The Florida Senate

658.2953  Interstate branching.--

(1)  SHORT TITLE.--This section may be cited as the "Florida Interstate Branching Act."

(2)  PURPOSE.--The purpose of this section is to permit interstate branching, effective May 31, 1997, by a merger transaction under s. 102 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994, Pub. L. No. 103-328, in accordance with this section.

(3)  LEGISLATIVE INTENT.--The Legislature finds it is in the interest of the citizens of this state, and declares it to be the intent of this section, to:

(a)  Supervise, regulate, and examine persons, firms, corporations, associations, and other business entities furnishing depository, lending, and associated financial services in this state.

(b)  Protect the interests of shareholders, members, depositors, and other customers of financial institutions operating in this state.

(c)  Preserve the competitive equality of state financial institutions as compared with federal financial institutions.

(d)  Promote the availability, efficiency, and profitability of financial services in the communities of this state.

(e)  Preserve the advantages of the dual banking system.

(f)  Cooperate with federal regulators and regulators from other states in regulating financial institutions, in improving the quality of regulation, and in promoting the interests of this state in interstate matters.

(g)  Provide the department sufficient powers and responsibilities to carry out such purposes.

(4)  DEFINITIONS.--As used in this section, unless a different meaning is required by the context:

(a)  "Bank" has the meaning set forth in 12 U.S.C. s. 1813(h), provided the term "bank" does not include any "foreign bank" as defined in 12 U.S.C. s. 3101(7), except such term includes any foreign bank organized under the laws of a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands, the deposits of which are insured by the Federal Deposit Insurance Corporation.

(b)  "Bank holding company" has the meaning set forth in 12 U.S.C. s. 1841(a)(1).

(c)  "Bank regulatory agency" means:

1.  Any agency of another state with primary responsibility for chartering and regulating banks.

2.  The Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and any successor to such agencies.

(d)  "Branch" has the meaning set forth in s. 658.12.

(e)  "Department" means the Department of Banking and Finance.

(f)  "De novo branch" means a branch of a bank located in a host state which:

1.  Is originally established by the bank as a branch.

2.  Does not become a branch of the bank as a result of:

a.  The acquisition of another bank or a branch of another bank; or

b.  The merger, consolidation, or conversion involving any such bank or branch.

(g)  "Control" shall be construed consistently with the provisions of 12 U.S.C. s. 1841(a)(2).

(h)  "Failing financial entity" means an out-of-state state bank that has been determined by its home state regulator or the appropriate federal regulatory agency to be imminently insolvent or to require immediate action to prevent its probable failure.

(i)  "Home state" means:

1.  With respect to a state bank, the state by which the bank is chartered.

2.  With respect to a national bank, the state in which the main office of the bank is located.

3.  With respect to a foreign bank, the state determined to be the home state of such foreign bank under 12 U.S.C. s. 3103(c).

(j)  "Home state regulator" means, with respect to an out-of-state state bank, the bank's regulatory agency of the state in which such bank is chartered.

(k)  "Host state" means a state, other than the home state of a bank, in which the bank maintains or seeks to establish and maintain a branch.

(l)  "Insured depository institution" has the meaning set forth in 12 U.S.C. s. 1813(c)(2) and (3).

(m)  "Interstate merger transaction" means the merger or consolidation of banks with different home states, and the conversion of branches of any bank involved in the merger or consolidation into branches of the resulting bank.

(n)  "Out-of-state bank" means a bank whose home state is a state other than this state.

(o)  "Out-of-state state bank" means a bank chartered under the laws of any state other than this state.

(p)  "Resulting bank" means a bank that has resulted from an interstate merger transaction under this section.

(q)  "State" means any state of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Marian Islands.

(r)  "Florida bank" means a bank whose home state is this state.

(s)  "State bank" means a bank chartered under the laws of this state.

(5)  INTERSTATE BRANCHING BY DE NOVO ENTRY PROHIBITED.--An out-of-state bank that does not operate a branch in this state is prohibited from establishing a de novo branch in this state.

(6)  AUTHORITY OF STATE BANKS TO ESTABLISH INTERSTATE BRANCHES BY MERGER.--Beginning May 31, 1997, with the prior written approval of the department, a state bank may establish, maintain, and operate one or more branches in a state other than this state pursuant to an interstate merger transaction in which the state bank is the resulting bank. No later than the date on which the required application for the interstate merger transaction is filed with the responsible federal bank regulatory agency, the applicant state bank shall file an application on a form prescribed by the department accompanied by the required fee pursuant to s. 658.73. The applicant shall also comply with the provisions of ss. 658.40-658.45.

(7)  INTERSTATE MERGER TRANSACTIONS AND BRANCHING PERMITTED.--

(a)  One or more Florida banks may enter into an interstate merger transaction with one or more out-of-state banks. An out-of-state bank resulting from such transaction may maintain and operate the branches of a Florida bank that participated in such transaction, provided that the conditions and filing requirements of this section are met.

(b)  Except as otherwise expressly provided in this section, an interstate merger transaction shall not be permitted if, upon consummation of such transaction, the resulting bank, including all insured depository institutions that would be "affiliates," as defined in 12 U.S.C. s. 1841(k), of the resulting bank, would control 30 percent or more of the total amount of deposits held by all insured depository institutions in this state. However, this paragraph does not apply to initial entry into this state by an out-of-state bank or bank holding company.

