Alaska Statutes 06.05.005 – Powers of department

(a) The department shall

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Terms Used In Alaska Statutes 06.05.005

Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
bank: means a person doing a banking business, including persons subject to the law of this or another jurisdiction. See Alaska Statutes 06.05.990
banking: means performing activities that
(A) include, at a minimum, soliciting, receiving, or accepting money or its equivalent on deposit, whether the deposit is made subject to a check or is evidenced by a certificate of deposit, passbook, note, receipt, or other writing. See Alaska Statutes 06.05.990
branch bank: includes an office, agency, or other place of business located in the state and at which deposits are received, checks are paid, or money is lent, but does not include the principal office of a bank or a remote service unit. See Alaska Statutes 06.05.990
capital: means the amount of outstanding common stock plus outstanding and perpetual preferred stock. See Alaska Statutes 06.05.990
capital accounts: includes capital, surplus, undivided profits, and capital notes and debentures not maturing within one year from the date of the loan. See Alaska Statutes 06.05.990
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
department: means the Department of Commerce, Community, and Economic Development. See Alaska Statutes 06.05.990
international bank: means a corporation, partnership, or association that is organized and operates under the laws of a country other than the United States and that is authorized by its license or charter to carry on a banking business. See Alaska Statutes 06.05.990
interstate state bank: means a person organized under the laws of another state and holding a charter, license, or certificate of authority from another state to engage in a banking business. See Alaska Statutes 06.05.990
loan: includes an extension of credit resulting from direct or indirect negotiations between a lender and a debtor. See Alaska Statutes 06.05.990
property: includes real and personal property. See Alaska Statutes 01.10.060
Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
state: means the State of Alaska unless applied to the different parts of the United States and in the latter case it includes the District of Columbia and the territories. See Alaska Statutes 01.10.060
state bank: means a bank organized under this chapter. See Alaska Statutes 06.05.990

(1) exercise general supervision over all state financial institutions and their subsidiaries and affiliated corporations;

(2) adopt regulations necessary to implement this chapter, including regulations providing for the retention and preservation of state bank records;

(3) review and approve or disapprove applications for new state banks under Alaska Stat. § 06.05.344, new bank branches under the regulations adopted under branch bank or change of location” class=”unlinked-ref” datatype=”S” sessionyear=”2023″ statecd=”AK”>Alaska Stat. § 06.05.399, and international bank branches or interstate state bank branches under state bank and international bank branching” class=”unlinked-ref” datatype=”S” sessionyear=”2023″ statecd=”AK”>Alaska Stat. § 06.05.555;

(4) issue permits authorizing certain acquisitions by bank holding companies under Alaska Stat. § 06.05.235 and 06.05.570;

(5) determine for each state bank the amount of paid-in capital necessary to operate under Alaska Stat. § 06.05.305 (a);

(6) review and approve transfers of state bank ownership under Alaska Stat. § 06.05.327;

(7) perform examinations of state banks, branch banks, and subsidiaries under Alaska Stat. § 06.01.015.

(b) The department may

(1) relieve a bank from the examination requirements of Alaska Stat. § 06.01.015 if the bank’s deposits are insured by the Federal Deposit Insurance Corporation or another agency of the United States that insures bank deposits;

(2) approve under Alaska Stat. § 06.05.166 (f) the operation of a branch bank on a schedule different than normal banking days;

(3)[Repealed, Sec. 55 ch 75 SLA 2002].

(4) approve certain bank subsidiaries under Alaska Stat. § 06.05.272;

(5) approve under Alaska Stat. § 06.05.205 (d) the acceptance by a bank of the bank’s stock or of the stock of the bank’s holding company as security for a loan in certain circumstances;

(6) restrict the withdrawal of deposits from a state bank where the department finds that extraordinary circumstances make restriction necessary for the proper protection of depositors;

(7) require a state bank to

(A) maintain its capital and reserve accounts in amounts determined appropriate by the department, considering the size of the bank;

(B) observe the methods and standards that the bank adopts for determining the value of various types of assets;

(C) charge off part or all of an asset that has not been lawfully acquired;

(D) write down an asset to its market value;

(E) record liens and other interests in property;

(F) obtain a financial statement from a borrower or prospective borrower to the extent that the bank can obtain the statement;

(G) obtain insurance against damage to real property taken as security;

(H) search, or obtain insurance of, the title to real property taken as security;

(I) maintain adequate insurance against other risks as the department determines necessary and appropriate for the protection of depositors and the public;

(J) charge off that portion of an asset classified as a loss, or charge off or reserve up to 50 percent of loans classified as doubtful, in a state or federal report of examination; or

(K) charge off all debts owed to the bank in which interest is past due and unpaid for a period of six months, unless the debt principal is adequately secured and the bank is in the process of collection;

(8) require the board of directors of a bank to hold a meeting under Alaska Stat. § 06.05.438 (f);

(9) order the removal of a board member of a bank under Alaska Stat. § 06.05.435 (g);

(10) order a bank to suspend the payment of dividends under Alaska Stat. § 06.05.441 (b);

(11) require a bank to increase its capital accounts under Alaska Stat. § 06.05.305 (c);

(12) take possession of a bank in the manner provided in Alaska Stat. § 06.05.468 (c), and operate, reorganize, or liquidate the bank under Alaska Stat. § 06.05.470 – 06.05.474 after taking possession under this paragraph;

(13) issue an order under Alaska Stat. § 06.01.030 that the department determines is necessary to ensure compliance with this chapter and regulations adopted under this chapter; and

(14) exercise other powers expressly or implicitly granted in this chapter.

(c) Notwithstanding the other provisions of this chapter, the department may not adopt a regulation that

(1) places a restriction, including a requirement relating to collateralization, approval, reporting, or a monetary limit, on a credit card that a state bank issues to an officer of the state bank; or

(2) sets a time limit on the disposal of real or personal property of a banking business.

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