| | Emergency preamble. Whereas, Acts of the Legislature do not become | effective until 90 days after adjournment unless enacted as | emergencies; and |
|
| | Whereas, without the proposed change, Maine-based lenders may | suffer competitive losses to out-of-state financial corporations; | and |
|
| | Whereas, Maine companies that would prefer to do business with | local lenders are forced to use other financial organizations; | and |
|
| | Whereas, Maine lenders are ready and able to serve these Maine | businesses but for the restraints resulting from the current | Maine banking law; and |
|
| | Whereas, this current Maine banking law was passed prior to | Maine's many recent banking code changes regarding interstate | banking; and |
|
| | Whereas, this legislation would amend Maine law so that Maine's | Superintendent of Banking may waive certain requirements that | predate these changes to Maine's banking code; and |
|
| | Whereas, without this legislation Maine-based lenders would | continue to see loan business move to out-of-state financial | organizations; and |
|
| | Whereas, in the judgment of the Legislature, these facts create | an emergency within the meaning of the Constitution of Maine and | require the following legislation as immediately necessary for | the preservation of the public peace, health and safety; now, | therefore, |
|
| Be it enacted by the People of the State of Maine as follows: |
|
| | Sec. 1. 9-B MRSA §439-A, sub-§2, as amended by PL 1997, c. 398, Pt. I, | §25, is further amended to read: |
|
| | 2. Limitations. A financial institution subject to this | Title or a service corporation established pursuant to section | 445 may not make loans or extensions of credit outstanding at one | time to a person in excess of 20% of its total capital. Total | Except as provided in paragraph A, total loans or other | extensions of credit in excess of 10% of total capital must be | approved by a majority of the governing body or the executive | committee of that institution or corporation. Any loan made in | violation of this section is subject to the remedies prescribed | in section 465-A. |
|
|