CHAPTER 546
S.P. 861 - L.D. 2259
An Act to Amend the Maine Banking Code Pertaining to Interlocking Directors
Emergency preamble. Whereas, Acts of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, current law prohibits directors from serving on the boards of more than one financial institution in order to lessen the possibility of a monopoly or diminished competition resulting from the influence of common directors; and
Whereas, the enactment of universal bank charter legislation in Public Law 1997, chapter 398 created 3 new limited purpose or specialty banks that do not compete with traditional financial institutions and credit unions; and
Whereas, Public Law 1997, chapter 398 did not address the prohibition on interlocking directors for limited purpose banks; and
Whereas, this legislation allows the Superintendent of Banking to waive the prohibition on interlocking directors in situations involving financial institutions and credit unions and limited purpose banks; 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 §461, as amended by PL 1999, c. 218, §24, is further amended to read:
§461. Applicability of chapter
The provisions of this chapter setting forth acts and practices that are prohibited apply to all financial institutions, savings banks, trust companies, savings and loan associations, universal banks, limited purpose banks, credit unions and financial institution holding companies subject to the laws of this State and are in addition to the prohibitions set forth elsewhere in this Title.
Sec. 2. 9-B MRSA §462, sub-§4 is enacted to read:
4. Waiver. The superintendent may grant a waiver of the prohibition contained in subsection 1 upon request by an affected party. A waiver may be granted only in situations involving a financial institution, credit union or financial institution holding company and a limited purpose bank and for good cause shown when there is no conflict resulting from competition between institutions. The superintendent may withdraw a waiver granted under this subsection upon reasonable written notice to the affected party.
Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.
Effective March 6, 2000.
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