(c)  An interstate merger transaction resulting in the acquisition by an out-of-state bank of a Florida bank shall not be permitted under this section unless such Florida bank has been in existence and continuously operating, on the date of such acquisition, for more than 3 years.

(8)  NOTICE AND FILING REQUIREMENTS.--Any out-of-state bank that will be the resulting bank pursuant to an interstate merger transaction involving a Florida bank shall notify the department of the proposed merger within 15 days after the date on which it files an application for an interstate merger transaction with the appropriate federal regulatory agency.

(9)  EXAMINATIONS; PERIODIC REPORTS; COOPERATIVE AGREEMENTS; ASSESSMENT OF FEES.--

(a)  The department may examine any Florida branch of an out-of-state state bank which the department deems necessary for the purpose of determining whether the branch is being operated in compliance with the laws of this state and in accordance with safe and sound banking practices.

(b)  The department may enter into cooperative, coordinating or information-sharing agreements with other bank regulatory agencies or any organization affiliated with or representing one or more bank regulatory agencies to facilitate the regulation of out-of-state state branches doing business in this state.

(c)  The department may accept reports of examinations or investigations, or other records from other regulatory agencies having concurrent jurisdiction over a state bank or a bank holding company that controls out-of-state state banks that operate branches in this state in lieu of conducting its own examinations or investigations.

(d)  The department may assess supervisory and examination fees that shall be payable by state banks and out-of-state state bank holding companies doing business in this state in connection with the department's performance of its duties under this section and as prescribed by the department. Such fees may be shared with other bank regulatory agencies or any organizations affiliated with or representing one or more bank regulatory agencies in accordance with agreements between them and the department.

(10)  LAWS APPLICABLE TO INTERSTATE BRANCHING OPERATIONS.--Laws of this state regarding consumer protection, fair lending, and establishment of intrastate branches apply to any out-of-state bank branch doing business in this state to the same extent as the laws of this state apply to a state bank, except:

(a)  When federal law preempts the application of the laws of this state.

(b)  When the Comptroller of the Currency determines that the application of such laws of this state would have a discriminatory effect on the branch of a national bank in comparison with the effect the application of such state laws would have with respect to branches of a state bank.

(11)  ENFORCEMENT.--

(a)  If the department determines that a branch maintained by an out-of-state state bank in this state is being operated in violation of any provision of law of this state, or that such branch is being operated in an unsafe and unsound manner, the department may take all such enforcement actions as it would be empowered to take if the branch were a state bank, provided that the department shall promptly give notice to the home state regulator of each enforcement action taken against an out-of-state state bank and, to the extent practicable, shall consult and cooperate with the home state regulator in pursuing and resolving said enforcement action.

(b)  The department may take any action jointly with other regulatory agencies having concurrent jurisdiction over out-of-state banks and bank holding companies that operate branches in this state, or take such action independently, to carry out its responsibilities.

(12)  NOTICE OF SUBSEQUENT MERGER.--

(a)  Each out-of-state state bank that has established and maintains a branch in this state pursuant to this section shall give at least 30 days' prior written notice to the department of any merger, consolidation, or other transaction that would cause a change of control pursuant to home state or federal law with respect to such bank or any bank holding company that controls such bank.

(b)  Notwithstanding any other provisions of the financial institutions' codes or of chapter 120, in the case of a failing financial entity, the department shall have the power, with the concurrence of the appropriate regulatory agency, to issue an emergency order authorizing:

1.  The merger or interstate merger transaction of any such failing financial entity with a state bank or bank holding company that controls a state bank;

2.  Any bank to acquire assets and assume liabilities of the Florida branches of any such failing financial entity;

3.  The conversion of any such failing financial entity into a state bank or trust company;

4.  The chartering of a new state bank to acquire the Florida branches of any such failing financial entity; or

5.  The chartering of a new state trust company to acquire assets and assume liabilities and rights, powers, and responsibilities as fiduciary of such failing financial entity.

(13)  DE NOVO INTERSTATE BRANCHING BY STATE BANKS.--

(a)  With the prior approval of the department, any state bank may establish and maintain a de novo branch or acquire a branch in a state other than this state.

(b)  A state bank desiring to establish and maintain a branch in another state pursuant to s. 658.26 shall pay the branch application fee set forth in s. 658.73. In acting on the application, the department shall consider the views of the appropriate bank regulatory agencies.

(14)  ADDITIONAL BRANCHES; POWERS.--

(a)  An out-of-state bank or bank holding company that has acquired a bank in this state pursuant to s. 658.295, or by interstate merger pursuant to this section, may establish an additional branch or additional branches in this state to the same extent that any Florida bank may establish a branch or branches in this state.

(b)  An out-of-state bank may conduct only those activities at its Florida branch or branches that are authorized under the laws of this state or of the United States. However, an out-of-state bank with trust powers resulting from an interstate merger transaction with one or more Florida banks with trust powers shall be entitled to and may exercise all trust powers in this state as a Florida bank with trust powers that participated in the transaction.

History.--s. 8, ch. 96-168; s. 11, ch. 97-30; s. 61, ch. 99-3.