Trigger Dates: A Rundown of Interstate Banking Laws; from Open Policy in Alaska to Intricate Triggers in New Jersey, States Continue to Dismantle Barriers to Out-of-State Institutions
Trigger Dates: A Rundown of Interstate Banking Laws
From Open Policy in Alaska to Intricate Triggers in New Jersey, States Continue to Dismantle Barriers to Out-of-State Institutions
The following is a listing of important interstate banking laws in effect as of mid-April. This feature is compiled by Don Munro.
ALASKA: Without restriction, Alaska legislation allows out-of-state bank holding companies to acquire in-state banks.
ARIZONA: Effective on Oct. 1, 1986, out-of-state banks may acquire in-state financial institutions. The legislation will allow out-of-state institutions to set up de novo operations in the state after June 30, 1992. Arizona financial institutions formed after May 31, 1984, have protection from hostile out-of-state bidders until they are five years old.
CONNECTICUT: Under legislation passed in 1983, bank holding companies in Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont may enter Connecticut only if those states have reciprocal legislation.
DELAWARE: Laws passed in 1981 and 1983 allow out-of-state bank holding companies to establish limited-purpose, wholesale-oriented, single-office banks. The laws restrict the operations to the credit card and consumer lending business.
FLORIDA: Bank holding companies may enter on a reciprocal basis from states in Florida's regional interstate banking compact. They are Alabama, Arkansas, Georgia, Louisiana, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia, and the District of Columbia. Passed in 1984, the law stipulates that the Florida institution being acquired must be at least two years old. Under a 1972 law, Florida also permits two out-of-state bank holding companies (NCNB of North Carolina and the Northern Trust Co., Chicago) that already have grandfathered operations in the state to make further in-state acquisitions.
GEORGIA: Out-of-state bank holding companies from Alabama, Florida, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, and Virginia may acquire Georgia banks under the state's 1984 law. The state of the acquiring bank must have reciprocal legislation. The law also states that the in-state bank being acquired must be at least five years old.
IDAHO: Financial institutions from six contiguous states (Montana, Nevada, Oregon, Utah, Washington, and Wyoming) may acquire Idaho institutions on a reciprocal basis. The 1985 law also stipulates that the in-state institution must be at least four years old.
ILLINOIS: Effective on July 1, 1986, bank holding companies in the six contiguous states of Indiana, Iowa, Kentucky, Michigan, Missouri, and Wisconsin may acquire Illinois banks and bank holing companies on a reciprocal basis. A 1984 law states that out-of-state banking organizations may acquire an in-state bank with liquidity problems. The in-state institution also must have more than $1 billion in assets. In 1981, Illinois also passed a law that permits the General Bancshares Corp., St. Louis, a bank with grandfathered holdings in Illinois under the authority of the Bank Holding Company Act of 1956, to acquire additional instate institutions.
INDIANA: Out-of-state institutions from the contiguous states of Illinois, Kentucky, Michigan, and Ohio may acquire Indiana institutions on a reciprocal basis. The law, passed in 1985, became effective in January.
IOWA: Under a 1972 law, only one out-of-state institution, the Minnesota-based Norwest Corp., is permitted to acquire Iowa banks. Norwest operations in Iowa are grandfathered under the Bank Holding Company Act of 1956.
KENTUCKY: Bank holding companies from contiguous states may enter Kentucky on a reciprocal basis. According to the 1984 legislation, the in-state bank must be at least five years old at the time of acquisition. The state has set a nationwide …
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Publication information: Article title: Trigger Dates: A Rundown of Interstate Banking Laws; from Open Policy in Alaska to Intricate Triggers in New Jersey, States Continue to Dismantle Barriers to Out-of-State Institutions. Contributors: Not available. Magazine title: American Banker. Volume: 151. Publication date: April 22, 1986. Page number: 24+. © 2009 SourceMedia, Inc. COPYRIGHT 1986 Gale Group.