Introduced By: Senator Bates
Date Introduced : February 9, 1999
It is enacted by the General Assembly as follows:
SECTION 1. Section 19-1-3 of the General Laws in Chapter 19-1 entitled "Definitions and Establishment of Financial Institutions" is hereby amended to read as follows:
19-1-3. Applications -- General. -- (a) The director or the director's designee shall assume and exercise all powers and duties of the board of bank incorporation relative to applications filed by regulated institutions with the exceptions set forth in this title. All applications filed with the division of banking shall be acted upon by the director or the director's designee, in writing.
(b) The director or the director's designee shall cause notice of applications filed to be published for three (3) consecutive weeks in a newspaper of general circulation which shall include a provision allowing for a public comment period. During this period, the application shall be open for public inspection at the division of banking. If, at the end of the public comment period, there are no objectors to the application, the director or the director's designee may approve or deny the application. If there are any objectors, the director or the director's designee shall hold a public hearing to take testimony, under oath, and after considering this testimony, shall approve or deny the application. Any applicant aggrieved by any order regarding an application may appeal pursuant to the provisions of chapter 35 of title 42.
(c) The superintendent shall collect a filing fee with respect
to applications submitted to the division of banking for consideration.
All fees pursuant to this section shall be paid to the director
for the use of the {DEL division of banking. DEL} {ADD state. ADD}
The fees to be charged for each type of application shall be established
by the division of banking. The division of banking shall publish
a notice, in a newspaper of general circulation, of a proposed
fee structure, receive comments on the proposal and establish
the fees at a public hearing, the date of which shall be contained
in the notice of publication.
(d) The superintendent is hereby authorized to promulgate rules and regulations for the implementation of this section, including, but not limited to, the establishment of specific time periods within which a decision for the various types of applications must be rendered by the division of banking.
(e) Any party adversely affected by a decision of the director or the director's designee concerning an agreement to form or an application filed for interstate mergers, interstate acquisitions or interstate branches may appeal the director's or the director's designee's decision by filing an application of appeal with the board of bank incorporation within ten (10) days after the issuance of the decision. The board of bank incorporation shall thereupon review the decision considering the public interest, the public convenience and advantage, the effect on the tax base of the state and the effect on the citizens of the state and issue its own decision which shall govern.
(f) Anyone adversely affected by a decision of the board of bank incorporation may appeal the decision by filing an appeal with the superior court within thirty (30) days after entry of decision. A copy of the notice of appeal shall be forthwith served upon the legal counsel/clerk of the board of bank incorporation. The board of bank incorporation shall certify and file in the court a copy of the record upon which the decision was entered within thirty (30) days after receipt of the notice of appeal.
SECTION 2. Section 19-4-2 of the General Laws in Chapter 19-4 entitled "Regulatory Oversight" is hereby amended to read as follows:
19-4-2. Periodic examinations -- Access to records. -- (a) The director or the director's designee shall, whenever he or she considers it advisable, but at least once in each year, examine each regulated institution. However, the director may extend the examination period for eligible financial institutions to at least once every eighteen (18) months. For the purposes of this section, an eligible financial institution means a financial institution with total assets of less than two hundred fifty million dollars ($250,000,000) which has not experienced a change in control in the last twelve (12) month period and which is:
(1) Well capitalized;
(2) Well managed;
(3) Highly rated by state and federal banking regulatory agencies; and
(4) Not subject to a formal enforcement proceeding or order.
In addition, the director may also consider other factors that may be considered by federal banking regulatory agencies when those agencies determine whether financial institutions qualify for an extended examination cycle. At each examination the director or the director's designee shall have free access to all books, records, papers, assets and any other information deemed necessary by the director or the director's designee to ascertain the regulated institution's condition, its ability to fulfill its obligations, and whether it has complied with the provisions of law.
(b) The total cost of an examination made pursuant to this section
shall be paid by the examined party, and shall be one hundred
fifty percent (150%) of the salary and benefits of the examining
personnel engaged in the examination and shall be paid to the
director to and for the use of the {DEL division of banking. DEL}
{ADD state. ADD} The assessment shall be in addition to any taxes
and fees otherwise payable to the state. The total examination
fees under this section payable in any one year shall not exceed
one hundred thousand dollars ($100,000) for any one regulated
institution.
(c) The director or the director's designee is authorized to accept in his or her discretion the report of any examination conducted by any federal banking regulatory or federal deposit insuring agencies or other state banking regulatory agency in lieu of an examination by the director or his or her designee.
SECTION 3. Section 19-14-23 of the General Laws in Chapter 19-14 entitled "Licensed Activities" is hereby amended to read as follows:
19-14-23. Examinations and investigations. -- (a) For the purpose of discovering violations of this title or securing information lawfully required, the director or the director's designee(s) may at any time investigate the loans and business and examine the books, accounts, records and files used therein, of every licensee and person who shall be engaged in the business, whether the person shall act or claim to act as principal or agent, or under or without the authority of this title. For that purpose the director or the director's designee(s) shall have free access to the offices and places of business, books, accounts, paper, records, files, and safes, of all such persons. The director or the director's designee(s) shall have authority to require the attendance of and to examine under oath any person whose testimony may be required relative to the loans or the business or to the subject matter of any examination, investigation, or hearing.
(b) The director or the director's designee shall make an examination
of the affairs, business, office, and records of each licensee
and branch location at least once every eighteen (18) months.
The total cost of an examination made pursuant to this section
shall be paid by the licensee or person being examined, and shall
be one hundred fifty percent (150%) of the total salaries and
benefits plus one hundred percent (100%) for the travel and transportation
expenses for the examining personnel engaged in the examinations.
The fees shall be paid to the director to and for the use of the
{DEL division of banking. DEL} {ADD state. ADD} The examination
fees shall be in addition to any taxes and fees otherwise payable
to the state.
(c) The provisions of section 19-4-3 shall apply to records of examinations or investigations of licensees; however, the director or the director's designee is authorized to make public the number of valid consumer complaints as determined by the director or the director's designee filed against the licensee for a twelve (12) month period immediately preceding the request for the information.
SECTION 4. This act shall take effect upon passage.
