RS 974 - Acquisition of state bank in impaired condition
A. Notwithstanding any other provisions of this Title, upon a determination by the commissioner of financial institutions that a state bank is in such an impaired condition that it may fail, the commissioner may approve the sale of assets and assumption of liabilities, merger, or consolidation of the failing state bank or its holding company, if any, by another bank or a bank holding company domiciled in this state. In considering transactions under this Section, the commissioner shall consider the need to minimize disruption in providing banking services to the citizens of Louisiana and the need to preserve the strength and soundness of the banking system.
B. The commissioner may authorize purchases, mergers, or consolidations under this Section considering the following priorities in the following order:
(1) Between entities domiciled in the same parish;
(2) Between entities domiciled in adjoining parishes;
(3) Between entities domiciled in any parish of the state.
C. For the purposes of this Section and no other, the commissioner may determine that a state bank is a failing bank if all the following exist:
(1) It has an adjusted capital to assets ratio of less than four percent, according to the latest examination by the office of financial institutions or the Federal Deposit Insurance Corporation.
(2) It is the conclusion of the commissioner that the bank has major and serious problems or unsafe and unsound conditions which are not being satisfactorily addressed or resolved.
(3) It is the conclusion of the commissioner that the bank has a high potential for failure, although failure is not necessarily imminent.
D. Upon an acquisition of a failing bank as authorized by this Section, the acquiring or surviving entity may do any of the following:
(1) Retain and operate as a branch bank any existing office of the acquired bank.
(2) Be authorized to apply for additional branches in the parish of domicile of the acquired bank.
(3) Merge the acquired bank with a bank subsidiary of the acquirer or itself, if it is a bank at any time following the acquisition. After such a merger, the surviving bank may utilize Paragraphs (1) and (2) of this Subsection.
E. Nothing contained herein shall be construed to alter, amend, or repeal the provisions of R.S. 6:351 et seq., or of R.S. 6:517, or of Part I of Chapter 6 of this Title, R.S. 6:501, et seq.
Acts 1986, No. 975, §1, eff. July 14, 1986; Acts 1986, No. 197, §1.