Louisiana Revised Statutes 6:537 – Emergency acquisitions
Terms Used In Louisiana Revised Statutes 6:537
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Bank: means any "insured bank" as such term is defined in Section 3(h) of the Federal Deposit Insurance Act, Louisiana Revised Statutes 6:532
- Bank holding company: means any company that directly or indirectly controls a bank, and, unless the context requires otherwise, includes a Louisiana bank holding company, an out-of-state bank holding company, or a foreign bank holding company. See Louisiana Revised Statutes 6:532
- Commissioner: means the commissioner of financial institutions for the state of Louisiana. See Louisiana Revised Statutes 6:532
- 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.
- Deposits: means average daily deposits for a continuous period of six months ending on the date the determination of deposits is made. See Louisiana Revised Statutes 6:532
- Federal Deposit Insurance Corporation: A government corporation that insures the deposits of all national and state banks that are members of the Federal Reserve System. Source: OCC
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Louisiana bank: means a bank that has Louisiana as its home state. See Louisiana Revised Statutes 6:532
- Out-of-state bank: means a bank other than a Louisiana bank. See Louisiana Revised Statutes 6:532
A. The commissioner may approve any acquisition of a Louisiana bank that will be lawful under the provisions of La. Rev. Stat. 6:535, if all the following exist with respect to the Louisiana bank:
(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.
B.(1) When the conservator has commenced the liquidation of a state bank under La. Rev. Stat. 6:391, the commissioner may authorize the formation of a new bank by a Louisiana or out-of-state bank holding company when a new bank will be used in a purchase and assumption or other transfer of assets and liabilities of a failed bank to maintain banking service to the community and prevent any loss on deposits of the failed bank.
(2) However, the following provisions shall govern the bid procedure in such a circumstance:
(a) The Federal Deposit Insurance Corporation shall set minimum bid requirements for assets and liabilities of the failed bank.
(b) The Federal Deposit Insurance Corporation’s calculations and estimates of the minimum bid requirements shall be determinative.
(c) Bids for such assets and liabilities may be solicited from in-state banks, Louisiana bank holding companies, Louisiana multi-bank holding companies, individuals, groups of individuals, and out-of-state banks, out-of-state bank holding companies, out-of-state multi-bank holding companies, individuals and groups of individuals.
(d) The Federal Deposit Insurance Corporation may solicit such bids as are practicable from prospective purchasers or merger partners it determines, in its sole discretion, are both qualified and capable of acquiring assets and liabilities of the bank.
(e) If the minimum bid requirements are met by any of such entities, the bank shall be acquired by the bidder whose bid was determined by the Federal Deposit Insurance Corporation, in its sole discretion, to be the least costly and most acceptable bid from among those submitted.
(f)-(i) Repealed by Acts 1989, No. 686, §2, eff. July 7, 1989.
Acts 1986, No. 577, §1, eff. July 2, 1986; Acts 1989, No. 686, §§1 and 2, eff. July 7, 1989; Acts 1995, No. 1249, §1.