;
(ii) A description of the activities and nature of
the business to be conducted at the subsidiary; and
(iii) A description of the nature of the bank’s
investment in the subsidiary.
(c) The commissioner shall approve the application and
issue a certificate of authority to operate the subsidiary to
the bank within twenty (20) days after receipt of the completed
application and fee unless the commissioner finds:
(i) The proposed activity or activities to be
performed at the subsidiary are not activities the bank is
authorized to perform and are not activities that are usual or
incidental to the business of banking; or
(ii) Operation of the subsidiary will adversely
affect the safety and soundness of the bank.
(d) With the prior approval of the commissioner, an
approved subsidiary of a bank may engage in a new activity. The
bank shall file a written application for approval of the new
activity with the commissioner in the form prescribed by the
commissioner. The commissioner shall approve the application in
writing no later than twenty (20) days after receipt of the
application if the commissioner finds that the proposed new
activity is an activity that is authorized for the bank or is
usual or incidental to the business of the bank and the proposed
new activity will not adversely affect the safety and soundness
of the bank.
(e) Nothing in this section shall prohibit a bank from
establishing and operating a subsidiary in a state other than
Wyoming, provided that the bank complies with all applicable
provisions of Wyoming law, the law of the state where the
subsidiary will be located and federal law.