Section 06.05.235. Bank holding companies.

   (a) Except as provided in this section or in AS 06.05.570, it is unlawful for a person to own, control, or hold with power to vote 25 percent or more of a class of voting securities or other capital stock of one or more state banks or domestic bank holding companies subject to regulation under this chapter. However, when it becomes a bona fide necessity to avoid loss for a creditor to accept shares of stock in one or more state banks or domestic bank holding companies constituting more than 25 percent of the ownership or control of a state bank or domestic bank holding company in payment of indebtedness owing to the creditor, shares of stock may be accepted, but the shares of the one or more state banks or domestic bank holding companies exceeding that 25 percent shall be promptly disposed of under the supervision of the department.
   (b) A domestic bank holding company that maintains its principal office and place of business in the state and conducts its principal operations in the state, may acquire and own all or a portion of the voting securities or other capital stock of, or all or substantially all of the assets of, one or more banks or bank holding companies. The department may require a domestic bank holding company to post a bond with the department in an amount not more than the paid-in capital and paid-in surplus represented by the proportion of state bank stock directly or indirectly owned, held, or controlled by it, under conditions the department may prescribe, to assure full protection of the public. Before a domestic bank holding company may acquire a bank or bank holding company doing business in the state, the domestic bank holding company shall apply for and obtain a permit from the department. In considering whether to issue a permit, the department shall consider the benefits to the public, the preservation of a competitive banking industry, and the maintenance of a safe and sound bank industry. The domestic bank holding company is subject to an examination by the department or a competent person designated by the department when the department considers it necessary, but not less than once each year. The domestic bank holding company shall pay an examination fee under AS 06.01.010.
   (c)   [Repealed, Sec. 102 ch 26 SLA 1993]. 
   (d)   [Repealed, Sec. 102 ch 26 SLA 1993]. 
   (e)   [Repealed, Sec. 102 ch 26 SLA 1993]. 
   (f)   [Repealed, Sec. 102 ch 26 SLA 1993]. 
   (g) For the purpose of this section and AS 06.05.570, a trust company organized under AS 06.26 that is engaged in the business of banking shall be considered a state bank.
   (h)   [Repealed, Sec. 102 ch 26 SLA 1993]. 
   (i) The provisions of this section do not apply to a person that
        (1) acquires or holds voting securities or other capital stock of a bank or bank holding company only for a reasonable period of time in connection with the underwriting of securities;
        (2) is a state agency;
        (3) is a trustee or agent of an independent federal financial regulatory agency; or
        (4) under a plan of financial restructuring that is intended to prevent the failure of a state bank and that is approved by the department,
             (A) acquires or receives 25 percent or more of a class of voting securities or other capital stock of the bank or bank holding company subject to the plan, and owns, controls, or holds, with the power to vote, the securities acquired or received in excess of 24.99 percent of that class for a period of time that permits the distribution or resale of the securities or other capital stock on a reasonable basis; or
             (B) purchases or receives securities under the plan and, after the purchase or receipt, owns, controls, or holds, with a power to vote, less than 25 percent of a class of voting securities or other capital stock of the bank or bank holding company subject to the plan but subsequently, solely through the action or inaction of others, including the bank or bank holding company, owns, controls, or holds, with a power to vote, 25 percent or more of a class of voting securities or other capital stock of the bank or bank holding company; the exemption in this subparagraph does not apply if the department determines, after notice and opportunity for hearing under AS 06.01.030, that the ownership, control, or holding of the securities or stock exceeding 24.99 percent of a class, other than under a plan to promptly dispose of the securities or stock under the supervision of the department, permits the organization in any manner to control the election of a majority of the board of directors or trustees, or to directly or indirectly exercise a controlling influence over the management or policies of the bank or bank holding company.

Authorities

6.05.005; 6.05.237; 6.05.468;45.50.568;45.50.572

Notes

Implemented As

3 AAC 02.145
3 AAC 02.150
3 AAC 02.155
3 AAC 02.160
3 AAC 02.175

References

AS 6.05.005 .005">Sec. 06.05.005. Powers of department.
AS 6.05.237 .237">Sec. 06.05.237. Financial holding companies.
AS 6.05.468 .468">Sec. 06.05.468. Department takeover.
AS 45.50.568 Mergers and acquisitions unlawful when competition lessened.
AS 45.50.572 Exemptions.

History

(Sec. 3.167 ch 129 SLA 1951; am Sec. 1 ch 194 SLA 1959; am Sec. 1 ch 139 SLA 1961; am Sec. 1 ch 53 SLA 1962; am Sec. 1 ch 124 SLA 1966; am Sec. 18 ch 218 SLA 1976; am Sec. 16 ch 169 SLA 1978; am Sec. 1 - 4 ch 75 SLA 1982; am Sec. 1 ch 60 SLA 1983; am Sec. 37- 40, 102 ch 26 SLA 1993; am Sec. 1 ch 77 SLA 2002)